LMT · 10-Q · 2026Q3 · Full report
Defense Spending Outlook
LOCKHEED MARTIN CORP · 2026-10-22 · Importance 58 · Surprise 42 · In source text
The FY 2026 National Defense Authorization Act authorized $901 billion for national defense, and the Consolidated Appropriations Act provided $839.2 billion in discretionary national defense funding through September 30, 2026. The One Big Beautiful Bill Act provides more than $150 billion in additional mandatory Defense funding through September 30, 2029. The Administration’s FY 2027 proposal seeks a $1.5 trillion defense budget, including $350 billion in proposed mandatory funding and a $760 billion weapons-procurement and modernization effort. A continuing resolution signed September 2, 2026 maintains FY 2026 funding levels through December 11, 2026, while full-year FY 2027 appropriations remain unfinished and funding levels uncertain.
Key facts
- The FY 2027 defense proposal seeks a $1.5 trillion defense budget, including $350 billion of additional mandatory funding through reconciliation. source
- The FY 2027 proposal highlights a $760 billion weapons-procurement and modernization effort, including munitions framework deals, Golden Dome missile defense, and increased F-35 purchases. source
- A continuing resolution signed September 2, 2026, generally maintains FY 2026 funding levels through December 11, 2026; full-year FY 2027 appropriations were not complete and the timing and ultimate funding level remained uncertain. source
- The Tax Act provides more than $150 billion of additional mandatory defense funding available through September 30, 2029. source
- The Consolidated Appropriations Act, signed February 3, 2026, provided $839.2 billion of discretionary national-defense funding through September 30, 2026, $8.4 billion above the President’s FY 2026 Budget Request. source
- In 2026, Lockheed Martin entered into multi-year DoW contracts intended to increase production quantities and accelerate delivery schedules for PAC-3 MSE and THAAD. source
- The FY 2026 NDAA authorized $901 billion for national defense. source
- Potential federal budget, tax-law, and regulatory changes and shifting funding priorities could materially affect defense spending and Lockheed Martin’s programs; government staffing and procurement assessments could affect current and future business prospects and financial performance. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| revenue | positive | contingent | — | The FY 2027 proposal highlights a $760 billion weapons-procurement and modernization effort, including munitions framework deals, Golden… |
| revenue | unclear | contingent | — | A continuing resolution signed September 2, 2026, generally maintains FY 2026 funding levels through December 11, 2026; full-year FY 2027… |
| revenue | positive | contingent | — | The Tax Act provides more than $150 billion of additional mandatory defense funding available through September 30, 2029. |
| revenue | positive | contingent | — | The Consolidated Appropriations Act, signed February 3, 2026, provided $839.2 billion of discretionary national-defense funding through… |
| revenue | positive | committed | — | In 2026, Lockheed Martin entered into multi-year DoW contracts intended to increase production quantities and accelerate delivery… |
| revenue | positive | contingent | — | The FY 2026 NDAA authorized $901 billion for national defense. |