L3Harris Technologies, Inc. stock research
FY2025 Q2
L3Harris Technologies (LHX) Gross Margin — Quarter Ended Jun 27, 2025
Revenue rose compared to both the prior quarter and the same quarter last year, but gross profit declined, resulting in a lower gross margin. The increase in cost of revenue outpaced the revenue growth, compressing margins.
Gross margin takeaway
Quarter ended Jun 27, 2025 · FY2025 Q2
Revenue rose compared to both the prior quarter and the same quarter last year, but gross profit declined, resulting in a lower gross margin. The increase in cost of revenue outpaced the revenue growth, compressing margins.
- The filing notes aggregate net unfavorable estimate-at-completion (EAC) adjustments in the current quarter, which reduced operating income and contributed to the margin decline.
- Gross margin weakened sequentially from the prior quarter and also declined compared to the same quarter a year earlier.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
24.6%
Gross profit
$1.3B
Revenue
$5.4B
Cost of revenue
$4.1B
Quarter-over-quarter change
-1.7 pts
Year-over-year change
-1.1 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 |
|---|---|---|---|---|
| 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% |
| Jun 27, 2025 | $5.4B | $1.3B | $4.1B | 24.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 28, 2025
-1.7 pts
Year-over-year change
Jun 28, 2024
-1.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The filing notes aggregate net unfavorable estimate-at-completion (EAC) adjustments in the current quarter, which reduced operating income and contributed to the margin decline.
Gross margin weakened sequentially from the prior quarter and also declined compared to the same quarter a year earlier.
Monitor the trend of backlog, as it represents future revenue and may influence margin performance.