LHX · 10-Q · 2026Q4 · Full report

Gross Margin Drivers

L3HARRIS TECHNOLOGIES, INC. /DE/ · 2026-10-29 · Importance 31 · Surprise 32

Third-quarter gross margin increased $118 million to $1.612 billion, and year-to-date gross margin increased $337 million to $4.516 billion. Higher volume across all segments and favorable net estimate-at-completion (EAC) adjustments contributed to the increases: $62 million in third quarter and $144 million year to date. The year-to-date increase was partly offset by the absence of the CAS disposal group following its March 2025 divestiture.

Key facts

• L3Harris’s year-to-date 2026 gross margin increased $337 million, primarily due to higher volumes and a $144 million favorable change in net EAC adjustments, partly offset by the absence of the CAS disposal group after its March 2025 divestiture. source
• L3Harris’s third-quarter 2026 gross margin increased $118 million, primarily due to higher volumes across all segments and a $62 million favorable change in net EAC adjustments. source