Key Highlights

  • L3Harris' quarterly Dividend of $1.25 per share trades ex-date September 4, 2026, payable September 18, yielding approximately 1.91%.
  • Q2 2026 orders of $7.3 billion produced a 1.2x book-to-bill ratio, pushing Backlog to a record $42 billion, while Revenue rose 8% to $5.9 billion.
  • Diluted EPS increased 28% to $3.13, with Operating Cash Flow of $879 million and free cash flow of $771 million, both up 37%.
  • The company raised full-year 2026 guidance for consolidated revenue to $23.2-$23.7 billion and GAAP EPS to $11.80-$12.00.

L3Harris' (NYSE:LHX) quarterly dividend of $1.25 per share yields approximately 1.91%. The more relevant story this quarter is revenue visibility: orders outpaced revenue by a wide margin, pushing backlog to a record $42 billion and giving the company an unusually clear multi-year runway even as execution risk on large defense programs remains the key variable.

Dividend Program and Shareholder Returns

L3Harris' Board declared a quarterly dividend of $1.25 per share on July 23, 2026, payable September 18, 2026, to shareholders of record September 4, trading ex-dividend the same date and yielding approximately 1.91%. The company has increased its dividend annually for 24 consecutive years, with a Payout Ratio of approximately 41%. L3Harris paid $232 million in dividends during Q2 alongside $229 million of share repurchases, reflecting a balanced capital-allocation approach supported by the company's substantial backlog and free cash flow generation.

About the Company

L3Harris Technologies is a major U.S. defense and aerospace technology company serving military, government, and commercial customers across space systems, tactical communications, electronic warfare, and missile systems. The company's competitive position is supported by long-term government relationships and high barriers to entry associated with defense programs, with revenue heavily influenced by U.S. and international defense budgets and multi-year contract awards that can generate substantial backlog.

Financial Performance Behind the Payout

L3Harris reported Q2 2026 revenue of $5.9 billion, up 8% year over year, with orders of $7.3 billion producing a 1.2x book-to-bill ratio and pushing backlog to a record $42 billion. Operating Margin was 11.1%, up 60 basis points, while segment Operating Margin reached 16.0%. Diluted EPS rose 28% to $3.13. Space & Mission Systems generated $2.966 billion of revenue, Communications & Spectrum Dominance generated $1.943 billion, and Missile Solutions generated $1.054 billion, up 14% on higher missile and munitions program volumes. Operating cash flow was $879 million and free cash flow was $771 million, both up 37%.

Record Backlog Provides Visibility, But Execution Remains the Test

The central analytical point for L3Harris is that a 1.2x book-to-bill ratio and record $42 billion backlog provide substantial revenue visibility, but converting that backlog into Earnings without margin erosion is the real test ahead. Missile Solutions revenue grew 14% with deliveries up more than 60% and operational efficiency improved 22%, evidence that the segment is scaling well operationally. The company also secured a $1 billion Investment from the U.S. Department of War into Missile Solutions, accelerating capacity expansion by 12 to 18 months, and delayed a planned Missile Solutions IPO to mid-2027 given market conditions. Investors should watch whether large fixed-price programs continue converting backlog into revenue at stable or improving margins, since component costs, labor, and schedule pressures can erode profitability on complex, multi-year defense contracts even when order flow remains strong.

Outlook

L3Harris' dividend is well supported by record backlog, strong free cash flow growth, and raised full-year guidance, with the company's substantial order visibility providing a favorable multi-year setup. Investors should watch backlog conversion, segment operating margins, execution on the Missile Solutions capacity expansion, and progress toward the eventual Missile Solutions IPO.