L3Harris Technologies (LHX) Earnings Date & Reports
In addition to its legacy software-defined radio franchise, L3Harris Technologies has through a series of acquisitions established franchises producing uncrewed aerial vehicles, sensors, avionics, space-based systems, missiles, and solid rocket motors... Show more
LHX is expected to report earnings to rise 2.57% to $2.79 per share on July 23
L3Harris Technologies (LHX) Q1 2026 Earnings Recap: Record Backlog Tops $40 Billion
Key Takeaways
- L3Harris Technologies reported first quarter 2026 revenue of $5.7 billion, up 12% year-over-year and 15% on an organic basis.
- GAAP diluted EPS (earnings per share) surged 33% to $2.72, exceeding consensus estimates of approximately $2.53.
- Orders reached $7.8 billion with a book-to-bill ratio (orders divided by revenue) of 1.4x, driving funded backlog to a record $40.7 billion.
- All three segments delivered revenue growth and operating margin expansion.
- Company raised full-year 2026 GAAP diluted EPS guidance to $11.40-$11.60 from $11.30-$11.50.
- Segment operating margin improved to 15.7%, up 10 basis points year-over-year.
Earnings Context and Why It Matters
As a leading aerospace and defense contractor, L3Harris Technologies benefits from heightened global geopolitical tensions and increased U.S. defense spending. This Q1 2026 report is critical as it reflects early progress on the company's LHX NeXt transformation program aimed at cost efficiencies and margin growth. Investors watch closely for execution amid supply chain challenges and program ramps, with strong results signaling sustained demand in space, communications, and missile systems. Recent quarters showed accelerating organic growth, making this release a key indicator of full-year trajectory in a sector poised for expansion.
L3Harris Technologies delivered robust Q1 2026 results for the quarter ended March 2026. Revenue totaled $5.744 billion, surpassing consensus expectations of around $5.41-$5.43 billion and rising 12% from $5.132 billion in Q1 2025, driven by 15% organic growth across all segments.
GAAP diluted EPS came in at $2.72, up 33% from $2.04 last year and beating estimates by about 7-8%, supported by higher operating income of $652 million (up 24%) and a lower effective tax rate of 13.1%. Segment operating income rose 16% to $902 million, with margins expanding 10 basis points to 15.7%.
Space & Mission Systems revenue grew 24% to $2.99 billion; Communication & Spectrum Dominance up 3% to $1.855 billion; Missile Solutions up 18% to $990 million. Margins improved in each: 10.5% (+60 bps), 25.1% (+60 bps), and 12.5% (+110 bps), respectively. Orders of $7.8 billion boosted backlog to a record $40.7 billion.
The company updated 2026 guidance: revenue $23-$23.5 billion; GAAP diluted EPS $11.40-$11.60; free cash flow $3.0 billion; segment operating margin low teens percentage in the low 16% range.
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Market Reaction and Investor Sentiment
Following the April 30, 2026 pre-market release, LHX shares experienced volatility, closing at $320.55 after trading between $313.01 and $325.48 on elevated volume of over 2 million shares. The initial reaction reflected profit-taking amid broader market conditions, but analysts highlighted the beat on top- and bottom-line figures, record backlog, and guidance raise as positive drivers. Sentiment remains bullish, with focus on defense demand and margin progress outweighing short-term price dips.
Forward Outlook and Key Factors to Monitor
L3Harris enters the remainder of 2026 with strong momentum from its record $40.7 billion backlog, providing revenue visibility amid sustained defense priorities. Investors should track conversion of orders into sales, particularly in high-growth areas like space systems and missiles.
The raised EPS guidance to $11.40-$11.60 implies continued margin expansion toward low 16% segment operating margins, fueled by program efficiencies and the LHX NeXt initiative. Free cash flow outlook of $3.0 billion supports capital returns via dividends and buybacks.
Key risks include supply chain disruptions and government funding delays, balanced by geopolitical tailwinds. Upcoming catalysts: Q2 results in late July, defense budget developments, and contract wins. Monitor segment performance for balanced growth and any updates to guidance.
Disclaimer
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General Information
an agile global aerospace and defense technology innovator, which engages in the provision of defense and commercial technologies across air, land, sea, space and cyber domains.
Industry AerospaceDefense