L3Harris shares closed down 2.5% following first quarter 2026 results, as the market reacted to a largely in-line update with no clear negative surprise, but also lacking a distinct near-term catalyst. Guidance was updated and segment margins improved, but investor expectations for a more material outlook raise or concrete acceleration were not met.

• Q1 2026 revenue grew over $600 million, up 15% organically; operating income increased by $125 million.
• Backlog nearly doubled to over $40 billion, excluding $25 billion of Missile Solutions orders still in negotiation.
• Segment operating margins increased for the 10th consecutive quarter, supported by program performance and productivity gains.
• International book-to-bill was 2.2, with major awards including a $2.2 billion NATO ally aircraft program and $460 million in tactical communications orders.
• Strategic actions in the quarter included a 60% sale of the Space Propulsion & Power Systems business, a $1 billion Department of War investment, and a confidential S-1 filing for a Missile Solutions IPO.