Lockheed Martin (LMT) Lands Major Defense Wins, Is The Upside Already Priced In?

What triggered fresh interest in Lockheed Martin stock

Lockheed Martin (LMT) is back in focus after historic Q2 2026 results, large long term missile contracts, and a successful AI driven fighter jet test that together sharpen visibility on its defense business.

See our latest analysis for Lockheed Martin.

Against this backdrop of contracts and technology milestones, Lockheed Martin’s share price has moved up to $587.95, with an 18.28% year to date share price return and a 41.65% total shareholder return over the past year. This points to building momentum tied to improved revenue visibility and perceived execution strength.

If the AI and defense theme has your attention, this can be a good moment to scan other opportunities in related areas using the 37 robotics and automation stocks

Bulls point to Lockheed Martin’s record backlog, long term missile contracts and AI progress. Bears focus on how much optimism is now in the US$587.95 share price. Which side does the current valuation support?

Most Popular Narrative: 12.8% Undervalued

Lockheed Martin's most followed narrative pegs fair value at $673.88 per share, above the latest close of $587.95, which implies upside in that framework.

Orbit is the long-term bet: space is becoming a must-have layer of modern defense, like “roads and rails” for information and targeting.

The Iran War has dramatically pumped revenue into the company

Read the complete narrative.

Want to see what sits behind that $673.88 fair value for Lockheed Martin? The narrative focuses on a space build out, missile demand, and richer margins that assume today’s backlog can be converted to higher quality earnings over time.

Result: Fair Value of $673.88 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, this Lockheed Martin narrative can break if margins stay pressured while revenue rises, or if heavy capital spending keeps free cash flow and shareholder returns subdued.

Find out about the key risks to this Lockheed Martin narrative.

Next Steps

With sentiment clearly split between opportunity and caution on Lockheed Martin, this is a good time to move quickly and review the full picture yourself using the 5 key rewards and 1 important warning sign.

Looking for more investment ideas beyond Lockheed Martin?

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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