L3Harris Reports Strong Q1 Results, Raises 2026 EPS Guidance on Robust Orders and Record Backlog

summarizeSummary

L3Harris Technologies reported strong first-quarter 2026 financial results, including double-digit revenue and EPS growth, and raised its full-year 2026 EPS guidance.

check_boxKey Events

• Strong First Quarter Performance

  Reported Q1 2026 revenue of $5.7 billion, up 12% (15% organically), and GAAP diluted EPS of $2.72, a 33% increase year-over-year. Operating margin improved to 11.4%, up 120 basis points.

• Raised 2026 EPS Guidance

  Updated its 2026 annual diluted EPS forecast to $11.40 - $11.60, an increase from the prior guidance of $11.30 - $11.50, reflecting confidence in sustained growth.

• Record Backlog and Robust Orders

  Achieved orders of $7.8 billion, resulting in a book-to-bill ratio of 1.4x and increasing the total backlog to a new record of $40.7 billion, indicating strong future revenue visibility.

• Strategic Execution and Demand

  Highlighted strong execution of its 'Trusted Disruptor' strategy, leveraging speed and scale to meet accelerating demand in a dynamic global environment, particularly in defense missions.

auto_awesomeAnalysis

L3Harris Technologies delivered a strong first quarter, exceeding expectations with significant revenue and EPS growth. The company's decision to raise its full-year 2026 EPS guidance signals management's confidence in continued operational strength and future performance. The record backlog, driven by a robust book-to-bill ratio, provides excellent revenue visibility and underscores the strong demand for its defense solutions, including those prioritized by the Department of War. While cash flow was negative for the quarter, this is often a timing issue for large defense contractors and is overshadowed by the strong operational metrics and positive outlook.