LHX

L3Harris (LHX) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended September 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price. The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on October 29. On the other hand, if they miss, the stock may move lower. While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise. This technology and communications company is expected to post quarterly earnings of $3.00 per share in its upcoming report, which represents a year-over-year change of +11.1%. Revenues are expected to be $5.86 billion, up 3.5% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 1.35% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For L3Harris, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -0.01%. On the other hand, the stock currently carries a Zacks Rank of #3. So, this combination makes it difficult to conclusively predict that L3Harris will beat the consensus EPS estimate. While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that L3Harris would post earnings of $2.8 per share when it actually produced earnings of $3.13, delivering a surprise of +11.79%. Over the last four quarters, the company has beaten consensus EPS estimates four times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. L3Harris doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report L3Harris Technologies Inc (LHX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

NEW YORK, Oct. 21, 2026 /PRNewswire/ -- Equity Insider News Commentary - Three of the largest names in U.S. aerospace and defense reported third-quarter results on Tuesday, and all three raised their full-year guidance. Two of them reported record backlogs, including a $340 billion order book at one contractor that counts $164 billion of defense work. The reports open a busy stretch for the sector, with two more major contractors scheduled to report over the next eight days, and they land against a backdrop of rising defense commitments from NATO allies and a record U.S. budget request, even as Washington operates on a stopgap funding bill. Active Companies from around the markets with current developments this week include: RTX Corporation (NYSE: RTX), Northrop Grumman Corporation (NYSE: NOC), GE Aerospace (NYSE: GE), Lockheed Martin Corporation (NYSE: LMT), L3Harris Technologies, Inc. (NYSE: LHX). The spending story starts with the targets governments have set. At the 2025 NATO Summit in The Hague, Allies committed to investing 5% of GDP annually on defence by 2035, with at least 3.5% of GDP going to core defence requirements. In Washington, the president's fiscal year 2027 budget request came in at $1.5 trillion, which the Pentagon described in April as the largest request in history, and it seeks funding to expand production capacity and build stockpiles for Patriot, Terminal High Altitude Area Defense and precision strike missiles, among other weapons. A request is not an appropriation. For now, the government is funded by a continuing resolution signed on September 2 that runs through December 11, and according to the Congressional Research Service, the measure bars the Department of Defense from using that funding to accelerate production rates above those sustained with fiscal year 2026 funds. That puts more weight on the contracts companies already hold, and on the backlogs those contracts build, as this earnings season unfolds. Investors did not treat Tuesday's three reports the same way. Northrop Grumman shares rose 4.57% to $534.00 and RTX gained 0.64% to $193.34, while GE Aerospace fell 3.67% to $299.87 even after raising its guidance, according to Stock Analysis data. A raised forecast does not guarantee a higher share price, and the chart can show how investors are leaning before the next headline lands. Readers who want to learn to read those signals can get the free Knowledge is Power guide from Stock Preachers at equity-insider.com/. In other industry developments and happenings in the market this week include: RTX Corporation (NYSE: RTX) RTX reported third-quarter sales of $25.0 billion, up 11% from a year earlier and up 12% organically, and adjusted EPS of $2.26, up 33%, a figure that includes $0.25 from IEEPA cost recovery. Its backlog reached $340 billion, including $164 billion of defense, and during the quarter it was awarded Tomahawk and AMRAAM multi-year undefinitized production contracts. RTX raised its 2026 outlook for adjusted sales to $97.0 billion to $97.5 billion, up from $95.0 billion to $96.0 billion, and for adjusted EPS to $7.65 to $7.75, up from $7.10 to $7.25. "Demand for our products remains robust with over $81 billion of new commercial and defense awards, resulting in a record backlog of $340 billion," said RTX Chairman and CEO Chris Calio. Northrop Grumman Corporation (NYSE: NOC) Northrop Grumman reported third-quarter sales of $11.1 billion, up 7%, and diluted EPS of $7.89. Net awards totaled $16.4 billion for a book-to-bill ratio of 1.5x, and backlog totaled $109.6 billion. The company raised its 2026 guidance for MTM-adjusted EPS to $29.35 to $29.75, from $28.60 to $29.10, and for segment operating income to $4.94 billion to $5.04 billion, from $4.85 billion to $5.00 billion. "In a complex world with the growing need for solutions that scale and perform, our customers continue to turn to Northrop Grumman, and we are delivering with urgency and innovation," said Kathy Warden, chair, chief executive officer and president of Northrop Grumman. GE Aerospace (NYSE: GE) GE Aerospace reported third-quarter total orders of $19.0 billion, up 49%, adjusted revenue of $13.3 billion, up 18%, and adjusted EPS of $2.25, up 36%. Its Defense & Propulsion Technologies segment booked orders of $4.3 billion, up 18%, on revenue of $3.5 billion, up 7%, and signed a contract worth up to $2.9 billion to provide ongoing support for the F414 engines powering the U.S. Navy's F/A-18 and EA-18G fleets. The company raised its 2026 guidance for adjusted EPS to $8.00 to $8.10, from $7.65 to $7.85, and for free cash flow to $9.1 billion to $9.4 billion, from $8.9 billion to $9.2 billion. "We delivered strong results this quarter as solid demand drove orders up 49%, with strength in commercial services up 23%, total revenue up 18% and EPS up 36%," said GE Aerospace Chairman and CEO H. Lawrence Culp, Jr. Lockheed Martin Corporation (NYSE: LMT) Lockheed Martin will publish its third-quarter results before the market opens on Thursday, October 22, followed by a webcast at 8:30 a.m. ET. In its second-quarter report in July, the company posted a record backlog of $230 billion, inclusive of the multi-year contract to produce THAAD interceptors, and raised its 2026 outlook for sales to approximately $79.75 billion to $81.75 billion, from $77.5 billion to $80.0 billion, and for diluted EPS to approximately $29.95 to $30.65, from $29.35 to $30.25. "We are delivering on our strategy, achieving a higher trajectory for our business and giving us confidence to raise our full year financial guidance," Lockheed Martin Chairman, President and CEO Jim Taiclet said in July. L3Harris Technologies, Inc. (NYSE: LHX) L3Harris will release its third-quarter results before the market opens on Thursday, October 29, with an earnings call at 10:30 a.m. ET. In its second-quarter report in July, the company posted orders of $7.3 billion and a book-to-bill of 1.2x that increased backlog to a record $42 billion, and it raised its 2026 guidance for revenue to $23.2 billion to $23.7 billion, from $23 billion to $23.5 billion, and for EPS to $11.80 to $12.00, from $11.40 to $11.60. "Our purpose-built portfolio and focus on execution drove outstanding second quarter results," said Christopher Kubasik, Chairman and CEO of L3Harris, in July. Defense stocks moved in both directions on Tuesday's reports, and two more contractors are still to come. Learn to read the setups behind moves like these with the free Stock Preachers guide, plus The Roadmap market reports, at equity-insider.com/. 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Northrop Grumman Corporation NOC is scheduled to release third-quarter 2026 results on Oct. 20, before market open. The company delivered an earnings surprise of 12.3% in the last reported quarter. Let's discuss the factors that are likely to be reflected in the upcoming quarterly results. Northrop Grumman's third-quarter earnings are expected to have benefited from solid demand, supported by a strong backlog. It offers strong visibility into near-term revenue streams. Continued geopolitical tensions, increasing U.S. and allied defense spending, and demand for advanced aircraft, missile defense, space systems, and autonomous technologies should have continued to support new contract awards and program execution during the third quarter. Management anticipated mid- to high-single-digit year-over-year sales growth in the third quarter. Northrop Grumman raised its 2026 sales guidance to $43.75-$44.25 billion from $43.5-$44 billion previously, reflecting confidence in stronger second-half activity. Higher production volumes across all four business segments could have supported third-quarter revenues. However, achieving the target depends on program execution, delivery schedules, and the availability of materials and labor. Aeronautics Systems is positioned to have benefited from higher B-21 Raider production, alongside increased activity on the E-130J TACAMO, B-2 and F-35 programs. The agreement to expand B-21 production capacity could have supported further growth as the program ramps up. Management also said the U.S. Air Force was evaluating whether to accelerate production into a larger program of record, potentially creating a longer-term opportunity beyond the existing plan. Defense Systems could have benefited from rising ammunition sales, increased production activity across its weapons portfolio, continued Sentinel ramp-up, and growth in the Integrated Battle Command System. Management expects second-half revenues to increase more than $700 million, supported by these programs, and projects margins above 11% during the period, excluding the impact of missile development investments. Despite receiving significant new awards, Sentinel remains a complex program with a history of major cost increases. Northrop Grumman continues to execute the engineering and manufacturing development phase under a cost-type contract, while the production and deployment phases remain subject to revised baselines and future negotiations. Its future financial performance remains sensitive to estimated costs, program milestones and contract terms. The Zacks Consensus Estimate for earnings is pegged at $7.26 per share, indicating a year-over-year decrease of 5.4%. The Zacks Consensus Estimate for revenues is pinned at $11.06 billion, implying a year-over-year improvement of 6.1%. Our proven model does not predict an earnings beat for Northrop Grumman this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here, as you will see below. Northrop Grumman Corporation price-consensus-chart | Northrop Grumman Corporation Quote Earnings ESP: The company's Earnings ESP is 0.00%. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter. Zacks Rank: Currently, the company carries a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank stocks here. Investors may consider the following players from the same industry, as these, too, have the right combination of elements to post an earnings beat this reporting cycle. Lockheed Martin LMT is expected to come up with an earnings beat when it reports third-quarter results on Oct. 22, before market open. It has an Earnings ESP of +0.27% and a Zacks Rank #2 at present. The consensus estimate for LMT's third-quarter sales implies an improvement of 9.4% from the year-ago quarter's level. The Zacks Consensus Estimate for earnings is pinned at $7.48 per share, indicating year-over-year growth of 7.6%. Howmet Aerospace HWM is likely to come up with an earnings beat when it announces third-quarter results on Oct. 29, before market open. It has an Earnings ESP of +0.21% and a Zacks Rank #1 at present. The consensus estimate for HWM's third-quarter sales suggests an improvement of 24% from the year-ago quarter's reported numbers. The company delivered an average earnings surprise of 6.9% for the trailing four quarters. L3Harris Technologies LHX is likely to come up with an earnings beat when it announces third-quarter results on Oct. 29, before market open. It has an Earnings ESP of +0.76% and a Zacks Rank #3 at present. The consensus estimate for LHX's third-quarter sales suggests an improvement of 4.3% from the year-ago quarter's reported numbers. The company delivered an average earnings surprise of 5.3% for the trailing four quarters. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Northrop Grumman Corporation (NOC) : Free Stock Analysis Report Lockheed Martin Corporation (LMT) : Free Stock Analysis Report L3Harris Technologies Inc (LHX) : Free Stock Analysis Report Howmet Aerospace Inc. (HWM) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Melbourne, Florida-based L3Harris Technologies, Inc. (LHX) is a global defense technology company that develops mission-critical systems spanning communications, sensors, electronic warfare, space, and surveillance. Its technologies serve government and defense customers, supporting national security, civil services, transportation safety, and other complex missions worldwide. The company has a market capitalization of approximately $44.1 billion. LHX is set to report its Q3 2026 earnings before the market opens on Thursday, October 29, 2026. Ahead of the release, analysts expect diluted EPS of $3.06, up 13.3% from $2.70 in the year-ago quarter. Notably, LHX has exceeded Wall Street's EPS estimates in each of the past four quarters, which is impressive. - 'When You Say I Should Pay $100 Billion, Then I'm Starting To Do A Little Math': Bill Gates Said He'd Happily Pay 'Over $10 Billion In Taxes' But Some Are Asking Too Much - How to Play Rivian Stock as RIVN Keeps Falling Despite Record Deliveries - Dan Ives Calls SpaceX's $40B Nvidia Chip Debt Plan a 'Smart Move' - Get exclusive insights with the FREE Barchart Brief newsletter. Subscribe now for quick, incisive midday market analysis you won't find anywhere else. For fiscal 2026, analysts expect the company to report EPS of $11.91, an 11% increase from $10.73 in fiscal 2025. Moreover, EPS is projected to rise another 13.6% year over year to $13.53 in fiscal 2027. LHX stock has plunged 20.5% over the past 52 weeks, significantly underperforming the S&P 500 Index ($SPX), which gained 16%, and the State Street Industrial Select Sector SPDR ETF (XLI), which advanced 10.4% over the same period. Recently, on October 1, L3Harris secured a $6 billion-plus, seven-year contract from Lockheed Martin Corporation (LMT) to expand propulsion production for the THAAD missile defense system. The award supports a previously announced plan to quadruple THAAD propulsion output, with L3Harris building a new manufacturing facility and expanding capacity for key propulsion components. The contract, alongside a recently awarded PAC-3 MSE propulsion contract, aligns with the company's expectations for both programs and reinforces its role in strengthening U.S. missile defense capabilities. Analysts remain cautiously optimistic on LHX, with the stock carrying a consensus "Moderate Buy" rating. Of the 22 analysts covering the stock, 14 recommend a "Strong Buy," while the remaining eight recommend a "Hold." Meanwhile, the average analyst price target of $340.95 implies potential upside of 43.9% from the current share price. On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com

Artisan Partners, an investment management company, released its second-quarter 2026 investor commentary for the "Artisan Global Opportunities Strategy". The letter can be downloaded here. Global equities rebounded sharply during the quarter, with the MSCI ACWI Index returning 15.3% as resilient economic growth, strong corporate earnings, and continued enthusiasm around artificial intelligence supported markets despite persistent inflation, higher bond yields, and geopolitical uncertainty. The portfolio reported strong absolute returns of 12.65% (net) but underperformed the benchmark, mainly because of its underweight exposure to information technology and overweight position in health care. Strong stock selection in technology and energy partially offset these headwinds. The fund continues to see attractive long-term opportunities across AI infrastructure, health care and consumer internet, while remaining disciplined on valuation as several AI-related stocks have appreciated sharply. Management remains focused on durable franchises with identifiable profit cycles and attractive long-term earnings potential. Also, check the Strategy’s top five holdings to see its best picks in 2026. In its second-quarter 2026 investor letter, Artisan Global Opportunities Fund highlighted L3Harris Technologies, Inc. (NYSE:LHX). L3Harris Technologies, Inc. (NYSE:LHX) provides mission-critical solutions for government and commercial customers worldwide. On September 01, 2026, L3Harris Technologies, Inc. (NYSE:LHX) closed at $263.56 per share. Over the past month, L3Harris Technologies, Inc. (NYSE:LHX) declined 8.44%, and its shares lost 4.08% over the past 52 weeks. L3Harris Technologies, Inc. (NYSE:LHX) has a market capitalization of $48.76 billion. Artisan Global Opportunities Fund stated the following regarding L3Harris Technologies, Inc. (NYSE:LHX) in its Q2 2026 investor letter: L3Harris Technologies, Inc. (NYSE:LHX) is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 56 hedge fund portfolios held L3Harris Technologies, Inc. (NYSE:LHX) at the end of the second quarter which was 59 in the previous quarter. While we acknowledge the potential of L3Harris Technologies, Inc. (NYSE:LHX) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. In another article, we covered L3Harris Technologies, Inc. (NYSE:LHX) and shared Sycamore Mid Cap Value Equity Strategy's insights on the company. In addition, please check out our hedge fund investor letters Q2 2026 page for more investor letters from hedge funds and other leading investors. READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years. Disclosure: None. This article is originally published at Insider Monkey.

A month has gone by since the last earnings report for L3Harris (LHX). Shares have lost about 3.7% in that time frame, underperforming the S&P 500. Will the recent negative trend continue leading up to its next earnings release, or is L3Harris due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers. L3Harris Q2 Earnings and Revenues Beat Estimates, 2026 Outlook RaisedL3Harris Technologies, Inc. reported second-quarter 2026 earnings (from continuing operations) of $3.13 per share, which outpaced the Zacks Consensus Estimate of $2.80 by 11.8%. The bottom line also increased 12.6% from the year-ago quarter’s $2.78. L3Harris’ revenues totaled $5.88 billion, which topped the Zacks Consensus Estimate of $5.79 billion by 1.5%. The top line also improved 8.4% from the year-ago quarter’s $5.43 billion.The year-over-year increase in the top line was driven by growth across all segments, reflecting new program ramp-up and strong execution against a record backlog. Space & Mission Systems revenues increased 7% to $2.97 billion. The segment’s operating income edged up to $290 million from $289 million.The operating margin declined 60 basis points to 9.8%. Improved program execution and a $23 million net gain from segment investments were outweighed by the absence of a $75 million asset-sale gain recognized in the prior-year quarter.Communications & Spectrum Dominance revenues advanced 4% to $1.94 billion. Segment operating income climbed 14% to $522 million.The operating margin expanded 230 basis points to 26.9%. Higher international volumes and a $16 million net segment investment gain supported profitability. Missile Solutions revenues rose 14% to $1.05 billion. Operating income increased to $130 million from $116 million. However, the operating margin contracted 20 basis points to 12.3% because the year-ago quarter included a favorable contract resolution. As of July 3, 2026, L3Harris had $1.52 billion in cash and cash equivalents compared with $1.07 billion as of Jan. 2, 2026.The long-term debt as of the same date was $9.18 billion compared with $10.44 billion as of Jan. 2, 2026.The net cash provided by operating activities was $784 million during the first six months of 2026 compared with $598 million in the prior-year period. L3Harris raised its 2026 revenue outlook to $23.2-$23.7 billion from $23-$23.5 billion. The Zacks Consensus Estimate for 2026 revenues is pegged at $23.55 billion, which is higher than the midpoint of the company’s guided range.LHX now expects earnings of $11.80-$12 per share, up from its previous projection of $11.40-$11.60. The Zacks Consensus for 2026 earnings is pegged at $11.54 per share, which is lower than the company’s guided range.It continues to anticipate adjusted free cash flow of $3 billion and $3.6 billion in operating cash flow.Space & Mission Systems revenues are projected at nearly $11.7 billion, above the prior estimate of $11.5 billion. Communications & Spectrum Dominance revenues are expected to be about $8 billion, while Missile Solutions revenues are forecast at roughly $4.1 billion. In the past month, investors have witnessed a flat trend in estimates revision. Currently, L3Harris has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Charting a somewhat similar path, the stock was allocated a score of B on the value side, putting it in the top 40% for value investors. Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in. L3Harris has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report L3Harris Technologies Inc (LHX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Motorola Solutions, Inc. MSI delivered a 13% year-over-year increase in second-quarter sales and raised its 2026 revenue and earnings outlook again. Record orders lifted backlog to $15.6 billion, while demand across mission-critical communications, software and public-safety technology supported the stronger second-half outlook.The earnings update also highlights the factors that could shape the next phase of growth: backlog conversion, acquisition integration, margin performance and elevated supply-chain costs. Motorola Solutions, Inc. price-consensus-eps-surprise-chart | Motorola Solutions, Inc. Quote Motorola now expects 2026 revenues of approximately $12.98 billion, up from its prior outlook of $12.8 billion. Non-GAAP EPS guidance was raised to $17.62-$17.72 from $16.87-$16.99. Management said the higher outlook reflects continued strength in Mission Critical Networks, including stronger expectations for Silvus, and sustained demand for public-safety land mobile radio solutions.For the third quarter, Motorola expects revenues to grow approximately 8% year over year and non-GAAP EPS to range from $4.39 to $4.44. The company also expects operating margin expansion of approximately 170 basis points for 2026.Motorola Delivers Broad-Based Q2 GrowthProducts and Systems Integration revenue increased 15% year over year to $1.91 billion, while Software and Services revenue rose 10% to $1.23 billion. Growth extended across Mission Critical Networks, Video Security and Access Control and Command Center offerings.Non-GAAP EPS increased 24% to $4.41, while non-GAAP operating margin expanded to 32.9%. Excluding a $60 million benefit from IEEPA tariff refunds, operating margin still expanded 140 basis points despite elevated direct material and memory costs. Second-quarter backlog reached a record $15.6 billion, up 11% year over year following record orders. Software and Services backlog increased $1.2 billion, while Products and Systems Integration backlog rose $329 million. The backlog provides visibility into future sales and supports management’s approximately 8% third-quarter revenue-growth outlook.Motorola generated $469 million in operating cash flow and $414 million in free cash flow during the quarter. Higher earnings drove the increase, partly offset by greater investment in inventory Motorola agreed to acquire D-Fend Solutions for $1.5 billion, adding counter-drone technology to its safety and security portfolio. Silvus adds adaptive networking, while Hyper and Exacom expand emergency response and cloud-native recording capabilities. The planned Bell Canada LMR network services acquisition is expected to broaden managed-services reach.Motorola is also expanding AI-enabled public-safety capabilities through Assist, Interpreter Agent and Live Audio Streaming. Interpreter Agent enables real-time language translation, while Live Audio Streaming provides live calls, AI-generated summaries and transcriptions.For industry context, Axon Enterprise, Inc. AXON is another public-safety technology company with exposure to connected devices and software, while L3Harris Technologies, Inc. LHX has exposure to mission-critical communications and government customers. These two tickers provide relevant peer context for investors assessing the broader public-safety technology theme. Motorola Solutions currently carries a Zacks Rank #2 (Buy), while its Growth Score is C and VGM Score is D. Its Value Score and Momentum Score are also D. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.The Zacks Rank is designed to capture near-term earnings-related signals, while the Zacks Style Scores provide additional context on value, growth and momentum characteristics. The combination gives MSI a favorable earnings-revision signal but less support from the broader Style Score framework.The earnings update strengthens the growth narrative, but the investment case still depends on execution. Backlog conversion, acquisition integration, supply-chain costs and the pace of third-quarter growth will be important indicators for investors evaluating whether the latest guidance increase can translate into sustained results. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Motorola Solutions, Inc. (MSI) : Free Stock Analysis Report Axon Enterprise, Inc (AXON) : Free Stock Analysis Report L3Harris Technologies Inc (LHX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in L3Harris Technologies Inc? Here are five stocks we like better. L3Harris reported strong Q2 results: Revenue rose 8% to $5.9 billion, GAAP EPS increased 28% to $3.13, and free cash flow climbed 37% to $771 million. Orders totaled $7.3 billion, lifting backlog above $42 billion. The company raised its 2026 outlook for revenue to $23.2 billion–$23.7 billion and diluted EPS to $11.80–$12.00, while maintaining its $3 billion free-cash-flow target. Strong Space & Mission Systems performance and international sales were key drivers. L3Harris is investing heavily in missile production, including a $2 billion capacity expansion and agreements tied to THAAD and PAC-3 production, but delayed a potential missile-business IPO until mid-2027 because market conditions do not reflect its expected value. After 15% L3Harris Price Drop, Is It Time to Buy or Time to Fly? L3Harris Technologies (NYSE:LHX) reported higher second-quarter revenue, earnings and cash flow, citing broad-based growth across its three business segments and increased international sales. The defense contractor also raised its full-year 2026 revenue and earnings-per-share outlook while maintaining its free-cash-flow forecast. Chief Financial Officer Ken Sharp said quarterly revenue totaled $5.9 billion, up $455 million, or 8%, from a year earlier. Orders were $7.3 billion, resulting in a 1.2-times book-to-bill ratio, while trailing-12-month book-to-bill was 1.3 times. Backlog increased by more than $1 billion to $42 billion. → Refiner Stocks Are Near Record Highs—Can Iran-Driven Margins Keep Them There? Why This Defense ETF Could Keep Rallying as the Iran Conflict Escalates International sales rose $254 million, or more than 20%, during the quarter. International business represented 23% of total revenue, an increase of about 250 basis points from the prior year, Sharp said. GAAP earnings per share were $3.13, up 28% year over year. Segment operating income increased 9% to reflect revenue growth, improved program performance and a net gain on segment investments, partly offset by higher research-and-development spending. Segment operating margin was 16%, up 10 basis points. → Why SK hynix Could Be the Best AI Chip Stock to Buy Now Gold, Copper, and Missiles: 3 Big Dividend Raises After a Breakout Year Operating cash flow was $879 million and free cash flow was $771 million, each up 37% from the prior-year period. Year-to-date free cash flow reached $584 million, $124 million ahead of the comparable 2025 period. Sharp said L3Harris raised its full-year revenue outlook to a range of $23.2 billion to $23.7 billion, representing organic growth of 8% to 10%. Both the high and low ends of the prior range were increased by $200 million. The company attributed the revenue increase primarily to stronger Space & Mission Systems performance and its AMDT-3 satellite constellation win with the U.S. Space Force. → AMD’s AI Bubble Could Burst Into Explosive Upside The company now expects diluted earnings per share of $11.80 to $12.00, an increase of $0.40 at both ends of its prior range. The updated outlook includes an approximately $0.20 per-share headwind from the planned divestiture of a majority interest in its commercial space propulsion business, which the company expects to close in August. L3Harris maintained its forecast for segment operating margin in the low 16% range and reaffirmed its full-year free-cash-flow target of $3 billion. It also reduced expected net interest expense by $30 million to approximately $560 million, reflecting a higher cash balance. Space & Mission Systems revenue guidance was increased by $200 million to $11.7 billion. Communications & Spectrum Dominance margin guidance was raised to the mid-25% range from approximately 25%. Missile Solutions guidance was adjusted to account for the commercial space propulsion transaction. Space & Mission Systems revenue grew 7% to about $3 billion, supported by higher volume in intelligence, surveillance and reconnaissance; missionized aircraft; classified space; F-35 control systems; and air-traffic-control modernization. Segment operating margin declined 60 basis points to 9.8%, largely because the prior-year quarter included a $75 million gain on a product-line sale that did not recur. Communications & Spectrum Dominance generated revenue of $1.9 billion, up 4%, as international volume, electronic warfare and data-links revenue increased. Its operating margin rose 230 basis points to 26.9%, driven by stronger international revenue, partly offset by increased R&D investment. Missile Solutions revenue increased 14% year over year. Revenue in the operations L3Harris plans to retain rose 16%, partially offset by slower growth in the commercial space propulsion business being divested. Segment operating margin was substantially unchanged from a year earlier. Chief Executive Officer Chris Kubasik said the company sees a $9 billion multi-year pipeline across missile warning, missile defense and classified space missions. Since the fourth quarter, L3Harris has secured $2.4 billion in new space-related contracts, he said. Kubasik highlighted investments in missile production capacity following the Aerojet acquisition and subsequent formation of the Missile Solutions business. He said deliveries are up more than 60% since the acquisition, substantially all delinquent deliveries have been eliminated, and operational efficiency has improved 22%. The company has committed $2 billion for missile capacity, including facilities, equipment and supply-chain investments. It is expanding production capacity by nearly 1 million square feet and expects its new automated GMLRS facility to begin operating next month. Kubasik said the site is designed to more than double capacity and reduce manufacturing time by 50%. Shortly after the quarter ended, L3Harris signed a seven-year framework agreement for THAAD and PAC-3 production that represents about $12 billion in future production revenue and $2 billion in future profit, according to Kubasik. He said the company is working with Lockheed Martin to quadruple THAAD production and nearly triple PAC-3 production. Sharp said the Missile Solutions business is expected to grow in the high teens for at least the next several years, with the propulsion business projected to grow more than 20%. L3Harris is negotiating more than $20 billion in new missile contracts, Kubasik said, which could potentially triple missile backlog. However, the company has postponed a potential initial public offering of its missile business until mid-2027. Kubasik said current market conditions do not reflect the value L3Harris believes it is building, while much of the cash that would have been needed from an IPO is not expected to be required until late 2027 through 2029. With expected divestiture proceeds, current cash and forecast free cash flow, Sharp said L3Harris expects to have about $4 billion of cash on hand before potential debt reduction or additional share repurchases. The company said its priorities include investing in its businesses, considering tuck-in assets, reducing debt and returning capital to shareholders. L3Harris Technologies (NYSE: LHX) is an American aerospace and defense company formed in 2019 through the combination of L3 Technologies and Harris Corporation. Headquartered in Melbourne, Florida, the company designs, manufactures and supports a broad range of technology solutions for government and commercial customers, with a particular emphasis on defense, intelligence and public safety applications. The company's offerings span communications systems, avionics, electronic warfare, intelligence, surveillance and reconnaissance (ISR) sensors, space systems and mission integration. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "L3Harris Technologies Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

This article first appeared on GuruFocus. Revenue: $5.9 billion, up 8% year over year. Segment Operating Income: Increased $79 million or 9%. Segment Operating Margin: 16%, up 10 basis points. GAAP Earnings Per Share (EPS): $3.13, up 28%. Operating Cash Flow: $879 million. Free Cash Flow: $771 million, up 37%. Orders: $7.3 billion, with a book-to-bill of 1.2 times. Backlog: Increased by more than $1 billion to $42 billion. International Sales: Increased $254 million, up over 20%. Space and Mission Systems Revenue: $3 billion, up 7%. Space and Mission Systems Segment Operating Margin: 9.8%, down 60 basis points. Communication and Spectrum Dominance Revenue: $1.9 billion, up 4%. Communication and Spectrum Dominance Segment Operating Margin: 26.9%, up 230 basis points. Missile Solutions Revenue: Up 14% year over year. Full-Year 2026 Revenue Guidance: $23.2 billion to $23.7 billion. Full-Year 2026 Diluted EPS Guidance: $11.80 to $12.00. Full-Year 2026 Free Cash Flow Guidance: $3 billion. Warning! GuruFocus has detected 5 Warning Signs with LHX. Is LHX fairly valued? Test your thesis with our free DCF calculator. Release Date: July 29, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Revenue grew 8% year-over-year to $5.9 billion, with broad-based growth across all three segments. Orders reached $7.3 billion, yielding a book-to-bill of 1.2x, and backlog increased by over $1 billion to $42 billion. Missile Solutions revenue grew 14% year-over-year, with deliveries up over 60% and operational efficiency improved by 22%. The company secured a $12 billion framework agreement for FAD and factory production over seven years, demonstrating strong demand. Free cash flow increased 37% to $771 million, and full-year 2026 revenue and EPS guidance were raised. The IPO for the missile business was delayed to mid-2027 due to unfavorable market conditions. Segment operating margin for Space and Mission Systems decreased 60 basis points due to a prior-year product line sale gain not repeating. The divestiture of the commercial space propulsion business is expected to create an approximate $0.20 EPS headwind. Higher research and development costs partially offset segment operating income growth. The company faces uncertainty from potential budget debates, continuing resolutions, and geopolitical headwinds. Q: Can you provide the puts and takes behind the decision to push the missile business IPO to mid-2027?A: (Christopher E. Kubasik, Vice Chair & CEO) Market conditions do not reflect the value we are building. Recent IPOs are missing key elements of a successful business, and the market is adjusting valuations. We are caught in that process. We will let things settle down and reevaluate. The majority of the cash needed from the IPO starts to hit in late '27, '28, and '29, making this a prudent business decision. The team unanimously agrees to focus on the business and wait for the market to recover. Q: How should we think about growth for the missile segment from here, especially with the new framework agreement and CapEx buildout?A: (Kenneth Sharp, CFO) We expect growth in the high teens over the next couple of years, at a minimum, for the foreseeable future. We have significant demand stacking up, with $20 billion of backlog under negotiation that could triple our current backlog. As new factories come online in the '27, '28, '29 timeline, revenue will accelerate even faster. The propulsion business specifically is growing around 20%-plus. Q: What is the expected margin on the new seven-year framework agreement for missile production?A: (Christopher E. Kubasik, Vice Chair & CEO) We are thinking something in the 15% to 18% range is something to strive for, especially as we ramp up with volume and line up the supply chain with longer-term agreements. Q: Can you provide an update on the strategic partnership with Shield Capital and how it has evolved?A: (Christopher E. Kubasik, Vice Chair & CEO) We were the first movers into this concept. The goals were to pull through new dual-use technology into our products, accelerate R&D, and create shareholder value through investment gains. We are in two of their funds, each with about a $50 million commitment. Fund I is 70%-80% drawn, and Fund II is 10%-20% drawn. It helps with our culture of speed, allowing us to make decisions in hours or days. Q: What is your appetite for share buybacks given the significant cash on the balance sheet and political pressures?A: (Kenneth Sharp, CFO) Our goal is to be disciplined capital allocators. Our first focus is investing in the business, including the $2 billion of commitments for missile capacity. Second is debt paydown, as we have about $1.8 billion coming due. Share repurchases are also important to consider, along with maintaining our 24-year dividend growth streak. The $4 billion of excess cash gives us significant flexibility. Q: How do you see the defense budget impacting L3Harris's outlook?A: (Christopher E. Kubasik, Vice Chair & CEO) We are on a wartime footing, so I would expect the highest defense budget in our country's history and a supplemental budget to fund multiyear munition contracts. Our outlook is positive regardless of the final budget, as we have strong market-leading positions and are successfully penetrating new markets. Q: What drove the strong revenue growth in the quarter, and how is international business performing?A: (Kenneth Sharp, CFO) Revenue was $5.9 billion, up 8% year-over-year, with broad-based growth across all three segments. International sales increased $254 million, up over 20%, and the international sales mix increased by about 250 basis points to 23% of total revenue. Q: What is the status of the new GMLRS factory and its impact on production?A: (Christopher E. Kubasik, Vice Chair & CEO) The new GMLRS factory, named the Arsenal of Freedom Building, is coming online next month. It is highly automated with robotics and AI, which will allow us to more than double capacity while reducing manufacturing times by 50%. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

L3Harris Technologies, Inc. LHX reported second-quarter 2026 earnings (from continuing operations) of $3.13 per share, which outpaced the Zacks Consensus Estimate of $2.80 by 11.8%. The bottom line also increased 12.6% from the year-ago quarter’s $2.78. L3Harris’ revenues totaled $5.88 billion, which topped the Zacks Consensus Estimate of $5.79 billion by 1.5%. The top line also improved 8.4% from the year-ago quarter’s $5.43 billion.The year-over-year increase in the top line was driven by growth across all segments, reflecting new program ramp-up and strong execution against a record backlog. L3Harris Technologies Inc price-consensus-eps-surprise-chart | L3Harris Technologies Inc Quote Space & Mission Systems revenues increased 7% to $2.97 billion. The segment’s operating income edged up to $290 million from $289 million.The operating margin declined 60 basis points to 9.8%. Improved program execution and a $23 million net gain from segment investments were outweighed by the absence of a $75 million asset-sale gain recognized in the prior-year quarter.Communications & Spectrum Dominance revenues advanced 4% to $1.94 billion. Segment operating income climbed 14% to $522 million.The operating margin expanded 230 basis points to 26.9%. Higher international volumes and a $16 million net segment investment gain supported profitability. Missile Solutions revenues rose 14% to $1.05 billion. Operating income increased to $130 million from $116 million. However, the operating margin contracted 20 basis points to 12.3% because the year-ago quarter included a favorable contract resolution. As of July 3, 2026, L3Harris had $1.52 billion in cash and cash equivalents compared with $1.07 billion as of Jan. 2, 2026.The long-term debt as of the same date was $9.18 billion compared with $10.44 billion as of Jan. 2, 2026.The net cash provided by operating activities was $784 million during the first six months of 2026 compared with $598 million in the prior-year period. L3Harris raised its 2026 revenue outlook to $23.2-$23.7 billion from $23-$23.5 billion. The Zacks Consensus Estimate for 2026 revenues is pegged at $23.55 billion, which is higher than the midpoint of the company’s guided range.LHX now expects earnings of $11.80-$12 per share, up from its previous projection of $11.40-$11.60. The Zacks Consensus for 2026 earnings is pegged at $11.54 per share, which is lower than the company’s guided range.It continues to anticipate adjusted free cash flow of $3 billion and $3.6 billion in operating cash flow.Space & Mission Systems revenues are projected at nearly $11.7 billion, above the prior estimate of $11.5 billion. Communications & Spectrum Dominance revenues are expected to be about $8 billion, while Missile Solutions revenues are forecast at roughly $4.1 billion. L3Harris currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Northrop Grumman Corporation NOC reported second-quarter 2026 adjusted earnings of $7.68 per share, which beat the Zacks Consensus Estimate of $6.84 by 12.3%. The bottom line, however, declined 5.8% from the year-ago quarter’s level of $8.15.NOC’s total sales of $10.88 billion in the second quarter outperformed the Zacks Consensus Estimate of $10.80 billion by 0.7%. The top line also improved 5.1% from $10.35 billion reported in the year-ago quarter.RTX Corporation’s RTX second-quarter 2026 adjusted earnings per share (EPS) of $1.89 beat the Zacks Consensus Estimate of $1.66 by 13.9%. The bottom line improved 21.1% from the year-ago quarter’s level of $1.56.Revenues rose 14.5% year over year to $24.71 billion and outpaced the consensus mark of $22.83 billion by 8.2%.Textron Inc. TXT reported second-quarter 2026 adjusted earnings of $1.62 per share, which surpassed the Zacks Consensus Estimate of $1.52 by 6.6%. The bottom line also rose 4.5% from $1.55 in the year-ago quarter. The company reported total revenues of $3.83 billion, which beat the Zacks Consensus Estimate of $3.82 billion by 0.15%. The top line also increased 3% from the year-ago quarter’s level of $3.72 billion. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report L3Harris Technologies Inc (LHX) : Free Stock Analysis Report Northrop Grumman Corporation (NOC) : Free Stock Analysis Report Textron Inc. (TXT) : Free Stock Analysis Report RTX Corporation (RTX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research