Should You Buy the Post-Earnings Dip in Lockheed Martin Stock?
Lockheed Martin (LMT) shares tanked nearly 10% on Tuesday morning after the aerospace and defense manufacturer came in miles below EPS estimates for its fiscal Q2.
The company based out of Fort Worth, Texas earned $1.46 a share in its second financial quarter, well below $6.41 per share that analysts had forecast.
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Including today's decline, Lockheed Martin stock is down some 17% versus its year-to-date high.
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Why Did Lockheed Martin Fall Short of Earnings Estimates in Q2?
LMT missed estimates by a huge margin in its fiscal Q2 due to an unexpected $1.6 billion charge.
About $950 million of it was tied to a classified aeronautics program facing design, integration, and testing setbacks that worsened in the first half of 2025.
The remaining $570 million hit came from revised cost estimates on the firm's Canadian Maritime Helicopter Program, driven by expanded mission requirements and ongoing contract restructuring.
Investors should note, however, that both of these charges were described as one-time adjustments in Lockheed Martin's earnings release on Tuesday.
Therefore, it's well within reason to argue that the selloff in LMT shares today is rather overblown and the defense stock is, in fact, worth buying on the post-earnings weakness.
Why Are LMT Shares Worth Buying Despite Q2 Earnings Miss?
Investors should consider loading up on Lockheed Martin shares at current levels also because the NYSE-listed firm, despite falling short of Q2 earnings expectations, reaffirmed its full-year outlook for sales and free cash flow on Tuesday, signaling confidence in its operational outlook.
Additionally, the aerospace and defence manufacturer remains committed to repurchasing roughly $3 billion worth of its stock this year – which may boost shareholder value in the second half of 2025.
In the earnings release, Jim Taiclet, the company's chief executive officer, remained optimistic as well, citing increased global interest in defense systems like THAAD, PAC-3, and F-35.
Note that LMT stock currently pays a healthy dividend yield of 3.13%, which makes it all the more exciting to buying on the post-earnings pullback.
Wall Street Remains Positive on Lockheed Martin Stock
Despite the earnings miss, Wall Street firms also remain largely bullish on Lockheed Martin stock.
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LOS ANGELES--(BUSINESS WIRE)--The Schall Law Firm, a national shareholder rights litigation firm, reminds investors of a class action lawsuit against Lockheed Martin Corporation ('Lockheed Martin' or 'the Company') (NYSE: LMT) for violations of §§10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder by the U.S. Securities and Exchange Commission. Investors who purchased the Company's securities between January 23, 2024 and July 21, 2025, inclusive (the 'Class Period'), are encouraged to contact the firm before September 26, 2025. If you are a shareholder who suffered a loss, click here to participate. We also encourage you to contact Brian Schall of the Schall Law Firm, 2049 Century Park East, Suite 2460, Los Angeles, CA 90067, at 310-301-3335, to discuss your rights free of charge. You can also reach us through the firm's website at or by email at bschall@ The class, in this case, has not yet been certified, and until certification occurs, you are not represented by an attorney. If you choose to take no action, you can remain an absent class member. According to the Complaint, the Company made false and misleading statements to the market. Lockheed Martin failed to maintain appropriate internal controls over risk adjusted contracts and the reporting of its risk adjusted profit booking rate. The Company proved incapable of maintaining effective procedures to perform comprehensive reviews of programs including technical complexities and risks. The Company overstated its ability to effectively deliver contractual commitments at high quality on time and under budget. The Company was therefore likely to report significant losses. Based on these facts, the Company's public statements were false and materially misleading throughout the class period. When the market learned the truth about Lockheed Martin, investors suffered damages. Join the case to recover your losses. The Schall Law Firm represents investors around the world and specializes in securities class action lawsuits and shareholder rights litigation. This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and rules of ethics.
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