How does Lockheed Martin (LMT) make money?

Lockheed Martin (LMT) generates revenue primarily from Aeronautics, which accounted for 40.1% of total revenue in TTM through Q1 2026. The company reported $75.11B in revenue and converted 6.4% of it into net profit, equivalent to roughly $4.79B in net income — what's left after the cost of revenue, operating expenses, interest, and income taxes.

What is the gross profit margin of Lockheed Martin (LMT)?

Lockheed Martin (LMT) reported a gross profit margin of 9.8% in TTM through Q1 2026, equivalent to $7.37B in gross profit on $75.11B in revenue. Gross margin measures how much of each dollar of revenue remains after the direct cost of producing or delivering the product — a higher figure typically signals pricing power, scale, or a less capital-intensive business model.

What is the operating profit margin of Lockheed Martin (LMT)?

Lockheed Martin (LMT) reported an operating profit margin of 9.9% in TTM through Q1 2026, equivalent to $7.42B in operating income. Operating margin captures profitability after research & development, sales & marketing, and general & administrative expenses — but before interest, taxes, and one-off items — and is the cleanest single read on the underlying business's efficiency.

What is the net profit margin of Lockheed Martin (LMT)?

Lockheed Martin (LMT) reported a net profit margin of 6.4% in TTM through Q1 2026, equivalent to $4.79B in net income. Net margin is the bottom-line share of revenue that survives every expense — operating costs, interest, and income taxes — and is the figure that flows directly into earnings per share.

Is Lockheed Martin (LMT) profitable?

Yes. Lockheed Martin (LMT) reported $4.79B in net income for TTM through Q1 2026, with a net profit margin of 6.4%. The company earned more from its operations than it paid out in costs, interest, and income taxes, leaving positive earnings on the bottom line.

How much does Lockheed Martin (LMT) invest in research and development?

Lockheed Martin (LMT) invested $665.00M in research and development during TTM through Q1 2026, roughly 0.9% of total revenue. R&D spending funds the company's future product pipeline and is expensed in full on the income statement rather than capitalised, which makes the operating margin sensitive to how aggressively management chooses to reinvest in innovation.

How much does Lockheed Martin (LMT) spend on capital expenditures?

Lockheed Martin (LMT) spent $1.71B on capital expenditures (CapEx) during TTM through Q1 2026, roughly 2.3% of total revenue. CapEx represents long-lived investment in property, equipment, data centres, and other physical infrastructure, and is subtracted from operating cash flow to arrive at free cash flow.

How much free cash flow does Lockheed Martin (LMT) generate?

Lockheed Martin (LMT) generated $5.66B in free cash flow during TTM through Q1 2026, a free-cash-flow margin of 7.5%. Free cash flow is the cash left after capital expenditures and represents the discretionary pool the company can use to pay dividends, repurchase shares, repay debt, or fund acquisitions without raising external capital.

What is the effective tax rate of Lockheed Martin (LMT)?

Lockheed Martin (LMT) had an effective tax rate of 15.3% in TTM through Q1 2026. The effective rate is the actual share of pre-tax income paid as income taxes and can differ materially from the statutory rate due to foreign earnings mix, tax credits (such as R&D), share-based compensation deductions, and one-off discrete items.

What are the main business segments of Lockheed Martin (LMT)?

Lockheed Martin (LMT) reports revenue across 4 reportable product segments, led by Aeronautics at 40.1% of total revenue in TTM through Q1 2026. See the revenue-by-segment table on this page for the full breakdown and how each segment feeds into the income-statement waterfall above.

How Lockheed Martin Makes Money: 2026 Visual Revenue Map

Lockheed Martin (LMT) Income Statement Flow — TTM through Q1 2026

Calculated from the four most recent reported quarters, ending March 29, 2026 (reported April 23, 2026).

Lockheed Martin discloses geographic revenue only in annual filings. to view the full breakdown.

Lockheed Martin (LMT) Revenue by Product Segment — TTM through Q1 2026

Aggregated from the four quarterly disclosures behind this TTM. Minor differences vs the company's annual filing can occur if reported segments changed mid-year.

Revenue contribution by product segment for Lockheed Martin (LMT) in TTM through Q1 2026.
Segment	Revenue (USD)	% of total
Aeronautics	$30.16B	40.1%
Rotary and Mission Systems	$16.98B	22.6%
Missiles And Fire Control	$14.73B	19.6%
Space	$13.25B	17.6%
Total	$75.11B	100%

Aeronautics$30.16B
Rotary and Mission Systems$16.98B
Missiles And Fire Control$14.73B
Space$13.25B
Total$75.11B

Revenue Breakdown — TTM through Q1 2026

In TTM through Q1 2026, Lockheed Martin (LMT) reports revenue across 4 operating segments; the largest segment was Aeronautics at 40.1%, followed by Rotary and Mission Systems (22.6%) and Missiles And Fire Control (19.6%).

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