Lockheed Martin reported second-quarter 2025 net sales of $18.16 billion, slightly below the estimated $18.53 billion. The company's operating profit fell sharply to $748 million, missing the estimated $2.15 billion. Net profit plunged 80% to $342 million, or $1.46 per share, primarily due to $1.6 billion in pre-tax losses. These losses included a $950 million charge related to a classified Aeronautics program and additional charges from international helicopter programs CMHP and TUHP. The company also reported earnings per share (EPS) of $1.46, significantly below the estimated $6.64. Following these results, Lockheed Martin lowered its full-year 2025 EPS guidance from a previous range of $27.00-$27.30 to $21.70-$22.00, below the consensus estimate of $27.37. The stock dropped more than 8% in pre-market trading and closed down around 10% amid the disappointing earnings and outlook. In response to Lockheed Martin's challenges, Morgan Stanley reduced its price target for the stock from $575 to $530 and named Northrop Grumman and RTX Corporation as top picks in the defense and aerospace sector. Morgan Stanley also increased price targets for Northrop Grumman to $625 and Blackstone to $185, while UBS raised its Microsoft price target to $600.