10-Q · April 30, 2026
L3Harris Technologies reported a strong Q1 2026, with revenue of $5.744 billion, outperforming analyst estimates of $5.416 billion, and an EPS of $2.72, surpassing expectations of $2.56. The company has raised its EPS…
Earnings analysis · 10-Q
LHX earnings analysis
Filed October 29, 2026 · Our reading of the company's report
The latest report
L3Harris delivered a strong third quarter, with $6.060 billion of revenue, $3.28 diluted EPS and $1.260 billion of free cash flow, exceeding consensus and improving materially year over year. Orders of $19.3 billion and…
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L3Harris delivered a strong third quarter, with $6.060 billion of revenue, $3.28 diluted EPS and $1.260 billion of free cash flow, exceeding consensus and improving materially year over year. Orders of $19.3 billion and backlog of $53.2 billion supported visibility, while management raised FY2026 revenue and GAAP EPS guidance and maintained $3.0 billion of free cash flow guidance. The principal new risks involve execution of the more than $3 billion Missile Solutions capacity expansion, supplier scalability and possible second-source procurement requirements.
Reported figures
- Earnings per share
- $3.28
What stood out
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Revenue and EPS beat estimates
Third-quarter revenue was $6.060 billion, up approximately 7.1% from $5.660 billion in Q3 2025 and above the $5.921 billion estimate. Diluted EPS was $3.28, up approximately 33.3% from $2.46 and $0.33 above consensus.
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Cash generation accelerated
Free cash flow was $1.260 billion, versus $771 million in Q2 2026 and $427 million in Q3 2025, while full-year free cash flow guidance remained $3.0 billion.
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Orders and backlog remained strong
Orders totaled $19.3 billion and backlog reached $53.2 billion, supporting forward revenue visibility.
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Full-year outlook was raised
Management raised FY2026 revenue guidance to $23.5 billion-$23.7 billion from $23.2 billion-$23.7 billion and increased GAAP EPS guidance to $12.25-$12.35 from $11.80-$12.00.
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Share repurchases continued
The company repurchased 259,000 shares under its program during the quarter at an average price of $282.50; $1.629 billion remained available under the authorization at quarter-end.
What to watch
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Large missile-capacity expansion risk
The Missile Solutions capacity expansion involves more than $3 billion of capital investments through 2030. Delays in permitting, construction, commissioning, validation, workforce scaling or production ramp-up could leave specialized facilities underutilized and capital expenditures unrecovered.
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Sole-source supply constraints
The more than $3 billion expansion depends on suppliers and subcontractors increasing capacity for solid rocket motors, divert and attitude control systems, and precision fuzes; the filing states that some suppliers are sole-source and may not meet required volumes.
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Potential second-source mandates
The filing identifies potential second-source mandates for missile products for which L3Harris is currently the sole supplier. Such mandates could redirect procurement funding, reduce program quantities and undermine the economic assumptions behind the more than $3 billion investment plan.
Management's outlook
FY2026 revenue guidance increased to $23.5 billion-$23.7 billion from $23.2 billion-$23.7 billion; GAAP EPS guidance increased to $12.25-$12.35 from $11.80-$12.00. FY2026 free cash flow guidance was maintained at $3.0 billion.
Earlier filings 1
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.