Lockheed Martin Corp (NYSE:LMT) Reports Mixed Q3 2025 Results with EPS Beat and Revenue Miss

Lockheed Martin Corp (NYSE:LMT) reported third-quarter 2025 financial results that presented a mixed picture for investors, with earnings per share surpassing expectations while revenue came in slightly below analyst forecasts. The market reaction appeared cautiously optimistic, with pre-market trading showing modest gains following the announcement.

Earnings Performance Versus Estimates

The defense contractor's quarterly results revealed a notable divergence between top-line and bottom-line performance relative to Wall Street expectations. The company reported non-GAAP earnings per share of $6.95, comfortably exceeding the analyst consensus estimate of $6.42. This represents an earnings beat of approximately 8.2%, demonstrating stronger profitability than anticipated.

However, the revenue picture was less robust. Third-quarter sales reached $18.61 billion, falling short of the $18.74 billion analysts had projected. This represents a revenue miss of nearly 0.7%, though the company still achieved healthy year-over-year growth of 8.8% compared to the $17.1 billion reported in the same quarter last year.

Market Reaction and Price Action

Trading activity following the earnings release indicated measured investor sentiment:

• Pre-market trading showed an increase of approximately 0.81%
• The stock has gained 5.3% over the past month
• Weekly performance remained relatively flat with a 0.4% increase
• The two-week period showed a slight decline of 1.6%

This price action suggests that investors are weighing the positive earnings surprise against the revenue shortfall, resulting in tempered optimism rather than enthusiastic buying.

Financial Highlights and Corporate Outlook

The earnings release highlighted several key financial metrics that underscore the company's operational strength:

• Net earnings remained stable at $1.6 billion compared to the same quarter last year
• Cash from operations showed significant improvement, increasing to $3.7 billion from $2.4 billion in Q3 2024
• Free cash flow surged to $3.3 billion, up from $2.1 billion in the prior year period
• The company returned $1.8 billion to shareholders through dividends and share repurchases

Looking forward, management provided full-year revenue guidance of $74.5 billion at the midpoint, which aligns closely with analyst expectations of $75.07 billion for 2025. For the upcoming fourth quarter, analysts project revenue of $19.82 billion and earnings that will contribute to the full-year performance.

Operational Context

As a global security and aerospace leader, Lockheed Martin continues to benefit from sustained defense spending across its diversified portfolio, which includes aeronautics (notably the F-35 program), missiles and fire control systems, rotary and mission systems, and space technologies. The company's improved cash flow generation indicates efficient operations and working capital management, providing flexibility for future investments and shareholder returns.

For detailed earnings estimates and historical performance data, readers can access additional information through the earnings and estimates page for LMT.

Disclaimer: This article presents factual information about Lockheed Martin's financial results and should not be construed as investment advice. Investors should conduct their own research and consult with financial advisors before making investment decisions.