Why Is Lockheed Martin Stock Rising Today? Trump Calls for $1.5 Trillion Defense Budget

Lockheed Martin Corporation (LMT) stock surged dramatically in premarket trading on Thursday, January 8, 2026, jumping 7.77% to $535.22 as of 8:12 AM EST. The rally comes after President Donald Trump announced plans for a massive $1.5 trillion defense budget for 2027, a 50% increase from the previously planned $1 trillion.

Trump described this as necessary to build a “Dream Military” that will keep America “SAFE and SECURE, regardless of foe,” according to his Truth Social post late Wednesday. The announcement triggered a broader rally across defense stocks, with Lockheed Martin leading major aerospace and defense contractors higher.

Trump’s Defense Spending Push Sends Military Stocks Higher

President Trump’s announcement represents a significant expansion of military spending, increasing the proposed 2027 defense budget by $500 billion over previous plans. In his Truth Social statement, Trump explained that after negotiations with senators, congressmen, secretaries, and other political representatives, he determined the larger budget was necessary given current global conditions.

The timing of the announcement follows recent military actions, including U.S. forces capturing Venezuelan President Nicolas Maduro over the weekend, and comes amid Trump’s renewed rhetoric about acquiring Greenland and taking control of Venezuelan oil reserves.

The defense industry responded enthusiastically to the news, with Lockheed Martin leading a sector-wide rally. Other major defense contractors also posted strong gains in premarket trading: Northrop Grumman rose 8.3%, RTX advanced 4.8%, and Kratos Defense jumped 12%.

European defense stocks also benefited, with the Stoxx Europe Aerospace and Defense index adding 1.1%, while companies like Renk and Leonardo initially surged over 4% before moderating. Asian defense manufacturers including Mitsubishi Heavy and Bharat Electronics also posted gains on the news.

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LMT Stock Jumps Toward 52-Week High as Investors React

As of the premarket session at 8:12 AM EST, Lockheed Martin shares traded at $535.22, up $38.58 or 7.77% from the previous close of $496.87. The previous trading session on January 7 had seen LMT drop 4.82%, closing at $496.87 after falling $25.17.

The premarket surge pushed the stock near its 52-week high of $538.73, demonstrating strong momentum. With a market capitalization of approximately $116 billion, Lockheed Martin remains one of the largest aerospace and defense contractors globally.

The company’s financial metrics show solid fundamentals supporting the rally. Lockheed Martin has a trailing P/E ratio of 27.70 and a forward P/E of 16.81, with earnings per share of $17.94. The company delivered strong third-quarter results with revenue of $18.61 billion and earnings of $1.62 billion. Analyst price targets range from $430 to $590, with an average target of $525.26. The stock offers a dividend yield of 2.78% with a forward dividend of $13.80.

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.