L3Harris

L3Harris Technologies makes defense electronics, space systems, communications equipment and missile propulsion. Its main customer is the US Department of War, and it also sells to allied governments and to other defense contractors such as Lockheed Martin. It has three segments. Space & Mission Systems makes satellites, sensors, missionized aircraft and parts for aircraft such as the F-35.

Communications & Spectrum Dominance makes tactical radios, electronic warfare and targeting systems, and it has the highest margin. Missile Solutions, the former Aerojet Rocketdyne, makes solid rocket motors and other propulsion for interceptors such as THAAD and PAC-3, and for strike weapons. Most revenue comes from long government contracts, and backlog was a record $53.2 billion at the end of Q3 2026.

The market doubts that L3Harris can turn its record backlog into higher profits on time while it changes its leader and builds new missile plants. Christopher Kubasik left as CEO on August 17, 2026, after the Board found conduct that was not consistent with the company's values, and Sam Mehta replaced him. L3Harris also plans to spend about $3 billion to increase solid rocket motor production, and it sold preferred stock in its missile subsidiary to the Department of War, which can convert to about 10% of that business at an IPO. In Q3 2026, orders of $19.3 billion, mostly seven-year propulsion contracts for THAAD and PAC-3, raised the backlog to a record $53.2 billion.

Much of this work is under undefinitized contracts, whose final prices and margins are not yet set. The US government started fiscal 2027 on a continuing resolution that funds it only to December 11, 2026, and this can delay new programs. For the gap to close, L3Harris must meet its raised 2026 guidance of $23.5 billion to $23.7 billion of revenue, diluted EPS of $12.25 to $12.35 and about $3.0 billion of free cash flow. The missile ramps for THAAD and PAC-3 must stay on schedule and on cost.

The planned IPO of the missile business, AXYV, should occur by December 31, 2027, so that the market sees a public value for it. The Q4 report with the 2027 guidance, expected in late January 2027, gives the next test. If the new CEO keeps the guidance and the missile ramp holds, the gap can close over the next four to eight quarters. A long budget delay or cost overruns on the new plants can keep it open.

1. Oct 29, 2026Passed

   Q3 2026 results: guidance under the new CEOKept or raised 2026 revenue, EPS and free cash flow guidance with book-to-bill above 1 pass; a guidance cut or a large charge on a missile program fails.Outcome: L3Harris raised its 2026 revenue and EPS guidance, kept free cash flow guidance at $3.0 billion and had a book-to-bill of 3.2.
2. Jan 29, 2027 · est.Pending

   Q4 2026 results and 2027 guidance2026 free cash flow near $3.0 billion and 2027 guidance with growth in Missile Solutions and stable segment margins pass; lower margins or cash flow fail.
3. Dec 31, 2027Pending

   AXYV IPO deadlineAn IPO of the missile business by December 31, 2027 passes; no IPO, with redemption of the preferred stock at a premium, fails.

Every passed and failed checkpoint across all picks

• November 2, 2026L3Harris sold $1.0 billion of notes: $500 million of 5.200% notes due 2029 and $500 million of 5.400% notes due 2032. The sale closed on November 5, 2026. L3Harris plans to use the money to repay the $550 million of 3.85% notes due December 15, 2026 and, with cash on hand, part of its 5.40% notes due January 15, 2027.
• October 29, 2026L3Harris reported Q3 2026 results. Revenue rose 7% to $6.1 billion, with 9% organic growth, and diluted EPS rose 33% to $3.28. Free cash flow was $1.3 billion. Orders were $19.3 billion, a book-to-bill of 3.2, mostly from seven-year propulsion contracts for THAAD ($6.3 billion) and PAC-3 ($4.7 billion), and backlog reached a record $53.2 billion. L3Harris raised its 2026 revenue guidance to $23.5 billion to $23.7 billion and its EPS guidance to $12.25 to $12.35, and kept free cash flow guidance at $3.0 billion. It opened its solid rocket motor plant in Camden, Arkansas in October 2026.
• October 19, 2026The US Navy gave L3Harris an undefinitized contract change of about $876 million for the next engineering and manufacturing development phase of the Next Generation Jammer Low Band program, on a faster schedule.

Last earnings

October 29, 2026 (8-K on sec.gov)

Next earnings

Expected about January 29, 2027. The company has not confirmed the date.

• 8-KOther company newsFiled November 5, 2026 · hrs-20261102
• 10-QQuarterly report for the period ended Oct 2, 2026Filed October 29, 2026 · hrs-20261002
• 8-KEarnings releaseFiled October 29, 2026 · Press release and exhibits
• 8-KChange of directors or officers and Investor disclosureFiled October 22, 2026 · hrs-20261021
• 8-KChange of directors or officers and Investor disclosureFiled August 17, 2026 · hrs-20260816
• 10-QQuarterly report for the period ended Jul 3, 2026Filed July 30, 2026 · hrs-20260703
• 8-KEarnings releaseFiled July 29, 2026 · Press release and exhibits
• 8-KChange of directors or officersFiled July 24, 2026 · hrs-20260723
• 8-KShareholder vote resultsFiled May 12, 2026 · hrs-20260511
• 10-QQuarterly report for the period ended Apr 3, 2026Filed April 30, 2026 · hrs-20260403

Every filing on SEC EDGAR (CIK 202058)

• L3Harris depends on US government budgets. The government started fiscal 2027 on a continuing resolution that runs only to December 11, 2026. A longer continuing resolution can delay new contracts and production increases.
• The CEO changed suddenly on August 17, 2026, and two segment heads changed at the same time. A new leadership team can change priorities or miss targets.
• The about $3 billion buildout of solid rocket motor capacity must deliver on time and on cost. Fixed-price production contracts and undefinitized awards, such as the THAAD and PAC-3 propulsion contracts of $6.3 billion and $4.7 billion, can lower margins if costs rise.
• The Department of War's preferred stock in the missile business converts at a 20% discount to the IPO price, and its holder can own about 10% of AXYV. If no IPO occurs by December 31, 2027, the redemption price can include a 110% premium to the liquidation preference.
• New defense technology companies compete for drone, munitions and space contracts, which can limit the share of new programs that L3Harris wins.

Debt is L3Harris's fixed-rate debt principal at October 2, 2026, $10,776 million. It does not include $265 million of finance leases and other debt. Read more

Yield at the current rate

1.8% (current annual rate, at today’s price)

Dividend yield

1.8% (last 12 months, at today’s price of $276.59)

Paid per share

$4.95 in the last 12 months (4 payments)

Current annual rate

$5.00 ($1.25 × 4 a year)

Payout ratio

56% of the last fiscal year’s earnings (the year that ended January 2, 2026)

Latest ex-dividend date

September 4, 2026, $1.25 per share

Dividends per share by year

From 2020 to 2025, the dividend grew by about 7.1% a year. From 2015 to 2025, the dividend grew by about 9.5% a year.

Source: company filings and market data, read on November 13, 2026. The ex-dividend date is the first day a buyer no longer gets the next payment.