Truist Securities has increased its 12-month price target for Lockheed Martin (NYSE:LMT) to $695.00, up from $605.00, and maintained a Buy rating on the defense contractor’s stock. At the time of the update, the share price stood at $631.64, about 1% below its 52-week high of $645.67, according to InvestingPro data.
The analyst upgrade follows Lockheed Martin’s fourth-quarter 2025 financial report. Truist highlighted particularly strong momentum in the company’s Missiles and Fire Control - MFC - segment, which is projected to grow 14% year-over-year at the midpoint of guided ranges. That segment growth was a central factor in the firm’s decision to raise its target.
On a trailing twelve-month basis, Lockheed reported revenue of $75.05 billion, representing 5.64% growth over the comparable period. However, InvestingPro data also shows that the company has relatively weak gross profit margins, measured at 10.15%.
Truist noted that Lockheed Martin’s backlog has climbed to record levels, driven by broad-based global demand, and the research firm expects backlog to continue rising year-over-year in 2026. Alongside backlog strength, Truist pointed to improving cash generation even as the company increases research and development spending and capital expenditures.
Management has indicated that financial resources exist to pursue potential mergers and acquisitions, according to Truist’s write-up. The research house identified Lockheed Martin as its preferred large-cap investment within the defense sector and cited additional growth opportunities from the Golden Dome program and expansion within the unmanned systems market.
Lockheed Martin’s reported fourth-quarter 2025 results showed an earnings-per-share outcome of $5.80, slightly above the analyst consensus of $5.75, representing a positive surprise of roughly 0.87%. The company also posted quarterly revenue of $20.3 billion, exceeding the anticipated $19.85 billion. Those results were emphasized as evidence of the company’s solid quarter.
While the earnings beat and revenue outperformance were focal points for analysts and investors, Truist’s target revision rests on a combination of segment-level growth, record backlog, and signs of improving cash generation despite elevated R&D and capital spending. Market participants will likely continue to watch quarterly results and guidance for confirmation of these trends.