Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
LHX delivered strong Q1 FY2026 results with revenue up 11.9% YoY to $5.74B and net income surging 32.6% to $512M, though operating cash flow remained negative at -$95M.
Revenue
$5.74B
+11.93% YoY
EPS (Diluted)
$2.72
+33.33% YoY
Operating Income
$652M
+24.19% YoY
Source: SEC XBRL
L3HARRIS Technologies (LHX) reported Q1 FY2026 revenue of $5.74B, up 11.9% year over year. Operating margin was 11.4%, up 1.2 points from 10.2% a year earlier. Operating cash flow was negative $95M. LHX's fiscal Q1 FY2026 corresponds to calendar Q2 2026.
Last 4 quarters: 4 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 3.13 | 2.83 | Beat +10.5% |
| Mar 2026This filing | 2.72 | 2.57 | Beat +5.9% |
| Dec 2025 | 2.86 | 2.79 | Beat +2.4% |
| Sep 2025 | 2.70 | 2.60 | Beat +3.8% |
Reported EPS of $2.72 versus the $2.57 analyst consensus — a +5.9% beat for Mar 2026.
Compiled by AI from this SEC filing
Revenue grew 11.9% YoY to $5.74B in Q1 FY2026, reflecting robust demand for LHX's defense and technology solutions. This top-line expansion was broad-based and consistent with elevated U.S. and allied defense spending trends.
Source: 10-Q Income Statement Data
Operating income rose 24.2% YoY to $652M, with operating margin expanding approximately 110 basis points to 11.35% from 10.23%. This outpaced revenue growth, indicating improving operational efficiency.
Source: 10-Q Income Statement Data
SG&A expenses declined 9.1% YoY to $750M from $825M, demonstrating meaningful cost discipline even as revenues grew significantly. This reduction was a key contributor to the strong operating income growth.
Source: 10-Q Income Statement Data
Long-term debt decreased 16.3% YoY to $9.19B from $10.98B, reflecting continued balance sheet deleveraging. Total liabilities also fell 1.9% YoY to $21.70B, improving the company's financial flexibility.
Source: 10-Q Balance Sheet Data
Operating cash flow was -$95M in Q1 FY2026, deteriorating from -$42M in the prior year period. This is common in defense contracting due to working capital timing, but the widening deficit merits attention in subsequent quarters.
Source: 10-Q Cash Flow Statement Data
Compiled by AI from this SEC filing · 1 high, 3 medium, 1 low
LHX generated -$95M in operating cash flow and -$192M in free cash flow in Q1 FY2026, worsening YoY. Sustained negative cash flow could constrain the company's ability to fund operations, service debt, and return capital to shareholders without external financing.
Source: 10-Q Cash Flow Statement Data
Cost of revenue increased 14.8% YoY versus revenue growth of 11.9%, compressing gross profit margins. If this trend persists, it could erode the operating margin gains achieved through SG&A reductions.
Source: 10-Q Income Statement Data
With a debt-to-equity ratio of 1.10 and $9.19B in long-term debt, LHX carries significant financial leverage. While debt has been reduced YoY, interest obligations remain a meaningful drag on earnings and limit financial flexibility.
Source: 10-Q Balance Sheet Data
LHX's current ratio stands at just 1.03, meaning current assets barely cover current liabilities of $8.60B. This leaves very little cushion for unexpected short-term cash needs or working capital disruptions.
Source: 10-Q Balance Sheet Data
ROE of 2.60% and ROA of 1.24% are relatively modest, suggesting the company's large asset base ($41.38B) and equity base ($19.68B) are not yet generating proportionally strong returns. This may reflect integration costs or underutilized assets from prior acquisitions.
Source: 10-Q Balance Sheet and Income Statement Data
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 5.74 $B | 5.13 $B | +11.93% |
Cost of Revenue $B | 4.34 $B | 3.78 $B | +14.81% |
Operating Income $M | 652.00 $M | 525.00 $M | +24.19% |
Net Income $M | 512.00 $M | 386.00 $M | +32.64% |
EPS (Basic) $ | 2.74 $ | 2.05 $ | +33.66% |
EPS (Diluted) $ | 2.72 $ | 2.04 $ | +33.33% |
SG&A Expense $M | 750.00 $M | 825.00 $M | -9.09% |
Answers draw on this SEC filing and the data on this page
L3Harris Technologies reported strong performance in Q2 FY2026 with revenue increasing 8.4% year-over-year to $5.88B and net income surging 31.0% to $600M, driven by higher program volume across all operating segments.
L3Harris Technologies (LHX) delivered solid FY2025 results with revenue growing 2.5% to $21.9B, operating income surging 10.0% to $2.1B, and operating cash flow jumping 21.4% to $3.1B, reflecting improved operational efficiency and disciplined cost management.
Other companies in Aerospace & Defense