Summary
L3Harris Technologies, Inc. reported strong financial performance for the first quarter of fiscal year 2026, with a significant increase in revenue and net income compared to the prior year. Revenue grew by 12% to $5.74 billion, driven by robust performance across all segments, particularly Space & Mission Systems (SMS), fueled by new program ramps and increased international deliveries. Net income saw a substantial rise of 33% to $512 million, translating to diluted EPS of $2.72, up from $2.04 in the first quarter of fiscal year 2025. The company's operational efficiency is demonstrated by the improvement in gross margin and a decrease in general and administrative expenses, despite increased company-funded R&D. The company also continues to manage its capital structure effectively, with a strong liquidity position and available borrowing capacity. A significant subsequent event is the definitive agreement for a $1.0 billion investment in Aerojet Rocketdyne Holdings, Inc. by the U.S. Department of War, aimed at enhancing critical defense technologies, which is expected to close in the second half of 2026.
Financial Highlights
48 data points| Revenue | $5.74B |
| Cost of Revenue | $4.34B |
| Gross Profit | $1.40B |
| SG&A Expenses | $750.00M |
| Operating Income | $652.00M |
| Net Income | $512.00M |
| EPS (Basic) | $2.74 |
| EPS (Diluted) | $2.72 |
| Shares Outstanding (Basic) | 186.80M |
| Shares Outstanding (Diluted) | 188.10M |
Key Highlights
- 1Revenue increased by 12% year-over-year to $5.74 billion in Q1 FY2026, driven by growth across all segments.
- 2Net income surged by 33% to $512 million, with diluted EPS rising to $2.72 from $2.04 in the prior year's quarter.
- 3The Space & Mission Systems (SMS) segment showed particularly strong revenue growth of 24% to $2.99 billion.
- 4General and administrative expenses decreased by 9% primarily due to the absence of certain implementation costs and divestiture-related expenses.
- 5The company maintained a strong liquidity position, with $590 million in cash and cash equivalents and $2.2 billion in available borrowing capacity under its credit facilities.
- 6A significant subsequent event involves a definitive agreement for a $1.0 billion investment in Aerojet Rocketdyne Holdings, Inc. from the U.S. Department of War, expected to close in H2 2026.
- 7Contractual backlog stood at a strong $40.7 billion as of April 3, 2026.