revenue
850–900 $million
Q2 2026
official guidance
L3HARRIS TECHNOLOGIES, INC.
Last · NYSE$237.48+2.76 (+1.18%)close · yahoo · 15h ago
Market cap$44.22B186.2M sh
P/E · TTM23.9fwd 17.6 · eps 9.92
Beta0.51vs S&P 500
Div yield2.09%annual · TTM
52w range
$232.34$379.23
Volume2.0Msession
| Revenue | $21.7B |
|---|---|
| Operating income | $2.3B |
| Net income | $1.8B |
| Free cash flow | $1.9B |
| Operating margin | 10.5% |
| Net margin | 8.1% |
| Return on equity | 9.0% |
| Period | TTM 2025-10-03 |
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OpenFilings analyst
Our analyst
Agentic read of the latest earnings call — recommendation updates when we process a new transcript. Research synthesis, not investment advice.
Strong BuyBuyHoldSellStrong Sell
High leverage and declining earnings outweigh early operating improvements and strategic-option potential.
Sell: FMC’s Q1 beat was helped by FX, costs and volume, but FY26 guidance still calls for revenue of $3.6-$3.8 billion, EBITDA of $670-$730 million and adjusted EPS of $1.63-$1.89, implying a 41% midpoint EPS decline. The core portfolio remains under generic pricing pressure, Rynaxypyr is in an uncertain post-patent transition, net leverage is 5.2x EBITDA, and free cash flow is expected to be roughly breakeven; the bull case depends on asset sales, licensing proceeds and a second-half recovery that is not yet fully proven.
Themes
- Generic Competition
- Rynaxypyr Post Patent
- Deleveraging
- Negative Free Cash Flow
- IsoflEx
- Strategic Alternatives
Near term
Q2 revenue guidance of $850-$900 million and EBITDA guidance of $130-$150 million imply another sharp year-over-year decline, driven by lower diamide-partner sales and the India exit.
Brazil order commitments represent 32% of planned second-half direct sales as of late April; further commitments by June will be an important test of the second-half recovery.
Potential May agreement to sell the India commercial business and expected licensing discussions could provide debt-reduction catalysts, but timing and proceeds remain unquantified.
Tariff, Iran-related energy and transportation costs remain difficult to forecast; management expects offsets but will not update the full-year view until the next call.
Longer term
Manufacturing migration from high-cost plants to lower-cost Asian sources is expected to finish by Q1 2027 and is central to restoring competitiveness in the non-diamide portfolio.
New active ingredients grew 100% year over year in Q1, while EU Isoflex approval expands potential access to more than 55 million planted hectares; commercial launches are not expected until 2027.
The post-patent Rynaxypyr plan targets flat branded earnings dollars, but customer wait-and-see behavior and generic efficacy and availability remain unresolved.
The board’s strategic-alternatives review could materially change the capital structure or portfolio, but no outcome or valuation framework was provided.
Red flags
Net debt rose to approximately $4.1 billion, or 5.2x trailing EBITDA, while Q1 free cash flow was negative $628 million and FY26 free cash flow guidance ranges from negative $65 million to positive $65 million.
FY26 interest expense is expected at $255-$275 million, approximately $25 million above the prior year midpoint, further compressing EPS and limiting deleveraging capacity.
Price declined 6% in Q1, with diamide partners responsible for nearly half of the decline; generic competition is especially pronounced in LATAM and Asia.
The company is relying on asset disposals, real estate transactions and a potential active-ingredient license to achieve approximately $1 billion of debt paydown, but transaction values and closing dates remain unspecified.
The call provided no analyst Q&A, so there was no management response to pushback on competitive displacement, Rynaxypyr generic risk or the credibility of the second-half recovery.
Forward outlook
ebitda
130–150 $million
Q2 2026
official guidance
adjusted eps
0.16–0.26 $per share
Q2 2026
official guidance
revenue
3.6–3.8 $billion
FY 2026
official guidance
revenue growth
-5 pct
FY 2026
official guidance
ebitda
670–730 $million
FY 2026
official guidance
adjusted eps
1.63–1.89 $per share
FY 2026
official guidance
Recommendation history
OpenFilings analyst view from primary-source filings and earnings calls — not investment advice.
From latest 10-K · 2026-02-12
- Backlog Growth
- Us Government Concentration
- Defense Spending
- Debt Maturities
- Goodwill Impairment
- Portfolio Divestitures
- Lhx Next
- Pension Income
Red flags
- Customer concentration is substantial: U.S. Government customers accounted for 75% of fiscal 2025 revenue, or approximately $16.4 billion based on reported revenue of $21.865 billion.
- Debt totaled $11.116 billion at January 2, 2026, including $673 million current; maturities include $1.256 billion in fiscal 2027 and $1.880 billion in fiscal 2028.
- Goodwill remained $20.010 billion at year-end, and the company recorded an additional $85 million impairment related to the Space Technology disposal group.
- Fiscal 2025 benefited from $419 million of non-service pension income and other net items, including $356 million of pension income, making reported operating and net earnings less representative of core operating performance.
Upcoming earnings
1:30 PM UTC+1
Period
Sep 2026
Est. EPS
$3.06
Est. revenue
6.0B
Earnings transcripts
- Issuer IR
Q1 2025 earnings call transcript
L3HARRIS TECHNOLOGIES, INC.
- Issuer IR
Q1 2025 earnings call transcript
L3HARRIS TECHNOLOGIES, INC.
- Issuer IR
Q4 2025 earnings call transcript
L3HARRIS TECHNOLOGIES, INC.
- Issuer IR
Q4 2025 earnings call transcript
L3HARRIS TECHNOLOGIES, INC.
- Issuer webcast
Webcast of Q4 2025 Press Release
L3HARRIS TECHNOLOGIES, INC.
- Issuer IR
Transcript of Q4 2025 Press Release
L3HARRIS TECHNOLOGIES, INC.