L3Harris Technologies, Inc. Earnings Recaps
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.
Key takeaways
- 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.
L3Harris Technologies reported strong third-quarter performance with double-digit organic growth and a book-to-bill ratio of 1.2, reflecting a robust demand for defense solutions and an optimistic outlook for 2025.
Key takeaways
- Achieved double-digit organic growth with 15.9% margins, affirming operational efficiency.
- Record financial backlog of $8.3 billion, primarily driven by high demand for solid rocket motors and interceptors.
- Increased 2025 financial guidance positions L3Harris for sustained, profitable growth beyond 2026.
- Expanded domestic manufacturing footprint to enhance capacity in response to national defense needs.
- Actively aligning with U.S. defense priorities, particularly in missile defense and advanced technology integration.
L3Harris Technologies delivered robust second-quarter results, marked by record orders and significant organic growth, reinforcing its position as a leader in defense technology amidst increasing global demand.
Key takeaways
- Achieved a record $8.3 billion in orders, translating to a 1.5 book-to-bill ratio, indicative of strong future revenue potential.
- Revenue increased to $5.4 billion, reflecting 6% organic growth driven by accelerated program ramp-ups across all segments.
- Non-GAAP EPS rose 16% year-over-year to $2.78, aided by improved operating income and working capital performance.
- Operating margin expanded for the seventh consecutive quarter, reaching 15.9%, showcasing successful cost management strategies.
- Positioned for sustained growth with significant contracts and investments aligned with U.S. national security initiatives and international defense spending increases.