L3Harris Q3 FY26: EPS beats, record $53.2 billion backlog, guidance up
L3Harris beat on the third quarter and raised both the low end of revenue guidance and the whole EPS range. Revenue rose 7.0% to $6.06 billion, EPS of $3.28 topped the $2.9725 consensus by about 10.3%, and free cash flow nearly tripled to $1.26 billion. The read: strong execution, but the new guidance implies a quieter fourth quarter than the one just reported.
1 · Expected vs. Actual
Free preview belowDiluted EPS of $3.28 beat the $2.9725 consensus by $0.3075, or about 10.3%, and rose 33.3% from $2.46. The beat came from operations rather than accounting: operating income jumped to $786 million from $621 million, unallocated corporate items fell to $181 million from $279 million, interest expense dropped to $116 million from $152 million and the tax rate fell to 14.9% from 18.5%. Net of $19 million of subsidiary preferred dividends, income available to common shareholders was $613 million.
Revenue of $6.06 billion rose 7.0% from $5.659 billion a year ago. Space & Mission Systems did the heavy lifting at $3.093 billion, up 10.3%, while Missile Solutions grew 4.9% as reported and roughly 16.8% once you strip $103 million of divested business out of the prior-year base. Communications & Spectrum Dominance was the laggard at $1.995 billion, up 3.1%.
The revenue midpoint moved to $23.6 billion from $23.45 billion, with the bottom of the range lifted to $23.5 billion and the top held at $23.7 billion. The EPS range went to $12.25–$12.35 from $11.80–$12.00, a midpoint raise of $0.35 to $12.30, while the $3.0 billion free cash flow target was left untouched. Segment targets barely moved: Space to about $11.9 billion from about $11.7 billion, Communications to about $7.9 billion from about $8 billion, Missiles unchanged at about $4.1 billion.
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Figures on this page come from the company's original SEC filings. The analysis is generated automatically and checked against validation rules, but may still contain errors or omissions. Not investment advice. · Generated 2026-11-03
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