L3Harris Technologies, Inc. (LHX) will report its fiscal Q2 2026 earnings on April 22, 2026, after market close. The aerospace and defense contractor trades at $348.57 with a $65.08 billion market cap. Investors will focus on revenue trends, profitability, and cash flow generation from its four core segments: Integrated Mission Systems, Space and Airborne Systems, Communication Systems, and Aviation Systems. With 19 buy ratings and 5 hold ratings from analysts, the stock shows strong institutional support. Understanding what to expect helps investors prepare for potential market moves.
What Analysts Expect from LHX Earnings
Analyst consensus for LHX earnings remains constructive, though specific Q2 2026 estimates are not yet published. However, historical patterns reveal consistent performance. Over the last four quarters, LHX has beaten EPS estimates three times and met revenue expectations with mixed results.
Recent Earnings Track Record
In Q1 2026 (ended January 30), LHX reported $2.86 EPS against a $2.76 estimate, beating by 3.6%. Revenue came in at $5.648 billion versus a $5.77 billion estimate, missing by 2.1%. The prior quarter showed even stronger execution: Q3 2025 delivered $2.70 EPS versus $2.58 estimate (4.7% beat) and $5.659 billion revenue versus $5.524 billion estimate (2.4% beat). This pattern suggests LHX management executes well on profitability but faces revenue headwinds.
Consensus Rating and Price Targets
With 19 buy ratings, 5 hold ratings, and zero sell ratings, the analyst consensus leans bullish. The stock trades at a 40.94 P/E ratio, above the S&P 500 average, reflecting high growth expectations. Meyka AI rates LHX with a grade of B+. This grade factors in S&P 500 benchmark comparison, sector performance, financial growth, key metrics, and analyst consensus. These grades are not guaranteed and we are not financial advisors.
Revenue and Earnings Trends: What the Numbers Show
LHX’s earnings trajectory reveals a company managing growth amid defense spending cycles and supply chain normalization. Revenue has grown steadily, while EPS shows stronger acceleration, indicating operational leverage.
Revenue Growth Momentum
Over the past four quarters, LHX generated approximately $21.7 billion in total revenue. Q1 2026 revenue of $5.648 billion represents a 9.8% year-over-year increase based on full-year 2024 growth rates. The company’s $116.93 revenue per share (TTM) demonstrates consistent customer demand across defense and commercial segments. Free cash flow grew 30.6% year-over-year, showing strong cash generation despite capital intensity.
EPS Expansion and Profitability
EPS growth accelerated to 22.3% year-over-year, outpacing revenue growth. This reflects margin expansion and share buybacks. The company’s 8.51 EPS (TTM) and 7.3% net profit margin show disciplined cost management. Operating income grew 2.9% while EBIT surged 28.8%, indicating improved operational efficiency. For Q2 2026, investors should watch for continued EPS beats driven by operational leverage, though revenue growth may remain modest at mid-single-digit rates.
Key Metrics and Financial Health
LHX maintains solid financial fundamentals with manageable debt and strong cash generation, though valuation metrics suggest limited upside at current prices.
Balance Sheet and Liquidity
The company carries a debt-to-equity ratio of 0.53, well-managed for a defense contractor. Interest coverage of 3.61x provides adequate cushion for debt service. Current ratio of 1.19 indicates healthy short-term liquidity. Operating cash flow of $16.61 per share (TTM) and free cash flow of $14.34 per share support the $2.45 dividend and capital investments. The company’s $5.72 cash per share provides flexibility for acquisitions or shareholder returns.
Valuation and Growth Outlook
At a 40.94 P/E ratio and 2.97 price-to-sales ratio, LHX trades at a premium to industrials peers. The 3.31 price-to-book ratio reflects intangible asset value from defense contracts and intellectual property. Return on equity of 8.3% and return on assets of 3.9% are modest, typical for capital-intensive defense businesses. Free cash flow yield of 4.1% provides income-oriented investors with reasonable returns. For Q2 2026, focus on whether management guides for full-year revenue growth acceleration and margin sustainability.
What Investors Should Watch During Earnings
The earnings call will reveal management’s confidence in defense spending, supply chain progress, and segment performance. Several factors deserve close attention.
Segment Performance and Backlog
LHX’s four segments drive different growth rates. Integrated Mission Systems and Space and Airborne Systems benefit from ISR modernization and space payload demand. Communication Systems faces competition but offers recurring revenue. Aviation Systems provides commercial diversification. Management will likely discuss backlog trends, which signal future revenue visibility. A strong backlog indicates sustained demand despite near-term revenue pressure.
Guidance and Forward Outlook
Management guidance for full-year 2026 revenue and EPS will be critical. If guidance increases, the stock could rally despite near-term earnings misses. Conversely, conservative guidance could pressure the stock despite beats. Watch for commentary on defense budget appropriations, international sales, and margin expansion initiatives. The company’s ability to pass through inflation to customers and improve operational efficiency will determine profitability trends.
Final Thoughts
L3Harris Technologies enters Q2 2026 earnings with strong analyst support and a track record of EPS beats. The company’s 22.3% EPS growth and 30.6% free cash flow growth demonstrate operational excellence, though revenue growth remains moderate at 9.8%. With a B+ Meyka AI grade reflecting solid fundamentals and analyst consensus, LHX appears well-positioned for continued execution. Investors should focus on segment performance, full-year guidance, and management commentary on defense spending trends. The stock’s 40.94 P/E ratio prices in significant growth expectations, so beats alone may not drive substantial gains. Watch for backlog trends and margin guidance as key …
FAQs
What is the consensus EPS estimate for LHX Q2 2026 earnings?
Q2 2026 EPS estimates aren’t published yet. Based on LHX’s track record of beating EPS in three of four recent quarters with 3.6% average beats, estimates likely range $2.65–$2.75.
Has LHX consistently beaten revenue estimates?
LHX shows mixed revenue performance: missed Q1 2026 by 2.1%, beat Q3 2025 by 2.4%. Despite 9.8% year-over-year growth, conservative guidance occasionally leads to misses.
What does the Meyka B+ grade mean for LHX?
The B+ grade reflects solid fundamentals, strong analyst consensus with 19 buys, and healthy metrics. It indicates LHX is quality but not exceptional versus peers and the broader market.
What should I watch for during the LHX earnings call?
Monitor segment revenue trends, backlog growth, full-year guidance, margin expansion, and defense budget outlook. Management confidence in demand and profitability matters more than quarterly beats.
Is LHX stock fairly valued at $348.57?
At 40.94 P/E and 2.97 price-to-sales ratios, LHX trades at a premium to industrial peers. Current pricing assumes mid-to-high single-digit growth; beats may not drive gains, but misses could pressure stock.
Disclaimer:
Stock markets involve risks. This content is for informational purposes only. Earnings estimates are analyst projections and not guarantees of actual results. Past performance does not guarantee future results. Meyka AI PTY LTD provides market analysis and data insights, not financial advice. Always conduct your own research and consider consulting a licensed financial advisor.
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