Lockheed Martin Corporation stock research
FY2025 Q3
Lockheed Martin (LMT) Gross Margin — Quarter Ended Sep 28, 2025
Revenue increased compared to both the prior quarter and the same quarter last year. Gross profit rose substantially from the prior quarter and modestly from a year ago, while cost of revenue decreased sequentially but increased year-over-year, resulting in a gross margin that improved sharply from the prior quarter but was slightly lower than the year-ago period.
Gross margin takeaway
Quarter ended Sep 28, 2025 · FY2025 Q3
Revenue increased compared to both the prior quarter and the same quarter last year. Gross profit rose substantially from the prior quarter and modestly from a year ago, while cost of revenue decreased sequentially but increased year-over-year, resulting in a gross margin that improved sharply from the prior quarter but was slightly lower than the year-ago period.
- The most observable driver of the gross margin improvement from the prior quarter was the reduction in cost of revenue relative to revenue. A concrete item to monitor is the trend in cost of revenue, as it decreased sequentially despite higher revenue.
- Compared to the immediately preceding quarter, gross margin strengthened significantly due to higher revenue and lower cost of revenue. Relative to the same quarter one year earlier, gross margin weakened slightly as cost of revenue grew faster than revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
12.0%
Gross profit
$2.2B
Revenue
$18.6B
Cost of revenue
$16.4B
Quarter-over-quarter change
+8.0 pts
Year-over-year change
-0.3 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 |
|---|---|---|---|---|
| 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% |
| Sep 28, 2025 | $18.6B | $2.2B | $16.4B | 12.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 29, 2025
+8.0 pts
Year-over-year change
Sep 29, 2024
-0.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most observable driver of the gross margin improvement from the prior quarter was the reduction in cost of revenue relative to revenue. A concrete item to monitor is the trend in cost of revenue, as it decreased sequentially despite higher revenue.
Compared to the immediately preceding quarter, gross margin strengthened significantly due to higher revenue and lower cost of revenue. Relative to the same quarter one year earlier, gross margin weakened slightly as cost of revenue grew faster than revenue.
Monitor whether the lower cost of revenue level can be sustained in future quarters, especially given the year-over-year increase.