L3harris Technologies Stock Earnings Reports

L3Harris reported a strong Q1 2026: revenue of $5.7B (≈15% organic growth), segment operating income of $902M, and GAAP EPS of $2.72 (up 33% YoY). The company emphasized record backlog (nearly doubled to >$40B) plus ~ $25B of pending Munitions Acceleration Council (MAC) orders under negotiation. Key commercial wins included a >$2.2B international missionized business-jet program (initial $726M booked), ~ $700M in Canadian tanker/transport contracts, $460M of international resilient communications orders, and continued SDA/space tracking momentum (56 SDA tracking satellites to date; HBTSS follow-on proposal submitted). Management highlighted strategic actions: filing an S-1 to IPO the Missile Solutions business (new name: AXYV), receiving a $1B Department of War investment to accelerate solid rocket motor capacity, and agreeing to sell 60% of the Space Propulsion & Power Systems business. Financial outlook was reaffirmed: FY 2026 revenue $23.0–23.5B (≈7% organic growth at midpoint), segment operating margin low-16%, free cash flow guidance $3B (back-half weighted), and GAAP EPS raised $0.10 to $11.40–$11.60. Short-term free cash flow was negative ($187M) due to working capital timing—management characterized this as typical for Q1. Key investor considerations: substantial backlog and MAC upside provide durable multi-year revenue visibility, aggressive capacity and supply-chain investments (supported by DoW funding) reduce downside production risk, but timing/definitization of MAC frameworks and contract flows, working-capital seasonality, and classified program concentration remain drivers of near-term outcome variability.