Lockheed Martin Corporation stock research
FY2026 Q1
Lockheed Martin (LMT) Gross Margin — Quarter Ended Mar 29, 2026
Revenue was lower than the previous quarter but unchanged from the same quarter last year. Gross profit decreased compared to both periods, resulting in a gross margin that improved marginally from the prior quarter but weakened from a year ago.
Gross margin takeaway
Quarter ended Mar 29, 2026 · FY2026 Q1
Revenue was lower than the previous quarter but unchanged from the same quarter last year. Gross profit decreased compared to both periods, resulting in a gross margin that improved marginally from the prior quarter but weakened from a year ago.
- Compared to the previous quarter, cost of revenue declined at a slightly faster rate than revenue, leading to a marginal improvement in gross margin. Compared to the same quarter last year, cost of revenue increased while revenue remained flat, causing gross margin to weaken.
- Gross margin improved marginally from the prior quarter but declined from the year-ago period. Revenue and gross profit were both lower sequentially, while year-over-year revenue was stable but gross profit decreased.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
11.5%
Gross profit
$2.1B
Revenue
$18.0B
Cost of revenue
$15.9B
Quarter-over-quarter change
+0.1 pts
Year-over-year change
-1.4 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 |
|---|---|---|---|---|
| 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% |
| Mar 29, 2026 | $18.0B | $2.1B | $15.9B | 11.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2025
+0.1 pts
Year-over-year change
Mar 30, 2025
-1.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Compared to the previous quarter, cost of revenue declined at a slightly faster rate than revenue, leading to a marginal improvement in gross margin. Compared to the same quarter last year, cost of revenue increased while revenue remained flat, causing gross margin to weaken.
Gross margin improved marginally from the prior quarter but declined from the year-ago period. Revenue and gross profit were both lower sequentially, while year-over-year revenue was stable but gross profit decreased.
Monitor the trajectory of cost of revenue relative to revenue, particularly in light of the company's risk disclosures regarding contract cost overruns and reimbursement risks.
Peer context
Latest available gross margins for related public companies.
| Company | Gross margin |
|---|---|
| Lockheed Martin Corporation (LMT) | 11.5% |