L3Harris: Q3 orders of $19.3bn lift backlog to a record $53.2bn, EPS guide raised

L3Harris Technologies took in $19.3bn of orders in the third quarter of 2026, for a book-to-bill ratio of 3.2x, and ended the period with $53.2bn of backlog, a level the company described as a record, it reported on 29 October 2026. By segment, book-to-bill was 11.8x at Missile Solutions, 1.9x at Communications & Spectrum Dominance and 1.0x at Space & Mission Systems. The release lists two undefinitized seven-year propulsion contracts among its highlights: $6.3bn for THAAD and $4.7bn for the PAC-3 MSE interceptor, both excluding escalations. Neither is new: L3Harris announced the PAC-3 MSE award on 8 September 2026 and the THAAD award, at more than $6bn, on 29 September 2026.

GAAP diluted EPS rose 33% to $3.28 from $2.46 a year earlier. The company credited higher volumes, a lower effective tax rate of 14.9%, against 18.5% a year earlier, and reduced corporate and interest expense. Unallocated corporate items shrank to $181m from $279m. Revenue grew 7% to $6.06bn, or 9% on an organic basis, a non-GAAP measure, and the GAAP operating margin widened to 13.0% from 11.0%. The non-GAAP segment operating margin held at 15.9%. Free cash flow, also non-GAAP and now calculated without proceeds from disposals of property, plant and equipment, was $1.26bn against $427m a year earlier. The company ended the quarter with $2.5bn of cash and equivalents and $11.0bn of total debt.

The new outlook, issued on 29 October 2026, lifts the bottom of the 2026 revenue range to $23.5bn-$23.7bn, from the $23.2bn-$23.7bn set out in the second-quarter release of 29 July, and raises GAAP EPS guidance to $12.25-$12.35 from $11.80-$12.00. L3Harris kept its 2026 targets for free cash flow at $3.0bn, operating cash flow at about $3.6bn, capital spending at roughly $600m and segment margin at low 16%. Expected Communications & Spectrum Dominance revenue slipped to about $7.9bn from about $8bn, while Space & Mission Systems rose to about $11.9bn from about $11.7bn and Missile Solutions stayed at about $4.1bn. In October the company opened its Arsenal of Freedom solid rocket motor plant in Camden, Arkansas, according to the release.

L3Harris shares were at $259.00 in pre-market trading at 07:51 ET (12:51 CET) on 29 October 2026, down 0.62% from the 28 October close of $260.61, according to Nasdaq. Pre-market prices can change before the regular session opens at 09:30 ET (14:30 CET) on 29 October. In a report published at 06:24 ET (11:24 CET), Reuters, as carried in machine-translated French by Boursorama, put the stock up about 4% at $270.70 before the open and said revenue of $6.06bn beat the $5.91bn analysts expected. The 15.9% segment operating margin, a non-GAAP measure, was below the 16.2% analysts expected, according to Investing.com.