Lockheed Martin (LMT) Could Be 14% Undervalued Following Its Raised 2026 Outlook
Lockheed Martin (LMT) is back in focus after raising its full year 2026 earnings guidance, signaling higher expected sales tied to F-35 production, radars, and Rotary and Mission Systems programs.
See our latest analysis for Lockheed Martin.
The raised guidance and record contract wins appear to be feeding into price momentum, with a 30 day share price return of 14.82% and a 1 year total shareholder return of 42.06%. The 5 year total shareholder return of 79.37% reflects a longer track record of compounding outcomes for investors.
If Lockheed Martin’s recent moves have your attention, this can be a good moment to widen your radar using the Simply Wall St tool for 35 power grid technology and infrastructure stocks
Bulls point to Lockheed Martin’s upgraded 2026 outlook and record backlog, while bears flag the sharp run in the share price and execution risk on huge programs. Which case does the current valuation lean toward next?
Most Popular Narrative: 13.5% Undervalued
Against a last close of $582.60, the most followed narrative on Simply Wall St places Lockheed Martin’s fair value at $673.88, suggesting meaningful upside that the current price has not fully reflected yet.
Aero + Defense is the cash engine: demand is strong, backlog is huge, and missiles are in high demand.
But recent results show a gap: revenue is growing, yet profits/margins didn’t grow as cleanly, especially in Space and some mission systems.
Curious how that fair value is built? The narrative leans on steady revenue growth, firmer margins and a richer earnings multiple than today. The real interest lies in how those three ingredients are balanced.
Result: Fair Value of $673.88 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, Lockheed Martin’s story can break if margin pressure persists or if growing dependence on large government contracts leads to delays, funding shifts, or tougher terms.
Find out about the key risks to this Lockheed Martin narrative.
Next Steps
If the mixed signals around Lockheed Martin have you thinking, this is the moment to check the data yourself and form a clear stance using the 5 key rewards and 1 important warning sign
Looking for more investment ideas beyond Lockheed Martin?
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- Target dependable cash generators by scanning companies in the 9 dividend fortresses that can help anchor an income focused portfolio.
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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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