L3Harris Technologies, Inc
L3Harris Technologies designs and integrates mission-critical defense and government systems that connect the space, air, land, sea and cyber domains. The company sells a mix of products and services to the U.S. Government, international allies, and prime contractors, with applications spanning defense, civil government and some commercial markets.
Fiscal year 2026 · change from previous year
Development 2021–2026
Business
Share of revenueMission solutions, sensors, avionics and subsystem integration for space and airborne platforms.
Intelligence, surveillance, reconnaissance, electro-optical and related mission systems.
Tactical radios, secure communications and networking equipment for defense users.
Propulsion systems, rocket motors and space and missile propulsion products and services.
Integration, maintenance, support and other recurring services across defense programs.
Products
Reported · share of revenue- Products71.0 %
- Services29.0 %
Source: 10-K FY2025, revenue the company reports per product line (SEC XBRL). Shares are of the lines shown and add up to 100 %.
Customers
L3Harris primarily serves the U.S. Government, including foreign military sales funded through the U.S. Government, and also sells to international allies and prime contractors. Its offerings are bought for mission assurance, secure communications, sensing, propulsion and platform integration where reliability and delivery performance matter more than price alone.
Departments and agencies buy defense electronics, communications, sensors and propulsion for national security missions.
Allied customers buy through U.S. Government-funded channels for interoperable defense capability.
Large defense primes buy subsystems, payloads and integration work for their own platforms and programs.
Defense ministries and allied forces buy secure communications, ISR and mission systems for coalition use.
Smaller end markets buy dual-use communications, sensing and aerospace technologies.
Strategy
Management is focused on profitable growth, operational excellence and innovation, while using the company’s platform-agnostic model to win as prime, merchant supplier or subcontractor. The LHX NeXt program is intended to improve agility, efficiency and competitiveness, while R&D and partnerships are being used to add AI-enabled and software-rich capabilities.
The company wants to expand revenue while protecting margins in a competitive, program-driven market.
Enterprise tools and process redesign should improve agility, reduce cost and support margin expansion.
New capabilities are needed to compete in markets where hardware, software and AI are converging.
Cash generation is being directed to business investment, debt repayment and shareholder returns.
Geography
2025The company is U.S.-centered, with 76% of fiscal 2024 revenue derived from U.S. Government customers, including foreign military sales funded through the U.S. Government. It supports customers in more than 100 countries, with international marketing and sales activity concentrated in EMEA, APAC and Canada, which broadens demand but also increases export-control and geopolitical exposure.
Share of the revenue the company reports by geography.
Risks
The business is heavily exposed to U.S. Government spending, procurement timing and contract awards, so changes in defense priorities or protests can affect backlog and goodwill values. It also faces supply-chain, cybersecurity and trade-policy risks that are amplified by classified work, global sourcing and dependence on specialized components such as microelectronics.
- Supply-chain and component shortagesImpact: HighLikelihood: High
Defense electronics and propulsion require specialized parts, including approved microelectronic sources, which can be hard to dual-source.
Exposure - Dependence on U.S. Government spendingImpact: HighLikelihood: Medium
Most revenue comes from government customers, so procurement changes can quickly affect demand and backlog.
Exposure: 76% of fiscal 2024 revenue from U.S. Government customers including FMS
- Goodwill and intangible asset impairmentImpact: HighLikelihood: Medium
Acquisitions and divestitures create large goodwill balances that can be written down if forecasts weaken.
Exposure: Acquired businesses and reporting units
- Cybersecurity and classified-network breachImpact: HighLikelihood: Low
The company operates sensitive government systems and networks, making it a target for advanced cyber threats.
Exposure - Tariffs and trade-policy changesImpact: MediumLikelihood: High
Global sourcing and international operations can be affected by new tariffs, retaliatory measures and policy shifts.
Exposure: Supply chain and imported components
Accounting
Judgemental itemsContract type and performance obligations affect when revenue and profit are recognized.
Impact: Can shift quarterly revenue and margins
Large acquired balances are tested using subjective assumptions and can produce material write-downs.
Impact: Non-cash charges can reduce operating income
Changes in estimated revenues and costs can materially affect results on long-cycle programs.
Impact: Affects gross margin and earnings volatility
Government contract accounting and pension items create differences between operating and reported results.
Impact: Can distort comparability across periods
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Last updated: 24/09/2026