L3Harris Technologies reported higher third-quarter revenue and earnings, alongside a sharp increase in orders that pushed its backlog to a record. The defense contractor also raised the lower end of its full-year revenue outlook and lifted its earnings forecast.
The results reflect broad-based sales growth and stronger cash generation. Management said it plans to keep investing in production capacity and capabilities spanning missiles, space, communications and sensing.
Key details
- Orders and backlog: L3Harris received $19.3 billion in orders during the quarter, bringing its backlog to a record $53.2 billion. Its book-to-bill ratio was 3.2, meaning orders were more than three times the revenue recognized in the quarter.
- Revenue: Third-quarter revenue was $6.1 billion, up 7% from a year earlier and up 9% on an organic basis. The company attributed growth primarily to double-digit increases in its Space & Mission Systems and Missile Solutions segments.
- Margins: Operating margin rose to 13.0%, an increase of 2 percentage points from the prior-year quarter, helped by higher revenue and lower corporate expenses. Segment operating margin was 15.9%, unchanged from a year earlier.
- Earnings: Diluted earnings per share increased 33% to $3.28. L3Harris cited higher sales volumes, lower corporate and interest expenses, and a lower effective tax rate.
- Cash flow: The company generated $1.4 billion in operating cash flow and $1.3 billion in free cash flow. Free cash flow was up 195% from the prior-year quarter.
- Full-year outlook: L3Harris raised the bottom of its 2026 revenue forecast to $23.5 billion from $23.2 billion, while keeping the top end at $23.7 billion. Its GAAP earnings-per-share forecast increased to $12.25–$12.35, from $11.80–$12.00.
- Investment priorities: Chief Executive Sam Mehta said the company intends to continue investing in production capacity and capabilities in missiles and missile solutions, space, resilient communications and multi-domain sensing.
The record backlog and high order volume show that customer demand exceeded the company’s quarterly sales, while the higher full-year guidance reflects improved expectations for revenue and earnings. The margin figures also show a distinction: overall operating margin improved, while segment operating margin held steady.