L3Harris Technologies (NYSE:LHX) Issues Quarterly Earnings Results, Beats Estimates By $0.22 EPS

Key Points

• Q1 beat and guidance raise — L3Harris reported EPS of $2.72 vs. $2.50 expected and revenue of $5.74B (≈12% YoY), and updated FY‑2026 EPS guidance to $11.40–$11.60.
• Missile Solutions accelerating — the unit filed a confidential S‑1 for an IPO (new name Axyz), received a $1B DoD investment, is negotiating roughly $25B of orders, and helped push backlog to over $40B.
• Space & Mission Systems momentum — SMS revenue rose 24%, the company secured 56 SDA tracking satellites and disclosed a large classified win (~$600M with multi‑billion potential) in a space pipeline described as being in the tens of billions.

L3Harris Technologies (NYSE:LHX - Get Free Report) issued its quarterly earnings results on Thursday. The company reported $2.72 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.50 by $0.22, Zacks reports. L3Harris Technologies had a return on equity of 10.43% and a net margin of 7.35%.The firm had revenue of $5.74 billion for the quarter, compared to analyst estimates of $5.39 billion. During the same period in the previous year, the company posted $2.41 earnings per share. The company's quarterly revenue was up 11.9% compared to the same quarter last year. L3Harris Technologies updated its FY 2026 guidance to 11.400-11.600 EPS.

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

• Strong Q1 results — revenue was $5.7B (+15% organic), GAAP EPS was $2.72 (+33%), segment margins expanded, backlog nearly doubled to >$40B, and management reaffirmed 2026 revenue guidance while raising the EPS range by $0.10.
• Missile Solutions acceleration — filed a confidential S-1 for the planned IPO (new company name Axyz), received a $1B Department of War investment, and is negotiating ~$25B of Munitions Acceleration Council orders while expanding solid rocket motor capacity.
• Space & Mission Systems momentum — SMS revenue grew 24%, the company has secured 56 SDA tracking satellites, submitted the HBTSS follow-on proposal, and cited a large classified win (~$600M award with multi‑billion potential) within a space pipeline it describes as being in the tens of billions.
• Near-term cash timing — Q1 free cash flow was an outflow of $187M driven by working capital timing, though full‑year FCF guidance of $3B was reaffirmed and expected to be back‑loaded to H2.

L3Harris Technologies Price Performance

Shares of LHX traded down $0.14 on Thursday, hitting $321.26. The company's stock had a trading volume of 2,605,259 shares, compared to its average volume of 1,517,652. The company has a market capitalization of $60.01 billion, a PE ratio of 37.66, a PEG ratio of 1.62 and a beta of 0.62. The company has a debt-to-equity ratio of 0.53, a current ratio of 1.19 and a quick ratio of 1.02. L3Harris Technologies has a fifty-two week low of $214.10 and a fifty-two week high of $379.23. The company has a 50 day moving average price of $352.93 and a 200 day moving average price of $323.36.

L3Harris Technologies Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, June 26th. Stockholders of record on Friday, June 5th will be issued a $1.25 dividend. This represents a $5.00 annualized dividend and a dividend yield of 1.6%. The ex-dividend date of this dividend is Friday, June 5th. L3Harris Technologies's payout ratio is presently 58.62%.

Trending Headlines about L3Harris Technologies

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

• Positive Sentiment: Q1 results beat across the board — GAAP EPS $2.72 vs. estimates ~ $2.50 and revenue $5.7B (up ~12% YoY); company raised its FY‑2026 EPS outlook after the beat. Read More.
• Positive Sentiment: Stronger weapons demand — missile solutions revenue rose ~18% in Q1 as Pentagon reorders for munitions and propulsion systems accelerated; order intake and backlog expanded. This supports near‑term revenue visibility and margin leverage. Read More.
• Positive Sentiment: Strategic value action — L3Harris confidentially filed a draft S‑1 for an IPO of its Missile Solutions unit, a move that could unlock value and create optionality for shareholders if executed. Read More.
• Neutral Sentiment: Guidance updated but mixed vs. Street — FY‑2026 EPS guidance was set to $11.40–$11.60 and revenue guidance around $23.0–$23.5B; EPS midpoint is slightly below some consensus forecasts, leaving room for debate on medium‑term beat/raise expectations. Read More.
• Negative Sentiment: Short‑term market reaction was mixed — despite the beat, the stock pulled back intraday as investors weighed guidance versus expectations and high valuation multiples; some coverage noted the share decline after results. Read More.

Wall Street Analysts Forecast Growth

LHX has been the topic of several research reports. Wolfe Research restated an "outperform" rating on shares of L3Harris Technologies in a research note on Friday, January 30th. Susquehanna restated a "positive" rating on shares of L3Harris Technologies in a research note on Thursday, January 15th. Royal Bank Of Canada boosted their price target on L3Harris Technologies from $360.00 to $365.00 and gave the company a "sector perform" rating in a research note on Friday, January 30th. Morgan Stanley boosted their price target on L3Harris Technologies from $367.00 to $390.00 and gave the company an "overweight" rating in a research note on Monday, February 2nd. Finally, Wall Street Zen upgraded L3Harris Technologies from a "hold" rating to a "buy" rating in a research note on Saturday, April 11th. One equities research analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and four have issued a Hold rating to the stock. According to data from MarketBeat, L3Harris Technologies currently has an average rating of "Moderate Buy" and a consensus price target of $349.55.

Insider Transactions at L3Harris Technologies

In other L3Harris Technologies news, insider Samir Mehta sold 5,528 shares of the company's stock in a transaction on Monday, March 2nd. The stock was sold at an average price of $370.32, for a total transaction of $2,047,128.96. Following the transaction, the insider owned 7,756 shares of the company's stock, valued at approximately $2,872,201.92. This represents a 41.61% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Jon Rambeau sold 5,528 shares of the company's stock in a transaction on Monday, March 2nd. The stock was sold at an average price of $370.32, for a total value of $2,047,128.96. Following the transaction, the insider directly owned 7,660 shares in the company, valued at approximately $2,836,651.20. This represents a 41.92% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 19,025 shares of company stock valued at $6,824,370 in the last three months. 0.68% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the company. Brighton Jones LLC lifted its holdings in L3Harris Technologies by 233.9% during the 4th quarter. Brighton Jones LLC now owns 4,284 shares of the company's stock worth $901,000 after buying an additional 3,001 shares in the last quarter. Virtus Advisers LLC raised its position in shares of L3Harris Technologies by 47.3% during the 4th quarter. Virtus Advisers LLC now owns 589 shares of the company's stock valued at $173,000 after acquiring an additional 189 shares during the last quarter. MUFG Securities EMEA plc bought a new stake in shares of L3Harris Technologies during the 2nd quarter valued at $139,000. State of Wyoming raised its position in shares of L3Harris Technologies by 262.9% during the 4th quarter. State of Wyoming now owns 381 shares of the company's stock valued at $112,000 after acquiring an additional 276 shares during the last quarter. Finally, Wealth Watch Advisors INC raised its position in shares of L3Harris Technologies by 23.2% during the 4th quarter. Wealth Watch Advisors INC now owns 367 shares of the company's stock valued at $108,000 after acquiring an additional 69 shares during the last quarter. 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.

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