Revenue growth remains highly sensitive to project cycles, evidenced by a volatile recovery to 11.9% in 2026Q1 following a contraction of -1.5% in 2025Q1.
| Metric | TTM | Jan'26 | Jan'25 | Dec'23 | Dec'22 | Dec'21 | Jan'21 | Dec'19 | Jun'19 | Jun'18 | Jun'17 | Jun'16 | Jun'15 | Jun'14 | Jun'13 | Jun'12 | Jun'11 | Jun'10 | Jun'09 | Jun'08 | Jun'07 | Jun'06 | Jun'05 | Jun'04 | Jun'03 | Jun'02 | Jun'01 | Jun'00 | Jun'99 | Jun'98 | Jun'97 |
|---|
| Sales/Revenue | 22.48B | 21.86B | 21.32B | 19.42B | 17.06B | 17.81B | 18.19B | 18.53B | 6.8B | 6.18B | 5.9B | 5.99B | 5.08B | 5.01B | 5.11B | 5.45B | 5.42B | 4.72B | 5B | 4.6B | 4.24B | 3.47B | 3B | 2.52B | 2.06B | 1.84B | 1.96B | 1.81B | 1.74B | 1.92B | 1.95B |
| Revenue Growth % | 5.79% | 2.53% | 9.82% | 13.81% | -4.22% | -2.09% | -1.79% | 172.4% | 10.01% | 4.78% | -1.54% | 17.88% | 1.42% | -1.95% | -6.23% | 0.61% | 14.68% | -5.59% | 8.9% | 8.32% | 22.11% | 15.8% | 19.14% | 22.23% | 12.25% | -6.1% | 8.17% | 3.67% | -9.42% | -1.22% | -46.19% |
| Cost of Goods Sold | 16.98B | 16.24B | 16.58B | 14.99B | 12.13B | 12.44B | 12.86B | 13.45B | 4.47B | 4.03B | 3.84B | 4B | 3.36B | 3.31B | 3.38B | 3.57B | 3.53B | 3.05B | 3.42B | 3.15B | 2.86B | 2.39B | 2.17B | 1.89B | 1.54B | 1.35B | 1.43B | 1.29B | 1.21B | 1.38B | 1.4B |
| COGS % of Revenue | - | 74.27% | 77.75% | 77.21% | 71.12% | 69.82% | 70.66% | 72.61% | 65.68% | 65.22% | 65.14% | 66.67% | 66.02% | 66.05% | 66.22% | 65.48% | 65.19% | 64.61% | 68.34% | 68.44% | 67.46% | 68.66% | 72.39% | 74.97% | 74.89% | 73.72% | 73.2% | 71.62% | 69.68% | 71.78% | 71.74% |
| Gross Profit | 5.5B | 5.63B | 4.75B | 4.43B | 4.93B | 5.38B | 5.34B | 5.07B | 2.33B | 2.15B | 2.06B | 2B | 1.73B | 1.7B | 1.73B | 1.88B | 1.89B | 1.67B | 1.58B | 1.45B | 1.38B | 1.09B | 828.6M | 630.3M | 517.4M | 482.4M | 524M | 512.9M | 528.7M | 543.2M | 550.7M |
| Gross Margin % | 24.47% | 25.73% | 22.25% | 22.79% | 28.88% | 30.18% | 29.34% | 27.39% | 34.32% | 34.78% | 34.86% | 33.33% | 33.98% | 33.95% | 33.78% | 34.52% | 34.81% | 35.39% | 31.66% | 31.56% | 32.54% | 31.34% | 27.61% | 25.03% | 25.11% | 26.28% | 26.8% | 28.38% | 30.32% | 28.22% | 28.26% |
| Gross Profit Growth % | - | 18.55% | 7.21% | -10.17% | -8.35% | 0.69% | 5.22% | 117.4% | 8.56% | 4.52% | 3% | 15.63% | 1.5% | -1.46% | -8.25% | -0.21% | 12.79% | 5.51% | 9.26% | 5.06% | 26.78% | 31.43% | 31.46% | 21.82% | 7.26% | -7.94% | 2.16% | -2.99% | -2.67% | -1.36% | -60.3% |
| Operating Expenses | 3.25B | 3.43B | 2.69B | 2.4B | 3.8B | 3.15B | 3.17B | 2.81B | 1.24B | 978M | 926M | 768M | 826M | 819.6M | 870.5M | 940.9M | 844.3M | 723.2M | 778.9M | 720.1M | 767M | 676.9M | 498.8M | 421M | 414.1M | 378.3M | 356.6M | 483.8M | 447.8M | 482.6M | 462.7M |
| OpEx % of Revenue | - | 15.69% | 12.6% | 12.36% | 22.27% | 17.69% | 17.41% | 15.19% | 18.26% | 15.82% | 15.69% | 12.82% | 16.25% | 16.35% | 17.03% | 17.26% | 15.58% | 15.31% | 15.56% | 15.67% | 18.08% | 19.48% | 16.62% | 16.72% | 20.1% | 20.61% | 18.24% | 26.77% | 25.68% | 25.07% | 23.75% |
| Selling, General & Admin | 3.03B | 3.43B | 3.57B | 1.92B | 3B | 3.28B | 2.48B | 2.16B | 1.24B | 667M | 616M | 463M | 549M | 555.5M | 634.2M | 722M | 604.5M | 495.1M | 535.4M | 472.1M | 532.4M | 479.1M | 361.5M | 309.7M | 414.1M | 378.3M | 414.4M | 415.2M | 384.3M | 420.7M | 399.9M |
| SG&A % of Revenue | - | 15.69% | 16.73% | 9.89% | 17.57% | 18.41% | 13.65% | 11.64% | 18.26% | 10.79% | 10.44% | 7.73% | 10.8% | 11.08% | 12.41% | 13.24% | 11.16% | 10.48% | 10.7% | 10.27% | 12.55% | 13.79% | 12.05% | 12.3% | 20.1% | 20.61% | 21.2% | 22.97% | 22.04% | 21.86% | 20.52% |
| Research & Development | 269M | 0 | 515M | 480M | 603M | 692M | 684M | 658M | 0 | 311M | 310M | 305M | 277M | 264.1M | 236.3M | 218.9M | 239.8M | 228.1M | 243.5M | 248M | 234.6M | 197.8M | 137.3M | 111.3M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | 2.42% | 2.47% | 3.53% | 3.88% | 3.76% | 3.55% | - | 5.03% | 5.25% | 5.09% | 5.45% | 5.27% | 4.62% | 4.02% | 4.43% | 4.83% | 4.87% | 5.4% | 5.53% | 5.69% | 4.58% | 4.42% | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | 0 | -1.4B | 0 | 199M | -820M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | 2.25B | 2.19B | 2.06B | 2.02B | 1.13B | 2.22B | 2.17B | 2.26B | 1.28B | 1.17B | 1.13B | 1.23B | 901M | 881.9M | 856.2M | 941.1M | 1.04B | 948.9M | 805.9M | 730.4M | 613.6M | 412.1M | 329.8M | 209.3M | 79.6M | 63.1M | 160.9M | 21.9M | 87.3M | 19.1M | 57.2M |
| Operating Margin % | 10.01% | 10.04% | 9.65% | 10.43% | 6.61% | 12.48% | 11.93% | 12.2% | 18.82% | 18.96% | 19.17% | 20.51% | 17.73% | 17.6% | 16.75% | 17.26% | 19.22% | 20.08% | 16.1% | 15.89% | 14.46% | 11.86% | 10.99% | 8.31% | 3.86% | 3.44% | 8.23% | 1.21% | 5.01% | 0.99% | 2.94% |
| Operating Income Growth % | - | 6.66% | 1.63% | 79.68% | -49.33% | 2.44% | -3.94% | 76.56% | 9.21% | 3.63% | -7.97% | 36.4% | 2.17% | 3% | -9.02% | -9.65% | 9.77% | 17.74% | 10.34% | 19.04% | 48.9% | 24.95% | 57.57% | 162.94% | 26.15% | -60.78% | 634.7% | -74.91% | 357.07% | -66.61% | -79.01% |
| EBITDA | 3.28B | 3.42B | 3.35B | 3.19B | 2.07B | 3.19B | 3.22B | 3.15B | 1.54B | 1.43B | 1.4B | 1.52B | 1.12B | 1.08B | 1.08B | 1.16B | 1.22B | 1.09B | 947.4M | 866.8M | 762.1M | 508.6M | 412.4M | 264.4M | 136M | 118.2M | 240.6M | 90.5M | 150.8M | 81M | 120M |
| EBITDA Margin % | 14.57% | 15.64% | 15.7% | 16.44% | 12.16% | 17.93% | 17.69% | 17.02% | 22.61% | 23.16% | 23.8% | 25.33% | 22.11% | 21.61% | 21.07% | 21.33% | 22.6% | 23.04% | 18.93% | 18.86% | 17.96% | 14.64% | 13.74% | 10.5% | 6.6% | 6.44% | 12.31% | 5.01% | 8.65% | 4.21% | 6.16% |
| EBITDA Growth % | -5.56% | 2.15% | 4.82% | 53.95% | -35.07% | -0.75% | 2.03% | 105.07% | 7.4% | 1.99% | -7.51% | 35.05% | 3.76% | 0.58% | -7.36% | -5.06% | 12.48% | 14.93% | 9.3% | 13.74% | 49.84% | 23.33% | 55.98% | 94.41% | 15.06% | -50.87% | 165.86% | -39.99% | 86.17% | -32.5% | -72.92% |
| D&A (Non-Cash Add-back) | 1.03B | 1.22B | 1.29B | 1.17B | 947M | 970M | 1.05B | 894M | 258M | 260M | 273M | 289M | 223M | 201.4M | 220.9M | 221.6M | 183.1M | 139.9M | 141.5M | 136.4M | 148.5M | 96.5M | 82.6M | 55.1M | 56.4M | 55.1M | 79.7M | 68.6M | 63.5M | 61.9M | 62.8M |
| EBIT | 2.57B | 2.53B | 2.27B | 1.76B | 1.55B | 2.55B | 1.59B | 2.09B | 1.28B | 1.1B | 1.08B | 1.07B | 607M | 889M | 773.7M | 955.1M | 995.9M | 948.5M | 538.1M | 720.6M | 701.9M | 417.3M | 327.2M | 204.5M | 103.3M | 104.1M | 167.4M | 29.1M | 80.9M | 60.6M | 88M |
| Net Interest Income | -583M | -597M | -675M | -543M | -279M | -265M | -254M | 0 | -167M | -168M | -170M | -181M | -128M | -91M | -107M | -110.7M | -87.6M | -70.6M | -49.6M | -47.9M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 16M | 0 | 0 | 2M | 2M | 2M | 2M | 3M | 2M | 2.5M | 2.8M | 1.5M | 3.2M | 5.2M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 583M | 597M | 675M | 543M | 279M | 265M | 270M | 0 | 167M | 170M | 172M | 183M | 130M | 94M | 109M | 113.2M | 90.4M | 72.1M | 52.8M | 53.1M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -188M | -263M | -461M | -804M | 146M | 59M | -849M | -444M | 21M | -246M | -226M | -345M | -424M | -86.5M | -191.6M | -99.2M | -136.1M | -72.5M | -320.6M | -62.9M | 47.2M | -31.3M | -31.4M | -29.3M | 28.6M | 68.6M | -95M | 2.2M | -2.9M | 84.6M | 42M |
| Pretax Income | 2.06B | 1.93B | 1.6B | 1.22B | 1.27B | 2.28B | 1.32B | 1.82B | 1.11B | 908M | 889M | 884M | 396M | 795M | 665M | 841.9M | 905.5M | 876.4M | 485.3M | 667.5M | 660.8M | 380.8M | 298.4M | 180M | 108.2M | 131.7M | 72.4M | 38.5M | 78M | 103.7M | 99.2M |
| Pretax Margin % | 9.17% | 8.84% | 7.49% | 6.29% | 7.46% | 12.82% | 7.27% | 9.8% | 16.37% | 14.69% | 15.07% | 14.75% | 7.79% | 15.86% | 13.01% | 15.44% | 16.71% | 18.55% | 9.7% | 14.52% | 15.57% | 10.96% | 9.94% | 7.15% | 5.25% | 7.17% | 3.7% | 2.13% | 4.47% | 5.39% | 5.09% |
| Income Tax | 330M | 326M | 85M | 23M | 212M | 440M | 234M | 146M | 160M | 206M | 261M | 273M | 109M | 256M | 203M | 286M | 306.8M | 295.4M | 172.9M | 214M | 190.9M | 142.9M | 96.2M | 54.3M | 37.9M | 44.7M | 51M | 13.5M | 28.1M | 37.3M | 34.9M |
| Effective Tax Rate % | 16% | 16.87% | 5.32% | 1.88% | 16.65% | 19.27% | 17.7% | 8.04% | 14.38% | 22.69% | 29.36% | 30.88% | 27.53% | 32.2% | 30.53% | 33.97% | 33.88% | 33.71% | 35.63% | 32.06% | 28.89% | 37.53% | 32.24% | 30.17% | 35.03% | 33.94% | 70.44% | 35.06% | 36.03% | 35.97% | 35.18% |
| Net Income | 1.73B | 1.61B | 1.5B | 1.23B | 1.06B | 1.85B | 1.12B | 1.64B | 949M | 699M | 543M | 324M | 334M | 535M | 113M | 30.6M | 588M | 561.6M | 37.9M | 444.2M | 480.4M | 237.9M | 202.2M | 132.8M | 59.5M | 82.6M | 21.4M | 18M | 53.1M | 133M | 207.5M |
| Net Margin % | 7.71% | 7.35% | 7.04% | 6.32% | 6.22% | 10.36% | 6.15% | 8.87% | 13.95% | 11.31% | 9.2% | 5.41% | 6.57% | 10.67% | 2.21% | 0.56% | 10.85% | 11.89% | 0.76% | 9.66% | 11.32% | 6.85% | 6.74% | 5.27% | 2.89% | 4.5% | 1.09% | 1% | 3.05% | 6.91% | 10.65% |
| Net Income Growth % | 7.91% | 6.92% | 22.41% | 15.54% | -42.47% | 64.97% | -31.93% | 73.23% | 35.77% | 28.73% | 67.59% | -2.99% | -37.57% | 373.45% | 269.28% | -94.8% | 4.7% | 1381.79% | -91.47% | -7.54% | 101.93% | 17.66% | 52.26% | 123.19% | -27.97% | 285.98% | 18.89% | -66.1% | -60.08% | -35.9% | 16.31% |
| Net Income (Continuing) | 1.73B | 1.61B | 1.51B | 1.2B | 1.06B | 1.84B | 1.09B | 1.67B | 953M | 702M | 628M | 611M | 287M | 539M | 462M | 555.9M | 598.7M | 581M | 312.4M | 453.5M | 469.9M | 237.9M | 202.2M | 125.7M | 70.3M | 87M | 21.4M | 25M | 49.9M | 66.4M | 64.3M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | -1M | -2M | -2M | 0 | -3M | 0 | 47M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 65M | 64M | 101M | 106M | 117M | 157M | 0 | 0 | 0 | 1M | 5M | -1M | -100K | 7.2M | 10M | 500K | 0 | 330.3M | 326.9M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 9.20 | 8.53 | 7.87 | 6.44 | 5.49 | 9.08 | 5.18 | 7.35 | 7.88 | 5.77 | 4.44 | 2.59 | 3.11 | 4.95 | 1.01 | 0.26 | 4.60 | 4.28 | 0.28 | 3.26 | 3.43 | 1.71 | 1.46 | 0.97 | 0.45 | 0.62 | 0.16 | 0.13 | 0.34 | 0.83 | 1.33 |
| EPS Growth % | 9.25% | 8.39% | 22.2% | 17.3% | -39.54% | 75.29% | -29.52% | -6.73% | 36.57% | 29.95% | 71.43% | -16.72% | -37.17% | 390.1% | 288.46% | -94.35% | 7.48% | 1428.57% | -91.41% | -4.96% | 100.58% | 17.12% | 50.52% | 115.56% | -27.42% | 287.5% | 23.08% | -61.76% | -59.04% | -37.59% | 15.65% |
| EPS (Basic) | - | 8.57 | 7.91 | 6.47 | 5.54 | 9.17 | 5.23 | 7.43 | 8.04 | 5.89 | 4.50 | 2.61 | 3.15 | 5.00 | 1.01 | 0.26 | 4.63 | 4.31 | 0.29 | 3.32 | 3.63 | 1.79 | 1.52 | 1.00 | 0.45 | 0.62 | 0.16 | 0.13 | 0.34 | 0.84 | 1.33 |
| Diluted Shares Outstanding | 188.24M | 188.4M | 190.7M | 190.6M | 193.5M | 203.2M | 215.9M | 223.7M | 120.5M | 121.1M | 124.3M | 125M | 106.8M | 107.3M | 111.2M | 114.8M | 126.3M | 130M | 133.2M | 136.5M | 140.06M | 141.6M | 138.49M | 136.91M | 132.22M | 133.23M | 133.75M | 149M | 158.51M | 160.24M | 156.02M |
| Basic Shares Outstanding | 186.86M | 187.4M | 189.8M | 189.6M | 191.8M | 201.3M | 214M | 221.2M | 118M | 118.6M | 122.6M | 123.8M | 105.7M | 106.1M | 110.5M | 114.2M | 125.3M | 129M | 132.3M | 133.9M | 132.34M | 132.9M | 133.03M | 132.8M | 132.22M | 131.8M | 133.75M | 149M | 158.51M | 158.33M | 156.02M |
| Dividend Payout Ratio | - | 56.23% | 58.99% | 70.74% | 81.36% | 44.26% | 64.79% | 20.5% | 34.25% | 38.91% | 48.25% | 77.78% | 59.28% | 33.64% | 146.02% | 456.21% | 21.6% | 20.48% | 281.27% | 18.35% | 12.11% | 17.95% | 15.78% | 20.03% | 35.63% | 15.98% | 62.15% | 166.11% | 144.07% | 52.71% | 29.06% |
Fixed-price contract margin erosion
According to the provided quarterly income statements, LHX experienced a revenue growth rebound to 11.9% in 2026Q1, following a period of significant deceleration that saw growth dip to -1.5% in 2025Q1, suggesting that the company's project-based delivery cycles remain highly sensitive to timing and government procurement milestones.
The recent acceleration in top-line performance appears to be a recovery from the mid-2025 trough rather than a sustained structural shift. Investors should monitor whether this growth is driven by new contract wins or simply the recognition of delayed milestones within the Integrated Mission Systems segment.
As reported in financial statements, LHX's gross margin fluctuated between 21.3% and 26.4% over the last ten quarters, indicating that the company's high-fixed-cost structure and reliance on specialized defense electronics make it susceptible to cost overruns and inflationary pressures on key components and labor inputs.
The volatility in gross margins suggests that the company's mix of proprietary hardware and lower-margin integration contracts is not yet optimized. Persistent margin variance warrants further investigation into whether specific fixed-price contracts are experiencing cost creep that management has yet to fully mitigate.
Based on the income statement data, operating margins have struggled to consistently exceed 11%, peaking at 11.4% in 2026Q1, which implies that the company's SG&A expenses are not scaling efficiently relative to the gross profit generated by its diverse and complex defense-focused business segments.
The lack of clear operating leverage suggests that the integration of recent acquisitions, such as Aerojet Rocketdyne, continues to impose a heavy administrative and operational burden. Analysts should watch for whether future periods show a reduction in SG&A as a percentage of revenue as integration synergies materialize.
As evidenced by the quarterly data, EPS has shown extreme variance, ranging from $0.83 in 2023Q4 to $2.72 in 2026Q1, a trend that appears heavily influenced by non-operating items and significant fluctuations in stock-based compensation that complicate the assessment of true underlying operational profitability.
The inconsistency in net income suggests that headline EPS figures may be misleading due to the impact of EAC adjustments and intangible asset amortization. Investors should focus on normalized earnings metrics to strip away the noise created by these accounting treatments and one-time integration costs.
While management emphasizes the strategic value of recent acquisitions, the income statement data reveals that SG&A spikes, such as the $968 million recorded in 2025Q4, suggest that the company may be overpaying for growth while failing to achieve the necessary cost discipline to protect shareholder value.
Short-sellers may focus on the potential for permanent margin compression if the company cannot successfully integrate its propulsion and space assets without incurring further cost overruns. The current valuation may be overly optimistic if the anticipated synergies from the Aerojet deal fail to materialize as expected.
Quick answers to the most common questions about buying LHX stock.
For fiscal year 2025, L3Harris Technologies, Inc. (LHX) reported total revenue of $21.86B. This represents a 1022.1% increase compared to $1.95B in 1996.
L3Harris Technologies, Inc. (LHX) is profitable, generating $1.61B in net income for the fiscal year ending 2025 with a net profit margin of 7.3%.
L3Harris Technologies, Inc. (LHX) reported an operating income of $2.19B, resulting in an operating profit margin of 10.0%. This margin reflects the operational efficiency of the business before interest and taxes.
L3Harris Technologies, Inc. (LHX) generated $5.63B in gross profit for the year, representing a gross profit margin of 25.7%. This demonstrates the company's core pricing power and production efficiency.