11:35 AM EDT, 04/24/2026 (MT Newswires) -- Lockheed Martin ( LMT ) is facing increased risk to meeting its outlook for 2026, with the "burden of proof" falling to H2 after fiscal Q1 earnings and sales came in below estimates, BofA Securities said in a note Friday.

The investment firm said cash is the most at risk, with classified programs expected to burn $500 million to $700 million and capital expenditure increasing to $2.7 billion in 2026.

BofA increased its capital expenditure estimate and lowered its operating cash flow forecast. The firm also reduced its revenue estimate for Space and margin forecasts for Space and Aeronautics, resulting in lower earnings per share estimates for 2026, 2027, and 2028 to $29.90, $33.15, and $37.75, respectively, from $30.05, $33.50, and $37.95, according to the note.

The company's Missiles & Fire Controls segment remains a bright spot, showing growth and margin potential based on demand and volumes growing across programs, the firm said.

BofA lowered its price target to $600 from $660, and reiterated its neutral rating on the stock

Shares of Lockheed Martin ( LMT ) were down 3.7% in Friday trading.

Price: 510.20, Change: -19.59, Percent Change: -3.70