L3Harris Technologies, Inc. stock research
FY2025 Q1
L3Harris Technologies (LHX) Gross Margin — Quarter Ended Mar 28, 2025
Revenue decreased slightly from the prior-year quarter while cost of revenue decreased more, resulting in a higher gross profit and an improved gross margin. Compared to the preceding full-year period, the current quarter's gross margin also improved.
Gross margin takeaway
Quarter ended Mar 28, 2025 · FY2025 Q1
Revenue decreased slightly from the prior-year quarter while cost of revenue decreased more, resulting in a higher gross profit and an improved gross margin. Compared to the preceding full-year period, the current quarter's gross margin also improved.
- The gross margin rate was higher than both the prior-year quarter and the preceding full-year period, with cost of revenue declining more than revenue on a relative basis.
- Compared to the prior-year quarter, revenue was slightly lower and cost of revenue was lower, while gross profit was higher, leading to a higher gross margin. Compared to the preceding full-year period, the current quarter's gross margin was also higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
26.3%
Gross profit
$1.4B
Revenue
$5.1B
Cost of revenue
$3.8B
Quarter-over-quarter change
-0.5 pts
Year-over-year change
+0.4 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Mar 29, 2024 | $5.2B | $1.3B | $3.9B | 25.9% |
| Jun 28, 2024 | $5.3B | $1.4B | $3.9B | 25.7% |
| Sep 27, 2024 | $5.3B | $1.4B | $3.9B | 26.8% |
| Mar 28, 2025 | $5.1B | $1.4B | $3.8B | 26.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 27, 2024
-0.5 pts
Year-over-year change
Mar 29, 2024
+0.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin rate was higher than both the prior-year quarter and the preceding full-year period, with cost of revenue declining more than revenue on a relative basis.
Compared to the prior-year quarter, revenue was slightly lower and cost of revenue was lower, while gross profit was higher, leading to a higher gross margin. Compared to the preceding full-year period, the current quarter's gross margin was also higher.
Monitor the trend of net EAC adjustments, which were negative in the current quarter compared to positive in the year-ago quarter, as they affect reported earnings.