L3Harris Technologies (LHX) Q3 2026 Earnings Report
MX:LHX Q3 2026 EPS Results
- Actual EPS
- MXN 61.93
- Consensus EPS
- MXN 55.65
- Beat/Miss
- Beat by +MXN 6.29
- One Year Ago EPS
- MXN 50.98
MX:LHX Q3 2026 Revenue Results
- Actual Revenue
- MXN 114.43B
- Expected Revenue
- MXN 111.80B
- Beat/Miss
- Beat by +MXN 2.63B
- YoY Revenue Growth
- +7.09%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 10/29/2026
- Time
- Before Open
- Conference Call
- Thursday, October 29, 2026
MX:LHX Upcoming Earnings
L3Harris Technologies's next earnings date is estimated for January 28, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
MX:LHX Q3 2026 Earnings Call
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Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was strongly positive overall. The company reported robust organic growth, record backlog and bookings, substantial free cash flow, improved leverage, higher 2026 revenue and EPS guidance, and strong demand across missiles, space, communications, electronic warfare, and sensing. The principal challenges were supply-chain constraints, a lower Missile Solutions margin due to mix, reduced Communications & Spectrum Dominance guidance, a lower 2028 margin and free cash flow framework, and continued uncertainty around the timing and valuation of a potential Missile Solutions IPO. Highlights significantly outweighed lowlights.
Company Guidance
For 2026, L3Harris increased revenue guidance by $300 million at the bottom end to $23.5 billion-$23.7 billion, increasing the midpoint by $150 million, with organic revenue growth of 9%-10%, segment operating margin guidance reaffirmed at low 16%, EPS guidance of $12.25-$12.35, interest expense expected to be $515 million, and free cash flow guidance reaffirmed at $3 billion; Space & Mission Systems' full-year revenue guidance increased $200 million to $11.9 billion, while Communications & Spectrum Dominance revenue was reduced by $100 million to $7.9 billion. The company expects approximately $1 billion of free cash flow and repayment of $800 million of debt in the fourth quarter, bringing projected year-end cash balance to $3.2 billion. For 2028, L3Harris reaffirmed organic growth expectation of 8%, expects segment margins of approximately 16%, and now expects free cash flow of $3 billion, compared to the previous expectation of $3.5 billion, representing over 100% cash conversion; it also expects more than $5 billion in excess cash to deploy.
- Strong Third-Quarter Organic Growth and EarningsOrganic revenue grew 9% despite one fewer week than the third quarter of 2025. Revenue totaled $6.1 billion, up $401 million or 7% year-over-year, while GAAP diluted EPS increased 33% to $3.28. Management noted that an extra week contributes about $200 million, implying double-digit organic growth excluding the extra week and the prior-year quarter.
- Record Backlog and BookingsOrders totaled $19.3 billion, producing a 3.2x book-to-bill. Backlog increased 27% sequentially and 47% year-over-year to a historic $53.2 billion. The backlog is aligned with the company’s four growth vectors: missiles and missile products, space, resilient communications and electronic warfare, and multi-domain sensing.
- International Revenue GrowthInternational revenue grew 18% and represented 24% of total revenue, increasing by approximately 300 basis points over the last year or so. Management cited continued investment in national defense by allies as a driver.
- Improved Operating Income and MarginOperating income increased 27% year-over-year to $786 million, while operating income margin increased 200 basis points to 13%, primarily due to higher revenues and lower corporate costs. Segment margin was 15.9%, consistent with the prior year, with positive estimate-at-completion performance across all three segments.
- Significant Free Cash Flow GenerationOperating cash flow was $1.4 billion, up from $546 million in the prior-year quarter. Free cash flow was $1.3 billion, up nearly 200% or 195% year-over-year, and year-to-date free cash flow was $1.8 billion. Management reaffirmed its $3 billion full-year free cash flow guidance and stated that cash flow to net income is expected to remain greater than 100%.
- Missile Solutions Contract Wins and Delivery ExpansionMissile Solutions booked $11 billion of contractual backlog related to PAC-3 and THAAD. Deliveries from 2023 to 2026 are increasing by more than 100%; PAC-3 solid rocket motor deliveries doubled from last year to this year and are expected to double again in 2027. THAAD solid rocket motor deliveries are planned to triple in 2027 compared with 2026.
- Missile Capacity Investment and Supply-Chain ExpansionL3Harris is investing $3 billion in missile capacity expansion, including approximately 25% directed to supply-chain and supply-chain-capacity initiatives. The Arkansas Advanced Propulsion Facilities campus is expected to increase large solid rocket motor manufacturing capacity sixfold and will include more than 20 buildings across 110 acres. The company also expects to build over 100 buildings and add approximately 1 million square feet of manufacturing space.
- Space Growth and Major Program AwardsSpace & Mission Systems revenue grew 10% to $3.1 billion, driven by higher volumes in space, missile warning, missile tracking, satellite programs, ISR aircraft, air traffic control modernization, and F-35 control systems. Segment operating margin increased 20 basis points to 10.9%. The company won the $955 million AMDT3 award and said it is the only company awarded prime contracts across all five space and missile-warning missile-defense tranches.
- Continued Space Capacity and R&D InvestmentL3Harris is capitalizing on nearly $250 million of prior facility and capacity investments and plans to invest roughly $175 million in research and development over three years to expand its technical capabilities in space.
- Resilient Communications and Electronic Warfare AwardsThe company won an $876 million Next Gen Jammer low-band contract, bringing awards supporting the program to nearly $1.5 billion. Management stated that these cost-type development contracts can drive years of sustained production and improved margins after development is complete.
- VAMPIRE Counter-UAS MomentumOrders for VAMPIRE counter-unmanned systems from the Department of War and international customers exceeded $500 million in the quarter. The company described an approximately $1 billion pipeline, more than 350,000 operational hours since 2023, and significant inbound interest across domestic and international markets.
- Tactical Radio Demand and AwardsL3Harris expects to deliver more tactical radios to NATO partners, allies, and international customers than to the Department of War this year, reflecting strong international demand. Domestically, the company captured more than $315 million of awards for Army Modernization in conjunction with the Next Generation Command and Control program.
- Multi-Domain Sensing and Missionized Aircraft GrowthThe company secured $323 million of missionized business-jet contract awards in the third quarter, increasing the year-to-date total to nearly $1.5 billion. This included two additional aircraft under the U.S. Air Force Compass Call program, bringing the total to 12 of the 22 aircraft requested.
- Communications Segment Margin ImprovementCommunications & Spectrum Dominance revenue was $2 billion, up 3% year-over-year, driven by increased international software-defined resilient-communications radio volumes and the VAMPIRE program ramp. Segment operating margin increased 50 basis points to 25.2% on favorable program performance and mix.
- Balance Sheet Improvement and Capital FlexibilityNet debt leverage declined from 4.3x to approximately 1.9x. The company had $3 billion in cash and short-term investments at the end of the third quarter and expects to generate approximately $1 billion of fourth-quarter free cash flow and repay $800 million of debt, bringing projected year-end cash to $3.2 billion.
- Raised 2026 Revenue and EPS GuidanceThe bottom end of 2026 revenue guidance was increased by $300 million to $23.5 billion-$23.7 billion, with organic revenue growth now expected at 9%-10%. EPS guidance was raised to $12.25-$12.35 from $11.80-$12, while the company reaffirmed low-16% segment operating margin guidance and $3 billion of free cash flow guidance.
- Space Guidance IncreasedFull-year Space & Mission Systems revenue guidance was increased by $200 million to $11.9 billion.
- Operational Efficiency Through Automation and AIAutomation and artificial intelligence reduced traditional manual quality-inspection time for some PAC-3 solid rocket motors from 21 hours to 6.5 hours per motor. Management also cited partnerships with companies such as Palantir to pursue efficiency gains in tactical radios, night-vision goggles, and WESCAM turrets.
- Positive Program ExecutionManagement reported positive net estimate-at-completion performance across all three segments and improved delivery performance. The company said it is maintaining focus on programmatic and operational execution, productivity, and efficiency.
- Strong 2028 Growth Framework and Cash ConversionManagement reaffirmed an 8% organic growth expectation for 2028 and expects approximately 16% segment margins. The revised $3 billion 2028 free cash flow guidance represents over 100% cash conversion. Management also stated that it expects more than $5 billion in excess cash after funding the $3 billion missile investment, normal capital expenditures, and dividends.
- Strong Demand for RF Tactical CommunicationsManagement described the international RF market as a significant demand cycle, citing increased requirements from Ukraine-related markets, NATO customers, and European allies for communications that can withstand electronic warfare and preserve interoperability with U.S. forces.
MX:LHX Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Jan 28, 2027 | 2026 (Q4) | 59.16- | 54 | ― | ― |
| Oct 29, 2026 | 2026 (Q3) | 55.6561.93 | 50.98 | 21.48% (+10.95) | |
| Jul 29, 2026 | 2026 (Q2) | 52.9659.10 | 52.49 | 12.59% (+6.61) | |
| Apr 30, 2026 | 2026 (Q1) | 47.7751.36 | 45.51 | 12.86% (+5.85) | |
| Jan 29, 2026 | 2025 (Q4) | 52.0254.00 | 65.52 | -17.58% (-11.52) | |
| Oct 30, 2025 | 2025 (Q3) | 48.7250.98 | 63.07 | -19.16% (-12.08) | |
| Jul 24, 2025 | 2025 (Q2) | 46.9052.49 | 61.18 | -14.20% (-8.69) | |
| Apr 24, 2025 | 2025 (Q1) | 43.6645.51 | 57.78 | -21.24% (-12.27) | |
| Jan 30, 2025 | 2024 (Q4) | 64.5465.52 | 63.26 | 3.58% (+2.27) | |
| Oct 24, 2024 | 2024 (Q3) | 61.4463.07 | 60.23 | 4.70% (+2.83) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat Missed