Canada Receives First Lockheed Martin F-35A Fighter In Low-Key Handover

Morgan Stanley upgraded Lockheed Martin (LMT) to Overweight, raising its price target to $835 from $690. The move follows a F-35 framework agreement with the Pentagon, which Morgan Stanley believes reduces risk for investors. LMT's stock rose 5.16% on October 26, 2026, and has gained 15.89% since October 19. The company reported strong quarterly earnings, with sales up 11% and EPS beating estimates. However, the full impact of the F-35 deal depends on congressional approval.

The US Air Force awarded Lockheed Martin a $694m contract for the AGM-183A ARRW hypersonic weapon, advancing it to production. The weapon, designed by Lockheed Martin, is intended for standoff strikes against defended targets. The Air Force has not disclosed delivery details or timelines, citing operational security.

Lockheed Martin CEO Jim Taiclet stated on an earnings call that the F-35 will remain the dominant US fighter for the next decade. The company aims to add sixth-generation technologies to the F-35, achieving 80% of a new fighter's capabilities at 50% of the cost, under a 10-year Pentagon deal covering 850 airframes. Lockheed plans to leverage its Skunk Works division for these upgrades, despite recent losses to Boeing.

Lockheed Martin (LMT) is developing a longer-range version of the US Army's Precision Strike Missile (PrSM), targeting a 621-mile range. The PrSM Increment 4 variant will use advanced propulsion from L3Harris, potentially doubling the baseline range. Lockheed has invested over $300 million in propulsion and manufacturing. Flight competitions are planned for 2027-2028 to evaluate designs.

Lockheed Martin (LMT) shares rose 5.1% on October 26, 2026, driven by a Morgan Stanley upgrade and strong sales of F-35 jets and missiles. Q3 2026 earnings per share were $7.97, beating estimates, with revenue of $20.7 billion. Management raised its 2026 sales outlook to $80-82 billion and reported a record backlog of $292 billion.

Lockheed Martin Aeronautics received a $114.6M U.S. Navy order to redesign F-35 navigation systems, replacing obsolete components. The work, to be completed by January 2030, aims to prevent production disruptions. The order is part of a broader 10-year framework agreement for F-35 production and sustainment, subject to congressional approval.