L3Harris beats Q2 estimates; hikes forecast

Overview

• U.S. defense contractor's Q2 revenue rose 8% yr/yr, driven by growth across all segments

• Adjusted EPS for Q2 beat analyst expectations

• Company raised 2026 guidance for consolidated revenue and EPS

Outlook

• L3Harris raises 2026 revenue guidance to $23.2 bln-$23.7 bln from $23 bln-$23.5 bln

• Company lifts 2026 diluted EPS outlook to $11.80-$12.00 from $11.40-$11.60

• 2026 segment revenue guidance: Space & Mission Systems ~$11.7 bln, Communications & Spectrum Dominance ~$8 bln, Missile Solutions ~$4.1 bln

Result Drivers

• NEW PROGRAMS AND BACKLOG - Co said Q2 revenue growth was driven by new program starts and strong execution against record backlog

• SEGMENT VOLUME AND PERFORMANCE - Segment operating income rose across all segments due to increased volume and improved program performance, partially offset by higher R&D costs and absence of asset sale gains

• INTERNATIONAL DELIVERIES - Higher international deliveries for software-defined resilient communications equipment contributed to revenue growth in Communications & Spectrum Dominance

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 15 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the aerospace & defense peer group is "buy"

• Wall Street's median 12-month price target for L3harris Technologies, Inc is $390.00, about 27.8% above its July 28 closing price of $305.20

• The stock recently traded at 24 times the next 12-month earnings vs. a P/E of 29 three months ago

Reuters Recommended Reads

• July 29 - General Dynamics Q2 revenue beats estimates on growth across segments

• July 28 - Textron Q2 revenue meets estimates on military programs growth

• July 27 - Saab wins $1 billion order for surveillance aircraft in Middle East

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)