Lockheed Martin Chief Executive Jim Taiclet told investors during the company's first-quarter 2026 earnings call that the defense contractor is well positioned to benefit from increased resources tied to the conflict with Iran. Taiclet cited the administration's experience, willingness to change, and demand for the company's and its partners' products as reasons for the opportunity.

"This is a golden opportunity right now based on who's in government," Taiclet said. "I'm encouraged by all of this in the evolving landscape." He said the company could move beyond the constraints of government contracting toward a commercial-style contracting system.

Lockheed Martin's relationship with the U.S. government includes producing the Orion spacecraft for the Artemis II mission and manufacturing top-secret missiles used in the conflict with Iran. Since the start of that conflict, the Pentagon has announced multiple contracts with the company worth billions of dollars, on top of existing agreements. Earlier this month, the Pentagon announced two contracts with Lockheed Martin: a $4.7 billion contract to accelerate production of its Pac-3 missile segment enhancement interceptors and a $1.9 billion contract to continue its C-130J maintenance and aircrew training systems.

The company missed profit expectations for the first quarter of 2026 due to lower volumes in its F-16 fighter jet program and other classified programs. It reported revenue of $18 billion for the quarter, similar to its revenue in the first quarter of 2025.

Lockheed Martin leaders told investors that engagement with the Pentagon enabled the development of a commercial-like business model for major weapons systems. The Pentagon has also added a recovery element to its contracts with the company that would allow it to receive payment even if a contract is changed. "It really hasn't been done before, and that's because the leadership of the department at this point is willing to engage in topics such as risk mitigation," Taiclet said.

The White House has been seeking congressional passage of its requested $1.5 trillion budget for the Pentagon, a $445 billion increase from the previous year. The budget proposal does not include funding for the war with Iran, and Republicans are working to fund the war through budget reconciliation legislation that would bypass Democratic support. The Trump administration has proposed cutting $73 billion from domestic agencies that support housing, health, and education programs to offset the higher defense budget.