L3Harris Technologies (NYSE:LHX) Announces Earnings Results

Key Points

• L3Harris beat third-quarter expectations: EPS was $3.28 versus the $2.95 consensus, while revenue rose 7.1% year over year to approximately $6.07 billion. The company also reported record backlog of $53.2 billion and $1.3 billion in free cash flow.
• Management raised 2026 guidance to $23.5 billion-$23.7 billion in revenue and $12.25-$12.35 in EPS, driven by strong missile-defense demand, international growth and a 47% year-over-year increase in backlog.
• Some longer-term pressures remain: L3Harris lowered its 2028 margin and free-cash-flow framework, while communications revenue guidance was cut by $100 million because of component shortages. Shares rose 6.7% following the results.

L3Harris Technologies (NYSE:LHX - Get Free Report) announced its quarterly earnings results on Thursday. The company reported $3.28 earnings per share for the quarter, beating analysts' consensus estimates of $2.95 by $0.33, Zacks reports. L3Harris Technologies had a net margin of 8.17% and a return on equity of 10.96%. The firm had revenue of $6.07 billion during the quarter, compared to analysts' expectations of $5.92 billion. During the same period in the previous year, the company earned $2.70 earnings per share. L3Harris Technologies's quarterly revenue was up 7.1% compared to the same quarter last year.

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

• Third-quarter results exceeded expectations, with 9% organic revenue growth, EPS up 33% to $3.28, free cash flow of $1.3 billion, and a 3.2 book-to-bill ratio. Backlog reached a record $53.2 billion, up 47% year over year.
• Missile demand accelerated sharply, led by $11 billion of PAC-3 and THAAD awards. L3Harris expects to double PAC-3 solid rocket motor deliveries again in 2027 and triple THAAD motor deliveries versus 2026, supported by a planned $3 billion capacity investment.
• Management raised 2026 revenue guidance to $23.5 billion-$23.7 billion and EPS guidance to $12.25-$12.35, while reaffirming $3 billion of free cash flow. International revenue grew 18%, and demand remains strong for space systems, tactical radios, VAMPIRE counter-drone systems, and missionized aircraft.
• The company reduced its 2028 framework for segment margins to approximately 16% from 16.3% and free cash flow to $3 billion from $3.5 billion. The changes reflect lower assumed non-operating benefits, cash-funded 401(k) contributions, lower margins, and accelerated missile capital spending.
• Communications & Spectrum Dominance revenue guidance was lowered by $100 million to $7.9 billion after component shortages constrained third-quarter growth, although management said most supply issues were resolved and expects a stronger fourth quarter.

L3Harris Technologies Stock Up 6.7%

NYSE:LHX traded up $17.49 during trading hours on Thursday, hitting $278.10. The company's stock had a trading volume of 2,252,759 shares, compared to its average volume of 1,525,506. The company has a current ratio of 1.18, a quick ratio of 1.03 and a debt-to-equity ratio of 0.46. The stock has a fifty day moving average of $249.60 and a 200-day moving average of $305.66. The stock has a market capitalization of $51.79 billion, a P/E ratio of 28.05, a price-to-earnings-growth ratio of 1.59 and a beta of 0.50. L3Harris Technologies has a 52-week low of $232.34 and a 52-week high of $379.23.

L3Harris Technologies Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, December 18th. Stockholders of record on Friday, December 4th will be paid a dividend of $1.25 per share. This represents a $5.00 annualized dividend and a dividend yield of 1.8%. The ex-dividend date of this dividend is Friday, December 4th. L3Harris Technologies's dividend payout ratio is presently 50.51%.

Analyst Upgrades and Downgrades

LHX has been the subject of a number of research reports. TD Cowen reduced their target price on shares of L3Harris Technologies from $370.00 to $280.00 and set a "buy" rating for the company in a report on Friday, October 9th. Deutsche Bank Aktiengesellschaft reissued a "hold" rating on shares of L3Harris Technologies in a report on Tuesday, August 18th. The Goldman Sachs Group decreased their price objective on shares of L3Harris Technologies from $405.00 to $361.00 and set a "buy" rating on the stock in a research note on Monday, October 12th. Sanford C. Bernstein dropped their target price on shares of L3Harris Technologies from $346.00 to $318.00 and set an "outperform" rating for the company in a research note on Wednesday, October 14th. Finally, Weiss Ratings cut shares of L3Harris Technologies from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Thursday, September 10th. Two analysts have rated the stock with a Strong Buy rating, nine have given a Buy rating and eight have given a Hold rating to the company's stock. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $341.71.

L3Harris Technologies News Summary

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

• Positive Sentiment: Quarterly results exceeded expectations: L3Harris reported adjusted earnings of $3.28 per share, above the $2.95-$2.99 analyst estimates, while revenue reached approximately $6.06 billion-$6.07 billion versus a $5.92 billion consensus. Revenue grew 7.1% year over year, supported by broad-based business growth. L3Harris Beats Q3 Earnings Estimates, Raises 2026 Revenue View
• Positive Sentiment: Guidance was raised: Management increased its full-year 2026 earnings-per-share forecast to $12.25-$12.35 from $11.80-$12.00 and lifted its revenue outlook, signaling confidence in continued execution and demand. L3Harris Raises Yearly Guidance After Notching Record Backlog
• Positive Sentiment: Record backlog improves visibility: The company highlighted a record backlog, providing support for future revenue and helping reinforce the investment case for its defense communications, intelligence and aerospace businesses. Stronger cash flow was also cited as a benefit. L3Harris Delivers Record Backlog and Strong Third-Quarter Results
• Neutral Sentiment: Valuation may limit further gains: Although the earnings momentum is positive, commentary noted that L3Harris has already gained substantially—roughly 54% in the referenced period—potentially leaving the stock vulnerable to profit-taking or a valuation-based pullback if future results do not continue to exceed expectations. L3Harris Technologies Stock Could Trade At A Discount Despite Its Run

About L3Harris Technologies

L3Harris Technologies, Inc is a technology and defense company that develops products and systems for government and commercial customers. Its offerings support aerospace, defense, space, communications, intelligence, surveillance and reconnaissance, electronic warfare, missile defense, and aviation missions.

The company provides secure communications equipment, tactical radios, sensors, avionics, electronic warfare systems, missile and air defense technologies, space payloads and systems, and other mission-critical solutions.

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