L3Harris Technologies Inc (NYSE:LHX) stock fell 1.66% (As on July 25, 11:57:48 AM UTC-4, Source: Google Finance) after the company raised its adjusted earnings and revenue guidance for the full-year 2025, based on strong performance and improved expectations. Defense is entering a generational investment cycle, as U.S. and allied budgets grow rapidly. Demand is accelerating, and the company’s portfolio is aligned with key growth areas – Golden Dome, space, missiles, shipbuilding, autonomy, and resilient communications. With the flexibility of the business-model agnostic approach – able to win as a prime, sub, or merchant supplier – a focused national security portfolio, and competitive momentum from LHX NeXt.

Moreover, adjusted segment operating margin in second quarter expanded 30 bps to 15.9% primarily driven by monetization of legacy end-of-life assets, aligned with our transformation and value creation priorities, and LHX NeXt driven cost saving across all segments, partially offset by impacts from higher margin Commercial Aviation Solutions (CAS) divestiture. Cash From Operations in second quarter decreased 15% to $640 million and adjusted Free Cash Flow in second quarter decreased 20% to $574 million.

Further, Communication Systems second quarter revenue increased 2% primarily driven by increased international demand for resilient communication equipment and related waveforms. Integrated Mission Systems second quarter revenue decreased 3%, reflecting the divestiture of the CAS business in the first quarter of 2025. Space and Airborne Systems second quarter revenue increased 5%, including the impact from the divestiture of our antenna business in the second quarter of 2024. Aerojet Rocketdyne second quarter revenue increased 10%.

LHX in the second quarter of FY25 has reported the adjusted earnings per share of $2.78, beating the analysts’ estimates for the adjusted earnings per share of $2.48. The company had reported the adjusted revenue growth of 2 percent to $5.4 billion in the second quarter of FY25, beating the analysts’ estimates for revenue of $5.32 billion. It has grown 6% organically, reflecting growth across all segments, primarily from higher volumes, new program ramps and increased international demand.

For fiscal 2025, the company now projects adjusted earnings in the range of $10.40 to $10.60 per share on total revenue of about $21.75 billion. Previously, the company expected adjusted earnings in a range of $10.30 to $10.50 per share on total revenue between $21.4 billion and $21.7 billion. On average, analysts polled expect the company to report earnings of $10.50 per share on revenues of $21.59 billion for the year.