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

L3Harris Technologies (NYSE:LHX) announced its earnings results on Wednesday. The company reported $3.13 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.80 by $0.33, Zacks reports. The business had revenue of $5.88 billion during the quarter, compared to analyst estimates of $5.81 billion. L3Harris Technologies had a return on equity of 11.00% and a net margin of 8.17%.L3Harris Technologies’s revenue for the quarter was up 8.4% compared to the same quarter last year. During the same period last year, the company earned $2.78 EPS. 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 Stock Performance

Shares of L3Harris Technologies stock opened at $273.36 on Friday. The business has a 50-day moving average price of $298.23 and a two-hundred day moving average price of $327.94. L3Harris Technologies has a 1-year low of $262.68 and a 1-year high of $379.23. 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 company has a market cap of $50.93 billion, a P/E ratio of 27.73, a PEG ratio of 1.51 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. Shareholders of record on Friday, September 4th will be issued a dividend of $1.25 per share. This represents a $5.00 dividend on an annualized basis and a yield of 1.8%. The ex-dividend date is Friday, September 4th. L3Harris Technologies’s dividend payout ratio (DPR) is presently 50.51%.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently weighed in on the company. Sanford C. Bernstein decreased their price target on L3Harris Technologies to $405.00 and set an “outperform” rating for the company in a research note on Monday, May 4th. UBS Group cut their price objective on L3Harris Technologies from $362.00 to $330.00 and set a “neutral” rating on the stock in a research note on Friday, May 1st. Susquehanna reduced their target price on L3Harris Technologies from $410.00 to $350.00 and set a “positive” rating on the stock in a report on Friday. Wall Street Zen upgraded L3Harris Technologies from a “hold” rating to a “buy” rating in a report on Saturday, April 11th. Finally, Weiss Ratings downgraded shares of L3Harris Technologies from a “buy (b)” rating to a “buy (b-)” rating in a research report on Tuesday, June 23rd. Two investment 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 MarketBeat, L3Harris Technologies has a consensus rating of “Moderate Buy” and an average price target of $368.20.

Insider Activity

In related news, VP Melanie Rakita sold 2,180 shares of the company’s stock in a transaction dated Tuesday, May 5th. The stock was sold at an average price of $310.45, for a total transaction of $676,781.00. Following the sale, the vice president owned 4,192 shares in the company, valued at $1,301,406.40. This represents a 34.21% decrease in their position. 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 corporate insiders.

Institutional Investors Weigh In On L3Harris Technologies

Hedge funds have recently added to or reduced their stakes in the business. Motiv8 Investments LLC bought a new position in shares of L3Harris Technologies during the 4th quarter worth approximately $25,000. University of Texas Texas AM Investment Management Co. acquired a new position in shares of L3Harris Technologies during the 4th quarter valued at $25,000. JPL Wealth Management LLC bought a new position in L3Harris Technologies during the third quarter worth $29,000. Triumph Capital Management bought a new position in L3Harris Technologies during the third quarter worth $31,000. Finally, Rakuten Securities Inc. grew its holdings in L3Harris Technologies by 234.8% in the second quarter. Rakuten Securities Inc. now owns 154 shares of the company’s stock worth $39,000 after purchasing an additional 108 shares during the period. 84.76% of the stock is currently owned by institutional investors.

Trending Headlines about L3Harris Technologies

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

• Positive Sentiment: Strong Q2 performance and raised guidance: L3Harris reported adjusted earnings of $3.13 per share versus the $2.80 consensus, while revenue of approximately $5.9 billion rose 8% year over year and exceeded estimates. The company raised its 2026 EPS outlook to $11.80–$12.00 and revenue guidance to $23.2–$23.7 billion. L3Harris Technologies Reports Robust Second Quarter 2026 Results
• Positive Sentiment: Record backlog supports future revenue: Orders reached $7.3 billion, producing a 1.2x book-to-bill ratio and lifting backlog to a record $42 billion. Operating margin expanded to 11.1%, while operating and free cash flow increased 37%, reinforcing the outlook for sustained defense demand. L3Harris’ Record Backlog Makes Its Stock Sell-Off Look Overdone
• Positive Sentiment: Susquehanna remains bullish: The firm lowered its target from $410 to $350 but retained a “positive” rating, implying substantial upside from current levels. Susquehanna price-target update
• Neutral Sentiment: Missile-solutions IPO paused: L3Harris said it is postponing the planned IPO because management believes the market is undervaluing the business. The decision could preserve value but removes a potential near-term catalyst and highlights valuation concerns. L3Harris Pauses IPO of Missile Solutions Business
• Negative Sentiment: Analyst targets were cut: BNP Paribas Exane reduced its target from $330 to $310 and kept a “neutral” rating. The reductions, along with LHX reaching a new 52-week low after a downgrade, appear to be weighing on sentiment even though analysts still see upside. BNP Paribas Exane price-target update

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.