Lockheed Martin Corporation stock research
FY2025 Q4
Lockheed Martin (LMT) Gross Margin — Quarter Ended Dec 31, 2025
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Gross margin weakened from the prior quarter but improved substantially from the same quarter a year earlier.
Gross margin takeaway
Quarter ended Dec 31, 2025 · FY2025 Q4
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Gross margin weakened from the prior quarter but improved substantially from the same quarter a year earlier.
- The most significant margin driver was the year-over-year improvement, as revenue grew while cost of revenue rose only modestly, leading to a much higher gross profit.
- Compared to the immediately preceding quarter, revenue and gross profit were higher, but gross margin was lower due to a proportionally larger increase in cost of revenue. Compared to the same quarter one year ago, all metrics were higher, with gross margin showing a marked improvement.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
11.4%
Gross profit
$2.3B
Revenue
$20.3B
Cost of revenue
$18.0B
Quarter-over-quarter change
-0.6 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 |
|---|---|---|---|---|
| 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% |
| Dec 31, 2025 | $20.3B | $2.3B | $18.0B | 11.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 28, 2025
-0.6 pts
Year-over-year change
Dec 31, 2024
+7.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most significant margin driver was the year-over-year improvement, as revenue grew while cost of revenue rose only modestly, leading to a much higher gross profit.
Compared to the immediately preceding quarter, revenue and gross profit were higher, but gross margin was lower due to a proportionally larger increase in cost of revenue. Compared to the same quarter one year ago, all metrics were higher, with gross margin showing a marked improvement.
Monitor the relationship between revenue growth and cost of revenue growth, as it directly influences gross margin direction.