L3Harris beats Q3 revenue estimates, raises FY guidance range

Overview

• US defense technology firm's Q3 revenue rose 7%, beating analyst expectations

• Diluted EPS for Q3 rose 33% year-over-year to $3.28

• Company raised full-year revenue and EPS guidance ranges

Outlook

• L3Harris raises FY26 revenue guidance to $23.5 bln-$23.7 bln from $23.2 bln-$23.7 bln

• Company lifts FY26 GAAP EPS outlook to $12.25-$12.35 from $11.80-$12.00

• L3Harris maintains FY26 free cash flow guidance at $3.0 bln

Result Drivers

• SEGMENT GROWTH - Double-digit growth in Space & Mission Systems and Missile Solutions segments drove revenue increase

• RECORD BACKLOG - Co said record backlog reflected strong demand for mission-critical capabilities

• EXPENSE MANAGEMENT - Higher operating margin attributed to increased revenue and continued management of corporate expenses

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 8 "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 $341.66, about 31.1% above its October 28 closing price of $260.61

• The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 23 three months ago

Reuters Recommended Reads

• Oct 28 - Britain backs Rolls-Royce with £2.5 billion deal for new jet engine

• Oct 29 - Rheinmetall wins option order for 69 more Schakal combat vehicles

• Oct 28 - Aselsan order backlog jumps to $30.7 bln as air defence demand surges

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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.)