L3Harris Reports Strong Q2 2026 with Record Backlog and Double-Digit Growth — L3Harris Technologies, Inc.

Event summary

$7.3 billion in orders, book-to-bill ratio of 1.2x, backlog reaches record $42 billion.
Revenue up 8% to $5.9 billion, operating margin expands by 60 bps to 11.1%.
Diluted EPS rises 28% to $3.13, free cash flow increases 37% to $771 million.
Communications & Spectrum Dominance segment sees 4% revenue growth and 230 bps margin expansion.
Missile Solutions revenue grows 14%, though operating margin dips slightly by 20 bps.

The big picture

L3Harris continues to benefit from strong defense spending and strategic investments in high-growth segments like Communications & Spectrum Dominance. The company's ability to maintain double-digit revenue growth and expand margins reflects its focus on execution and portfolio optimization. However, sustained performance will depend on managing R&D costs and converting the record backlog into sustainable cash flows.

What we're watching

Segment Performance: Whether Communications & Spectrum Dominance can sustain its margin expansion amid increased R&D investments.
Backlog Conversion: The pace at which L3Harris converts its record $42 billion backlog into revenue and cash flow.
Strategic Investments: How early investments in dual-use technologies will impact long-term growth and competitive positioning.