Lockheed MartinLMT -1.42%73 Operating Margin % is 11.45% as of Mar. 2026, which is 12% below its 10-year median of 12.94. GuruFocus rates LMT with a GF Score™ of 73/100 and a GF Value™ of $546.66 (Fairly Valued). The stock has 3 warning signs investors should review. Among 347 Aerospace & Defense companies, Lockheed Martin ranks better than 59.37% on this metric.
Lockheed Martin (NYSE:LMT) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Lockheed Martin Operating Margin % Related Terms
Lockheed Martin Operating Margin % Historical Data
* Premium members only.
The historical data trend for Lockheed Martin's Operating Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
LMT vs HWM, GD, RKLB: Operating Margin % Comparison
For the Aerospace & Defense subindustry, Lockheed Martin's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Lockheed Martin Operating Margin % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Lockheed Martin's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Lockheed Martin's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Lockheed Martin's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Lockheed Martin (LMT) has a Operating Margin % of 11.45% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Lockheed Martin and its competitors. This is 12% below median its historical median of 12.94. Over the past decade, Lockheed Martin's Operating Margin % has ranged from 9.87 to 14.29. According to the industry distribution chart, Lockheed Martin ranks #141 out of 347 companies in the Aerospace & Defense industry, placing it in the top 40.6%.
Is Lockheed Martin's Operating Margin % too high?
Lockheed Martin's current Operating Margin % of 11.45% is 12% below median its 10-year median of 12.94. Over the past 10 years, this metric has ranged from a low of 9.87 to a high of 14.29. The Aerospace & Defense industry median Operating Margin % is 7.75. Lockheed Martin's value of 11.45% is 47.7% above this industry median. Based on the distribution chart, Lockheed Martin ranks #141 out of 347 companies in the Aerospace & Defense industry, which is above the industry midpoint. Overall, Lockheed Martin has a GF Score™ of 73/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Lockheed Martin's Operating Margin % compare to HWM and GD?
According to the Aerospace & Defense industry distribution chart, Lockheed Martin ranks #141 out of 347 companies for Operating Margin %. This puts Lockheed Martin in the upper half of its industry. The industry median Operating Margin % is 7.75. Lockheed Martin's value of 11.45% is 47.7% above this benchmark. Historically, Lockheed Martin's own Operating Margin % has ranged from 9.87 to 14.29 over the past decade. While the company's 10-year median is 12.94 vs. the industry median of 7.75, Lockheed Martin has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for an Aerospace & Defense company?
The median Operating Margin % among Aerospace & Defense companies is 7.75, based on 347 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Lockheed Martin's current Operating Margin % of 11.45% is 47.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Lockheed Martin and its competitors. For the Aerospace & Defense industry, the median Operating Margin % is 7.75 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lockheed Martin's current Operating Margin % is 11.45%, which is 12% below median its own 10-year median of 12.94. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lockheed Martin stock overvalued right now?
Based on GuruFocus' analysis, Lockheed Martin (LMT) is currently considered Fairly Valued. The stock's GF Value™ is $546.66, compared to a current price of $496.50 — trading 9.2% below its estimated fair value. The current Operating Margin % is 11.45%, which is 12% below median its 10-year median of 12.94 and 47.7% above the Aerospace & Defense industry median of 7.75. Lockheed Martin's overall GF Score™ is 73/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Lockheed Martin (LMT), the current Operating Margin % is 11.45% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Lockheed Martin (LMT) Overvalued in 2026?
Based on GuruFocus' analysis, Lockheed Martin stock appears to be undervalued.
The current stock price of $496.50 is trading 9.2% below its estimated GF Value™ of $546.66.
GuruFocus considers Lockheed Martin to be Fairly Valued.
Key valuation signals for LMT:
Operating Margin %: 11.45% (12% below median its 10-year median of 12.94)
GF Value™: $546.66 vs. price of $496.50 (9.2% below fair value)
Industry Position: 47.7% above the Aerospace & Defense median (#141 of 347)
No single metric tells the full story. See the LMT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Lockheed Martin is the world's largest defense contractor and has dominated the Western market for high-end fighter aircraft since it won the F-35 Joint Strike Fighter program in 2001. Aeronautics is Lockheed's largest segment, which derives upward of two-thirds of its revenue from the F-35. Lockheed's remaining segments are rotary and mission systems, mainly encompassing the Sikorsky helicopter business; missiles and fire control, which creates missiles and missile defense systems; and space systems, which produces satellites and receives equity income from the United Launch Alliance joint venture.
73GF Score
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