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L3Harris reported Q3 adjusted EPS of $2.70, topping estimates and rising 9.8% year over year.
Revenues rose 6.9% to $5.66 billion, driven by higher volumes and strong international demand.
The company raised 2025 guidance, now targeting about $22 billion in sales and higher EPS.
L3Harris Technologies, Inc. (LHX - Free Report) reported third-quarter 2025 adjusted earnings (from continuing operations) of $2.70 per share, which beat the Zacks Consensus Estimate of $2.56 by 5.5%. The bottom line also increased 9.8% from the year-ago quarter’s $2.46.
Including one-time items, the company reported GAAP earnings of $2.46 per share, up from $2.10 in the prior-year period.
The year-over-year improvement in the bottom line can be attributed to higher revenues as well as operating income.
LHX’s Total Revenues
L3Harris’ revenues totaled $5.66 billion, which beat the Zacks Consensus Estimate of $5.53 billion by 2.3%. The top line also improved 6.9% from the year-ago quarter’s $5.29 billion.
The year-over-year increase in the top line was driven by growth across all segments, primarily from higher volumes, new program ramps and increased international demand.
L3Harris Technologies Inc Price, Consensus and EPS Surprise
Integrated Mission Systems: The segment recorded net revenues of $1.70 billion, up 5.7% year over year. This was driven by the ramping up of multiple ISR classified programs.
This segment recorded an operating income of $204 million, in line with the third quarter of 2024. The segment’s operating margin contracted 70 basis points (bps) to 12% due to the divestiture of the CAS business.
Space and Airborne Systems: Net revenues from the segment were $1.81 billion, reflecting a year-over-year improvement of 7.5%. The upside was driven by increased FAA volume in its Mission Networks business and higher volume and improved program performance in the Airborne Combat Systems business.
The segment’s operating income improved to $218 million from $195 million in the year-ago quarter. The operating margin expanded 50 bps to 12.1% primarily due to improved performance on classified development programs in the Space Systems business, monetization of legacy end-of-life assets aligned with the company’s transformation and value creation priorities, and LHX NeXt driven cost savings.
Communication Systems: Net revenues from this segment increased 5.8% to $1.46 billion. This improvement was driven by increased international volume for resilient communication and data-link equipment, as well as ramp up in Next Generation Jammer program.
The unit’s operating income improved to $382 million from $359 million in the year-ago quarter. The operating margin expanded 10 bps to 26.1%, primarily due to LHX NeXt-driven cost savings.
Aerojet Rocketdyne: This segment reported revenues of $755 million, which improved 12.9% year over year. This rise was driven by increased production volume across key missile and munitions programs and new program ramp-up.
The unit’s operating income of $96 million improved from $76 million in the third quarter of 2024. The operating margin expanded 130 bps to 12.7% driven by LHX NeXt's cost savings.
Financial Position of LHX
As of Oct. 3, 2025, L3Harris had $339 million in cash and cash equivalents compared with $615 million as of Jan. 3, 2025.
The long-term debt as of the same date was $11 billion compared with $11.08 billion as of Jan. 3, 2025.
The net cash flow from operating activities was $1.14 billion during the first nine months of 2025 compared with $1.43 billion in the prior-year period.
LHX 2025 Guidance
It now expects to generate approximately $22 billion in revenues, higher than its earlier guidance of $21.75 billion. The Zacks Consensus Estimate for 2025 revenues is pegged at $21.78 billion, which lies much lower than the company’s new guidance.
L3Harris expects adjusted earnings to be in the range of $10.50-$10.70 per share, higher than the prior guidance of $10.40-$10.60. The consensus estimate for adjusted earnings is pegged at $10.52 per share, which lies below the midpoint of the company’s newly guided range.
It still expects adjusted free cash flow to be around $2.65 billion.
Textron Inc. (TXT - Free Report) reported third-quarter 2025 adjusted earnings of $1.55 per share, which beat the Zacks Consensus Estimate of $1.47 by 5.4%. The bottom line also rose 10.7% from $1.40 in the year-ago quarter.
The company reported total revenues of $3.6 billion, which missed the Zacks Consensus Estimate of $3.71 billion by 2.8%. Moreover, revenues increased 4.9% from the year-ago quarter’s level of $3.43 billion.
RTX Corporation’s (RTX - Free Report) third-quarter 2025 adjusted earnings per share of $1.70 beat the Zacks Consensus Estimate of $1.42 by 19.7%. The bottom line also improved 17.2% from the year-ago quarter’s level of $1.45.
RTX’s third-quarter sales totaled $22.48 billion, which surpassed the Zacks Consensus Estimate of $21.48 billion by 4.6%. The top line also surged a solid 11.9% from $20.09 billion recorded for the third quarter of 2024.
Northrop Grumman Corporation (NOC - Free Report) reported third-quarter 2025 adjusted earnings of $7.67 per share, which beat the Zacks Consensus Estimate of $6.49 by 18.2%. The bottom line also increased 9.6% from $7 registered in the prior-year quarter.
NOC’s total sales of $10.42 billion in the third quarter missed the Zacks Consensus Estimate of $10.72 billion by 2.8%. However, the top line rose 4.3% from $10 billion reported in the year-ago quarter.
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L3Harris Beats Q3 Earnings Estimates, Raises '25 Revenue View
Key Takeaways
L3Harris Technologies, Inc. (LHX - Free Report) reported third-quarter 2025 adjusted earnings (from continuing operations) of $2.70 per share, which beat the Zacks Consensus Estimate of $2.56 by 5.5%. The bottom line also increased 9.8% from the year-ago quarter’s $2.46.
Including one-time items, the company reported GAAP earnings of $2.46 per share, up from $2.10 in the prior-year period.
The year-over-year improvement in the bottom line can be attributed to higher revenues as well as operating income.
LHX’s Total Revenues
L3Harris’ revenues totaled $5.66 billion, which beat the Zacks Consensus Estimate of $5.53 billion by 2.3%. The top line also improved 6.9% from the year-ago quarter’s $5.29 billion.
The year-over-year increase in the top line was driven by growth across all segments, primarily from higher volumes, new program ramps and increased international demand.
L3Harris Technologies Inc Price, Consensus and EPS Surprise
L3Harris Technologies Inc price-consensus-eps-surprise-chart | L3Harris Technologies Inc Quote
LHX’s Segmental Performance
Integrated Mission Systems: The segment recorded net revenues of $1.70 billion, up 5.7% year over year. This was driven by the ramping up of multiple ISR classified programs.
This segment recorded an operating income of $204 million, in line with the third quarter of 2024. The segment’s operating margin contracted 70 basis points (bps) to 12% due to the divestiture of the CAS business.
Space and Airborne Systems: Net revenues from the segment were $1.81 billion, reflecting a year-over-year improvement of 7.5%. The upside was driven by increased FAA volume in its Mission Networks business and higher volume and improved program performance in the Airborne Combat Systems business.
The segment’s operating income improved to $218 million from $195 million in the year-ago quarter. The operating margin expanded 50 bps to 12.1% primarily due to improved performance on classified development programs in the Space Systems business, monetization of legacy end-of-life assets aligned with the company’s transformation and value creation priorities, and LHX NeXt driven cost savings.
Communication Systems: Net revenues from this segment increased 5.8% to $1.46 billion. This improvement was driven by increased international volume for resilient communication and data-link equipment, as well as ramp up in Next Generation Jammer program.
The unit’s operating income improved to $382 million from $359 million in the year-ago quarter. The operating margin expanded 10 bps to 26.1%, primarily due to LHX NeXt-driven cost savings.
Aerojet Rocketdyne: This segment reported revenues of $755 million, which improved 12.9% year over year. This rise was driven by increased production volume across key missile and munitions programs and new program ramp-up.
The unit’s operating income of $96 million improved from $76 million in the third quarter of 2024. The operating margin expanded 130 bps to 12.7% driven by LHX NeXt's cost savings.
Financial Position of LHX
As of Oct. 3, 2025, L3Harris had $339 million in cash and cash equivalents compared with $615 million as of Jan. 3, 2025.
The long-term debt as of the same date was $11 billion compared with $11.08 billion as of Jan. 3, 2025.
The net cash flow from operating activities was $1.14 billion during the first nine months of 2025 compared with $1.43 billion in the prior-year period.
LHX 2025 Guidance
It now expects to generate approximately $22 billion in revenues, higher than its earlier guidance of $21.75 billion. The Zacks Consensus Estimate for 2025 revenues is pegged at $21.78 billion, which lies much lower than the company’s new guidance.
L3Harris expects adjusted earnings to be in the range of $10.50-$10.70 per share, higher than the prior guidance of $10.40-$10.60. The consensus estimate for adjusted earnings is pegged at $10.52 per share, which lies below the midpoint of the company’s newly guided range.
It still expects adjusted free cash flow to be around $2.65 billion.
LHX’s Zacks Rank
L3Harris currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Defense Releases
Textron Inc. (TXT - Free Report) reported third-quarter 2025 adjusted earnings of $1.55 per share, which beat the Zacks Consensus Estimate of $1.47 by 5.4%. The bottom line also rose 10.7% from $1.40 in the year-ago quarter.
The company reported total revenues of $3.6 billion, which missed the Zacks Consensus Estimate of $3.71 billion by 2.8%. Moreover, revenues increased 4.9% from the year-ago quarter’s level of $3.43 billion.
RTX Corporation’s (RTX - Free Report) third-quarter 2025 adjusted earnings per share of $1.70 beat the Zacks Consensus Estimate of $1.42 by 19.7%. The bottom line also improved 17.2% from the year-ago quarter’s level of $1.45.
RTX’s third-quarter sales totaled $22.48 billion, which surpassed the Zacks Consensus Estimate of $21.48 billion by 4.6%. The top line also surged a solid 11.9% from $20.09 billion recorded for the third quarter of 2024.
Northrop Grumman Corporation (NOC - Free Report) reported third-quarter 2025 adjusted earnings of $7.67 per share, which beat the Zacks Consensus Estimate of $6.49 by 18.2%. The bottom line also increased 9.6% from $7 registered in the prior-year quarter.
NOC’s total sales of $10.42 billion in the third quarter missed the Zacks Consensus Estimate of $10.72 billion by 2.8%. However, the top line rose 4.3% from $10 billion reported in the year-ago quarter.