L3Harris Technologies Inc. (NYSE:LHX) reported financial results for the fourth quarter before the market opened on Thursday.

Revenue of $5.64 billion, up 2% versus the prior year, missed the consensus of $5.77 billion.

Non-GAAP diluted EPS of $2.86 beat the consensus of $2.76.

In the fourth quarter of 2025, L3Harris reported cash from operations of $1.96 billion, compared with $1.13 billion in the same period a year earlier; on an adjusted basis, free cash flow was $1.86 billion, versus $1.03 billion in the fourth quarter of 2024.

For the quarter, the GAAP operating margin was 7.0%, down from 10.3% in the fourth quarter of 2024, while the adjusted segment operating margin was 15.7%, slightly above 15.3% in the prior-year quarter.

The company ended the period with approximately $1.06 billion in cash and cash equivalents.

“2025 was a clear inflection point for L3Harris. Our portfolio is directly aligned with the most critical national and global defense priorities, which drove record orders and strong organic growth, margins and cash flow. Throughout the year, we saw customers move with greater urgency, and our investments and agility allowed us to deliver on their missions with speed and scale,” said Christopher Kubasik, Chairman and CEO, L3Harris.

Kubasik added, “As we look to 2026, our investments in technology and capacity along with a record backlog and strong demand signals give us confidence to deliver strong results. We remain disciplined in creating value for shareholders while continuing to invest in the business via capex and R&D.”

2026 Guidance

L3Harris Technologies said it expects adjusted earnings per share of $11.30 to $11.50 in fiscal 2026, coming in below the Street’s estimate of $12.46, even as the company lifted its revenue outlook.

The defense contractor raised its fiscal 2026 sales guidance to a range of $23.0 billion to $23.5 billion, up from its prior $23.0 billion forecast and slightly above the consensus estimate of $23.327 billion.

By segment, the company projects Space & Mission Systems to generate approximately $11.5 billion, Communication & Spectrum Dominance around $8.0 billion, and Missiles Solutions approximately $4.4 billion.

Segment operating margins are expected to reach the mid-10% range for Space & Mission Systems, approximately 25% for Communication & Spectrum Dominance, and the mid-12% range for Missiles Solutions, resulting in a total operating margin in the low 16% range.

The company anticipates free cash flow of approximately $3.0 billion.

LHX Price Action: L3Harris Technologies shares were down 5.08% at $342.00 during premarket trading on Thursday, according to Benzinga Pro data.

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