L3Harris Technologies, Inc. LHX reported first-quarter 2026 earnings (from continuing operations) of $2.72 per share, which beat the Zacks Consensus Estimate of $2.53 by 7.5%. The bottom line also increased 12.9% from the year-ago quarter’s $2.41.
LHX’s Total Revenues
L3Harris’ revenues totaled $5.74 billion, which topped the Zacks Consensus Estimate of $5.43 billion by 5.9%. The top line also improved 11.9% from the year-ago quarter’s $5.13 billion.
The year-over-year increase in the top line was driven by growth across all segments, reflecting new program ramp-up and increased international volume.
L3Harris Technologies Inc Price, Consensus and EPS Surprise
L3Harris Technologies Inc price-consensus-eps-surprise-chart | L3Harris Technologies Inc Quote
LHX’s Segmental Performance
Space and Mission Systems: Net revenues from the segment were $2.99 billion, reflecting a year-over-year improvement of 24%.
The segment’s operating income improved to $313 million from $238 million in the year-ago quarter. The operating margin increased 60 bps to 10.5%, driven by improved program performance.
Communication and Spectrum Dominance: Net revenues from this segment rose 3% to $1.86 billion.
The unit’s operating income improved to $465 million from $443 million in the year-ago quarter. The operating margin increased 60 bps to 25.1%, driven by increased sales associated with higher margin products in night vision devices and software-defined resilient communications, as well as the favorable settlement of a legal matter.
Missile Solutions: This segment reported revenues of $990 million, which improved 18% year over year.
The unit’s operating income of $124 million increased from $96 million in the first quarter of 2025. The operating margin jumped 110 bps to 12.5%, primarily due to the monetization of legacy assets aligned with its transformation and value creation priorities.
Financial Position of LHX
As of April 3, 2026, L3Harris had $0.59 billion in cash and cash equivalents compared with $1.07 billion as of Jan. 2, 2026.
The long-term debt as of the same date was $9.19 billion compared with $10.44 billion as of Jan. 2, 2026.
The net cash used in operating activities was $95 million during the first three months of 2026 compared with $42 million in the prior-year period.
LHX’s 2026 Guidance
It expects to generate approximately $23-23.5 billion in revenues. The Zacks Consensus Estimate for 2026 revenues is pegged at $23.45 billion, which is at the higher end of the company’s guided range.
L3Harris now expects earnings to be in the range of $11.40-$11.60 per share compared with the prior range of $11.30-$11.50. The Zacks Consensus for 2026 earnings is pegged at $11.53 per share, which is higher than the midpoint of the company’s guided range.
It expects adjusted free cash flow to be around $3 billion.
LHX’s Zacks Rank
L3Harris currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Defense Releases
Lockheed Martin Corporation LMT reported first-quarter 2026 adjusted earnings of $6.44 per share, which missed the Zacks Consensus Estimate of $6.67 by 3.5%. The bottom line increased 11.5% from the year-ago quarter's reported figure of $2.22.
Net sales were $18.02 billion, which lagged the Zacks Consensus Estimate of $18.12 billion by 0.6%. The top line inched up 0.3% from $17.96 billion reported in the year-ago quarter.
Northrop Grumman Corporation NOC reported first-quarter 2026 adjusted earnings of $6.14 per share, which beat the Zacks Consensus Estimate of $6.08 by 1%. The bottom line also improved 1.3% from the year-ago quarter’s level of $6.06.
NOC’s total sales of $9.88 billion in the first quarter outpaced the Zacks Consensus Estimate of $9.79 billion by 1%. The top line also rose 4.4% from $9.47 billion reported in the year-ago quarter.
RTX Corporation’s RTX first-quarter 2026 adjusted earnings per share of $1.78 beat the Zacks Consensus Estimate of $1.52 by 17%. The bottom line improved 21.1% from the year-ago quarter’s level of $1.47.
Quarterly revenues came in at $22.08 billion, up 8.7% from $20.31 billion in the year-ago period. Sales also beat the consensus mark of $21.56 billion by 2.43%.
Radical New Technology Could Hand Investors Huge Gains
Quantum Computing is the next technological revolution, and it could be even more advanced than AI.
While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.
Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power .
Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.
See Top Quantum Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Lockheed Martin Corporation (LMT): Free Stock Analysis Report
Northrop Grumman Corporation (NOC): Free Stock Analysis Report
L3Harris Technologies Inc (LHX): Free Stock Analysis Report
RTX Corporation (RTX): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).