Is Lockheed Martin Stock Halal?

Do the halal screening authorities agree?

How we read the evidence

HalalWallet's editorial synthesis of the screens, scholar positions, and sources documented on this page — not a religious ruling.

Lockheed Martin is the purest defense name in this group, and that makes it the cleanest illustration of how Shariah screens disagree on weapons. Its entire FY2025 revenue of $75,048 million comes from four military and space segments: Aeronautics (home of the F-35 fighter, $30,257 million), Missiles and Fire Control ($14,450 million), Rotary and Mission Systems ($17,312 million), and Space ($13,029 million). There is essentially no non-defense business and no interest-based lending arm, so the analysis is almost entirely about the nature of the products, not riba.

Here the methodologies genuinely part ways. AAOIFI's standard list of prohibited business activities does not include defense or weapons manufacturing as a categorical exclusion, so a strict AAOIFI revenue-and-ratio screen can, in principle, pass a defense contractor that meets the financial tests. However, many scholars and many values-based or ESG-style Islamic screens treat the manufacture of weapons as impermissible and exclude such companies outright. Both positions are held by credible authorities, so the honest description is that Lockheed sits in a real area of disagreement rather than carrying one settled ruling.

Lockheed is in the S&P 500 but is held by neither SPUS (checked June 11, 2026) nor HLAL (February 28, 2026 holdings). Neither fund explains its exclusions, but for a company whose revenue is almost entirely weapons, the underlying index methodologies' treatment of defense is a plausible driver. A Muslim investor's decision on Lockheed depends primarily on how they personally weigh weapons revenue; that judgment, more than any ratio, will determine the verdict.

Business Activity Screen

Lockheed Martin is the world's largest defense contractor, organized into four segments: Aeronautics (including the F-35 program), Missiles and Fire Control, Rotary and Mission Systems, and Space. Per its FY2025 10-K, total net sales were $75,048 million, split as Aeronautics $30,257 million, Missiles and Fire Control $14,450 million, Rotary and Mission Systems $17,312 million, and Space $13,029 million. The overwhelming majority of sales are to the US Government and allied governments.

Lockheed Martin is effectively a pure defense/government business; all four reportable segments are weapons and military/space systems, so defense-related revenue is approximately the entirety of the $75,048 million total. There is no significant interest-based lending business. This makes Lockheed the clearest defense-exclusion case in the batch: standard AAOIFI business screens do not categorically prohibit defense, so some AAOIFI-methodology screeners can pass it, while many scholars and values-based screens exclude it under a weapons prohibition. Coverage therefore diverges sharply by methodology, far more than for a diversified industrial. Financial-ratio screening (debt, interest income) is secondary to this business-activity question for Lockheed.

Financial Ratio Screen

Spot market cap at research date (consider trailing average for borderline names). Data as of 2026-03-29 · thresholds per AAOIFI Shariah standards.

Scholars' & Screeners' Positions

Published positions, cited as stated. Screeners can reach different conclusions on the same company because of ratio timing and methodology differences — we report the disagreement rather than flatten it.

• SP Funds S&P 500 Sharia ETF (SPUS)

  Not held in SPUS as of 2026-06-11. Absence can reflect screen failure or index scope — verify before citing as a screen outcome.

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• Wahed FTSE USA Shariah ETF (HLAL)

  Not held in HLAL as of 2026-06-11. Absence can reflect screen failure or index scope — verify before citing as a screen outcome.

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