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Dec 31, 2025
L3Harris Q4 2025 Earnings Report
L3Harris reported solid Q4 results with increased revenue and improved adjusted segment margins.
Key Takeaways
L3Harris delivered a stable Q4 with revenue growth and strong adjusted EPS, supported by effective cost controls and higher segment margins.
Revenue rose to $5.648 billion in Q4 2025, up 2% year-over-year.
Adjusted EPS increased to $2.86 from $2.60 in Q4 2024.
Net income was $300 million for the quarter.
Strong adjusted free cash flow of $1.863 billion, up 80% year-over-year.
Revenue by Segment
Forward Guidance
L3Harris expects stronger performance in 2026 supported by strategic investments, segment realignment, and record backlog.
Positive Outlook
- FY26 revenue expected between $23B and $23.5B.
- Diluted EPS guidance of $11.30 to $11.50.
- Free cash flow expected to be $3.0 billion.
- Segment reorganization into three strategic units.
- Backlog and demand outlook remain strong.
Challenges Ahead
- Aerojet Rocketdyne Q4 GAAP margin dropped sharply due to goodwill impairment.
- Maritime and CAS divestiture impacted Integrated Mission Systems margin.
- Impairment charges related to the Space Technology disposal group.
- Some delays in awards due to government shutdown.
- Higher effective tax rate compared to prior year.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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