Lockheed Martin shares rose 1.2% in premarket trading on October 26, 2026, following a Morgan Stanley upgrade to Overweight from Equal Weight. The bank raised its price target to $835 from $690 as uncertainty around the F-35 program eased. A newly announced framework covers 850 U.S. aircraft over 10 years, but it is not yet a finalized contract award.

Key Takeaways

  • Morgan Stanley raised its rating and price target, citing the F-35 outlook and missile-production growth.
  • The F-35 framework covers aircraft production, spare parts, modification kits and sustainment.
  • Multiyear authority and appropriations remain prerequisites for a formal contract award.

Lockheed Martin shares gain as F-35 uncertainty eases

Morgan Stanley's more positive assessment reflected reduced uncertainty around the fighter program and prospects for growth in missile production. The 1.2% share-price advance was a premarket move, not a confirmed closing gain.

The upgrade followed Lockheed Martin's October 22 announcement of a multiyear F-35 production and sustainment framework with the U.S. government. Its significance is the potential for longer-term procurement planning, rather than an immediately completed order for 850 additional jets.

The F-35 framework still needs funding and final terms

Lockheed Martin's multiyear F-35 framework announcement describes 850 U.S. aircraft over 10 years, associated initial spares, and 10 years of modification kits and sustainment. It also includes international customer orders across production Lots 21–30, with a continued production rate of 156 aircraft per year.

The company said multiyear authority and associated appropriations must be granted before the F-35 Joint Program Office and Lockheed Martin finalize contract terms, pricing and schedules through a formal award. The framework therefore establishes a proposed purchasing structure, not finalized revenue or delivery commitments.

Chief Executive Jim Taiclet said greater certainty would allow upfront investment in capacity, efficiency and supply-chain resilience. Lockheed Martin expects long-term pricing and volume discounts to save taxpayers billions over the program's lifecycle; those savings remain expectations rather than realized results.

Next milestone

The next step is securing multiyear authority and appropriations, followed by final negotiations on pricing, schedules and a formal contract award.

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