Lockheed Martin vs Microsoft: Business Model & Financial Comparison 2026
Lockheed Martin · Industrials / Aerospace & Defense·Microsoft · Technology / Software - Infrastructure
Financial Comparison
| Metric | LMTLockheed Martin | MSFTMicrosoft |
|---|---|---|
| Market Cap | $141.19B | $2.77T |
| Revenue (TTM) | $75.05B | $305.45B |
| Revenue Growth | 9.1% | 16.7% |
| Gross Margin | 10.2% | 68.6% |
| Operating Margin | 9.0% | 47.1% |
| Net Margin | 6.7% | 39.0% |
| Return on Equity | 76.9% | 34.4% |
| P/E (Trailing) | 28.4x | 23.3x |
| P/E (Forward) | 19.1x | 19.8x |
| Free Cash Flow | $5.28B | $53.64B |
| Cash | $4.12B | $89.46B |
| Total Debt | $22.77B | $123.28B |
Data sourced from Yahoo Finance. Green highlights indicate better performance for that metric. Use the interactive tool for real-time data.
Business Model Comparison
Lockheed Martin
Lockheed Martin Corporation stands as a leading company in Industrials. Generating $75.05 billion in annual revenue (growing 9.1% year-over-year) and carrying a market capitalization of $151.57 billion, the company has cemented its position as a foundational player in the global Aerospace & Defense landscape. Under the leadership of its leadership team, Lockheed Martin Corporation continues to execute on a multi-year strategic vision that balance…
Full Lockheed Martin analysis →Microsoft
Microsoft stands as the world's leading enterprise software and cloud computing company. Generating $305.45 billion in annual revenue (growing 16.7% year-over-year) and carrying a market capitalization of $3.05 trillion, the company has cemented its position as a foundational player in the global Software - Infrastructure landscape. Under the leadership of Satya Nadella, Microsoft continues to execute on a multi-year strategic vision that balance…
Full Microsoft analysis →SWOT Analysis Comparison
Strengths
Lockheed Martin
- With a market capitalization of $151.57B, Lockheed Martin Corporation is one of the largest companies in its sector, providing the scale advantages of brand recognition, supplier leverage, and capital
- A return on equity of 76.9% demonstrates that Lockheed Martin Corporation generates strong returns from shareholder capital, a hallmark of companies with durable competitive advantages.
- Lockheed Martin Corporation generated $5.28B in free cash flow, providing financial flexibility to invest in growth initiatives, return capital to shareholders, or strengthen the balance sheet.
Microsoft
- With a market capitalization of $3.05T, Microsoft is one of the largest companies in its sector, providing the scale advantages of brand recognition, supplier leverage, and capital access that smaller
- Microsoft's gross margin of 68.6% is well above industry averages, reflecting pricing power, operational efficiency, or a high-value product mix. The operating margin of 47.1% demonstrates disciplined
- Revenue grew 16.7% year-over-year to $305.45B, indicating strong demand for Microsoft's products and services and outperformance relative to many industry peers.
Weaknesses
Lockheed Martin
- With a debt-to-equity ratio of 338.8, Lockheed Martin Corporation carries significant debt relative to equity. While manageable given its cash flow, elevated leverage limits financial flexibility and
- With 123,000 employees globally, Lockheed Martin Corporation faces inherent challenges in agility, decision-making speed, and maintaining a consistent culture across geographies — advantages that smal
Microsoft
- With 228,000 employees globally, Microsoft faces inherent challenges in agility, decision-making speed, and maintaining a consistent culture across geographies — advantages that smaller, nimbler compe
- Windows consumer PC market has been structurally declining for a decade
- Azure still trails AWS in market share (22% vs 32%); gap may be difficult to close
Opportunities
Lockheed Martin
- Lockheed Martin Corporation operates in the Aerospace & Defense segment of the broader Industrials sector, which represents a $8.4 trillion global industrial market. Even modest share gains in this en
- Emerging markets — particularly India (1.4B people, rapidly growing middle class), Southeast Asia (700M people), and Sub-Saharan Africa — represent significant untapped addressable markets for Lockhee
- Earnings growth of 161.0% YoY demonstrates Lockheed Martin Corporation's ability to convert revenue growth into shareholder value. Analysts project continued earnings expansion driven by operating lev
Microsoft
- The rapid advancement of generative AI and large language models presents Microsoft with opportunities to automate operations, enhance products, and develop new AI-native services. Companies in Techno
- Microsoft operates in the Software - Infrastructure segment of the broader Technology sector, which represents a $5.0 trillion by 2027 (IDC Global Technology Market). Even modest share gains in this e
- Emerging markets — particularly India (1.4B people, rapidly growing middle class), Southeast Asia (700M people), and Sub-Saharan Africa — represent significant untapped addressable markets for Microso
Threats
Lockheed Martin
- Global economic slowdowns, inflation, or rising interest rates can reduce consumer and enterprise spending. Lockheed Martin Corporation's revenue is not fully insulated from macroeconomic cycles, and
- Increasing government regulation — particularly data privacy laws (GDPR, CCPA), antitrust enforcement, and trade restrictions — poses compliance costs and potential restrictions on Lockheed Martin Cor
- Competition for skilled technology, engineering, and management talent remains intense. High employee turnover or inability to attract top talent could slow innovation and execution — particularly cri
Microsoft
- Global economic slowdowns, inflation, or rising interest rates can reduce consumer and enterprise spending. Microsoft's revenue is not fully insulated from macroeconomic cycles, and a recession scenar
- Increasing government regulation — particularly data privacy laws (GDPR, CCPA), antitrust enforcement, and trade restrictions — poses compliance costs and potential restrictions on Microsoft's busines
- The technology sector evolves at a pace where today's competitive advantages can erode quickly. New entrants with AI-native approaches, open-source alternatives, or disruptive business models could ch
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Open Comparison ToolLockheed Martin vs Microsoft: FAQ
- Is Lockheed Martin bigger than Microsoft?
- By market capitalization, Microsoft is larger at $2.77T vs Lockheed Martin's $141.19B.
- Which has better profit margins — Lockheed Martin or Microsoft?
- Microsoft has higher net profit margins (39.0%) compared to Lockheed Martin (6.7%). Gross and operating margins are compared in the table above.
- What sectors do Lockheed Martin and Microsoft operate in?
- Lockheed Martin operates in the Industrials sector (Aerospace & Defense). Microsoft operates in the Technology sector (Software - Infrastructure).
- How does Lockheed Martin's revenue compare to Microsoft's?
- Lockheed Martin generates $75.05B in annual revenue (TTM) while Microsoft generates $305.45B. Microsoft is the larger company by revenue as of 2026.