L3Harris Technologies (LHX) AI Stock Analysis

L3Harris Technologies

(BMV:LHX)

Rating:―N/A

Action:N/A

Date:―

No summary available

Positive Factors

Record BacklogRecord backlog and strong bookings provide substantial multi-year revenue visibility across missiles, space, communications, electronic warfare, and sensing. This demand foundation supports production investment, improves capacity utilization, and strengthens the company’s position in mission-critical defense programs.

Negative Factors

Margin CompressionLower margins than prior peak levels show that revenue growth is not translating fully into historical profitability. Mix pressure and cost execution could limit earnings expansion, reduce cash available for investment, and make the long-term growth framework more dependent on operational improvement.

L3Harris Technologies (LHX) vs. SPDR S&P 500 ETF (SPY)

Market Cap: MXN 51.70B
Dividend Yield: 1.65%
Average Volume (3M): 402
Price to Earnings (P/E): 25.8
Beta (1Y): -0.40
Revenue Growth: -3.73%
EPS Growth: 3.00%
Country: Mexico
Employees: 45,000
Sector: Industrials
Sector Strength: 63
Industry: Aerospace & Defense

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 key s...

L3Harris Technologies Earnings Call Summary

Earnings Call Date:Oct 28, 2026(Q3-2026)|% Change Since:18.41%|Next Earnings Date:Jan 27, 2027

Earnings Call SentimentPositive

The call was strongly positive overall. The company reported robust organic growth, record backlog and bookings, substantial free cash flow, improved leverage, higher 2026 revenue and EPS guidance, and strong demand across missiles, space, communications, electronic warfare, and sensing. The principal challenges were supply-chain constraints, a lower Missile Solutions margin due to mix, reduced Communications & Spectrum Dominance guidance, a lower 2028 margin and free cash flow framework, and continued uncertainty around the timing and valuation of a potential Missile Solutions IPO. Highlights significantly outweighed lowlights.

Positive Updates

Strong Third-Quarter Organic Growth and Earnings

Organic revenue grew 9% despite one fewer week than the third quarter of 2025. Revenue totaled $6.1 billion, up $401 million or 7% year-over-year, while GAAP diluted EPS increased 33% to $3.28. Management noted that an extra week contributes about $200 million, implying double-digit organic growth excluding the extra week and the prior-year quarter.

Negative Updates

Supply Disruption Reduced Communications Growth

A small handful of constrained components, including printed circuit board manufacturing materials such as laminates two or three tiers down the supply chain, reduced third-quarter revenue growth in Communications & Spectrum Dominance. Management attributed the constraints largely to capacity pressure from AI and data-center demand, although it said much of the issue had been resolved by quarter-end and no material fourth-quarter impact was expected.

Company Guidance

For 2026, L3Harris increased revenue guidance by $300 million at the bottom end to $23.5 billion-$23.7 billion, increasing the midpoint by $150 million, with organic revenue growth of 9%-10%, segment operating margin guidance reaffirmed at low 16%, EPS guidance of $12.25-$12.35, interest expense expected to be $515 million, and free cash flow guidance reaffirmed at $3 billion; Space & Mission Systems' full-year revenue guidance increased $200 million to $11.9 billion, while Communications & Spectrum Dominance revenue was reduced by $100 million to $7.9 billion. The company expects approximately $1 billion of free cash flow and repayment of $800 million of debt in the fourth quarter, bringing projected year-end cash balance to $3.2 billion. For 2028, L3Harris reaffirmed organic growth expectation of 8%, expects segment margins of approximately 16%, and now expects free cash flow of $3 billion, compared to the previous expectation of $3.5 billion, representing over 100% cash conversion; it also expects more than $5 billion in excess cash to deploy.

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

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

MX:LHX against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GD	80Outperform	$100.81B	21.61	17.60%	1.68%	9.73%	10.46%
LMT	79Outperform	$147.14B	22.53	78.85%	2.17%	7.86%	57.22%
NOC	77Outperform	$79.21B	17.55	25.70%	1.71%	6.51%	14.02%
RTX	71Outperform	$269.62B	32.07	12.77%	1.41%	11.63%	26.50%
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
BA	50Neutral	$135.94B	17.96	127.13%	―	17.53%	―

* Industrials Sector Average

Performance Comparison

MX:LHX and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
MX:LHX	L3harris Technologies	5210.00	116.23	2.28%
BA	Boeing Company	171.55	-33.00	-16.13%
GD	General Dynamics	372.59	36.80	10.96%
LMT	Lockheed Martin	636.95	161.30	33.91%
NOC	Northrop Grumman Corp.	557.54	-8.64	-1.53%
RTX	Rtx Corporation	199.80	25.35	14.53%

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.

L3Harris Technologies AI Stock Analysis