Bernstein SocGen Group raised its price target for Lockheed Martin (NYSE:LMT) to $654.00 from $586.00 on Friday, while retaining a Market Perform rating on the aerospace and defense contractor.
The upward revision followed Lockheed Martin’s fourth-quarter results, where the company reported earnings per share of $5.80. That figure exceeded Bernstein’s internal estimate of $5.01. Revenues in the quarter were $20.3 billion, topping both the consensus projection of $19.8 billion and Bernstein’s forecast of $19.9 billion.
Operating performance also outpaced expectations. Lockheed Martin reported an operating margin of 11.5% for the period, higher than the consensus and Bernstein estimates of 11.2%. According to Bernstein’s research note, the company’s guidance for 2026 came in "well above" both consensus and Bernstein projections.
Bernstein highlighted the absence of significant charges for a second consecutive quarter, an outcome the firm interpreted as a potential sign that earlier execution challenges are being resolved. The research note emphasized robust backlog expansion across all Lockheed Martin segments, citing an overall book-to-bill ratio of 1.7.
In light of the stronger results and guidance, Bernstein increased its EV/EBITDAP multiple on Lockheed Martin to 16x from 15.2x. The firm attributed the multiple increase to a "stronger long-term growth outlook and less execution risk after two solid quarters," and it raised growth expectations specifically for the company’s Missiles and Fire Control (MFC) and Space segments.
Other firm-level developments cited alongside Bernstein’s action included Lockheed Martin’s own fourth-quarter 2025 earnings release, where the company again reported EPS of $5.80 versus an analyst forecast of $5.75 and revenues of $20.3 billion against an anticipated $19.85 billion.
Separately, Lockheed Martin secured two defense contracts collectively valued at approximately $37.9 million. One of those awards was an $18.8 million modification related to a three-dimensional expeditionary long-range radar system.
Market peers also adjusted their valuation targets around the same period. UBS raised its price target on Lockheed Martin to $663 while maintaining a Neutral rating, pointing to growth in the MFC division. Truist Securities increased its price target to $695, calling out strong growth in MFC and noting the segment is expected to expand about 14% year-over-year at the midpoint of guidance.
Taken together, the company’s earnings beat, contract activity and several upward revisions to price targets contributed to a reassessment of both near-term execution risk and longer-term growth potential across Lockheed Martin’s key business lines.