L3Harris Technologies (NYSE:LHX) Issues Earnings Results

L3Harris Technologies (NYSE:LHX) announced its quarterly earnings results on Thursday. The company reported $3.28 EPS for the quarter, topping the consensus estimate of $2.95 by $0.33, Zacks reports. L3Harris Technologies had a return on equity of 10.96% and a net margin of 8.17%. The company had revenue of $6.07 billion during the quarter, compared to analyst estimates of $5.92 billion. During the same period in the prior year, the firm posted $2.70 earnings per share. The firm’s revenue was up 7.1% on a year-over-year basis.

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 Trading Down 0.0%

Shares of L3Harris Technologies stock traded down $0.03 during trading hours on Friday, hitting $278.40. The company’s stock had a trading volume of 743,547 shares, compared to its average volume of 1,527,332. The company has a market capitalization of $51.84 billion, a PE ratio of 28.12, a price-to-earnings-growth ratio of 1.63 and a beta of 0.50. L3Harris Technologies has a 12 month low of $232.34 and a 12 month high of $379.23. The stock has a 50 day moving average of $249.65 and a 200 day moving average of $305.38. The company has a debt-to-equity ratio of 0.46, a current ratio of 1.18 and a quick ratio of 1.03.

L3Harris Technologies Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, December 18th. Stockholders of record on Friday, December 4th will be given a dividend of $1.25 per share. This represents a $5.00 dividend on an annualized basis and a dividend yield of 1.8%. The ex-dividend date of this dividend is Friday, December 4th. L3Harris Technologies’s dividend payout ratio (DPR) is currently 50.51%.

Key Stories Impacting L3Harris Technologies

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

• Positive Sentiment: Quarterly results exceeded expectations. L3Harris reported adjusted earnings of $3.28 per share, above consensus estimates of roughly $2.95-$2.99, while revenue reached approximately $6.07 billion versus the $5.92 billion forecast. Revenue grew 7.1% year over year, and earnings increased from $2.70 per share in the comparable period. L3Harris Q3 revenue earnings flash
• Positive Sentiment: Management raised its 2026 outlook. Full-year earnings guidance increased to $12.25-$12.35 per share from $11.80-$12.00, while the company also raised its revenue view. Stronger cash flow and broad-based operating growth supported the improved forecast. L3Harris raises 2026 guidance
• Positive Sentiment: Record backlog improved future revenue visibility. The company characterized backlog as a record, adding support to its growth outlook and helping drive an initial 5.5% share-price surge following the earnings release. Reports also cited a rare government equity stake involving the Department of War, which may have strengthened investor confidence in L3Harris’s strategic importance. L3Harris earnings beat and government stake
• Neutral Sentiment: Chief Executive Mehta indicated that L3Harris expects fewer portfolio adjustments and will focus on executing its existing businesses. This could improve operational consistency, but it also suggests fewer near-term catalysts from major acquisitions or divestitures. L3Harris portfolio strategy
• Negative Sentiment: After a substantial prior run-up, valuation remains a concern. Commentary suggested the shares could trade at a discount despite their gains, leaving the stock vulnerable if future results or defense-sector expectations fail to keep pace. L3Harris valuation commentary

Analyst Ratings Changes

A number of brokerages have recently weighed in on LHX. UBS Group reiterated a “neutral” rating and issued a $293.00 price target on shares of L3Harris Technologies in a report on Friday. Wall Street Zen cut L3Harris Technologies from a “buy” rating to a “hold” rating in a research report on Saturday, October 24th. Sanford C. Bernstein decreased their target price on shares of L3Harris Technologies from $346.00 to $318.00 and set an “outperform” rating for the company in a research report on Wednesday, October 14th. BNP Paribas Exane reduced their price target on shares of L3Harris Technologies from $330.00 to $310.00 and set a “neutral” rating for the company in a research note on Thursday, July 30th. Finally, Weiss Ratings cut shares of L3Harris Technologies from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Thursday, September 10th. Two analysts have rated the stock with a Strong Buy rating, nine have assigned a Buy rating and eight have given a Hold rating to the company’s stock. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $341.36.

L3Harris Technologies Company Profile

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.