Cramer Praises Lockheed Martin (LMT) Stock as ‘Sensational’ Following Historic Quarterly Performance

Key Takeaways

• CNBC’s Mad Money host Jim Cramer praised LMT as “sensational,” highlighting robust company fundamentals
• Second quarter 2026 net profits reached $1.836 billion, a massive jump from $342 million in the same period last year
• Company achieved unprecedented backlog of $230.4 billion, fueled by $65 billion in fresh orders this quarter
• Secured more than $90 billion in contracts for PAC-3 and THAAD missile defense systems
• Management elevated full-year 2026 earnings per share projection to $29.95-$30.65; shares have climbed 21.12% this year

Shares of Lockheed Martin (LMT) began Friday’s trading session at $587.12, gaining 0.7% during the day’s action, marking a 21.12% advance year-to-date that significantly outpaces the S&P 500’s 12.92% gain during the identical timeframe.

Lockheed Martin Corporation, LMT

During the August 6 Lightning Round segment on Mad Money, Jim Cramer delivered an unambiguous endorsement of the aerospace and defense giant. He described the stock as “sensational” while praising CEO Jim Taiclet as “fantastic.” Cramer’s commentary left little room for interpretation.

The second quarter 2026 financial results validate his enthusiasm. Net revenues reached $20.1 billion, representing an 11% increase from the prior year period. Earnings per share on a diluted basis totaled $7.94, a substantial improvement from $1.46 in Q2 2025. Free cash generation stood at $2.9 billion, a dramatic reversal from the negative $150 million recorded twelve months earlier.

Last year during the same quarter, the company faced $1.6 billion in program-related losses that reduced net earnings to just $342 million. This year’s Q2 2026 performance produced net earnings of $1.836 billion. The transformation extends beyond simply exceeding expectations—it represents a fundamental operational reversal.

Operating profit across business segments surged 279% year-over-year to $2.162 billion. The Missiles and Fire Control division delivered particularly strong performance, generating $4.1 billion in sales (up 19% year-over-year) while operating profit increased 24%.

Unprecedented Backlog Growth and Strategic Contract Victories

Lockheed concluded the second quarter with an all-time record backlog totaling $230.4 billion, up considerably from $193.6 billion at the close of 2025. During just the recent quarter, the defense contractor secured $65 billion in new business.

This substantial backlog equates to approximately three years of revenue based on current operational pace. Such visibility into future earnings provides a competitive advantage that few defense industry peers can match.

The individual contracts fueling this backlog are substantial. During July 2026, Lockheed obtained a seven-year contract modification valued at up to $53.86 billion for PAC-3 Missile Segment Enhancement interceptors. The previous month brought a contract worth up to $35 billion for THAAD interceptor systems. Earlier in the year, the company added a $1.9 billion extension supporting the C-130J training program.

Combined, these two missile defense programs alone represent more than $90 billion in contract value secured within weeks.

To accommodate increased production demands, Lockheed unveiled an $8 billion to $9 billion capital investment initiative extending through 2030 to expand over 20 manufacturing sites throughout the United States. New production facilities are under construction in Camden, Arkansas, and Troy, Alabama.

Analyst Community Maintains Conservative Stance

Notwithstanding the impressive financial performance, Wall Street analysts maintain a cautious position. The consensus recommendation stands at “Hold” with a mean price objective of $626.33. JPMorgan established a $620 price target. Wells Fargo placed its target at $600. TD Cowen actually reduced its target from $600 down to $560.

Wall Street Zen and DZ Bank represent notable exceptions, both upgrading LMT to “strong buy” recommendations. However, the majority of covering analysts continue adopting a wait-and-see approach.

Lockheed increased its full-year 2026 earnings per share outlook to a range of $29.95-$30.65. The free cash flow forecast was similarly elevated to $7.0 billion-$7.2 billion. Revenue projections now call for $79.75 billion-$81.75 billion, implying roughly 8% year-over-year expansion.

The corporation additionally announced a quarterly dividend payment of $3.45 per share, scheduled for distribution on September 25, yielding 2.4% annually. Institutional ownership accounts for 74.19% of outstanding shares. Victrix Investment Advisors expanded its LMT position by 15.4% during Q2, increasing its holdings to approximately $7.07 million.

LMT currently trades between a 52-week high of $692.00 and a 52-week low of $423.91.

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