L3Harris Technologies Records 40.7B Backlog, Lifts 2026 EPS Forecast

L3Harris Technologies delivered a standout Q1 2026, reporting revenue of $5.74 billion — a 15% organic year-over-year increase — handily surpassing FactSet estimates of $5.42 billion. Diluted EPS came in at $2.72, up 33% year-over-year, while the segment operating margin expanded to 15.7%. Orders reached $7.8 billion for the quarter, implying a 1.4x book-to-bill ratio.

The company's record backlog of $40.7 billion underscores robust demand across its defense divisions. Growth was concentrated in Space & Mission Systems, Communication & Spectrum Dominance, and Missile Solutions. Management raised full-year 2026 revenue guidance to $23–$23.5 billion and lifted EPS guidance to $11.40–$11.60, with free cash flow guidance maintained at approximately $3 billion.

L3Harris's rising backlog and book-to-bill above 1.0x position LHX as a key beneficiary of sustained defense budget expansion. Shares edged lower after the initial gain as investors scrutinized whether the record backlog can convert to revenue without supply chain constraints — a common concern in defense prime contracting. The company's guidance raise, however, suggests management confidence in near-term delivery.

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