L3Harris Technologies, Inc. stock research
FY2025 Q3
L3Harris Technologies (LHX) Gross Margin — Quarter Ended Oct 3, 2025
Revenue, gross profit, and cost of revenue all increased compared to both the prior quarter and the same quarter last year. Gross margin improved sequentially but was slightly lower than the year-ago period.
Gross margin takeaway
Quarter ended Oct 3, 2025 · FY2025 Q3
Revenue, gross profit, and cost of revenue all increased compared to both the prior quarter and the same quarter last year. Gross margin improved sequentially but was slightly lower than the year-ago period.
- The sequential improvement in gross margin is the most notable change, supported by a higher gross profit relative to cost of revenue. The filing highlights aggregate net EAC adjustments that positively affected revenue and operating income, which are a key factor in margin performance.
- Compared to the immediately preceding quarter, gross margin improved. Compared to the same quarter one year earlier, gross margin weakened slightly.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
26.4%
Gross profit
$1.5B
Revenue
$5.7B
Cost of revenue
$4.2B
Quarter-over-quarter change
+1.8 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 |
|---|---|---|---|---|
| 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% |
| Oct 3, 2025 | $5.7B | $1.5B | $4.2B | 26.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 27, 2025
+1.8 pts
Year-over-year change
Sep 27, 2024
-0.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The sequential improvement in gross margin is the most notable change, supported by a higher gross profit relative to cost of revenue. The filing highlights aggregate net EAC adjustments that positively affected revenue and operating income, which are a key factor in margin performance.
Compared to the immediately preceding quarter, gross margin improved. Compared to the same quarter one year earlier, gross margin weakened slightly.
Monitor the trend in contractual backlog and the impact of EAC adjustments on future gross margins.