US Air Force and Navy Eye $1 Billion for Lockheed Martin’s AIM-260 Missile

The US Air Force and Navy have formally requested $1 billion for the 2026 fiscal year to begin producing the AIM-260 Joint Advanced Tactical Missile, developed by Lockheed Martin. The classified system has been under development for eight years and is expected to replace the long-serving AIM-120 AMRAAM.

The Air Force, which is leading the program, has asked for $368 million for initial production and an additional $300 million on its “Unfunded Priorities List.” The Navy, meanwhile, has requested $301 million.

Analysts estimate the missile could become a $30 billion program, depending on production volumes. For Lockheed Martin, this project represents a crucial growth opportunity after reporting $1.6 billion in charges and a potential $4.6 billion tax liability in its recent earnings.

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Market Insights & Updates

• Lockheed Martin’s Missiles and Fire Control (MFC) division is seen as its most profitable and fastest-growing segment. The AIM-260 will strengthen this position amid rising global demand for advanced weapons.

• With the F-35 at peak production and recent program losses to competitors, the AIM-260 offers Lockheed a much-needed pipeline for future revenues.

• Defense analysts caution that avoiding future cost overruns will be key to maintaining profitability on this classified program.

The AIM-260 is designed for F-22 and F-35 fighters but will also integrate with F-15s, F-16s, and potentially unmanned combat aircraft. Once deployed, it will become the most advanced US air-to-air missile, extending America’s air superiority against evolving threats.

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