Defense firms report robust Q3 results and new contract wins, with General Dynamics and Leonardo DRS leading on financial growth while Lockheed Martin and L3Harris advance key production and supply programs.
Q3 2026 results on Oct. 29 showed revenue of $1.1 billion up 11%, net earnings up 60% to $115 million, a 1.5x book-to-bill and record $5.6 billion funded backlog. The company raised full-year 2026 revenue guidance to $3,950-$3,985 million and adjusted EPS guidance to $1.50-$1.53 from $1.34-$1.39, plus a $0.09 dividend payable Nov. 25. A guidance raise is a hard positive fact.
Q3 2026 results reported Oct. 30 show revenue of $14.6 billion (up 12.9%), operating earnings up 14.7% and EPS of $4.49, with a remarkable $98.8 billion in orders and a 6.8-to-1 book-to-bill ratio. The $220.3 billion backlog supports the revenue outlook well beyond the quarter. The report is already a week old, so much of the surprise may be priced in.
L3Harris announced $121 million in U.S. Army production orders for its LOCODA radio on Nov. 2 and a $36 million order for the Hawkeye 4 Lite satellite terminal on Nov. 3. These are contracts with stated values, but at roughly $157 million combined they are modest for a company of L3Harris's size.
On Nov. 10 Lockheed Martin announced it delivered its 100,000th GMLRS rocket and is producing nearly 14,000 rockets per year, ahead of schedule, with a new solid rocket motor qualification planned for 2027. This demonstrates production capacity growth but is a program milestone, not a change to reported financials or guidance.
Raytheon announced a third successful flight test of its DeepStrike JR3 training rocket on Nov. 9 and a DARPA phase one contract for the PICASSO program on Nov. 3. Neither announcement includes a contract value or financial figures, so the near-term price effect is limited.
Major defense contractors are reporting strong operational performance, highlighted by General Dynamics' $220.3 billion backlog and Leonardo DRS's raised 2026 guidance. Meanwhile, Lockheed Martin, RTX, and L3Harris have secured key production milestones and U.S. Army contracts, signaling sustained demand across the sector.
On Oct. 29 it reported 11% revenue growth, 60% net earnings growth, raised its 2026 revenue and EPS guidance, and declared a $0.09 per share dividend payable Nov. 25, 2026.
Its third-quarter 2026 results showed 12.9% revenue growth and unusually large orders of $98.8 billion, mostly for submarines, leaving a $220.3 billion backlog.
It announced $121 million in Army orders for its LOCODA radio on Nov. 2 and a $36 million order for the Hawkeye 4 Lite terminal on Nov. 3, both supporting Army command-and-control programs.
Lockheed Martin said on Nov. 10 it delivered its 100,000th GMLRS rocket and now produces nearly 14,000 rockets per year, ahead of schedule, with a new second-source rocket motor in testing.
A successful third flight test of the DeepStrike JR3 training rocket at Yuma Proving Ground on Nov. 9 and a DARPA phase one contract for photonic signal-processing technology on Nov. 3; no values were disclosed.