L3Harris (LHX) Stock Surges on Q1 Beat and Higher 2026 Profit Outlook

TLDR

• L3Harris Q1 revenue jumped 12% to $5.74B, beating Wall Street’s $5.42B estimate
• EPS came in at $2.72, ahead of the $2.53 analyst forecast
• Full-year adjusted EPS outlook raised to $11.40–$11.60 from $11.30–$11.50
• Space and mission systems revenue surged 24%; missile solutions up 18%
• L3Harris confidentially filed for the IPO of its missile solutions unit

L3Harris Technologies beat Wall Street estimates across the board in Q1 2026 and raised its full-year profit outlook, as demand for weapons and military systems continues to climb.

The defense contractor posted Q1 revenue of $5.74 billion, up 12% year over year and well above analyst expectations of $5.42 billion. Earnings came in at $2.72 per share, topping the $2.53 consensus estimate.

Net profit for the quarter rose to $512 million, up from $386 million in the same period last year — a jump of roughly one-third.

L3Harris Technologies, Inc., LHX

CEO Christopher Kubasik pointed to accelerating demand and what he described as a dynamic global environment as key drivers. He said the company is scaling operations and growing production quickly across the business.

L3Harris now expects full-year adjusted EPS of $11.40 to $11.60, up from its prior range of $11.30 to $11.50. Revenue guidance remains unchanged at $23 billion to $23.5 billion.

Analysts polled by FactSet are currently forecasting adjusted EPS of $11.59 on revenue of $23.44 billion.

Space and Missile Units Lead the Way

The company’s space and mission systems segment was a standout, posting revenue of $2.99 billion — a 24% increase from a year ago. Growth was driven by a ramp-up in intelligence, surveillance, and reconnaissance systems for classified and international aircraft programs.

The missile solutions segment brought in $990 million, up 18% year over year. That unit makes propulsion systems and hypersonic weapons.

The communication and spectrum-defense arm grew more modestly, with revenue of $1.86 billion, up 2.5% from the prior year.

Missile Unit IPO Filed Confidentially

Late Wednesday, L3Harris confidentially filed for the IPO of its missile solutions unit. The filing is part of a deal with the Department of Defense announced in January.

Under that agreement, the Pentagon invested $1 billion into the soon-to-be spun-off company to ramp up production of solid rocket motors. These motors are used in a range of missiles including Tomahawks and Patriot interceptors.

A series of global conflicts, including the U.S.-Israel war on Iran, have drawn down Pentagon stockpiles and prompted new orders for missiles and munitions.

L3Harris is among the defense contractors benefiting directly from that restocking cycle.

The confidential IPO filing signals the company is moving ahead with the separation of the missile unit, though timing and pricing details have not been disclosed.

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