Aerospace or Lockheed Martin: Which Aerospace and Defense Stock Is a Better Buy for 2026?

The question of whether Aerospace or Lockheed Martin is the better buy for 2026 is framed around how markets value their different business mixes. Aerospace (NYSE:GE) focuses on jet engines and aviation systems, serving customers in about 120 countries, with FY 2025 revenue near $45.9 billion, up 18.5% year over year, and net income around $8.7 billion. Lockheed Martin (NYSE:LMT) is portrayed as a defense-focused mission provider, heavily dependent on the U.S. government, which accounted for nearly 72% of 2025 sales and the F-35 program representing about 27% of total sales. For FY 2025, Lockheed reported revenue near $75.1 billion, up 5.7%, and net income near $5 billion, down roughly 6%. The article compares profitability margins and leverage, including net margins of about 19% for GE Aerospace versus about 6.7% for Lockheed Martin, and debt-to-equity of roughly 1.1x versus about 3.2x. It also notes cyclical commercial aviation exposure for GE and budget volatility risks for Lockheed.