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L3Harris reaffirms 2026 outlook after CEO replacement
Shares fell 4.6% on Aug. 17 even as the company reaffirmed 2026 revenue, margin, EPS, and free cash flow targets.
L3Harris Technologies reaffirmed its 2026 outlook after replacing Chairman and CEO Christopher Kubasik following a board investigation. The company said the findings related to conduct inconsistent with its Code of Conduct, and it added that the matter was not tied to financial reporting, internal controls, customer relationships, or operational performance, according to Yahoo Finance.
Despite the reassurances, L3Harris shares fell 4.6% on Aug. 17. The company reaffirmed its targets for consolidated revenue, organic growth, segment operating margin, GAAP earnings per share, and free cash flow, suggesting investors were focused on leadership stability and board oversight rather than an immediate earnings or operating risk.
The transition was designed to preserve continuity. Sam Mehta became president and CEO immediately, while lead independent director Lewis Hay III became independent chairman, and L3Harris promoted Lauren Barnes and Christopher Aebli to lead two operating segments Mehta previously managed.
L3Harris also pointed to its operating backdrop. It reported a record $42 billion backlog at the end of the second quarter after booking $7.3 billion of orders, with quarterly revenue up 8% to $5.9 billion and free cash flow rising 37% to $771 million, facts that Morningstar analyst Nicolas Owens said should not materially change the company’s strategy or prospects.