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L3Harris Technologies
(NYSE:LHX)
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Rating:68Neutral
Price Target:
$302.00
â–²(0.60% Upside)
Action:Downgraded
Date:08/02/26
The score is driven primarily by solid financial performance and a strong earnings-call read-through (robust organic growth, record backlog, and higher EPS guidance). These positives are offset by weak technical positioning with the stock below key moving averages, and a valuation that appears relatively rich on P/E despite a moderate dividend yield.
Positive Factors
Backlog and Revenue Visibility
A >$40B backlog (roughly 2x revenue coverage) and a 1.4 book-to-bill provide multi-year revenue visibility tied to government programs. This durable contract backlog reduces revenue cyclicality, supports production planning and working-capacity investments, and underpins organic growth.
Negative Factors
Margin Compression vs Prior Peak
Current net margin (~8.2%) remains meaningfully below prior peak (~10.4% in 2021), indicating lasting margin pressure. Investments, higher mix in lower-margin areas and program estimate volatility could constrain operating-leverage gains and limit long-term margin expansion.
Read all positive and negative factors
Positive Factors
Negative Factors
Backlog and Revenue Visibility
A >$40B backlog (roughly 2x revenue coverage) and a 1.4 book-to-bill provide multi-year revenue visibility tied to government programs. This durable contract backlog reduces revenue cyclicality, supports production planning and working-capacity investments, and underpins organic growth.
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
$54.14B
Dividend Yield1.7%
Average Volume (3M)1.43M
Price to Earnings (P/E)29.0
Beta (1Y)0.43
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. Volume1,226,483
30 Day Avg. Volume1,429,459
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$349.40Price Target Upside16.39% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)11.87
Revenue Forecast (FY)$23.60B
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 primarily makes money by selling defense and aerospace products and related services under government-funded contracts, with the U.S. Department of Defense and other U.S. government agencies as major customers, alongside international all...
L3Harris Technologies Earnings Call Summary
Earnings Call Date:Jul 29, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 22, 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 | 3.71B | 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
300.21
Price Trends
293.54
Negative
310.34
Negative
314.38
Negative
Market Momentum
-1.57
Negative
48.95
Neutral
76.92
Neutral
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 300.21 is above the 20-day moving average (MA) of 288.04, above the 50-day MA of 293.54, and below the 200-day MA of 314.38, indicating a neutral trend. The MACD of -1.57 indicates Negative momentum. The RSI at 48.95 is Neutral, neither overbought nor oversold. The STOCH value of 76.92 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
82 Outperform | $106.66B | 23.63 | 17.43% | 1.60% | 9.13% | 10.37% | |
76 Outperform | $140.03B | 22.26 | 86.24% | 2.34% | 7.20% | 52.79% | |
76 Outperform | $300.23B | 38.74 | 11.79% | 1.30% | 11.84% | 24.93% | |
70 Outperform | $82.02B | 18.22 | 26.58% | 1.73% | 5.90% | 16.00% | |
68 Neutral | $54.14B | 28.96 | 9.41% | 1.63% | 7.29% | 10.75% | |
65 Neutral | $12.88B | 19.39 | 12.89% | 1.91% | 13.97% | 25.77% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
LHX
L3Harris Technologies
288.46
21.73
8.15%
GD
General Dynamics
392.96
82.60
26.61%
HII
Huntington Ingalls
325.76
62.74
23.85%
LMT
Lockheed Martin
598.01
172.18
40.43%
NOC
Northrop Grumman
574.74
0.03
<0.01%
RTX
RTX
220.48
67.83
44.44%
L3Harris Technologies Corporate Events
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...
Executive/Board ChangesShareholder Meetings
L3Harris Shareholders Back Board, Pay and Auditor Slate
Positive
May 12, 2026
On May 11, 2026, L3Harris Technologies, Inc. held its 2026 Annual Meeting of Shareholders, where approximately 92.2% of eligible shares were represented, and all eleven director nominees were elected to one-year terms expiring at the 2027 meeting....
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.