L3Harris Technologies has increased its 2026 profit forecast after posting stronger-than-expected first-quarter revenue, driven by surging Pentagon demand for missiles, military intelligence platforms, and advanced weapons systems amid escalating geopolitical tensions.

The defense contractor reported quarterly revenue of $5.74 billion, surpassing analyst expectations, while earnings per share rose sharply to $2.72 from $2.04 a year earlier. Growth was fueled by major increases across its missile solutions and space and mission systems divisions, reflecting heightened U.S. defense replenishment efforts following multiple international conflicts.

L3Harris’ missile solutions segment, which produces propulsion systems and hypersonic weapons, recorded an 18% revenue increase. The company is also moving forward with plans to spin off this unit through an IPO after securing a $1 billion Department of Defense investment aimed at expanding solid rocket motor production. These motors are essential components for missile platforms including Tomahawk cruise missiles and Patriot air defense systems.

Its space and mission systems division posted even stronger growth, with sales rising 24% due to increased production of intelligence, surveillance, reconnaissance, and missile defense technologies tied to classified and allied military programs.

The company now expects full-year earnings between $11.40 and $11.60 per share, reflecting confidence that sustained military modernization and munitions replenishment will continue supporting demand. L3Harris’ results highlight how global security instability is reshaping defense economics, with contractors benefiting from rising budgets focused on missile stockpiles, advanced aerospace systems, and strategic deterrence.