LMTCAUTIOUS

LMT Gross Margin Analysis

12.2%

Updated 201h ago·SEC filings & market data

Key Takeaway

Gross margin measures the percentage of revenue left after subtracting the direct costs of producing goods — a 12.2% margin means only 12 cents of every dollar in sales is retained from manufacturing costs.

Sector Performance

3th percentile

LMT

12.2%

Sector Median

46.6%

Sector Avg

47.6%

Prior Period

11.5%(Jul 2026)

↑ Improving

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Deep Analysis

That figure is far below the sector median of 44.6%, placing LMT in the 5th percentile among its peers. The year-over-year change is not available, but the quarter-over-quarter change is a +6.1% improvement from the prior quarter’s 11.5%. While the recent uptick is positive, the absolute level remains very low, implying weak pricing power or high input costs relative to competitors — a risk for sustained profitability. This combination of a low margin with a modest near-term improvement does not offset the structural disadvantage versus the sector. The metric strongly contradicts an optimistic stance and directly supports the overall CAUTIOUS verdict.

Frequently Asked Questions

What does the Gross Margin tell investors about LMT?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

Who are LMT's closest peers by Gross Margin?

The closest peers by Gross Margin include: LVS (46.9%), ORLY (51.4%), MPWR (55.2%), NEM (56.0%), REI (56.0%).

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Learn More About Gross Margin

Gross Margin vs Net Margin: Why the Gap Between Them Tells You Everything

Gross margin vs net margin: learn what the spread between them reveals about operating leverage, cost structure, and early warning signs in any stock.

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.