L3Harris Technologies' 2026 Outlook 'Incrementally Conservative' After Strong Q1, RBC Says

MT Newswires Live02:22

L3Harris Technologies' (LHX) 2026 outlook seems "incrementally conservative," given the strong Q1, with the company expected to raise guidance with its Q2 results, RBC Capital Markets said in a note emailed Friday.

For 2026, the company raised its earnings outlook to a range of $11.40 to $11.60 per share from $11.30 to $11.50. It continues to expect full-year revenue of $23 billion to $23.5 billion.

L3Harris' management sounded confident in the full-year revenue outlook and suggested the strong current momentum could lead to a 2026 guidance update with Q2 results, RBC analysts said. The company also indicated that the new chief financial officer's short tenure contributed to the decision not to raise guidance after the strong Q1, they added.

"We believe investors will continue to view the guide as conservative even after raising the revenue guide for 2026 after the Q4 2025 results," the analysts said.

The analysts said the company could benefit from mid-single-digit organic growth, while a stronger focus on execution should help support confidence in its 2026 margin targets. Improved capital allocation, including debt reduction, may also act as a positive catalyst, they said.

RBC maintained its sector perform rating and $365 price target on L3Harris.

Price: 314.10, Change: -6.45, Percent Change: -2.01

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