Jim Cramer made no effort to soften his view on Mad Money’s Lightning Round on August 6, calling Lockheed Martin Corporation (LMT) “sensational” and chief executive Jim Taiclet “fantastic.”

The comments came after Lockheed Martin, the largest U.S. defense contractor by revenue, reported a strong second quarter for 2026, supported by higher sales, sharply improved earnings, and a record backlog of future business. The stock opened at $587.12 on Friday, up 0.7% on the day, and has gained 21.12% year to date, outpacing the S&P 500’s 12.92% return over the same period.

Second-quarter earnings rebound

Lockheed Martin said net sales for Q2 2026 rose 11% year over year to $20.1 billion. Diluted earnings per share came in at $7.94, compared with $1.46 in the same quarter of 2025. Free cash flow totaled $2.9 billion, versus negative $150 million a year earlier.

The company’s net earnings reached $1.836 billion, a major improvement from $342 million in Q2 2025. A year earlier, program losses of $1.6 billion weighed on results. The latest quarter therefore represented a significant turnaround rather than a modest beat.

Business segment operating profit climbed 279% year over year to $2.162 billion. Within that total, the Missiles and Fire Control segment was a standout, posting sales of $4.1 billion, up 19% year over year, while operating profit increased 24%.

Record backlog and contract wins

Lockheed Martin ended the quarter with a record backlog of $230.4 billion, up from $193.6 billion at the end of 2025. The company added $65 billion in new orders during the quarter.

That backlog is equivalent to roughly three years of revenue at the current run rate and provides substantial forward visibility for the defense contractor.

Several large contract awards helped build that backlog. In July 2026, Lockheed received a seven-year contract modification worth up to $53.86 billion for PAC-3 Missile Segment Enhancement interceptors. In June, it secured up to $35 billion for THAAD interceptors. Both systems are core elements of U.S. and allied missile defense architectures, designed to intercept tactical and ballistic missiles. Earlier in the year, Lockheed also added a $1.9 billion extension for the C-130J training program.

Taken together, those awards amount to more than $90 billion across two missile programs in only a matter of weeks, underscoring elevated demand for missile defense as global security spending continues to rise and NATO allies push toward and beyond the 2%-of-GDP defense spending benchmark.

To support production, Lockheed announced an $8 billion to $9 billion investment plan through 2030 to expand more than 20 manufacturing facilities across the U.S. New facilities are breaking ground in Camden, Arkansas, and Troy, Alabama.

Guidance raised, but analysts remain cautious

Lockheed Martin raised its full-year 2026 earnings guidance to $29.95 to $30.65 per share. Full-year free cash flow guidance was increased to $7.0 billion to $7.2 billion, and net sales are now projected at $79.75 billion to $81.75 billion, implying about 8% year-over-year growth.

The company also declared a quarterly dividend of $3.45 per share, payable September 25, for an annual yield of 2.4%.

Despite the improved results, Wall Street remains relatively cautious. The consensus rating is “Hold,” with an average price target of $626.33. JPMorgan has a $620 target, Wells Fargo set a $600 target, and TD Cowen lowered its target from $600 to $560. Wall Street Zen and DZ Bank are exceptions, both rating LMT as “strong buy.”

Institutional investors hold 74.19% of the stock. Victrix Investment Advisors increased its LMT stake by 15.4% in Q2, bringing its holding to about $7.07 million.

Lockheed Martin’s 52-week range is $423.91 to $692.00.