Why Shares of Lockheed Martin (LMT) Are Rising Today

Recent Developments for Lockheed Martin

Lockheed Martin (NYSE:LMT), a major player in the security and aerospace industry, saw its stock surge by 4.2% during the afternoon after President Trump unveiled a proposal for a substantial increase in the U.S. defense budget, aiming for $1.5 trillion in fiscal year 2027.

This proposed budget far exceeded earlier expectations and marked a potential 50% jump from the previously anticipated $1 trillion. The announcement sparked a strong rebound in defense sector stocks, erasing losses from the prior day when the administration had discussed possible limits on dividends and share buybacks for defense firms. Investors quickly returned to the sector, helping Lockheed Martin regain its recent declines. Other companies in the industry, such as Northrop Grumman and L3Harris Technologies, also experienced notable gains.

Following the initial rally, Lockheed Martin's shares settled at $518.84, reflecting a 4.4% increase compared to the previous closing price.

Market Perspective

Historically, Lockheed Martin's stock has shown limited volatility, with only three instances in the past year where price movements exceeded 5%. Given this context, the recent uptick suggests the market views the budget news as significant, though it may not fundamentally alter the company's outlook.

The most notable price drop in the past year occurred twelve months ago, when shares fell 8.9% after the company reported disappointing fourth-quarter results. Both revenue and earnings missed analyst forecasts, and the annual earnings per share guidance was also below expectations. The shortfall was largely due to a $1.3 billion loss in the Missiles and Fire Control division, leading to a weaker-than-expected quarter overall.

Since the start of the year, Lockheed Martin has gained 4.4%, with its current price of $518.84 approaching its 52-week peak of $522.04 set in January 2026. An investor who purchased $1,000 worth of Lockheed Martin shares five years ago would now see their investment grow to $1,544.

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