L3Harris Technologies, Inc. LHX reported third-quarter 2026 earnings of $3.28 per share, which beat the Zacks Consensus Estimate of $2.99 by 9.7%. The bottom line also increased 33.3% from the year-ago quarter’s $2.46.
The year-over-year improvement in the bottom line can be attributed to higher revenues, lower corporate expenses, decreased interest expense and a lower effective tax rate.
LHX’s Total Revenues
L3Harris’ revenues totaled $6.06 billion, which beat the Zacks Consensus Estimate of $5.90 billion by 2.8%. The top line also improved 7.1% from the year-ago quarter’s $5.66 billion.
The year-over-year increase in the top line was driven by growth across the company’s businesses, with double-digit growth in the Space & Mission Systems and Missile Solutions segments.
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 & Mission Systems: The segment recorded revenues of $3.09 billion, up 10.3% year over year. This was driven by higher volumes across its space and mission systems businesses.
The segment recorded operating income of $338 million, up from $299 million in the year-ago quarter.
Communications & Spectrum Dominance: Revenues from the segment were $2.00 billion, reflecting a year-over-year improvement of 3.1%.
The segment’s operating income improved to $502 million from $477 million in the year-ago quarter.
Missile Solutions: Revenues from this segment increased 4.9% to $1.06 billion. The increase reflected higher demand for missile and propulsion solutions.
The unit’s operating income improved to $127 million from $124 million in the year-ago quarter.
Financial Position of LHX
As of Oct. 2, 2026, L3Harris had $2.47 billion in cash and cash equivalents compared with $1.07 billion as of Jan. 2, 2026. The company also held $550 million in short-term investments.
Total debt stood at approximately $11.0 billion at the end of the third quarter.
Net cash provided by operating activities was $2.22 billion during the first nine months of 2026 compared with $1.14 billion in the prior-year period. Free cash flow totaled $1.84 billion, up from $878 million a year earlier.
LHX 2026 Guidance
L3Harris raised the lower end of its full-year revenue guidance and now expects to generate $23.5-$23.7 billion in revenues compared with its earlier guidance of $23.2-$23.7 billion. The Zacks Consensus Estimate for 2026 revenues is pegged at $23.67 billion, which lies above the midpoint of the company’s new guidance.
L3Harris maintained its full-year free cash flow guidance of approximately $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
Northrop Grumman Corporation NOC reported third-quarter 2026 adjusted earnings of $7.89 per share, which beat the Zacks Consensus Estimate of $7.22 by 9.3%. The bottom line also increased 2.9% from the year-ago quarter’s level of $7.67.
NOC’s total sales of $11.12 billion in the third quarter beat the Zacks Consensus Estimate of $11.06 billion by 0.6%. The top line also improved 6.7% from $10.42 billion reported in the year-ago quarter.
Hexcel Corporation HXL reported third-quarter 2026 adjusted earnings of 50 cents per share, which improved 35.1% from the year-ago quarter’s figure of 37 cents. The bottom line also surpassed the Zacks Consensus Estimate of 48 cents by 4.2%.
The company’s net sales totaled $496.4 million, which missed the Zacks Consensus Estimate of $500 million by 0.8%. The top line, however, witnessed an improvement of 8.8% from the year-ago quarter’s figure of $456.2 million.
RTX Corporation’s RTX third-quarter 2026 adjusted earnings per share of $2.26 beat the Zacks Consensus Estimate of $1.78 by 27%. The bottom line improved 32.9% from the year-ago quarter’s level of $1.70.
Revenues rose 11.1% year over year to $24.97 billion and beat the consensus mark of $24.01 billion by 4%. Growth was supported by higher commercial aftermarket and defense demand.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
Of course, all our elite picks aren't winners, but this one could far surpass earlier Zacks' Stocks Set to Double like D-Wave Quantum, which shot up +680.1%.
Free: See Our Top Stock And 4 Runners UpWant 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
L3Harris Technologies Inc (LHX): Free Stock Analysis Report
Northrop Grumman Corporation (NOC): Free Stock Analysis Report
Hexcel Corporation (HXL): Free Stock Analysis Report
RTX Corporation (RTX): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).