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L3Harris Q4 Earnings Surpass Estimates, Revenues Rise Y/Y

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Key Takeaways

  • LHX's Q4 earnings beat estimates, revenues increase year over year.
  • Space, communication and missile programs drove growth, while margins were pressured.
  • LHX guided $23-$23.5B in 2026 revenues, with earnings and cash flow outlook reflecting program execution.

L3Harris Technologies, Inc. (LHX - Free Report) reported fourth-quarter 2025 adjusted earnings (from continuing operations) of $2.86 per share, which beat the Zacks Consensus Estimate of $2.76 by 3.6%. 

For 2025, the company reported adjusted earnings of $10.73 per share compared with $9.70 a year ago.

LHX’s Total Revenues

Revenues totaled $5.65 billion, which missed the Zacks Consensus Estimate of $5.79 billion by 2.6%. However, the top line improved 2.3% from the year-ago quarter’s $5.52 billion.

For 2025, the company reported revenues of $21.87 billion compared with $21.33 billion last year.

 

L3Harris Technologies Inc Price, Consensus and EPS Surprise

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 $1.72 billion, flat year over year. 

Operating income was $191 million, down 19.4% year over year. The segment’s operating margin decreased 270 bps to 11.1%, caused by the CAS divestiture and unfavorable Maritime program performance.

Space and Airborne Systems: Net revenues from the segment were $1.74 billion, reflecting a year-over-year improvement of 1%. 

The segment’s operating income improved to $238 million from $186 million in the year-ago quarter. The operating margin increased 290 bps to 13.7% driven by stabilized program performance on classified space programs.

Communication Systems: Net revenues from this segment increased 3% to $1.48 billion. 

The unit’s operating income improved to $369 million from $326 million in the year-ago quarter. The adjusted operating margin increased 50 bps to 24.9%. 

Aerojet Rocketdyne: This segment reported revenues of $763 million, which improved 10% 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 $5 million declined from $73 million in the fourth quarter of 2024. The adjusted operating margin increased 130 bps to 11.8%.

Financial Position of LHX

As of Jan. 2, 2026, L3Harris had $1.07 billion in cash and cash equivalents compared with $0.62 billion as of Jan. 3, 2025.

The long-term debt as of the same date was $10.44 billion compared with $11.08 billion as of Jan. 3, 2025.

The net cash flow from operating activities was $3.11 billion in 2025 compared with $2.56 billion last year.

LHX 2026 Guidance

It now expects to generate approximately $23-23.5 billion in revenues. The Zacks Consensus Estimate for 2026 revenues is pegged at $23.4 billion, which is higher than the midpoint of the company’s guidance.

L3Harris expects adjusted earnings to be in the range of $11.30-$11.50 per share. The consensus estimate for adjusted earnings is pegged at $12.39 per share, which is currently higher than the company’s guided range.

It expects adjusted free cash flow to be around $3 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 Release 

RTX Corporation’s (RTX - Free Report) fourth-quarter 2025 adjusted earnings per share (EPS) of $1.55 beat the Zacks Consensus Estimate of $1.46 by 5.9%. The bottom line also improved 0.6% from the year-ago quarter’s level of $1.54.

RTX’s fourth-quarter sales totaled $24.24 billion, which surpassed the Zacks Consensus Estimate of $22.74 billion by 6.6%. The top line also surged a solid 12.1% from $21.62 billion recorded for the fourth quarter of 2024.

The Boeing Company (BA - Free Report) incurred an adjusted loss of $1.91 per share in the fourth quarter of 2025, wider than the Zacks Consensus Estimate of a loss of 40 cents. However, the bottom line improved from the year-ago quarter’s reported loss of $5.90 per share.

BA’s revenues amounted to $23.95 billion, which outpaced the Zacks Consensus Estimate of $21.73 billion by 8%. The top line also surged 57.1% from the year-ago quarter’s reported figure of $15.24 billion.

Northrop Grumman Corporation (NOC - Free Report) reported fourth-quarter 2025 adjusted earnings of $7.23 per share, which topped the Zacks Consensus Estimate of $7 by 3.3%. The bottom line also increased 13.1% from $6.39 registered in the prior-year quarter.

NOC’s total sales of $11.71 billion in the fourth quarter beat the Zacks Consensus Estimate of $11.62 billion by 0.8%. The top line also rose 9.6% from $10.69 billion reported in the year-ago quarter.

 

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