Lockheed Martin Stock Surges Premarket as U.S. Strike on Iran Lifts Defense Shares

Lockheed Martin Corporation (LMT) shares surged sharply in premarket trading Monday after the United States and Israel launched coordinated military strikes on Iran over the weekend, triggering one of the biggest geopolitical shocks in recent memory. The attack, which President Trump framed as aimed at regime change and eliminating Iran’s nuclear capabilities, sent Dow futures tumbling more than 800 points while defense stocks moved decisively in the opposite direction.

As global markets braced for the fallout, investors rushed into defense names, betting that an escalating conflict would translate into accelerated government spending on military hardware and systems. The development adds fresh momentum to a sector that was already on a powerful run heading into this weekend’s events.

Defense Stocks Rally as Geopolitical Tensions Escalate

The U.S. attack on Iran promises to intensify already-elevated geopolitical tensions, which have been pushing countries around the world to dramatically increase their national defense budgets. Major defense contractors, including Lockheed Martin, Northrop Grumman, RTX Corp., and Elbit Systems, have seen their shares climb steadily over the past year as investors priced in rising demand for missile defense systems, fighter jets, and precision-guided munitions.

The logic driving the trade is straightforward: prolonged conflict generates contracts, contracts generate revenue, and revenue fuels earnings growth for the companies that design and build military hardware. Northrop Grumman, the maker of the stealth bomber and a wide range of drones, missiles, and radar technologies, saw its stock rise roughly 46% since the initial June Iran strike, while the iShares U.S. Aerospace and Defense ETF gained 35% over the same period.

Broader impacts are expected to ripple across the sector, touching munitions and systems makers such as RTX, General Dynamics, AeroVironment, and Kratos Defense and Security Systems. European peers including Rheinmetall, BAE Systems, Thales, and Leonardo are also expected to benefit, as defense departments worldwide accelerate their own military buildups in response to the shifting threat landscape.

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LMT Stock Brief: Premarket Surge and Key Metrics

Lockheed Martin shares were trading at $702.00 in premarket at 5:18 AM EST on March 2, 2026, a gain of $47.23, or 7.21%, after closing at $658.08 on February 27, itself up 2.56% on the day. The stock has been one of the standout performers in the defense sector, posting a year-to-date return of 36.06% and a one-year return of 51.74%, dramatically outpacing the S&P 500’s 17.36% gain over the same period.

The company carries a market cap of approximately $152.3 billion, with a trailing P/E of 30.58 and a forward P/E of 21.93, reflecting the market’s confidence in its earnings growth trajectory. In its most recent quarter, Q4 FY25, Lockheed reported revenue of $20.32 billion and earnings per share of $5.80, slightly ahead of the $5.75 consensus estimate.

Analyst price targets range from $517 to $740, with a one-year average target of $657.58, a figure the stock has already surpassed ahead of the open. With the Trump administration having already proposed a 2027 military budget of $1.5 trillion before this conflict began, analysts expect supplemental spending on top of that base to become virtually inevitable, positioning Lockheed and its peers for what could be a multi-year revenue story rather than a short-term geopolitical trade.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.