Lockheed Martin Hits Record $292B Backlog as Defense, Industrials Lead Broad Q3 Earnings Wave

Lockheed Martin led a sweeping round of third-quarter earnings on October 22, posting revenue of $20.71 billion, up 11% year over year, with GAAP EPS of $7.97 against an estimate of roughly $7.52. The defense giant's backlog reached a record $292 billion, boosted by a $52.5 billion multi-year award tied to PAC-3 Missile Segment Enhancement interceptors. Quarterly free cash flow of $3.0 billion nearly doubled the $1.56 billion consensus estimate, and Lockheed raised its full-year revenue outlook to $80 billion to $82 billion and EPS guidance to $30.35 to $30.75, the second consecutive quarter it has lifted guidance.

Procter & Gamble delivered a strong fiscal first-quarter beat, with net sales rising 4% to $23.28 billion against estimates near $22.82 billion and core EPS of $2.00 topping the $1.89 consensus. The company flagged a larger commodity headwind, now projecting an approximately $1.4 billion after-tax cost hit in fiscal 2027, up from a prior estimate of $1 billion. P&G maintained its full-year core EPS guidance of $6.89 to $7.11 and raised its all-in sales growth outlook, with shares rising roughly 2% to 3% in premarket trading.

American Airlines posted record third-quarter revenue of $16.34 billion, a 19.3% year-over-year surge, but surging jet fuel costs overshadowed the top-line strength. Fuel expense jumped 67.5% to $4.64 billion as the airline paid an average of $3.85 per gallon, adding $1.9 billion in incremental costs versus a year earlier. The carrier guided for an adjusted full-year loss of $1.00 to $1.60 per share, wider than the prior consensus of roughly $0.94, with Q4 fuel projected near $4.70 per gallon.

Honeywell beat on both lines, with Q3 adjusted EPS of $2.27 versus the $2.17 estimate and organic sales growth of 7%, and raised its full-year adjusted EPS guidance to $8.40 to $8.45 from $8.05 to $8.35. Comcast reported adjusted EPS of $1.07 against an estimate of $0.98, with Peacock posting its second consecutive profitable quarter at $261 million in adjusted EBITDA, though domestic broadband lost 144,000 subscribers. Union Pacific and Norfolk Southern both beat estimates, with Union Pacific reporting 15% revenue and EPS growth and Norfolk Southern delivering 14% revenue growth and a 10% rise in adjusted EPS.

Snap-on was a notable miss, with net sales of $1.18 billion falling short of the $1.25 billion estimate and EPS of $4.64 missing the $4.93 consensus. Management attributed the shortfall to an unprecedented acceleration in diesel prices that prompted mobile van franchisees to cut inventories despite stable end-customer demand. PulteGroup also disappointed, with revenue of $3.97 billion missing the $4.21 billion estimate and EPS of $2.53 below the prior year's $2.96, as home closings fell 9% and gross margin compressed to 24.8% from 26.2% a year earlier.

Blackstone reported distributable earnings of $1.32 per share, beating the $1.28 estimate, though adjusted revenue of $3.22 billion fell short of the $3.28 billion consensus and distributable earnings dropped 9% year over year. Total AUM grew 10% to $1.37 trillion on $63.3 billion of quarterly inflows. Dow Inc. posted a sharp earnings recovery, with adjusted EPS of $0.71 reversing a year-ago loss of $0.19 as net sales rose 13% to $11.27 billion on 14% higher local pricing. Quest Diagnostics raised its full-year guidance after Q3 revenue of $3.10 billion beat by $50 million and adjusted EPS of $3.00 beat by $0.14, with requisition volume up 14.5% year over year.