RBC Capital raises Lockheed Martin stock price target on strong Q3 results
RBC Capital raised its price target on Lockheed Martin (LMT) to $600 from $550 after strong Q3 2026 results. EPS of $7.97 beat estimates, and revenue rose 11%. The stock reached $596.35, trading at a P/E of 21.16. The company reported $3.0B in free cash flow, exceeding expectations, and announced a 10-year F-35 contract. Lockheed Martin expects high single-digit sales growth in 2027.
How this was made
The 30-second read
Why it matters
The earnings beat and contract award provide fresh catalysts that justify RBC Capital's target raise, likely supporting a short‑term rally.
Market read
Strong earnings and a major defense contract could lift LMT and related defense stocks.
What to watch
Potential supply‑chain constraints or geopolitical shifts could affect future contract execution.
Background
Lockheed Martin's Q3 2026 results were released, showing EPS $7.97 vs $7.52 estimate, revenue $20.7B, free cash flow $3.0B, and a new 10‑year F‑35 contract.
Ticker impact
Lockheed Martin reported Q3 2026 earnings beating estimates and announced a 10-year F-35 contract, prompting RBC Capital to raise its price target to $600.
likely upward pressure as investors price in the higher target and contract win
The combination of better‑than‑expected EPS, revenue growth, free cash flow beat, and a multi‑year defense contract provides fresh, material information that can move the stock.
Market effects
Defense and aerospace sector may see broader optimism from the contract win and earnings beat.
U.S. defense stocks could benefit in the near term.
International defense suppliers may see indirect demand uplift.
Counterpoint
If budget pressures intensify, the higher target may be premature despite the beat.
Key entities
- companyLockheed Martin
U.S. defense contractor reporting Q3 earnings and contract win.
- analyst_firmRBC Capital
Raised price target to $600.
