L3Harris Technologies (NYSE:LHX) Announces Earnings Results

L3Harris Technologies (NYSE:LHX) announced its earnings results on Wednesday. The company reported $3.13 EPS for the quarter, beating analysts’ consensus estimates of $2.80 by $0.33, Zacks reports. L3Harris Technologies had a net margin of 7.71% and a return on equity of 10.65%. The business had revenue of $5.88 billion during the quarter, compared to analysts’ expectations of $5.81 billion. During the same period in the prior year, the company earned $2.78 earnings per share. The business’s revenue was up 8.4% compared to the same quarter last year. L3Harris Technologies updated its FY 2026 guidance to 11.800-12.000 EPS.

Here are the key takeaways from L3Harris Technologies’ conference call:

• Strong second-quarter performance: Revenue rose 8% year over year to $5.9 billion, orders reached $7.3 billion with a 1.2x book-to-bill, and backlog increased by more than $1 billion to $42 billion. Free cash flow rose 37% to $771 million, supported by growth across all three segments.
• 2026 guidance was raised: L3Harris now expects revenue of $23.2 billion-$23.7 billion and diluted EPS of $11.80-$12, while maintaining its $3 billion free cash flow target. The company cited stronger Space & Mission Systems performance, lower interest expense, and continued demand as key drivers.
• Missile Solutions demand and capacity are accelerating: Management is negotiating more than $20 billion in potential contracts and expects the business to grow at a high-teens rate for the foreseeable future. A seven-year THAAD and PAC-3 framework represents approximately $12 billion of future production revenue, while new automated facilities are expected to more than double GMLRS capacity and significantly expand interceptor production.
• The Missile Solutions IPO has been postponed: Management now expects to revisit a public offering in mid-2027, citing unfavorable market conditions and valuations. Although executives said the delay is intended to maximize shareholder value, it postpones a potential source of proceeds and separation-related value realization.
• Financial flexibility is improving: Following the commercial space propulsion divestiture, ongoing cash generation, and the current cash balance, L3Harris expects approximately $4 billion of cash before potential debt repayment or additional share repurchases. Management said it can use the funds for missile capacity investments, leverage reduction, dividends, buybacks, or strategic acquisitions.

L3Harris Technologies Trading Down 2.8%

Shares of LHX opened at $296.73 on Thursday. L3Harris Technologies has a fifty-two week low of $267.25 and a fifty-two week high of $379.23. The company has a market capitalization of $55.28 billion, a PE ratio of 32.22, a price-to-earnings-growth ratio of 1.55 and a beta of 0.51. The stock has a fifty day moving average of $298.92 and a two-hundred day moving average of $328.39. The company has a debt-to-equity ratio of 0.47, a quick ratio of 0.89 and a current ratio of 1.03.

L3Harris Technologies Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, September 18th. Shareholders of record on Friday, September 4th will be issued a $1.25 dividend. The ex-dividend date is Friday, September 4th. This represents a $5.00 annualized dividend and a yield of 1.7%. L3Harris Technologies’s payout ratio is 54.29%.

More L3Harris Technologies News

Here are the key news stories impacting L3Harris Technologies this week:

• Positive Sentiment: Quarterly results exceeded expectations. L3Harris reported adjusted EPS of $3.13, versus the $2.80 consensus estimate, while revenue increased 8.4% year over year to approximately $5.88 billion, ahead of the $5.81 billion forecast. EPS rose from $2.78 in the prior-year quarter. L3Harris Q2 Earnings and Revenues Top Estimates
• Positive Sentiment: Demand and backlog reached record levels. Strong weapons demand helped drive $7.3 billion in orders and a 1.2x book-to-bill ratio, increasing backlog to a record $42 billion. This provides greater revenue visibility for the defense contractor. L3Harris Reports Robust Second Quarter 2026 Results
• Positive Sentiment: Profitability and cash generation improved. Operating margin expanded to 11.1%, segment operating margin reached 16.0%, and operating cash flow and free cash flow increased 37% to $879 million and $771 million, respectively. L3Harris Q2 Earnings Call Highlights
• Positive Sentiment: Full-year EPS guidance was raised. L3Harris now expects 2026 EPS of $11.80 to $12.00, up from its prior outlook and above the roughly $11.67 analyst consensus. Revenue guidance is $23.2 billion to $23.7 billion. L3Harris Raises Guidance on Higher Profit, Revenue
• Negative Sentiment: Shares slipped despite the earnings beat. The midpoint of the updated revenue outlook is slightly below the $23.5 billion consensus estimate, which may have disappointed investors seeking a larger forecast increase. The reaction also suggests that strong results and defense-demand momentum may already be reflected in LHX’s valuation. L3Harris Shares Slip Despite Q2 Earnings Beat

Analyst Upgrades and Downgrades

Several research firms have commented on LHX. Weiss Ratings downgraded L3Harris Technologies from a “buy (b)” rating to a “buy (b-)” rating in a research note on Tuesday, June 23rd. Wall Street Zen upgraded L3Harris Technologies from a “hold” rating to a “buy” rating in a research note on Saturday, April 11th. UBS Group lowered their price objective on shares of L3Harris Technologies from $362.00 to $330.00 and set a “neutral” rating on the stock in a research report on Friday, May 1st. Truist Financial upgraded shares of L3Harris Technologies to a “strong-buy” rating in a research report on Friday, May 1st. Finally, Sanford C. Bernstein lowered their target price on shares of L3Harris Technologies to $405.00 and set an “outperform” rating on the stock in a report on Monday, May 4th. Two research analysts have rated the stock with a Strong Buy rating, nine have issued a Buy rating and four have issued a Hold rating to the stock. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and an average target price of $368.00.

Insider Activity

In other news, VP Melanie Rakita sold 2,180 shares of L3Harris Technologies stock in a transaction on Tuesday, May 5th. The stock was sold at an average price of $310.45, for a total value of $676,781.00. Following the completion of the sale, the vice president owned 4,192 shares of the company’s stock, valued at $1,301,406.40. The trade was a 34.21% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.68% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of LHX. Brighton Jones LLC raised its stake in L3Harris Technologies by 233.9% during the fourth quarter. Brighton Jones LLC now owns 4,284 shares of the company’s stock worth $901,000 after purchasing an additional 3,001 shares during the period. Curi Capital LLC purchased a new stake in shares of L3Harris Technologies during the 2nd quarter valued at $220,000. Nicolet Bankshares Inc. acquired a new stake in shares of L3Harris Technologies during the 3rd quarter worth $212,000. Evolve Private Wealth LLC acquired a new stake in shares of L3Harris Technologies during the 4th quarter worth $206,000. Finally, Rehmann Capital Advisory Group purchased a new position in shares of L3Harris Technologies in the 3rd quarter worth $205,000. Institutional investors and hedge funds own 84.76% of the company’s stock.

L3Harris Technologies Company Profile

L3Harris Technologies (NYSE: LHX) is an American aerospace and defense company formed in 2019 through the combination of L3 Technologies and Harris Corporation. Headquartered in Melbourne, Florida, the company designs, manufactures and supports a broad range of technology solutions for government and commercial customers, with a particular emphasis on defense, intelligence and public safety applications.

The company’s offerings span communications systems, avionics, electronic warfare, intelligence, surveillance and reconnaissance (ISR) sensors, space systems and mission integration.