LHX · 10-Q · 2026Q4 · Full report

Income Tax Rate Changes

L3HARRIS TECHNOLOGIES, INC. /DE/ · 2026-10-29 · Importance 25 · Surprise 32

The year-to-date effective tax rate declined to 14.6% in 2026 from 15.7% in 2025, while third-quarter rates were 14.9% and 18.5%, respectively. Year-to-date 2026 benefited from favorable R&D credits, FDDEI, and resolution of audit uncertainties; the lower rate versus 2025 primarily reflected a valuation allowance on R&D credit carryforwards established in 2025 after a state legislative change. Third-quarter 2026 also included an incremental 10% benefit associated with favorable resolution of audit uncertainties, partly offset by pre-divestiture Space Technology activity.

Key facts

• L3Harris’s third-quarter 2026 effective tax rate was 14.9%, compared with 18.5% in third-quarter 2025; the 2026 rate included a 10% incremental benefit from favorable resolution of audit uncertainties, partly offset by an unfavorable impact from pre-divestiture Space Technology activities. source
• L3Harris’s year-to-date 2026 effective tax rate was 14.6%, compared with 15.7% in year-to-date 2025; the lower 2026 rate primarily reflected a valuation allowance on R&D credit carryforwards established in 2025 following a state legislative change. source