L3Harris Tech | 8-K: FY2027 Q2 Revenue Misses Estimate at USD 5.881 B

Revenue: As of FY2027 Q2, the actual value is USD 5.881 B, missing the estimate of USD 6.31 B.

EPS: As of FY2027 Q2, the actual value is USD 3.13, missing the estimate of USD 3.2617.

EBIT: As of FY2027 Q2, the actual value is USD 783 M.

L3Harris Technologies, Inc. reported robust results for the second quarter of 2026, with significant growth across key financial and operational metrics compared to the second quarter of 2025.

Segment Revenue

• Space & Mission Systems: Revenue increased by 7% to $2,966 million in Q2 2026, compared to $2,770 million in Q2 2025. This growth was primarily driven by higher revenues in ISR, Space Systems, Mission Networks, and Airborne Solutions.
• Communications & Spectrum Dominance: Revenue grew by 4% to $1,943 million in Q2 2026, up from $1,861 million in Q2 2025. This was mainly due to higher international volumes for software-defined resilient communications equipment and program ramps in Spectrum Superiority.
• Missile Solutions: Revenue increased by 14% to $1,054 million in Q2 2026, from $925 million in Q2 2025. Growth was attributed to higher production and development volumes in Propulsion Systems and increased volumes in Advanced Effects.
• Total Segment Revenue: Total segment revenue was $5,881 million in Q2 2026, an increase from $5,426 million in Q2 2025.

Operational Metrics

• Total Revenue: Total revenue increased by 8% to $5,881 million in Q2 2026.
• Operating Income: Overall operating income increased by $83 million, or 15%, to $654 million in Q2 2026.
• Operating Margin: The consolidated operating margin was 11.1% in Q2 2026, up 60 basis points (bps) from 10.5% in Q2 2025.
• Net Income: Net income for the quarter was $600 million, up from $458 million in the prior year period.
• Total Segment Operating Income: Total segment operating income increased by 9% to $942 million in Q2 2026, compared to $863 million in Q2 2025.
• Total Segment Operating Margin: The segment operating margin was 16.0%, up 10 bps from 15.9%.
• Space & Mission Systems Operating Margin: Decreased by -60 bps to 9.8% in Q2 2026, from 10.4% in Q2 2025, primarily due to the absence of a $75 million gain from asset sales in the prior year, partially offset by improved program performance and a $23 million net gain in segment investment income.
• Communications & Spectrum Dominance Operating Margin: Increased by 230 bps to 26.9% in Q2 2026, from 24.6% in Q2 2025, driven by higher international volume and a $16 million net gain in segment investment income.
• Missile Solutions Operating Margin: Decreased by -20 bps to 12.3% in Q2 2026, from 12.5% in Q2 2025, due to the absence of a favorable contract resolution in Q2 2025.
• Operating Costs: Cost of revenue was - $4,379 million in Q2 2026. General and administrative expenses were - $848 million. Unallocated corporate items and other, net, were - $288 million in Q2 2026.
• Orders: L3Harris Technologies, Inc. received $7.3 billion in orders, resulting in a book-to-bill ratio of 1.2x and increasing the backlog to a record $42 billion.

Cash Flow

• Operating Cash Flow: Cash from operations was $879 million in Q2 2026, an increase of 37% from $640 million in Q2 2025. This was driven by higher net income and working capital timing.
• Free Cash Flow: Free cash flow was $771 million in Q2 2026, also up 37% from $561 million in Q2 2025. Capital expenditures for the quarter were - $108 million.

Outlook / Guidance

L3Harris Technologies, Inc. has increased its 2026 guidance for consolidated revenue and EPS. The company now expects consolidated revenue to be between $23.2 billion and $23.7 billion, and diluted EPS to be between $11.80 and $12.00. Full-year 2026 guidance for cash from operations is approximately $3.6 billion, with free cash flow anticipated to be approximately $3.0 billion.