Lockheed Martin Corporation stock research
FY2025 Q2
Lockheed Martin (LMT) Gross Margin — Quarter Ended Jun 29, 2025
Revenue remained relatively stable, but gross profit declined markedly as cost of revenue rose sharply. Consequently, gross margin weakened compared to both the prior quarter and the same quarter a year earlier.
Gross margin takeaway
Quarter ended Jun 29, 2025 · FY2025 Q2
Revenue remained relatively stable, but gross profit declined markedly as cost of revenue rose sharply. Consequently, gross margin weakened compared to both the prior quarter and the same quarter a year earlier.
- The strongest observable margin driver was a substantial increase in cost of revenue, which outpaced the modest revenue change and directly compressed gross profit. The filing indicates cost increases across both product and services segments.
- Compared with the immediately preceding quarter and the same quarter last year, gross profit was substantially lower and gross margin weakened significantly, while revenue was essentially flat. The key difference was the higher cost of revenue, which rose notably in the current quarter.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
4.0%
Gross profit
$734.0M
Revenue
$18.2B
Cost of revenue
$17.4B
Quarter-over-quarter change
-8.9 pts
Year-over-year change
-7.7 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Sep 29, 2024 | $17.1B | $2.1B | $15.0B | 12.4% |
| Dec 31, 2024 | $18.6B | $690.0M | $17.9B | 3.7% |
| Mar 30, 2025 | $18.0B | $2.3B | $15.6B | 12.9% |
| Jun 29, 2025 | $18.2B | $734.0M | $17.4B | 4.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 30, 2025
-8.9 pts
Year-over-year change
Jun 30, 2024
-7.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver was a substantial increase in cost of revenue, which outpaced the modest revenue change and directly compressed gross profit. The filing indicates cost increases across both product and services segments.
Compared with the immediately preceding quarter and the same quarter last year, gross profit was substantially lower and gross margin weakened significantly, while revenue was essentially flat. The key difference was the higher cost of revenue, which rose notably in the current quarter.
Monitor the trajectory of cost of revenue, particularly product and services costs, for signs of stabilization or further escalation.