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L3Harris Technologies
(NYSE:LHX)
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Rating:71Outperform
Price Target:
$274.00
▲(4.51% Upside)
Action:Upgraded
Date:10/22/26
The score is driven primarily by solid financial performance (steady growth, strong free cash flow, and improved TTM leverage) and a constructive earnings update (raised guidance with strong backlog and order momentum). Offsetting these positives are a weaker technical trend (below key longer-term moving averages with negative MACD) and only moderate valuation support at a 24.85 P/E, with some added governance/event-related uncertainty from the leadership reshuffle.
Positive Factors
Growth and Backlog Visibility
Raised guidance, broad-based quarterly growth and a backlog exceeding $42 billion indicate strong demand for L3Harris mission systems. The combination improves forward revenue visibility, supports multi-period program execution, and provides a durable base for continued expansion over the next several quarters.
Negative Factors
Divestiture Revenue Headwind
Selling the commercial space propulsion business reduces consolidated revenue and removes an established source of segment profit. Management expects an approximate $0.20 EPS headwind, so the remaining portfolio must replace both the lost contribution and its associated earnings capacity over time.
Read all positive and negative factors
Positive Factors
Negative Factors
Growth and Backlog Visibility
Raised guidance, broad-based quarterly growth and a backlog exceeding $42 billion indicate strong demand for L3Harris mission systems. The combination improves forward revenue visibility, supports multi-period program execution, and provides a durable base for continued expansion over the next several quarters.
Read all positive factors
L3Harris Technologies Key Performance Indicators (KPIs)
Any
Revenue by Segment
Breaks down sales figures for each business unit, showing which areas contribute most to the top line and where growth or declines are occurring.
Breaks down sales figures for each business unit, showing which areas contribute most to the top line and where growth or declines are occurring.
Data provided by:
The Fly
The FlyL3Harris Technologies (LHX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$46.32B
Dividend Yield2%
Average Volume (3M)1.69M
Price to Earnings (P/E)24.9
Beta (1Y)0.42
Revenue Growth7.29%
EPS Growth10.75%
CountryUS
Employees45,000
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)9.96
Shares Outstanding186,214,610
10 Day Avg. Volume1,773,393
30 Day Avg. Volume1,685,646
Financial Highlights & Ratios
PEG Ratio4.26
Price to Book (P/B)2.91
Price to Sales (P/S)2.61
P/FCF Ratio21.28
Enterprise Value/Market Cap1.45
Enterprise Value/Revenue2.92
Enterprise Value/Gross Profit11.47
Enterprise Value/Ebitda16.76
Forecast
1Y Price Target
$307.70Price Target Upside17.37% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering13
EPS Forecast (FY)11.94
Revenue Forecast (FY)$23.55B
L3Harris Technologies Business Overview & Revenue Model
Company Description
L3Harris Technologies, Inc. is a prominent technology firm specializing in aerospace and defense, delivering vital, high-stakes solutions to governmental and commercial clients across the globe. Its diverse operations are organized into several ke...
How the Company Makes Money
L3Harris makes money primarily by selling defense and aerospace products and delivering related services under contracts, largely to U.S. government agencies (notably the Department of Defense), allied foreign governments (often via government-to-...
L3Harris Technologies Earnings Call Summary
Earnings Call Date:Jul 29, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 29, 2026
Earnings Call Sentiment Positive
The call conveyed strong operational and financial momentum highlighted by double-digit growth in key businesses, meaningful cash generation, major program awards, and aggressive capacity investments—particularly in missiles—while also acknowledging near-term execution, divestiture impacts, and market/timing risks (IPO delay and budget uncertainty). Overall, the balance of outcomes was positive with clear indicators of accelerating demand and improving margins over time, tempered by investment-driven near-term costs and timing risks.Positive Updates
Strong Revenue Growth
Q2 revenue of $5.9 billion, up $455 million or 8% year-over-year, with broad-based growth across all three segments.
Negative Updates
Margin Pressure in Space & Mission Systems
Space & Mission Systems segment operating margin declined to 9.8%, down ~60 basis points YoY primarily because a prior-year $75 million product-line sale gain did not repeat (partially offset by improved program performance and a $23 million net gain on segment investments).
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Revenue Growth
Q2 revenue of $5.9 billion, up $455 million or 8% year-over-year, with broad-based growth across all three segments.
Read all positive updates
Company Guidance
L3Harris raised its 2026 revenue guidance to $23.2–$23.7 billion (organic growth 8–10%) and increased diluted EPS to $11.80–$12.00 (up $0.40, driven by +$0.15 revenue volume, +$0.15 lower interest expense and +$0.10 net investment gains, after an approximate $0.20 headwind from the commercial space propulsion divestiture), while reaffirming free cash flow of $3.0 billion and maintaining a company segment operating margin guide in the low‑16% range; management also lowered net interest expense by ~$30 million to ~ $560 million, raised Space & Mission Systems revenue by $200 million to $11.7 billion, moved Communications & Spectrum Dominance margin to mid‑25% (from ~25%), noted missile capacity commitments of ~$2 billion with $136 million of missile capacity investments this quarter, expects roughly $4.0 billion of cash on hand after the divestiture (before debt paydown or buybacks), and pointed to supportive market metrics (Q2 orders $7.3 billion, book‑to‑bill 1.2x, TTM 1.3x, backlog >$42 billion) underpinning the guidance.L3Harris Technologies Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
78
Positive
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 22.93B | 21.86B | 21.32B | 19.42B | 17.06B | 17.81B |
| Gross Profit | 5.84B | 5.63B | 5.52B | 5.11B | 4.93B | 5.38B |
| EBITDA | 4.00B | 3.75B | 3.56B | 2.93B | 2.49B | 3.52B |
| Net Income | 1.87B | 1.61B | 1.50B | 1.23B | 1.06B | 1.85B |
Balance Sheet | ||||||
| Total Assets | 42.94B | 41.20B | 42.00B | 41.69B | 33.52B | 34.71B |
| Cash, Cash Equivalents and Short-Term Investments | 1.52B | 1.07B | 615.00M | 560.00M | 880.00M | 941.00M |
| Total Debt | 11.00B | 11.25B | 12.98B | 13.95B | 7.79B | 7.83B |
| Total Liabilities | 22.09B | 21.56B | 22.42B | 22.86B | 14.90B | 15.39B |
| Stockholders Equity | 20.85B | 19.64B | 19.51B | 18.77B | 18.52B | 19.21B |
Cash Flow | ||||||
| Free Cash Flow | 2.81B | 2.68B | 2.15B | 1.65B | 1.91B | 2.35B |
| Operating Cash Flow | 3.29B | 3.11B | 2.56B | 2.10B | 2.16B | 2.69B |
| Investing Cash Flow | -470.00M | 407.00M | -263.00M | -7.02B | -250.00M | 1.39B |
| Financing Cash Flow | -1.78B | -3.08B | -2.22B | 4.59B | -1.95B | -4.41B |
L3Harris Technologies Technical Analysis
Neutral
262.17
Price Trends
251.31
Positive
271.91
Negative
304.60
Negative
Market Momentum
-0.42
Negative
61.69
Neutral
89.06
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LHX, the sentiment is Neutral. The current price of 262.17 is above the 20-day moving average (MA) of 239.99, above the 50-day MA of 251.31, and below the 200-day MA of 304.60, indicating a neutral trend. The MACD of -0.42 indicates Negative momentum. The RSI at 61.69 is Neutral, neither overbought nor oversold. The STOCH value of 89.06 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for LHX.
L3Harris Technologies Risk Analysis
L3Harris Technologies disclosed 28 risk factors in its most recent earnings report. L3Harris Technologies reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
L3Harris Technologies Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $93.19B | 20.73 | 17.43% | 1.82% | 9.13% | 10.37% | |
73 Outperform | $126.64B | 20.24 | 78.85% | 2.50% | 7.20% | 52.79% | |
73 Outperform | $75.86B | 16.98 | 25.70% | 1.77% | 6.51% | 14.02% | |
71 Outperform | $46.32B | 24.85 | 9.41% | 2.00% | 7.29% | 10.75% | |
70 Outperform | $260.58B | 30.75 | 12.77% | 1.47% | 11.63% | 26.50% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
49 Neutral | $151.97B | 72.01 | 104.83% | 2.40% | 24.78% | ― |
* Industrials Sector Average
LHX
L3Harris Technologies
254.23
-34.26
-11.88%
BA
Boeing
187.55
-30.22
-13.88%
GD
General Dynamics
350.79
15.36
4.58%
LMT
Lockheed Martin
589.91
114.15
23.99%
NOC
Northrop Grumman
552.35
-43.67
-7.33%
RTX
RTX
194.71
17.90
10.12%
L3Harris Technologies Corporate Events
Business Operations and StrategyExecutive/Board Changes
L3Harris Adds Independent Director to Support Growth
Positive
Oct 22, 2026
On October 21, 2026, L3Harris Technologies expanded its Board of Directors from eleven to twelve members and appointed Kimberly Fields, Chair, President and Chief Executive Officer of ATI, Inc., as an independent director whose initial term runs u...
Business Operations and StrategyExecutive/Board ChangesRegulatory Filings and Compliance
L3Harris Names New CEO Amid Leadership Reshuffle
Negative
Aug 17, 2026
On August 17, 2026, L3Harris Technologies appointed Sam Mehta as president and chief executive officer and to its board, effective immediately, while elevating lead independent director Lewis Hay III to independent chairman. The move follows the s...
Executive/Board Changes
L3Harris Grants One-Time Equity Awards to Executives
Positive
Jul 24, 2026
On July 23, 2026, L3Harris Technologies’ board Compensation Committee approved special one-time equity “Sustainment Awards” for CFO Kenneth Sharp and business presidents Kenneth Bedingfield and Samir Mehta to reinforce leadership...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.