L3Harris Technologies (NYSE:LHX) Announces Earnings Results, Beats Expectations By $0.33 EPS

Posted by Francis Steltz on Oct 31st, 2026

L3Harris Technologies (NYSE:LHX – Get Free Report) released its quarterly earnings results on Thursday. The company reported $3.28 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.95 by $0.33, Zacks reports. The business had revenue of $6.07 billion for the quarter, compared to analyst estimates of $5.92 billion. L3Harris Technologies had a net margin of 8.76% and a return on equity of 11.49%. The business’s revenue for the quarter was up 7.1% on a year-over-year basis. During the same period in the previous year, the company earned $2.70 earnings per share.

Here are the key takeaways from L3Harris Technologies’ conference call:

Third-quarter results exceeded expectations, with 9% organic revenue growth, EPS up 33% to $3.28, free cash flow of $1.3 billion, and a 3.2 book-to-bill ratio. Backlog reached a record $53.2 billion, up 47% year over year.
Missile demand accelerated sharply, led by $11 billion of PAC-3 and THAAD awards. L3Harris expects to double PAC-3 solid rocket motor deliveries again in 2027 and triple THAAD motor deliveries versus 2026, supported by a planned $3 billion capacity investment.
Management raised 2026 revenue guidance to $23.5 billion-$23.7 billion and EPS guidance to $12.25-$12.35, while reaffirming $3 billion of free cash flow. International revenue grew 18%, and demand remains strong for space systems, tactical radios, VAMPIRE counter-drone systems, and missionized aircraft.
The company reduced its 2028 framework for segment margins to approximately 16% from 16.3% and free cash flow to $3 billion from $3.5 billion. The changes reflect lower assumed non-operating benefits, cash-funded 401(k) contributions, lower margins, and accelerated missile capital spending.
Communications & Spectrum Dominance revenue guidance was lowered by $100 million to $7.9 billion after component shortages constrained third-quarter growth, although management said most supply issues were resolved and expects a stronger fourth quarter.

L3Harris Technologies Stock Performance

Shares of L3Harris Technologies stock traded down $0.64 on Friday, reaching $277.79. 2,551,219 shares of the stock were exchanged, compared to its average volume of 1,732,424. The business has a 50 day moving average price of $249.80 and a two-hundred day moving average price of $305.06. The firm has a market capitalization of $51.73 billion, a price-to-earnings ratio of 25.91, a PEG ratio of 1.68 and a beta of 0.50. L3Harris Technologies has a twelve month low of $232.34 and a twelve month high of $379.23. The company has a quick ratio of 1.03, a current ratio of 1.20 and a debt-to-equity ratio of 0.45.

L3Harris Technologies Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, December 18th. Investors of record on Friday, December 4th will be issued a dividend of $1.25 per share. The ex-dividend date of this dividend is Friday, December 4th. This represents a $5.00 dividend on an annualized basis and a dividend yield of 1.8%. L3Harris Technologies’s payout ratio is 46.64%.

Trending Headlines about L3Harris Technologies

Here are the key news stories impacting L3Harris Technologies this week:

Positive Sentiment: L3Harris reported third-quarter EPS of $3.28, above the $2.95 analyst consensus, while revenue rose 7.1% year over year to approximately $6.07 billion, exceeding expectations of $5.92 billion. L3Harris Technologies earnings results
Positive Sentiment: The defense contractor raised its 2026 outlook, including full-year EPS guidance to $12.25–$12.35 from $11.80–$12.00, supported by broad-based growth and stronger cash flow. L3Harris raises yearly guidance
Positive Sentiment: Record backlog of $53.2 billion highlights strong defense demand and improves revenue visibility. Reports also cited a rare government equity stake as an additional supportive development. LHX Q3 earnings call highlights
Neutral Sentiment: Royal Bank of Canada raised its LHX price target to $295 from $265 but retained a “sector perform” rating, indicating improved valuation potential without a strong bullish recommendation. RBC raises L3Harris price target
Negative Sentiment: Management’s lower 2028 cash-flow and margin targets raise questions about execution and may limit enthusiasm despite the stronger 2026 forecast. Valuation concerns also remain after a substantial recent run-up.

Analyst Upgrades and Downgrades

Several research analysts recently issued reports on the company. Wall Street Zen lowered L3Harris Technologies from a “buy” rating to a “hold” rating in a research report on Saturday, October 24th. Sanford C. Bernstein cut their price objective on shares of L3Harris Technologies from $346.00 to $318.00 and set an “outperform” rating on the stock in a report on Wednesday, October 14th. Guggenheim assumed coverage on shares of L3Harris Technologies in a research report on Monday, September 14th. They issued a “buy” rating and a $365.00 price objective for the company. Jefferies Financial Group cut shares of L3Harris Technologies from a “buy” rating to a “hold” rating and set a $315.00 target price for the company. in a research note on Wednesday, August 26th. Finally, Argus downgraded shares of L3Harris Technologies from a “buy” rating to a “hold” rating in a research report on Friday, September 25th. Two equities research analysts have rated the stock with a Strong Buy rating, nine have assigned a Buy rating and eight have assigned a Hold rating to the company’s stock. According to data from MarketBeat, L3Harris Technologies has a consensus rating of “Moderate Buy” and an average target price of $343.50.

Get Our Latest Stock Analysis on LHX

About L3Harris Technologies

(Get Free Report)

L3Harris Technologies, Inc is a technology and defense company that develops products and systems for government and commercial customers. Its offerings support aerospace, defense, space, communications, intelligence, surveillance and reconnaissance, electronic warfare, missile defense, and aviation missions.

The company provides secure communications equipment, tactical radios, sensors, avionics, electronic warfare systems, missile and air defense technologies, space payloads and systems, and other mission-critical solutions.