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Research Alert: L3harris Posts Q1: Broad-based Growth Acceleration Drives Eps And Sales Beat

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-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

LHX delivered strong Q1 2026 results: revenue of $5.744B (+12% Y/Y, 15% organically) beat consensus by 6%, and GAAP EPS of $2.72 (+33% Y/Y) beat by $0.19. Operating margin expanded 120 bps to 11.4%, continuing multi-quarter improvement across all segments. The outperformance reflects broad-based strength from program ramps and international expansion, validating portfolio transformation and alignment with priority defense missions. Management maintained full-year cash flow guidance of $3.0B despite Q1 timing impacts. Record orders of $7.8B and 1.4x book-to-bill drove backlog to $40.7B, providing revenue visibility through 2027. We believe sustained momentum positions LHX well as customers accelerate procurement and allies increase defense spending. The upcoming Missile Solutions IPO in H2 2026 could create additional value, although a key uncertainty is whether elevated book-to-bill rates will continue as the FY 27 budget takes shape.

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