How does L3Harris Technologies (LHX) make money?

L3Harris Technologies (LHX) generates revenue primarily from Space and Airborne Systems, which accounted for 34.6% of total revenue in TTM through Q2 2026. The company reported $22.5B in revenue and converted 7.7% of it into net profit, equivalent to roughly $1.73B in net income — what's left after the cost of revenue, operating expenses, interest, and income taxes.

What is the gross profit margin of L3Harris Technologies (LHX)?

L3Harris Technologies (LHX) reported a gross profit margin of 25.3% in TTM through Q2 2026, equivalent to $5.68B in gross profit on $22.5B in revenue. Gross margin measures how much of each dollar of revenue remains after the direct cost of producing or delivering the product — a higher figure typically signals pricing power, scale, or a less capital-intensive business model.

What is the operating profit margin of L3Harris Technologies (LHX)?

L3Harris Technologies (LHX) reported an operating profit margin of 9.9% in TTM through Q2 2026, equivalent to $2.23B in operating income. Operating margin captures profitability after research & development, sales & marketing, and general & administrative expenses — but before interest, taxes, and one-off items — and is the cleanest single read on the underlying business's efficiency.

What is the net profit margin of L3Harris Technologies (LHX)?

L3Harris Technologies (LHX) reported a net profit margin of 7.7% in TTM through Q2 2026, equivalent to $1.73B in net income. Net margin is the bottom-line share of revenue that survives every expense — operating costs, interest, and income taxes — and is the figure that flows directly into earnings per share.

Is L3Harris Technologies (LHX) profitable?

Yes. L3Harris Technologies (LHX) reported $1.73B in net income for TTM through Q2 2026, with a net profit margin of 7.7%. The company earned more from its operations than it paid out in costs, interest, and income taxes, leaving positive earnings on the bottom line.

How much does L3Harris Technologies (LHX) invest in research and development?

L3Harris Technologies (LHX) invested $570M in research and development during TTM through Q2 2026, roughly 2.5% of total revenue. R&D spending funds the company's future product pipeline and is expensed in full on the income statement rather than capitalised, which makes the operating margin sensitive to how aggressively management chooses to reinvest in innovation.

How much does L3Harris Technologies (LHX) spend on capital expenditures?

L3Harris Technologies (LHX) spent $464M on capital expenditures (CapEx) during TTM through Q2 2026, roughly 2.1% of total revenue. CapEx represents long-lived investment in property, equipment, data centres, and other physical infrastructure, and is subtracted from operating cash flow to arrive at free cash flow.

How much free cash flow does L3Harris Technologies (LHX) generate?

L3Harris Technologies (LHX) generated $2.59B in free cash flow during TTM through Q2 2026, a free-cash-flow margin of 11.5%. Free cash flow is the cash left after capital expenditures and represents the discretionary pool the company can use to pay dividends, repurchase shares, repay debt, or fund acquisitions without raising external capital.

What is the effective tax rate of L3Harris Technologies (LHX)?

L3Harris Technologies (LHX) had an effective tax rate of 16% in TTM through Q2 2026. The effective rate is the actual share of pre-tax income paid as income taxes and can differ materially from the statutory rate due to foreign earnings mix, tax credits (such as R&D), share-based compensation deductions, and one-off discrete items.

What are the main business segments of L3Harris Technologies (LHX)?

L3Harris Technologies (LHX) reports revenue across 4 reportable product segments, led by Space and Airborne Systems at 34.6% of total revenue in TTM through Q2 2026. See the revenue-by-segment table on this page for the full breakdown and how each segment feeds into the income-statement waterfall above.

How L3Harris Technologies Makes Money: 2026 Visual Revenue Map

L3Harris Technologies (LHX) Income Statement Flow — TTM through Q2 2026

Calculated from the four most recent reported quarters, ending April 3, 2026 (reported April 30, 2026).

L3Harris Technologies discloses geographic revenue only in annual filings. to view the full breakdown.

L3Harris Technologies (LHX) Revenue by Product Segment — TTM through Q2 2026

Aggregated from the four quarterly disclosures behind this TTM. Minor differences vs the company's annual filing can occur if reported segments changed mid-year.

Revenue contribution by product segment for L3Harris Technologies (LHX), TTM through Q2 2026.
Segment	Revenue (USD)	% of total
Space and Airborne Systems	$7.77B	34.6%
Integrated Mission Systems	$6.28B	28%
Communication Systems	$5.95B	26.5%
Aerojet Rocketdyne Segment	$2.47B	11%
Total	$22.5B	100%

Space and Airborne Systems$7.77B
Integrated Mission Systems$6.28B
Communication Systems$5.95B
Aerojet Rocketdyne Segment$2.47B
Total$22.5B

Revenue Breakdown — TTM through Q2 2026

In TTM through Q2 2026, L3Harris Technologies (LHX) reports revenue across 4 reportable product segments; the largest segment was Space and Airborne Systems at 34.6%, followed by Integrated Mission Systems (28%) and Communication Systems (26.5%).

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