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Corporate Score 55 Bearish

Lockheed Martin Shares Slide as Pentagon Trims F-35 Procurement

Apr 23, 2026 16:23 UTC
LMT
Short term

Lockheed Martin (LMT) saw its stock price decline following reports that the U.S. Department of Defense is reducing its order for F-35 stealth fighters. The budget request for fiscal year 2026 suggests a significant decrease in aircraft volume compared to previous forecasts.

  • F-35 order request cut from 48 to 24 aircraft
  • Estimated revenue loss of $3.5 billion for FY 2026
  • LMT stock price declined 5.5% in early trading
  • Additional $531 million requested for aircraft parts
  • Revenue hit represents roughly 5% of total annual business
  • Potential upside from F-55 and F-22 contract upgrades

Lockheed Martin shares fell 5.5% Wednesday morning after news surfaced that the U.S. Pentagon is scaling back its procurement request for the F-35 stealth fighter jet for the 2026 fiscal year. The move signals a shift in immediate spending priorities for the Department of Defense. According to procurement documents, the Defense Department requested 24 aircraft, a sharp decline from the 48 planes previously forecast. This reduction implies a $3.5 billion decrease in expected revenue for the company for this specific order cycle. The cuts primarily affect the F-35A conventional takeoff-and-landing variants for the Air Force, though Navy F-35Cs and Marine Corps F-35Bs are also impacted. Despite the reduction in airframe orders, the Pentagon requested an additional $531 million to purchase parts for the next batch of F-35s, indicating that the program remains a long-term priority. From a financial perspective, the $3.5 billion haircut represents approximately 5% of Lockheed Martin's $71 billion in total business conducted last year. Market analysts suggest the immediate volatility may be offset by other opportunities. The company remains in contention for potentially tens of billions of dollars in new contracts related to the F-55 and upgraded F-22 programs, which could mitigate the impact of the F-35 procurement slowdown.

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