Lockheed Martin Shares Climb 7% Following F-35 Deployment in Iran Operations

TLDR

• Shares of Lockheed Martin climbed nearly 7% in after-hours trading following U.S.-Israel military strikes on Iranian targets dubbed “Operation Epic Fury”
• The company’s F-35 fighter jets played a key role in the military action; video footage from U.S. Central Command showed the aircraft departing for missions
• Defense contractors RTX and L3Harris Technologies also posted gains of nearly 6% and 5.3% respectively
• Earlier this month, Lockheed successfully tested AI-powered Combat Identification technology integrated with the F-35’s fusion systems
• The stock currently trades at a price-to-earnings ratio of 30.62, approaching its 5-year peak, while Wall Street analysts maintain a consensus price target of $657.75

Shares of Lockheed Martin experienced a significant overnight surge of nearly 7% following coordinated military strikes by the United States and Israel against Iranian military installations in what officials called “Operation Epic Fury.”

Lockheed Martin Corporation, LMT

The military operation, authorized by President Donald Trump in coordination with Israeli Prime Minister Benjamin Netanyahu, focused on Iranian military facilities throughout the weekend.

Reports emerged that Iran’s Supreme Leader Ayatollah Ali Khamenei and members of his family were casualties in the strikes. In retaliation, Tehran launched a barrage of missiles and unmanned aerial vehicles targeting Gulf states, including the United Arab Emirates and Qatar.

The F-35 Lightning II stealth fighter, manufactured by Lockheed Martin, served as a primary asset in the operation. U.S. Central Command shared imagery and video content via X platform showing F-35s launching for combat missions.

The F-35 program represents Lockheed Martin’s premier aircraft platform and generates the lion’s share of company revenues. Lockheed positions the aircraft as the world’s most advanced and networked fighter jet currently in service.

Recently, Lockheed revealed successful flight testing of an artificial intelligence-powered Combat Identification system integrated within the F-35’s advanced sensor fusion architecture. According to the company, this AI enhancement enables aviators to detect hostile threats more rapidly and execute tactical decisions with greater speed.

Lockheed additionally announced the implementation of live, over-the-air software patches to Aegis combat systems aboard U.S. Navy vessels operating in Red Sea waters, facilitating enhanced response capabilities against incoming drone and missile attacks.

Other Defense Stocks Move Higher

RTX Corporation experienced a nearly 6% increase in overnight trading. The company’s Tomahawk cruise missile system — a long-range precision weapon with strike capabilities exceeding 1,000 miles — was employed during the operation, fired from naval vessels including the USS Thomas Hudner.

Earlier in February, RTX’s Raytheon division finalized five framework contracts with the U.S. Department of War aimed at expanding production capacity for both Tomahawk and AMRAAM missile systems. These agreements establish annual Tomahawk manufacturing targets surpassing 1,000 units.

L3Harris Technologies recorded gains of 5.3% during the same trading period. AeroVironment similarly posted an 8.5% advance last week following the deployment of its counter-unmanned aircraft systems.

LMT Valuation

Prior to Sunday’s overnight movement, LMT shares were already trading at premium valuations. The equity maintained a price-to-earnings multiple of 30.62, nearing its 5-year maximum, alongside a price-to-sales ratio of 2.05, which approaches its 10-year peak.

GurFocus had classified LMT as moderately overvalued, assigning a GF Value metric of $542.78.

Wall Street analyst consensus maintains a price objective of $657.75 with a recommendation score of 2.6. Institutional investors control 75.01% of outstanding shares.

The Relative Strength Index reading of 63.82 indicates the stock is trending toward overbought conditions entering this week’s trading sessions.

LMT maintains a market capitalization of $151.41 billion with trailing twelve-month revenues totaling $75.05 billion.

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