LMT Stock— Lockheed Martin (NYSE: LMT) Stocks fell sharply this week after the Pentagon reduced its planned purchase of F-35 fighter jets for fiscal year 2026. The cut has raised fresh concerns for the aerospace giant, whose flagship F-35 program generates nearly 30% of its total revenue.
According to a report from Bloomberg, the U.S. Air Force will request just 24 F-35 jets this year—down from 48 the year before. The Navy’s request drops to 12 aircraft, while the Marine Corps will also receive two fewer jets than in the previous budget. In total, the Department of Defense plans to allocate $3.5 billion for the aircraft and $531 million for advance material purchases.
The news triggered a sell-off in Lockheed Martin stock. Stocks dropped 6.8% in early Wednesday trading, falling below their 50-day moving average. The stock is now down 1.9% for the year, trading near $476.92 as of the latest market close.
Lockheed’s Chief Financial Officer, Evan Scott, recently told investors that a finalized contract for upcoming F-35 production lots is expected in the second half of 2025. He also hinted that the first part of the deal could be completed by the end of June. The F-35 program has been slowed by delays in the rollout of its Technology Refresh 3 (TR-3) upgrade.
Despite the recent dip, many institutional investors remain confident in Lockheed Martin’s long-term outlook. Donaldson Capital Management raised its stake in Q1 and now holds over 128,000 Stocks worth approximately $57 million. Other firms including Charles Schwab, Northern Trust, and Invesco have also added to their positions in recent months.
Analysts remain divided. While RBC and Melius downgraded the stock earlier this year, Baird upgraded Lockheed to a “Strong Buy” following its strong Q1 earnings report. The company posted earnings of $7.28 per stock, beating expectations by nearly $1. Revenue came in at $17.96 billion, ahead of the $17.83 billion analysts forecasted.
Lockheed Martin is still seen as a reliable dividend payer. The company will issue its next quarterly dividend of $3.30 per stock on June 27 to stockholders of record as of June 2. The dividend yield currently stands at 2.77%, with a payout ratio of 57%.
While defense budgets are shifting, Lockheed continues to diversify its portfolio. In parallel defense tech news, Ouster’s OS1 lidar system was approved for use in military drones by the Department of Defense. Such developments highlight broader changes in defense priorities that may benefit Lockheed’s future projects.
For now, the company remains a top defense pick, even as it navigates short-term turbulence. Analysts expect Lockheed Martin to post full-year earnings of $27.15 per stock, supported by ongoing contracts, robust dividends, and continued interest from institutional investors.