By Mike Stone and Aishwarya Jain

(Reuters) - Lockheed Martin forecast 2026 profit and revenue above Wall Street estimates on Thursday, anticipating continued ​demand for its fighter jets and weapons amid rising geopolitical uncertainty.

Conflicts ‌in the Middle East and a protracted Russia-Ukraine war have led to a surge in demand for ‌arms, driving sales for defense contractors like Lockheed.

Geopolitical tensions have also been further heightened by the capture of the Venezuelan president by U.S. forces.

Lockheed's F-35 and F-22 fighter jets, RQ-170 stealth drones and Sikorsky Black Hawk helicopters were used in the ⁠operation, CEO Jim Taiclet said ‌in the release.

Earlier this month, Lockheed clinched a seven-year agreement with the Department of War to boost production of Patriot PAC-3 ‍missile interceptors to 2,000 units annually, up from 600.

During the fourth quarter, the company's missiles business, maker of the Patriot system, posted the fastest sales growth, up 17.8% from a ​year ago.

Quarterly sales for its aeronautics segment, which is the leading segment by ‌revenue and makes the F-35 jets, rose 6.4%.

In January, Lockheed said it delivered a record 191 F-35 fighter jets in 2025, up from 110 jets in 2024.

The F-35 is the Pentagon's largest acquisition program, with lifetime costs estimated at more than $2 trillion for purchasing, operating and maintaining the aircraft.

President Donald Trump in January ⁠signed an order for defense firms linking dividends, ​share buybacks and executive pay to weapons ​delivery schedules, introducing uncertainty around capital returns.

Peers RTX and Northrop Grumman have reaffirmed their commitment to dividends, although Northrop said it would ‍pause buybacks beyond January.

In ⁠2025, Lockheed paid $3.13 billion in dividends, a rise from $3.06 billion the previous year.

Lockheed forecast 2026 revenue of $77.5 billion to $80 billion, above analysts' estimates of $77.83 ⁠billion, according to LSEG-compiled data.

It expects profit per share between $29.35 and $30.25, versus expectations of $29.28.

The Maryland-based company ‌reported a quarterly revenue of $20.32 billion, up from $18.62 billion.

(Reporting by Aishwarya ‌Jain in Bengaluru; Editing by Vijay Kishore)

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