LHX US S&P 500Russell 1000 Earnings call
L3Harris (LHX) · Q2 2026 results and valuation
Share price: $276.59 · 2026-11-11
L3Harris provides technology solutions for the space, air, land, sea, and cyber domains. The company supplies communication systems, mission systems, and aerospace products to government agencies and international allies in more than 100 countries. Source: 10-K annual report (2026-02-12)
Results Q2 2026 vs Q1 2026 · previous quarter · published 29 Jul 2026 and 30 Apr 2026
Net income up 17.2% on the previous quarter. Management sounded upbeat, in its script and in answers to analysts.
1 · Numbers
+17.2%
Net income vs Q1 2026
Outlook given
Net income 600.0M vs 512.0M
Revenue +2.4%
Against the same quarter last year (Q2 2025) it is +31.0%, so it is not just seasonal.
Why Against the same quarter last year (+31.0%), net income rose because of higher revenue volume, improved program performance, and lower corporate and other expenses, partially offset by lower net product line sales and investment gains compared to the prior year.
2 · How management spoke
Upbeat
More upbeat than 67% of company calls
Answers to analysts: restrained, in line with the script.
Similar to last call.
3 · What stood out
L3Harris signed a seven-year framework agreement for THAAD and PAC-3 production, representing approximately $12 billion of future production revenue and $2 billion of future profit.
Valuation
Is L3Harris undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2026-01-02), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 6.2% growth a year (3-year revenue growth), the model's fair value is $204.11 a share — the stock trades 36% above it. Today's price assumes 9.6% growth a year.
Current price
$276.59
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+9.6% for 10 yrs
Fair value / share
$204.11
Buy below
$153.08
Price vs fair value
Overvalued 36%
Price vs buy-below price
Overvalued 81%
Management expects
Revenue +9% · from the Q2 2026 report: “The company updated its full year revenue guidance to $23.2 billion to $23.7 billion, which results in organic revenue growth of 8% to 10%.”
A guidance figure for revenue, usually one year ahead, not a 10-year free-cash-flow rate.
Read between the lines
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Guidance
The company updated its full year revenue guidance to $23.2 billion to $23.7 billion, which results in organic revenue growth of 8% to 10%.
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Guidance
LHX increased both the low and high end of its diluted earnings per share guidance by $0.40 to a range of $11.80 to $12.00.
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Figure
LHX is negotiating more than $20 billion in new contracts that could triple the backlog and position the company for meaningful and sustained revenue and profit growth.
Source quote
“We are actively negotiating more than $20 billion in new contracts potentially tripling our backlog and positioning us for meaningful and sustained revenue and profit growth.”
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Figure
Free cash flow increased 37% to $771 million, reflecting the company's cash generation compared to the previous quarter.
Source quote
“Free cash flow was $771 million up 37%.”
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Figure
Deliveries increased over 60% and eliminated substantially all delinquent deliveries since the acquisition, improving operational performance.
Source quote
“And as a result, deliveries are up over 60% eliminating substantially all delinquent deliveries since the acquisition.”
4 more
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Figure
The company signed a seven-year framework agreement for THAAD and PAC-3 production, representing approximately $12 billion of future production revenue and $2 billion of future profit.
Source quote
“Shortly after quarter end, we signed a framework agreement for 7 years of THAAD and PAC-3 production representing approximately $12 billion of future production revenue and $2 billion of future profit.”
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Figure
Since the fourth quarter, L3Harris has secured $2.4 billion in new contracts validating its trusted disruptor strategy is working.
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Figure
The company's pipeline includes $10 billion of opportunities across the Middle East, Asia Pacific, and Europe.
Source quote
“Our pipeline includes $10 billion of opportunities across the Middle East, Asia Pacific, and Europe.”
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Figure
LHX will execute a newly awarded $4 billion FAA contract that could run through 2046 if options are exercised.
Source quote
“We will execute on our newly awarded $4 billion FAA contract which could run through 2046, if options are exercised.”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“The increase was driven by strong revenue growth improved program performance, and a net gain on segment investments partially offset by higher research and development cost.”
“By anticipating the future of warfare, winning new and emerging markets, strengthening our leadership positions in core franchises, expanding our international sales, and securing important long term franchise wins the...”
“The revenue guidance increase reflects stronger performance in our space emission systems business and the excellent work our team did by winning AMDT 3 constellation, which is part of the...”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-07-03)
| Metric | Q2 2026period end 2026-07-03 | Q1 2026period end 2026-04-03 | Change | Q2 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 5.88B | 5.74B | +2.4% | 5.43B | +8.4% |
| Gross profit | 1.50B | 1.40B | +7.1% | 1.33B | +12.5% |
| Operating income | 654.0M | 652.0M | +0.3% | 571.0M | +14.5% |
| Net income | 600.0M | 512.0M | +17.2% | 458.0M | +31.0% |
| EPS | 3.13 | 2.72 | +15.1% | 2.44 | +28.3% |
| P/E today 24.2 | 30.5 | 38.7 | −8.2 | 27.6 | +2.9 |
Topics
Most discussed now
- Will continue to book orders internationally with its smart software defined radios as L3Harris upgrades capability and interoperability.
- New L3Harris will lead a nationwide effort to rebuild and modernize the FAA's telematic telecommunications infrastructure backbone.
- L3Harris is taking deliberate, disciplined risks to enter markets it has not in before, and to gain share in attractive...
- L3Harris is running L3Harris for long term value creation.
- The increase was driven by strong revenue growth improved program performance, and a net gain on segment investments partially offset...
Faded since Q1 2026
- Fading L3Harris achieved a 1.4 book-to-bill with awards in missionized aircraft, solid rocket motors, and software-defined communication products.
- Dropped L3Harris' VAMPIRE system is combat-proven with hundreds of successful drone engagements, providing a modular, highly effective, low…
- Fading Ken is now focused full time on expanding solid rocket motor production capacity in support of the Munitions Acceleration Council...
- Fading Bedingfield for his two-plus years as CFO, and for taking on the missile solutions segment president role this past year.
Latest announcements
Official filings, newest first. Summaries are generated from each filing and its attachment; every figure is checked against the source.
- Other events · SEC 8-K
- Results of operations · SEC 8-K
- Director or officer change; Regulation FD disclosure · SEC 8-K
L3Harris Technologies appointed Kimberly Fields, the Chair, President, and CEO of ATI, Inc., as an independent director to the Board of Directors on October 21, 2026.
- Director or officer change; Regulation FD disclosure; Other events · SEC 8-K
L3Harris Technologies, Inc. appointed Sam Mehta as President and Chief Executive Officer on August 17, 2026, with an annual base salary of $1,250,000 and a target long-term incentive of $13,250,000.
- Results of operations · SEC 8-K
L3Harris Technologies, Inc. released its second quarter financial results on July 29, 2026, as disclosed in the accompanying earnings release.
- Director or officer change · SEC 8-K
L3Harris Technologies, Inc. approved one-time equity awards for three executives with target values of $5,000,000, $10,000,000, and $10,000,000, respectively, to be granted on August 3, 2026.
- Shareholder vote results · SEC 8-K · routine
- Results of operations · SEC 8-K
L3Harris Technologies, Inc. released its first quarter financial results for the period ending April 30, 2026, as disclosed in the accompanying earnings release.
Catalyst calendar
management-stated targets — from the latest earnings call; plans, not promises.
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next month
The new GMLRS factory, which we have named the Arsenal Of Freedom Building, is coming online.
Source quote
“The new GMLRS factory, which we have named the Arsenal Of Freedom Building, is coming online next month.”
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mid-2027
revisit the IPO
Source quote
“We expect to revisit the IPO in mid-2027.”
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the rest of the year
ramp up operations on AMDT 3 and classified satellite awards
Source quote
“Now let me focus on the future and how we see things playing out for the rest of the year. You will see us ramp up operations on AMDT 3 and classified satellite awards.”
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the second half
bid and win on NGC2 orders
Source quote
“We will build on our NGC2 orders that we received in Q1, Q2 of this year and continue to bid and win in the second half.”
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through 2046
FAA contract duration
Source quote
“We will execute on our newly awarded $4 billion FAA contract which could run through 2046, if options are exercised.”