Lockheed Martin stock is back in focus after Q4 revenue grew 9% year over year and backlog hit a record US$194 billion. New awards tied to PAC-3 missiles and a Trident II LE2 modification signal steady demand amid tense geopolitics. Shares trade near US$641.63 after a roughly 44% three-month surge. For Canadians following LMT, the setup blends strong orders with a higher valuation and rising expectations into the next LMT earnings date on April 21, 2026.

Q4 growth and record backlog

Q4 revenue rose 9% year over year, supported by strength across Missiles and Fire Control and Space. TTM net margin is about 6.7% and EPS sits near US$21.5. The stock’s PE is roughly 30, which prices in steady cash generation and visibility from long-cycle programs. Commentary around Q4 also highlighted rising global demand tied to security needs source.

Backlog reached a record US$194 billion, offering multi-year revenue coverage across Aeronautics, Missiles and Fire Control, Rotary and Mission Systems, and Space. For investors, this adds stability through contract schedules and milestone payments. It also helps offset timing risk from appropriations and deliveries. We view backlog quality as a core support for Lockheed Martin stock, especially as new production lots and upgrades enter the pipeline.

Missile awards and demand drivers

Recent awards point to steady PAC-3 missiles production work as allies strengthen air defense. Additional funding supports throughput and long-lead materials across sites. This reinforces medium-term sales for interceptors and fire control systems. With rising NATO and Indo-Pacific demand, we see PAC-3 as a durable pillar for Lockheed Martin stock during the current procurement cycle.

Lockheed Martin Space received an US$18.8 million contract modification related to Trident II D5 Life Extension 2, underscoring the role of strategic systems sustainment in the backlog. While small, it adds to cumulative awards in 2026 and supports Space segment visibility source. Together with PAC-3, these defense contracts deepen order cover into the next fiscal periods.

Technicals and valuation check

The three-month gain is about 44%, with RSI at 63.99 and ADX at 42.22 indicating a strong trend. MACD histogram is slightly negative, hinting at cooling momentum. Price sits near the Bollinger middle band at US$640.86, with upper band around US$674.98. We would watch US$638 to US$647 intraday levels for confirmation, given ATR of roughly US$18.

At a TTM PE near 30 and price-to-sales near 2.0, the stock trades at a premium to many defense peers. Dividend yield is about 2.0% on US$13.35 per share, supported by solid free cash flow but a higher payout ratio. Debt-to-equity is elevated near 3.23. For Lockheed Martin stock, premium pricing assumes sustained orders and execution without major schedule slips.

What Canadian investors should watch

The shares trade in U.S. dollars, so Canadians face FX risk on both price and dividends. Account type matters for taxes on U.S. dividends. Liquidity is strongest on U.S. exchanges. Consider using limit orders around key technical levels and review FX conversion costs. Align position size with volatility, given ATR near US$18 and recent large moves.

Canada’s defense modernization, including fighter aircraft and NORAD upgrades, can support long-term orders and local supply chain work. These programs help underpin backlog quality for Lockheed Martin stock. Watch the April 21, 2026 LMT earnings for updates on production cadence, international demand, and cash flow. Contract timing and budget headlines remain key short-term catalysts for the name.

Final Thoughts

We see a balanced setup for Lockheed Martin stock. The Q4 print showed 9% growth and strong segment performance. A record US$194 billion backlog, new PAC-3 work, and the Trident II LE2 modification extend revenue visibility. Technicals show a strong trend with signs of cooling, so we would watch the US$638 to US$647 zone and the Bollinger middle band around US$641 for near-term direction. Valuation is full at roughly 30 times TTM earnings, which keeps execution risk in focus. For Canadians, manage FX and account-level tax treatment. Into the April 21, 2026 LMT earnings date, track book-to-bill, cash flow, and any changes to delivery schedules. A buy-on-dips plan with tight risk controls fits the current profile.

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The content shared by Meyka AI PTY LTD is solely for research and informational purposes.  Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.