L3HARRIS TECHNOLOGIES INC (NYSE:LHX) Tops Q3 2025 Estimates and Raises Full-Year Guidance

L3HARRIS TECHNOLOGIES INC (NYSE:LHX) has reported financial results for the third quarter of 2025, delivering performance that exceeded analyst expectations on key profitability and revenue metrics. The defense technology company also raised its full-year guidance, signaling confidence in its operational trajectory amid a evolving global defense landscape.

Earnings and Revenue Performance Versus Estimates

The company's third-quarter results demonstrated robust operational execution, with both revenue and earnings per share coming in above market expectations.

• Revenue: Reported revenue of $5.66 billion surpassed the analyst consensus estimate of $5.57 billion.
• Earnings Per Share (Non-GAAP): The company reported non-GAAP diluted EPS of $2.70, outperforming the estimated $2.60.

This double beat was primarily fueled by strong organic growth and increased production volumes across its diverse portfolio of defense and aerospace technologies.

Market Reaction and Price Action

The immediate market reaction to the earnings release has been positive. In pre-market trading, the stock is indicating an opening gain of approximately 1.1%. This upward move suggests investors are rewarding the company for its earnings beat and the subsequent increase in full-year guidance. The positive pre-market performance stands in contrast to the stock's recent trajectory, which has seen declines over the past month, indicating the earnings report may be serving as a significant catalyst.

Updated 2025 Guidance and Analyst Comparison

Bolstered by a strong third quarter, L3Harris Technologies increased its financial outlook for the full 2025 fiscal year. The company now anticipates revenue to be approximately $22 billion, up from a prior guidance of around $21.75 billion. This updated forecast aligns closely with the current analyst consensus for sales of $21.99 billion.

Furthermore, the company raised its non-GAAP EPS guidance to a range of $10.50 to $10.70, compared to a previous range of $10.40 to $10.60. The midpoint of this new range sits comfortably above the analyst consensus estimate of $10.65 for the full year. For the upcoming fourth quarter, analysts are projecting revenue of $5.76 billion and EPS of $2.83.

Key Operational Highlights from the Quarter

The earnings release highlighted several factors contributing to the strong quarterly performance and optimistic outlook.

• Strong Order Flow: The company reported orders of $6.7 billion, resulting in a book-to-bill ratio of 1.2x, indicating a growing backlog of future work.
• Robust Organic Growth: Revenue grew 7% year-over-year, or 10% on an organic basis, reflecting strong underlying demand.
• Margin Expansion: The adjusted segment operating margin expanded to 15.9%, marking the eighth consecutive quarter of year-over-year improvement.
• Strategic Positioning: CEO Christopher Kubasik emphasized the company's focus on "urgency, speed, and mission focus," citing a record pipeline and timely investments in growth areas like space and munitions. A key example is a $2.2 billion award for a Korea Airborne Early Warning & Control program received after the quarter ended.

Conclusion

L3Harris Technologies delivered a quarter of solid financial outperformance, beating analyst estimates for both profit and revenue. The decision to raise its full-year guidance underscores management's confidence in the company's strategic direction and operational execution. The initial positive market reaction indicates that these results are being viewed favorably by investors, potentially marking a reversal from recent negative momentum.

For a more detailed breakdown of historical earnings and future analyst estimates for L3Harris Technologies, you can review the data here.

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