{"success":true,"data":{"pressRelease":{"id":"14541","rtpr_id":"nBw5Rg5h1a","ticker":"LHX","exchange":"NYSE","all_tickers":["LHX"],"title":"L3Harris Technologies Reports Strong First Quarter 2026 Results","author":"Business Wire","published_at":"2026-04-30T10:55:00.274Z","article_body":"L3Harris Technologies Reports Strong First Quarter 2026 Results\n\nL3Harris Technologies (NYSE: LHX) reports first quarter 2026 results.\n\nHighlights\n\n\n * Orders of $7.8 billion; book-to-bill of 1.4x increases backlog to new record\n$40.7 billion\n\n * Revenue of $5.7 billion, up 12%, and 15% organically*\n\n * Operating margin of 11.4% up 120 bps; Segment operating margin of 15.7% up 10\nbps\n\n * GAAP diluted EPS of $2.72, up 33%\n\n * Updates 2026 EPS guidance\n\n“We continue to execute against our Trusted Disruptor strategy with both\nurgency and discipline, leveraging speed and scale to meet the evolving needs\nof our customers. Our results reflect the strength of our portfolio and its\nalignment with the nation’s most critical defense missions. We operate in a\ndynamic global environment, where demand is accelerating and the future of\nwarfare is driving near-term operational priorities. Across the portfolio, we\nquickly adapt to mission needs and scale our operations to meet increasing\ndemand, accelerating growth across our enterprise,” said Christopher\nKubasik, Chairman and CEO.\n\nKubasik added, “We delivered a strong start to the year with robust orders\nand revenue growth coupled with progress across our strategic priorities. We\nare well positioned for the next phase of growth and value creation, remain on\ntrack to deliver on our 2026 commitments and continue to advance toward the\n2028 Financial Framework we outlined earlier this year.”\n _                                                                           \n *Organic revenue is a non-GAAP Financial Measure defined and reconciled to  \n GAAP in Table 5.                                                            \n\n\nSUMMARY FINANCIAL RESULTS*\n                                                                                                                                         \n                                                                  First Quarter                           2026 Guidance                  \n     ($ millions, except per share data)                               2026                2025                                          \n                                                                                                                                         \n     Revenue                                                                                                                             \n     Space & Mission Systems                                      $    2,990           $   2,411                                         \n     Communication & Spectrum Dominance                                1,855               1,809                                         \n     Missile Solutions                                                 990                 840                                           \n     Intersegment                                                      (91    )            (74    )                                      \n     Segment revenue                                                   5,744               4,986                                         \n     Other(1)                                                          —                   146                                           \n     Revenue                                                      $    5,744           $   5,132          $23B - $23.5B                  \n                                                                                                                                         \n     Operating income                                                                                                                    \n     Space & Mission Systems                                      $    313             $   238                                           \n     Communication & Spectrum Dominance                                465                 443                                           \n     Missile Solutions                                                 124                 96                                            \n     Segment operating income                                          902                 777                                           \n     Unallocated corporate items and other, net(1) (see Table 4)       (250   )            (252   )                                      \n     Operating income                                             $    652             $   525                                           \n     Operating margin                                                  11.4   %            10.2   %                                      \n     Segment operating margin                                          15.7   %            15.6   %       low 16%                        \n                                                                                                                                         \n     Tax rate                                                                                                                            \n     Effective tax rate                                                13.1   %            15.9   %                                      \n                                                                                                                                         \n     GAAP EPS                                                                                                                            \n     Diluted EPS                                                  $    2.72            $   2.04           $11.40 - $11.60                \n                                                                                                          \n                              \n                                                                                                          \n(Prior: $11.30 - $11.50)      \n     Diluted weighted-average common shares outstanding                188.1               189.1                                         \n                                                                                                                                         \n     Cash flow                                                                                                                           \n     Cash used in operations                                      $    (95    )        $   (42    )                                      \n     Free cash flow(2)                                            $    (187   )        $   (101   )       $3.0B                          \n                                                                                                                                         \n (1 )Includes other non-reportable businesses, which is the divested Commercial                                                          \n Aviation Solutions business (\"CAS disposal group\").                                                                                     \n (2 )Free cash flow is a non-GAAP Financial Measure defined and reconciled to                                                            \n GAAP in Table 6. Net cash provided by operating activities is anticipated to                                                            \n be approximately $3.6 billion and capital expenditures are anticipated to be                                                            \n approximately $600M.                                                                                                                    \n * Organic revenue is a non-GAAP Financial Measure defined and reconciled to                                                             \n GAAP in Table 5.                                                                                                                        \n\n\nRevenue: Increased $612 million, up 12%, and 15% organically, driven by growth\nacross all segments reflecting new program ramps and increased international\nvolume.\n\nOperating Income: Increased $127 million, up 24%. Operating margin was 11.4%,\nup 120 bps. The improvement in operating income was primarily driven by a $125\nmillion increase in segment operating income due to strong growth in the\nquarter and a decline in unallocated corporate items and other, net costs.\n\nSegment Operating Income: Increased $125 million, up 16%. Segment operating\nmargin was 15.7%, up 10 bps. Segment operating income grew across all segments\ndue to increased volume, improved program performance and higher monetization\nof legacy assets aligned with our transformation and value creation\npriorities, partially offset by higher growth in businesses with lower average\nmargin and increased investments in go-to-market activities and research and\ndevelopment.\n\nDiluted EPS: Increased 33% to $2.72 driven by higher operating income, lower\ninterest expense due to lower total outstanding debt, including both\nshort-term and long-term debt, and a lower effective tax rate, partially\noffset by lower FAS pension income.\n\nCash Flow: Cash used in operations was ($95) million, impacted by timing of\ncash receipts coupled with higher cash disbursements. Capital expenditures\nwere ($99) million, contributing to free cash flow of ($187) million.\n\nSEGMENT RESULTS\n\nSpace & Mission Systems\n                                                                               \n                       First Quarter                                           \n     ($ millions)          2026               2025           Increase          \n                                                                               \n     Revenue           $   2,990          $   2,411          24%               \n     Operating margin      10.5   %           9.9    %       60 bps            \n                                                                               \n\n\nRevenue: Increased 24%, primarily from the ramp in activity in our ISR\nbusiness on classified and international missionized aircraft programs,\nincluding a milestone related to material procurement in support of classified\ncontracts, as well as higher volume in Space, Mission Networks and Maritime\nprograms partially offset by lower classified volume in our intel products and\nsolutions business.\n\nOperating Margin: Increased 60 bps to 10.5% driven by improved program\nperformance, partially offset by increased material procurement in programs\nwith lower average margins and increased investments in research and\ndevelopment.\n\nCommunication & Spectrum Dominance\n                                                                               \n                       First Quarter                                           \n     ($ millions)          2026               2025           Increase          \n                                                                               \n     Revenue           $   1,855          $   1,809          3%                \n     Operating margin      25.1   %           24.5   %       60 bps            \n                                                                               \n\n\nRevenue: Increased 3%, primarily driven by increased volume for night vision\ndevices, international software-defined resilient communications and the ramp\nin activity on the Next Generation Jammer Electronic Warfare program.\n\nOperating Margin: Increased 60 bps to 25.1% primarily driven by increased\nsales associated with higher margin products in night vision devices and\nsoftware-defined resilient communications as well as the favorable settlement\nof a legal matter, partially offset by increased investments in customer\ndemonstrations, prototypes, and research and development.\n\nMissile Solutions\n                                                                             \n                       First Quarter                                         \n     ($ millions)          2026              2025          Increase          \n                                                                             \n     Revenue           $   990           $   840           18%               \n     Operating margin      12.5  %           11.4  %       110 bps           \n                                                                             \n\n\nRevenue: Increased 18% from higher production volumes across key missile and\nmunition programs, including those prioritized by the Department of War's\n(\"DoW\") Munitions Acceleration Council, and space propulsion programs as well\nas new program ramps.\n\nOperating Margin: Increased 110 bps to 12.5%, primarily due to the\nmonetization of legacy assets aligned with our transformation and value\ncreation priorities, partially offset by net unfavorable EAC adjustments.\n\nForward-Looking Statements\n\nThis earnings release contains forward-looking statements within the meaning\nof federal securities laws made in reliance on the safe harbor provisions of\nthe Private Securities Litigation Reform Act of 1995. Examples include, but\nare not limited to: planned investments; 2026 guidance; the impact of recent\nand expected contract awards; the 2028 financial framework; divestiture\ntiming; planned public offering by Missile Solutions; the impact of the global\nsecurity environment; projections of other financial items; and assumptions\nunderlying any of the foregoing. Investors should not place undue reliance on\nforward-looking statements, which reflect management’s current expectations,\nestimates, projections, assumptions and information currently available to\nmanagement, and are not guarantees of future performance or actual results.\nImportant risks that could cause our results to differ materially from those\nexpressed in or implied by these forward-looking statements or from our\nhistorical results include, but are not limited to, risks arising from:\ncompetitive markets; U.S. Government spending priorities; changes in contract\nmix; unilateral contract action by the U.S. Government or unexpected issues\nrelated to the DoW's investment in our subsidiary; uncertain economic\nconditions; future geo-political events; supply chain disruptions;\nindebtedness; interest rates and other market factors; and changes in\neffective tax rate or additional tax exposures. These and other important\nrisks that could impact forward-looking statements are described more fully in\nthe \"Risk Factors\" in our Form 10-K for fiscal 2025. All subsequent written\nand oral forward-looking statements attributable to us or any person acting on\nour behalf are qualified by the cautionary statements in this section, and we\nhave no duty to and disclaim any intention or obligation, other than imposed\nby law, to update or revise any forward-looking statements, whether as a\nresult of new information, future events or developments or otherwise.\n Table 1 - Condensed Consolidated Statement of Operations (Unaudited)                  \n                                                                                       \n                                                   First Quarter                       \n ($ millions, except per share amounts)                2026                2025        \n                                                                                       \n Revenue                                           $   5,744           $   5,132       \n Cost of revenue                                       (4,342  )           (3,782  )   \n General and administrative expenses                   (750    )           (825    )   \n Operating income                                      652                 525         \n Non-service FAS pension income and other, net(1)      73                  84          \n Interest expense, net                                 (136    )           (150    )   \n Income before income taxes                            589                 459         \n Income taxes                                          (77     )           (73     )   \n Net income                                        $   512             $   386         \n                                                                                       \n Earnings per share attributable to common shareholders                                \n Basic                                             $   2.74            $   2.05        \n Diluted                                           $   2.72            $   2.04        \n                                                                                       \n Weighted-average common shares outstanding                                            \n Basic                                                 186.8               188.5       \n Diluted                                               188.1               189.1       \n                                                                                       \n (1)“FAS” is defined as Financial Accounting Standards.                                \n\n Table 2 - Condensed Consolidated Balance Sheet (Unaudited)                       \n                                                                                  \n ($ millions)                           April 3, 2026         January 2, 2026     \n                                                                                  \n Assets                                                                           \n Current assets                                                                   \n Cash and cash equivalents              $        590          $         1,069     \n Receivables, net                                1,912                  1,371     \n Contract assets                                 3,530                  3,566     \n Inventories, net                                1,234                  1,219     \n Other current assets                            702                    484       \n Assets of business held for sale                926                    884       \n Total current assets                            8,894                  8,593     \n Non-current assets                                                               \n Property, plant and equipment, net              2,658                  2,665     \n Goodwill                                        19,999                 20,010    \n Intangible assets, net                          6,331                  6,509     \n Deferred income taxes                           71                     76        \n Other non-current assets                        3,427                  3,342     \n Total assets                           $        41,380       $         41,195    \n                                                                                  \n Liabilities and equity                                                           \n Current liabilities                                                              \n Short-term debt                        $        350          $         —         \n Current portion of long-term debt               1,816                  673       \n Accounts payable                                1,930                  2,461     \n Contract liabilities                            2,736                  2,262     \n Compensation and benefits                       391                    482       \n Other current liabilities                       1,267                  1,235     \n Liabilities of business held for sale           111                    113       \n Total current liabilities                       8,601                  7,226     \n Non-current liabilities                                                          \n Long-term debt, net                             9,191                  10,443    \n Deferred income taxes                           1,225                  1,114     \n Other non-current liabilities                   2,683                  2,777     \n Total liabilities                               21,700                 21,560    \n Total equity                                    19,680                 19,635    \n Total liabilities and equity           $        41,380       $         41,195    \n\n Table 3 - Condensed Consolidated Statement of Cash Flows (Unaudited)                                  \n                                                                                                       \n                                                                      First Quarter                    \n ($ millions)                                                             2026               2025      \n                                                                                                       \n Operating Activities                                                                                  \n Net income                                                           $   512            $   386       \n Adjustments to reconcile to net cash used in operating activities:                                    \n Depreciation and amortization                                            282                301       \n Share-based compensation                                                 21                 19        \n Net periodic benefit income                                              (70    )           (84   )   \n Share-based matching contributions under defined contribution plans      62                 68        \n Deferred income taxes                                                    119                (89   )   \n (Increase) decrease in:                                                                               \n Receivables, net                                                         (623   )           (447  )   \n Contract assets                                                          72                 (420  )   \n Inventories, net                                                         (17    )           92        \n Other current assets                                                     (218   )           (19   )   \n Increase (decrease) in:                                                                               \n Accounts payable                                                         (527   )           52        \n Contract liabilities                                                     461                (16   )   \n Compensation and benefits                                                (87    )           (105  )   \n Other current liabilities                                                (15    )           11        \n Income taxes                                                             (7     )           273       \n Other operating activities                                               (60    )           (64   )   \n Net cash used in operating activities                                    (95    )           (42   )   \n Investing Activities                                                                                  \n Capital expenditures                                                     (99    )           (59   )   \n Proceeds from disposal of property, plant and equipment, net             7                  —         \n Proceeds from sales of businesses, net of cash divested                  —                  831       \n Other investing activities                                               (5     )           (28   )   \n Net cash (used in) provided by investing activities                      (97    )           744       \n Financing Activities                                                                                  \n Repayments of long-term debt                                             (106   )           (5    )   \n Change in commercial paper, net                                          350                20        \n Repurchases of common stock                                              (296   )           (569  )   \n Dividends paid                                                           (238   )           (228  )   \n Other financing activities                                               6                  (23   )   \n Net cash used in financing activities                                    (284   )           (805  )   \n Effect of exchange rate changes on cash and cash equivalents             (3     )           5         \n Net decrease in cash and cash equivalents                                (479   )           (98   )   \n Cash and cash equivalents, beginning of period                           1,069              615       \n Cash and cash equivalents, end of period                             $   590            $   517       \n\n Table 4 - Unallocated Corporate Items (Unaudited)                                           \n                                                                                             \n                                                               First Quarter                 \n ($ millions)                                                  2026           2025           \n                                                                                             \n Unallocated corporate items:                                                                \n Amortization of acquisition-related intangibles               $    173       $    194       \n LHX NeXt implementation costs(1)                                   —              35        \n Business divestiture-related losses(1)                             10             17        \n Acquisition, divestiture and transaction-related expenses(1)       30             17        \n Other unallocated corporate items                                  37             12        \n Unallocated corporate items                                        250            275       \n Other non-reportable businesses(2)                                 —              (23  )    \n Unallocated corporate items and other, net                    $    250       $    252       \n                                                                                             \n (1 )Refer to Key Terms on page 10.                                                          \n (2) Includes the divested CAS disposal group.                                               \n\n Table 5 - Organic Revenue Non-GAAP Financial Measure Reconciliation \n (Unaudited)                                                         \n                                                                     \n               First Quarter                                         \n               2025                                                  \n ($ millions)  GAAP            Adjustments           Organic(1)      \n                                                                     \n Revenue       $    5,132      $     (146  )         $       4,986   \n                                                                     \n (1) Organic revenue is a non-GAAP Financial Measure as defined by Regulation \n G. We use organic revenue to exclude revenue attributable to our divested CAS \n disposal group in prior periods.                                    \n\n\n \n Table 6 - Reconciliation of Net Cash Provided by Operating Activities to Free                 \n Cash Flow - Non-GAAP Financial Measures Reconciliation (Unaudited)                            \n                                                                                               \n                                                               First Quarter                   \n ($ millions)                                                      2026              2025      \n                                                                                               \n Net cash used in operating activities                         $   (95   )       $   (42   )   \n Capital expenditures                                              (99   )           (59   )   \n Proceeds from disposal of property, plant and equipment, net      7                 —         \n Free cash flow(1)                                             $   (187  )       $   (101  )   \n                                                                                               \n (1) Free cash flow is a non-GAAP Financial Measure as defined by Regulation G.                \n We use free cash flow to evaluate business performance and overall liquidity,                 \n and it is a performance metric in our annual incentive plan. We believe free                  \n cash flow is useful because it represents the cash generated from operations                  \n after reinvesting in our business that may be available to return to                          \n stockholders and creditors (through dividends, stock repurchases and debt                     \n repayments) or available to fund acquisitions or other investments. The                       \n entirety of free cash flow amount is not available for discretionary                          \n expenditures, however, because of certain mandatory expenditures, such                        \n repayment of debt.                                                                            \n\n\n \n\nKey Terms\n Description                                                    Definition                                                                      \n Business divestiture-related losses                            In 2026, includes a loss recognized in connection with the Space Technology     \n                                                                disposal group, which consists of certain product lines of our Space            \n                                                                Propulsion and Power Systems sector and the space portion of our Space &        \n                                                                Sensors division reported in our Mission Solutions segment. In 2025, includes   \n                                                                a loss recognized in connection with the CAS disposal group divestiture.        \n Acquisition, divestiture and transaction-related expenses      Transaction and integration expenses associated with the Aerojet Rocketdyne     \n                                                                acquisition in 2025; external costs related to pursuing acquisition and         \n                                                                divestiture portfolio optimization; non-transaction costs related to            \n                                                                divestitures; costs related to the carve-out and planned MSL public offering;   \n                                                                salaries of employees in roles dedicated to planned strategic transaction       \n                                                                activity; and resolution of a procurement contract matter.                      \n LHX NeXt implementation costs                                  Includes costs related to workforce optimization costs, incremental IT          \n                                                                expenses for implementation of new systems, third-party consulting expenses     \n                                                                and other related costs, including costs related to personnel dedicated to      \n                                                                this project. The implementation phase of LHX NeXt was completed in fiscal      \n                                                                2025.                                                                           \n Orders                                                         Total value of funded and unfunded contract awards received from the U.S.       \n                                                                Government and other customers, including incremental funding and adjustments   \n                                                                to previous awards, excluding unexercised contract options and potential        \n                                                                orders under ordering-type contracts, such as indefinite delivery, indefinite   \n                                                                quantity (IDIQ) contracts.                                                      \n\n\n \n\n\n\nView source version on businesswire.com:\nhttps://www.businesswire.com/news/home/20260430178725/en/\n(https://www.businesswire.com/news/home/20260430178725/en/)\n\nInvestor Relations Contact: \n\nTony Calderon, 321-727-4450\n\ninvestorrelations@l3harris.com (mailto:investorrelations@l3harris.com)\n\nMedia Relations Contact: \n\nSara Banda, 321-306-8927\n\nmedia@l3harris.com (mailto:media@l3harris.com)\n\n\nCopyright Business Wire 2026","article_body_html":"","raw_payload":{"data":{"id":"nBw5Rg5h1a","title":"L3Harris Technologies Reports Strong First Quarter 2026 Results","author":"Business Wire","ticker":"LHX","created":"2026-04-30T10:55:00.274Z","tickers":["LHX"],"exchange":"NYSE","article_body":"L3Harris Technologies Reports Strong First Quarter 2026 Results\n\nL3Harris Technologies (NYSE: LHX) reports first quarter 2026 results.\n\nHighlights\n\n\n * Orders of $7.8 billion; book-to-bill of 1.4x increases backlog to new record\n$40.7 billion\n\n * Revenue of $5.7 billion, up 12%, and 15% organically*\n\n * Operating margin of 11.4% up 120 bps; Segment operating margin of 15.7% up 10\nbps\n\n * GAAP diluted EPS of $2.72, up 33%\n\n * Updates 2026 EPS guidance\n\n“We continue to execute against our Trusted Disruptor strategy with both\nurgency and discipline, leveraging speed and scale to meet the evolving needs\nof our customers. Our results reflect the strength of our portfolio and its\nalignment with the nation’s most critical defense missions. We operate in a\ndynamic global environment, where demand is accelerating and the future of\nwarfare is driving near-term operational priorities. Across the portfolio, we\nquickly adapt to mission needs and scale our operations to meet increasing\ndemand, accelerating growth across our enterprise,” said Christopher\nKubasik, Chairman and CEO.\n\nKubasik added, “We delivered a strong start to the year with robust orders\nand revenue growth coupled with progress across our strategic priorities. We\nare well positioned for the next phase of growth and value creation, remain on\ntrack to deliver on our 2026 commitments and continue to advance toward the\n2028 Financial Framework we outlined earlier this year.”\n _                                                                           \n *Organic revenue is a non-GAAP Financial Measure defined and reconciled to  \n GAAP in Table 5.                                                            \n\n\nSUMMARY FINANCIAL RESULTS*\n                                                                                                                                         \n                                                                  First Quarter                           2026 Guidance                  \n     ($ millions, except per share data)                               2026                2025                                          \n                                                                                                                                         \n     Revenue                                                                                                                             \n     Space & Mission Systems                                      $    2,990           $   2,411                                         \n     Communication & Spectrum Dominance                                1,855               1,809                                         \n     Missile Solutions                                                 990                 840                                           \n     Intersegment                                                      (91    )            (74    )                                      \n     Segment revenue                                                   5,744               4,986                                         \n     Other(1)                                                          —                   146                                           \n     Revenue                                                      $    5,744           $   5,132          $23B - $23.5B                  \n                                                                                                                                         \n     Operating income                                                                                                                    \n     Space & Mission Systems                                      $    313             $   238                                           \n     Communication & Spectrum Dominance                                465                 443                                           \n     Missile Solutions                                                 124                 96                                            \n     Segment operating income                                          902                 777                                           \n     Unallocated corporate items and other, net(1) (see Table 4)       (250   )            (252   )                                      \n     Operating income                                             $    652             $   525                                           \n     Operating margin                                                  11.4   %            10.2   %                                      \n     Segment operating margin                                          15.7   %            15.6   %       low 16%                        \n                                                                                                                                         \n     Tax rate                                                                                                                            \n     Effective tax rate                                                13.1   %            15.9   %                                      \n                                                                                                                                         \n     GAAP EPS                                                                                                                            \n     Diluted EPS                                                  $    2.72            $   2.04           $11.40 - $11.60                \n                                                                                                          \n                              \n                                                                                                          \n(Prior: $11.30 - $11.50)      \n     Diluted weighted-average common shares outstanding                188.1               189.1                                         \n                                                                                                                                         \n     Cash flow                                                                                                                           \n     Cash used in operations                                      $    (95    )        $   (42    )                                      \n     Free cash flow(2)                                            $    (187   )        $   (101   )       $3.0B                          \n                                                                                                                                         \n (1 )Includes other non-reportable businesses, which is the divested Commercial                                                          \n Aviation Solutions business (\"CAS disposal group\").                                                                                     \n (2 )Free cash flow is a non-GAAP Financial Measure defined and reconciled to                                                            \n GAAP in Table 6. Net cash provided by operating activities is anticipated to                                                            \n be approximately $3.6 billion and capital expenditures are anticipated to be                                                            \n approximately $600M.                                                                                                                    \n * Organic revenue is a non-GAAP Financial Measure defined and reconciled to                                                             \n GAAP in Table 5.                                                                                                                        \n\n\nRevenue: Increased $612 million, up 12%, and 15% organically, driven by growth\nacross all segments reflecting new program ramps and increased international\nvolume.\n\nOperating Income: Increased $127 million, up 24%. Operating margin was 11.4%,\nup 120 bps. The improvement in operating income was primarily driven by a $125\nmillion increase in segment operating income due to strong growth in the\nquarter and a decline in unallocated corporate items and other, net costs.\n\nSegment Operating Income: Increased $125 million, up 16%. Segment operating\nmargin was 15.7%, up 10 bps. Segment operating income grew across all segments\ndue to increased volume, improved program performance and higher monetization\nof legacy assets aligned with our transformation and value creation\npriorities, partially offset by higher growth in businesses with lower average\nmargin and increased investments in go-to-market activities and research and\ndevelopment.\n\nDiluted EPS: Increased 33% to $2.72 driven by higher operating income, lower\ninterest expense due to lower total outstanding debt, including both\nshort-term and long-term debt, and a lower effective tax rate, partially\noffset by lower FAS pension income.\n\nCash Flow: Cash used in operations was ($95) million, impacted by timing of\ncash receipts coupled with higher cash disbursements. Capital expenditures\nwere ($99) million, contributing to free cash flow of ($187) million.\n\nSEGMENT RESULTS\n\nSpace & Mission Systems\n                                                                               \n                       First Quarter                                           \n     ($ millions)          2026               2025           Increase          \n                                                                               \n     Revenue           $   2,990          $   2,411          24%               \n     Operating margin      10.5   %           9.9    %       60 bps            \n                                                                               \n\n\nRevenue: Increased 24%, primarily from the ramp in activity in our ISR\nbusiness on classified and international missionized aircraft programs,\nincluding a milestone related to material procurement in support of classified\ncontracts, as well as higher volume in Space, Mission Networks and Maritime\nprograms partially offset by lower classified volume in our intel products and\nsolutions business.\n\nOperating Margin: Increased 60 bps to 10.5% driven by improved program\nperformance, partially offset by increased material procurement in programs\nwith lower average margins and increased investments in research and\ndevelopment.\n\nCommunication & Spectrum Dominance\n                                                                               \n                       First Quarter                                           \n     ($ millions)          2026               2025           Increase          \n                                                                               \n     Revenue           $   1,855          $   1,809          3%                \n     Operating margin      25.1   %           24.5   %       60 bps            \n                                                                               \n\n\nRevenue: Increased 3%, primarily driven by increased volume for night vision\ndevices, international software-defined resilient communications and the ramp\nin activity on the Next Generation Jammer Electronic Warfare program.\n\nOperating Margin: Increased 60 bps to 25.1% primarily driven by increased\nsales associated with higher margin products in night vision devices and\nsoftware-defined resilient communications as well as the favorable settlement\nof a legal matter, partially offset by increased investments in customer\ndemonstrations, prototypes, and research and development.\n\nMissile Solutions\n                                                                             \n                       First Quarter                                         \n     ($ millions)          2026              2025          Increase          \n                                                                             \n     Revenue           $   990           $   840           18%               \n     Operating margin      12.5  %           11.4  %       110 bps           \n                                                                             \n\n\nRevenue: Increased 18% from higher production volumes across key missile and\nmunition programs, including those prioritized by the Department of War's\n(\"DoW\") Munitions Acceleration Council, and space propulsion programs as well\nas new program ramps.\n\nOperating Margin: Increased 110 bps to 12.5%, primarily due to the\nmonetization of legacy assets aligned with our transformation and value\ncreation priorities, partially offset by net unfavorable EAC adjustments.\n\nForward-Looking Statements\n\nThis earnings release contains forward-looking statements within the meaning\nof federal securities laws made in reliance on the safe harbor provisions of\nthe Private Securities Litigation Reform Act of 1995. Examples include, but\nare not limited to: planned investments; 2026 guidance; the impact of recent\nand expected contract awards; the 2028 financial framework; divestiture\ntiming; planned public offering by Missile Solutions; the impact of the global\nsecurity environment; projections of other financial items; and assumptions\nunderlying any of the foregoing. Investors should not place undue reliance on\nforward-looking statements, which reflect management’s current expectations,\nestimates, projections, assumptions and information currently available to\nmanagement, and are not guarantees of future performance or actual results.\nImportant risks that could cause our results to differ materially from those\nexpressed in or implied by these forward-looking statements or from our\nhistorical results include, but are not limited to, risks arising from:\ncompetitive markets; U.S. Government spending priorities; changes in contract\nmix; unilateral contract action by the U.S. Government or unexpected issues\nrelated to the DoW's investment in our subsidiary; uncertain economic\nconditions; future geo-political events; supply chain disruptions;\nindebtedness; interest rates and other market factors; and changes in\neffective tax rate or additional tax exposures. These and other important\nrisks that could impact forward-looking statements are described more fully in\nthe \"Risk Factors\" in our Form 10-K for fiscal 2025. All subsequent written\nand oral forward-looking statements attributable to us or any person acting on\nour behalf are qualified by the cautionary statements in this section, and we\nhave no duty to and disclaim any intention or obligation, other than imposed\nby law, to update or revise any forward-looking statements, whether as a\nresult of new information, future events or developments or otherwise.\n Table 1 - Condensed Consolidated Statement of Operations (Unaudited)                  \n                                                                                       \n                                                   First Quarter                       \n ($ millions, except per share amounts)                2026                2025        \n                                                                                       \n Revenue                                           $   5,744           $   5,132       \n Cost of revenue                                       (4,342  )           (3,782  )   \n General and administrative expenses                   (750    )           (825    )   \n Operating income                                      652                 525         \n Non-service FAS pension income and other, net(1)      73                  84          \n Interest expense, net                                 (136    )           (150    )   \n Income before income taxes                            589                 459         \n Income taxes                                          (77     )           (73     )   \n Net income                                        $   512             $   386         \n                                                                                       \n Earnings per share attributable to common shareholders                                \n Basic                                             $   2.74            $   2.05        \n Diluted                                           $   2.72            $   2.04        \n                                                                                       \n Weighted-average common shares outstanding                                            \n Basic                                                 186.8               188.5       \n Diluted                                               188.1               189.1       \n                                                                                       \n (1)“FAS” is defined as Financial Accounting Standards.                                \n\n Table 2 - Condensed Consolidated Balance Sheet (Unaudited)                       \n                                                                                  \n ($ millions)                           April 3, 2026         January 2, 2026     \n                                                                                  \n Assets                                                                           \n Current assets                                                                   \n Cash and cash equivalents              $        590          $         1,069     \n Receivables, net                                1,912                  1,371     \n Contract assets                                 3,530                  3,566     \n Inventories, net                                1,234                  1,219     \n Other current assets                            702                    484       \n Assets of business held for sale                926                    884       \n Total current assets                            8,894                  8,593     \n Non-current assets                                                               \n Property, plant and equipment, net              2,658                  2,665     \n Goodwill                                        19,999                 20,010    \n Intangible assets, net                          6,331                  6,509     \n Deferred income taxes                           71                     76        \n Other non-current assets                        3,427                  3,342     \n Total assets                           $        41,380       $         41,195    \n                                                                                  \n Liabilities and equity                                                           \n Current liabilities                                                              \n Short-term debt                        $        350          $         —         \n Current portion of long-term debt               1,816                  673       \n Accounts payable                                1,930                  2,461     \n Contract liabilities                            2,736                  2,262     \n Compensation and benefits                       391                    482       \n Other current liabilities                       1,267                  1,235     \n Liabilities of business held for sale           111                    113       \n Total current liabilities                       8,601                  7,226     \n Non-current liabilities                                                          \n Long-term debt, net                             9,191                  10,443    \n Deferred income taxes                           1,225                  1,114     \n Other non-current liabilities                   2,683                  2,777     \n Total liabilities                               21,700                 21,560    \n Total equity                                    19,680                 19,635    \n Total liabilities and equity           $        41,380       $         41,195    \n\n Table 3 - Condensed Consolidated Statement of Cash Flows (Unaudited)                                  \n                                                                                                       \n                                                                      First Quarter                    \n ($ millions)                                                             2026               2025      \n                                                                                                       \n Operating Activities                                                                                  \n Net income                                                           $   512            $   386       \n Adjustments to reconcile to net cash used in operating activities:                                    \n Depreciation and amortization                                            282                301       \n Share-based compensation                                                 21                 19        \n Net periodic benefit income                                              (70    )           (84   )   \n Share-based matching contributions under defined contribution plans      62                 68        \n Deferred income taxes                                                    119                (89   )   \n (Increase) decrease in:                                                                               \n Receivables, net                                                         (623   )           (447  )   \n Contract assets                                                          72                 (420  )   \n Inventories, net                                                         (17    )           92        \n Other current assets                                                     (218   )           (19   )   \n Increase (decrease) in:                                                                               \n Accounts payable                                                         (527   )           52        \n Contract liabilities                                                     461                (16   )   \n Compensation and benefits                                                (87    )           (105  )   \n Other current liabilities                                                (15    )           11        \n Income taxes                                                             (7     )           273       \n Other operating activities                                               (60    )           (64   )   \n Net cash used in operating activities                                    (95    )           (42   )   \n Investing Activities                                                                                  \n Capital expenditures                                                     (99    )           (59   )   \n Proceeds from disposal of property, plant and equipment, net             7                  —         \n Proceeds from sales of businesses, net of cash divested                  —                  831       \n Other investing activities                                               (5     )           (28   )   \n Net cash (used in) provided by investing activities                      (97    )           744       \n Financing Activities                                                                                  \n Repayments of long-term debt                                             (106   )           (5    )   \n Change in commercial paper, net                                          350                20        \n Repurchases of common stock                                              (296   )           (569  )   \n Dividends paid                                                           (238   )           (228  )   \n Other financing activities                                               6                  (23   )   \n Net cash used in financing activities                                    (284   )           (805  )   \n Effect of exchange rate changes on cash and cash equivalents             (3     )           5         \n Net decrease in cash and cash equivalents                                (479   )           (98   )   \n Cash and cash equivalents, beginning of period                           1,069              615       \n Cash and cash equivalents, end of period                             $   590            $   517       \n\n Table 4 - Unallocated Corporate Items (Unaudited)                                           \n                                                                                             \n                                                               First Quarter                 \n ($ millions)                                                  2026           2025           \n                                                                                             \n Unallocated corporate items:                                                                \n Amortization of acquisition-related intangibles               $    173       $    194       \n LHX NeXt implementation costs(1)                                   —              35        \n Business divestiture-related losses(1)                             10             17        \n Acquisition, divestiture and transaction-related expenses(1)       30             17        \n Other unallocated corporate items                                  37             12        \n Unallocated corporate items                                        250            275       \n Other non-reportable businesses(2)                                 —              (23  )    \n Unallocated corporate items and other, net                    $    250       $    252       \n                                                                                             \n (1 )Refer to Key Terms on page 10.                                                          \n (2) Includes the divested CAS disposal group.                                               \n\n Table 5 - Organic Revenue Non-GAAP Financial Measure Reconciliation \n (Unaudited)                                                         \n                                                                     \n               First Quarter                                         \n               2025                                                  \n ($ millions)  GAAP            Adjustments           Organic(1)      \n                                                                     \n Revenue       $    5,132      $     (146  )         $       4,986   \n                                                                     \n (1) Organic revenue is a non-GAAP Financial Measure as defined by Regulation \n G. We use organic revenue to exclude revenue attributable to our divested CAS \n disposal group in prior periods.                                    \n\n\n \n Table 6 - Reconciliation of Net Cash Provided by Operating Activities to Free                 \n Cash Flow - Non-GAAP Financial Measures Reconciliation (Unaudited)                            \n                                                                                               \n                                                               First Quarter                   \n ($ millions)                                                      2026              2025      \n                                                                                               \n Net cash used in operating activities                         $   (95   )       $   (42   )   \n Capital expenditures                                              (99   )           (59   )   \n Proceeds from disposal of property, plant and equipment, net      7                 —         \n Free cash flow(1)                                             $   (187  )       $   (101  )   \n                                                                                               \n (1) Free cash flow is a non-GAAP Financial Measure as defined by Regulation G.                \n We use free cash flow to evaluate business performance and overall liquidity,                 \n and it is a performance metric in our annual incentive plan. We believe free                  \n cash flow is useful because it represents the cash generated from operations                  \n after reinvesting in our business that may be available to return to                          \n stockholders and creditors (through dividends, stock repurchases and debt                     \n repayments) or available to fund acquisitions or other investments. The                       \n entirety of free cash flow amount is not available for discretionary                          \n expenditures, however, because of certain mandatory expenditures, such                        \n repayment of debt.                                                                            \n\n\n \n\nKey Terms\n Description                                                    Definition                                                                      \n Business divestiture-related losses                            In 2026, includes a loss recognized in connection with the Space Technology     \n                                                                disposal group, which consists of certain product lines of our Space            \n                                                                Propulsion and Power Systems sector and the space portion of our Space &        \n                                                                Sensors division reported in our Mission Solutions segment. In 2025, includes   \n                                                                a loss recognized in connection with the CAS disposal group divestiture.        \n Acquisition, divestiture and transaction-related expenses      Transaction and integration expenses associated with the Aerojet Rocketdyne     \n                                                                acquisition in 2025; external costs related to pursuing acquisition and         \n                                                                divestiture portfolio optimization; non-transaction costs related to            \n                                                                divestitures; costs related to the carve-out and planned MSL public offering;   \n                                                                salaries of employees in roles dedicated to planned strategic transaction       \n                                                                activity; and resolution of a procurement contract matter.                      \n LHX NeXt implementation costs                                  Includes costs related to workforce optimization costs, incremental IT          \n                                                                expenses for implementation of new systems, third-party consulting expenses     \n                                                                and other related costs, including costs related to personnel dedicated to      \n                                                                this project. The implementation phase of LHX NeXt was completed in fiscal      \n                                                                2025.                                                                           \n Orders                                                         Total value of funded and unfunded contract awards received from the U.S.       \n                                                                Government and other customers, including incremental funding and adjustments   \n                                                                to previous awards, excluding unexercised contract options and potential        \n                                                                orders under ordering-type contracts, such as indefinite delivery, indefinite   \n                                                                quantity (IDIQ) contracts.                                                      \n\n\n \n\n\n\nView source version on businesswire.com:\nhttps://www.businesswire.com/news/home/20260430178725/en/\n(https://www.businesswire.com/news/home/20260430178725/en/)\n\nInvestor Relations Contact: \n\nTony Calderon, 321-727-4450\n\ninvestorrelations@l3harris.com (mailto:investorrelations@l3harris.com)\n\nMedia Relations Contact: \n\nSara Banda, 321-306-8927\n\nmedia@l3harris.com (mailto:media@l3harris.com)\n\n\nCopyright Business Wire 2026"},"type":"article","timestamp":"2026-04-30T10:55:00.364909048Z","server_sent_at_ms":1777546500364},"received_at":"2026-04-30T10:55:00.475Z","source_url":"https://www.businesswire.com/news/home/20260430178725/en/"},"analysis":null,"durationMs":null,"modelName":null}}