L3Harris Technologies (NYSE:LHX) Posts Quarterly Earnings Results, Beats Expectations By $0.33 EPS

L3Harris Technologies (NYSE:LHX) released its quarterly earnings data on Wednesday. The company reported $3.13 EPS for the quarter, topping 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%. 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 Price Performance

Shares of LHX stock traded down $8.47 during trading hours on Wednesday, hitting $296.73. The company’s stock had a trading volume of 1,274,151 shares, compared to its average volume of 1,446,637. The company has a current ratio of 1.03, a quick ratio of 0.89 and a debt-to-equity ratio of 0.47. The business has a fifty day moving average of $298.92 and a 200-day moving average of $328.39. L3Harris Technologies has a twelve month low of $267.25 and a twelve month high of $379.23. The stock has a market cap of $55.28 billion, a price-to-earnings ratio of 32.22, a P/E/G ratio of 1.54 and a beta of 0.51.

L3Harris Technologies Dividend Announcement

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

Wall Street Analysts Forecast Growth

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

Insider Activity

In related news, VP Melanie Rakita sold 2,180 shares of the company’s stock in a transaction that occurred 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 sale, the vice president owned 4,192 shares of the company’s stock, valued at approximately $1,301,406.40. This represents a 34.21% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.68% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On L3Harris Technologies

Hedge funds have recently bought and sold shares of the stock. Two Sigma Investments LP lifted its position in shares of L3Harris Technologies by 560.7% in the third quarter. Two Sigma Investments LP now owns 614,287 shares of the company’s stock valued at $187,609,000 after acquiring an additional 521,312 shares in the last quarter. Balyasny Asset Management L.P. increased its position in L3Harris Technologies by 42.0% during the 3rd quarter. Balyasny Asset Management L.P. now owns 1,101,285 shares of the company’s stock worth $336,343,000 after purchasing an additional 325,963 shares in the last quarter. Alyeska Investment Group L.P. raised its stake in L3Harris Technologies by 107.9% in the 3rd quarter. Alyeska Investment Group L.P. now owns 590,258 shares of the company’s stock valued at $180,271,000 after purchasing an additional 306,293 shares during the last quarter. Royal Bank of Canada raised its stake in L3Harris Technologies by 51.8% in the 4th quarter. Royal Bank of Canada now owns 705,299 shares of the company’s stock valued at $207,053,000 after purchasing an additional 240,621 shares during the last quarter. Finally, CIBC Private Wealth Group LLC lifted its holdings in L3Harris Technologies by 34.9% in the 4th quarter. CIBC Private Wealth Group LLC now owns 634,731 shares of the company’s stock valued at $186,338,000 after purchasing an additional 164,069 shares in the last quarter. Hedge funds and other institutional investors own 84.76% of the company’s stock.

Key Stories Impacting L3Harris Technologies

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

• Positive Sentiment: Profit and revenue exceeded expectations. L3Harris reported second-quarter adjusted EPS of $3.13, above the $2.80 consensus and up from $2.78 a year earlier. Revenue rose 8% to $5.9 billion, while operating margin improved to 11.1%. L3Harris Q2 Earnings and Revenues Top Estimates
• Positive Sentiment: Full-year EPS guidance was raised. L3Harris now expects fiscal 2026 EPS of $11.80 to $12.00, 40 cents higher than its prior outlook and above the approximately $11.67 analyst consensus. L3Harris Raises Guidance on Higher Profit, Revenue
• Positive Sentiment: Backlog and cash generation strengthened. Orders totaled $7.3 billion, producing a 1.2-times book-to-bill ratio and lifting backlog to a record $42 billion. Operating cash flow increased 37% to $879 million, while free cash flow rose 37% to $771 million. L3Harris Reports Second Quarter 2026 Results
• Positive Sentiment: Long-term missile-production agreements add visibility. Seven-year deals to expand Patriot and THAAD missile output could support future defense revenue and backlog. L3Harris Signs Deals to Expand Missile Output
• Neutral Sentiment: Revenue guidance was less compelling than the EPS increase. The company expects fiscal 2026 revenue of $23.2 billion to $23.7 billion, with the midpoint roughly matching the $23.5 billion consensus estimate. Analysts maintain a “Moderate Buy” consensus view. Analyst Consensus Recommendation
• Negative Sentiment: Investors may have been expecting an even stronger outlook. Although earnings guidance increased, revenue guidance did not materially exceed expectations. L3Harris also trades at a relatively high earnings multiple, leaving the stock vulnerable to selling when results are viewed as merely meeting elevated expectations.

About L3Harris Technologies

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.