Why did Lockheed Martin's stock fall after its Q1 2026 earnings report?

Lockheed Martin's stock fell because its first-quarter 2026 sales and earnings missed analyst expectations, and the company reported a negative free cash flow.

What production issues affected Lockheed Martin in Q1 2026?

Production problems and development delays impacted key programs, including the F-16 fighter jet and C-130 transport aircraft, and led to slower F-35 jet deliveries.

How has Lockheed Martin's stock performed recently?

Lockheed Martin's stock is up 2.8% year-to-date in 2026, but it is trading 24.5% below its 52-week high from March 2026.

Home / Business and Economy / Lockheed Martin's Q1 Miss: Stock Dips on Production Woes

Lockheed Martin's Q1 Miss: Stock Dips on Production Woes

26 Apr

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Summary

Lockheed Martin's first-quarter sales and earnings fell short of analyst expectations.
Negative free cash flow of $291 million raised concerns among investors.
Production issues affected key programs like the F-16 and C-130 aircraft.

Lockheed Martin's Q1 Miss: Stock Dips on Production Woes

Lockheed Martin experienced a 3.7% drop in its stock price during morning trading on April 26, 2026. This decline followed the company's first-quarter 2026 financial report, which failed to meet analyst forecasts for both revenue and profit. Sales for the quarter were reported at $18.0 billion.

Net earnings decreased to $1.5 billion, or $6.44 per share, compared to $1.7 billion, or $7.28 per share, in the first quarter of 2025. Investors expressed particular concern over the company's negative free cash flow, which amounted to $291 million. Lockheed Martin cited production issues and delays in significant programs as reasons for the disappointing financial results.