$LHX · L3HARRIS TECHNOLOGIES, INC. /DE/
L3Harris reported Q3 FY2026 revenue of $6.06B (+7.1% YoY) and diluted EPS of $3.28, up 33% from $2.46 a year ago. Operating income rose to $786M from $621M, with operating margin at 13.0%. Year-to-date operating cash flow nearly doubled to $2.22B, and the company has $1.6B remaining on its share repurchase authorization.
- Q3 revenue $6.06B, +7.1% YoY, driven by higher volumes and classified contract milestones
- Diluted EPS $3.28 vs $2.46 a year ago, a 33% increase
- Operating income $786M vs $621M; operating margin expanded to 13.0%
- Year-to-date operating cash flow $2.22B, nearly double the $1.14B in prior-year period
- $1.6B remaining share repurchase authorization as of October 2, 2026; quarterly dividend raised to $1.25/share
Stock up 3.90% to $270.77 in regular trading, adding ~$1.9B in market cap on the $50.4B company. The strong earnings beat and cash flow surge are driving the positive reaction.
A 33% EPS jump, near-doubling of operating cash flow, and $1.6B in dry powder for buybacks signal strong execution and capital-return capacity at a defense prime.
Defense sector benefiting from elevated global spending; L3Harris's streamlined three-segment structure and Space Technology divestiture (completed August 2026) reflect ongoing portfolio optimization trend among defense primes.
Trade policy uncertainty cited as a risk, with the company monitoring potential tariff implications. The extra week in Q3 2025 (14 weeks vs 13 in Q3 2026) makes YoY comparisons appear slightly less favorable than underlying performance.