L3Harris Technologies (LHX) delivered a strong second-quarter 2026 performance, with earnings and revenues surpassing analyst expectations across the board.
The defense contractor reported second-quarter 2026 earnings from continuing operations of $3.13 per share, beating the Zacks Consensus Estimate of $2.80 by 11.8%.
That figure also represented a 12.6% improvement over the year-ago quarter’s earnings of $2.78 per share, signaling continued momentum in the company’s operations.
Total revenues for the quarter reached $5.88 billion, topping the Zacks Consensus Estimate of $5.79 billion by 1.5% and climbing 8.4% from $5.43 billion in the prior-year period.
L3Harris attributed the year-over-year revenue growth to expansion across all business segments, reflecting new program ramp-up and strong execution against a record backlog.
The Space and Mission Systems segment posted revenues of $2.97 billion, a 7% increase, though its operating margin declined 60 basis points to 9.8% as improved execution was offset by the absence of a $75 million asset-sale gain from the prior-year quarter.
Communications and Spectrum Dominance revenues advanced 4% to $1.94 billion, with segment operating income climbing 14% to $522 million and operating margin expanding 230 basis points to 26.9%.
The Missile Solutions segment delivered a 14% revenue gain to $1.05 billion, while operating income rose to $130 million from $116 million, though the segment’s margin contracted slightly by 20 basis points to 12.3%.
On the balance sheet, L3Harris held $1.52 billion in cash and cash equivalents as of July 3, 2026, up from $1.07 billion at the start of the year, while long-term debt fell to $9.18 billion from $10.44 billion.
Net cash provided by operating activities totaled $784 million during the first six months of 2026, compared with $598 million in the same period a year earlier.
Following the strong quarterly results, L3Harris raised its full-year 2026 revenue outlook to a range of $23.2 billion to $23.7 billion, up from its prior guidance of $23 billion to $23.5 billion.
The company also lifted its 2026 earnings per share guidance to $11.80 to $12.00, compared with the prior projection of $11.40 to $11.60, placing the new range above the Zacks Consensus Estimate of $11.54 per share.
L3Harris continues to anticipate adjusted free cash flow of $3 billion and $3.6 billion in operating cash flow for the full year.
Segment-level guidance was also revised upward, with Space and Mission Systems revenues now projected at nearly $11.7 billion, above the prior estimate of $11.5 billion, while Communications and Spectrum Dominance revenues are expected at about $8 billion and Missile Solutions at roughly $4.1 billion.
Among peers, Northrop Grumman (NOC) reported second-quarter 2026 adjusted earnings of $7.68 per share, beating estimates by 12.3%, while RTX Corporation (RTX) posted adjusted EPS of $1.89, exceeding expectations by 13.9% on revenues of $24.71 billion.
Textron (TXT) also topped estimates, reporting second-quarter 2026 adjusted earnings of $1.62 per share against a consensus of $1.52, with total revenues of $3.83 billion representing a 3% year-over-year gain.
