01—Abstract
Summary
Summary of the 10-Q filed April 30, 2026. Cited figures are marked; the original filing is the authoritative source.
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 billiona, 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 billionb 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.
02—Key points
Key Highlights
- Revenue increased by 12% year-over-year to $5.74 billion in Q1 FY2026, driven by growth across all segments.
- Net income surged by 33% to $512 million, with diluted EPS rising to $2.72 from $2.04 in the prior year's quarter.
- The Space & Mission Systems (SMS) segment showed particularly strong revenue growth of 24% to $2.99 billion.
- General and administrative expenses decreased by 9% primarily due to the absence of certain implementation costs and divestiture-related expenses.
- The 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.
- A 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.
- Contractual backlog stood at a strong $40.7 billion as of April 3, 2026.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2027, L3HARRIS Technologies, Inc. kept $0.09.
- Revenue$5.74B100.0%
- Cost of revenue−$4.34B75.6%
- Gross profit$1.40B24.4%
- Operating costs−$750.0M13.1%
- Operating income$652.0M11.4%
- Interest, other & tax−$140.0M2.4%
- Net income$512.0M8.9%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2027filed April 30, 2026Financial Statements
Q1 FY2027 against Q1 FY2026
| Line item | Q1 FY2027Q1 FY2026 | Change |
|---|---|---|
| Revenue | $5.74B$5.13B | +11.9% |
| Cost of Revenue | $4.34B$3.78B | +14.8% |
| Gross Profit | $1.40B$1.35B | +3.9% |
| SG&A Expenses | $750.00M$825.00M | −9.1% |
| Operating Income | $652.00M$525.00M | +24.2% |
| Net Income | $512.00M$386.00M | +32.6% |
| EPS (Basic) | $2.74$2.05 | +33.7% |
| EPS (Diluted) | $2.72$2.04 | +33.3% |
| Shares Outstanding (Basic) | 186.80M188.50M | −0.9% |
| Shares Outstanding (Diluted) | 188.10M189.10M | −0.5% |
05—Questions
Frequently Asked Questions
What is the outlook for L3Harris Technologies based on this report?
The company reported strong first-quarter results with significant revenue and net income growth, indicating a positive near-term outlook. The increasing defense budgets in the U.S. and internationally, coupled with the company's strategic focus on key defense and space technologies, suggest continued growth potential. The pending investment in Aerojet Rocketdyne also signals strategic positioning for future opportunities.
How did the segment performance contribute to the overall results?
All segments contributed to the revenue growth, with Space & Mission Systems (SMS) being the standout performer, up 24% due to new program ramps and increased international deliveries. Communication & Spectrum Dominance (CSD) grew 3%, and Missile Solutions (MSL) increased by 18%. Operating income also saw improvements across all segments.
What is the significance of the Aerojet Rocketdyne Holdings, Inc. investment?
The agreement for a $1.0 billion investment from the U.S. Department of War into Aerojet Rocketdyne Holdings, Inc. is a significant strategic development. It aims to strengthen the U.S. defense industrial base by funding facility modernization, R&D acceleration, and increased production capacity for critical technologies. This investment underscores the strategic importance of Aerojet's capabilities within the defense ecosystem and L3Harris's role in supporting these critical advancements.
How is the company managing its debt and liquidity?
L3Harris maintains a healthy liquidity position with $590 million in cash and cash equivalents and significant availability under its credit facilities. The company has actively managed its debt, including repaying a $100 million debenture and utilizing its commercial paper program. The interest expense has decreased due to lower overall debt levels.
06—Continue