L3Harris Technologies (LHX) AI Stock Analysis

• Market Cap: $70.69B
• Dividend Yield: 1.61%
• Average Volume (3M): 1.31M
• Price to Earnings (P/E): 42.8
• Beta (1Y): 0.46
• Revenue Growth: 2.83%
• EPS Growth: 47.00%
• Country: US
• Employees: 47,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): 2.86
• Shares Outstanding: 186,776,260
• 10 Day Avg. Volume: 1,153,419
• 30 Day Avg. Volume: 1,309,917
• PEG Ratio: 4.26
• Price to Book (P/B): 2.91
• Price to Sales (P/S): 2.61
• P/FCF Ratio: 21.28
• Enterprise Value/Market Cap: 1.13
• Enterprise Value/Revenue: 3.67
• Enterprise Value/Gross Profit: 15.21
• Enterprise Value/Ebitda: 22.44
• 1Y Price Target: $396.62
• Price Target Upside: 4.79% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 14
• EPS Forecast (FY): 11.85
• Revenue Forecast (FY): $23.44B

• Rating: 75 Outperform
• Price Target: $410.00 ▲(8.33% Upside)
• Action: Reiterated Date: 03/03/26
• Date: Action: Reiterated 03/03/26

The score is driven primarily by strong and improving cash flow and solid profitability, reinforced by upbeat 2026 guidance and record backlog. Technicals add support with a clear uptrend and positive momentum. Offsetting these positives, the stock screens expensive on a high P/E with only a modest dividend yield, and balance-sheet interpretation is tempered by reported debt-data inconsistencies.

Positive Factors

Strong free cash flow generation

Sustained FCF (~$2.7B TTM) and strong FCF growth (~42%) provide durable internal funding for reinvestment, debt reduction, dividends, and the planned Missile Solutions scale-up/IPO. High cash conversion (FCF to net income ~0.83) improves financial flexibility across multi-year defense programs.

Record backlog and contract wins

A >$38B backlog and 1.3 book-to-bill give multi-year revenue visibility, underpinning organic growth and smoothing cyclicality. Material wins (satellite, AEW, SDA tracking-layer, tactical comms, special-mission jets) support sustained demand across space, ISR and comms portfolios.

Operational improvements and margin expansion

Delivering $1B of structural cost savings early supports persistent margin uplift and funds strategic investments. Combined with improved segment margins and 2026 margin guidance (low-16% range), these efficiencies enhance long-term profitability resilience across defense programs.

Negative Factors

Balance-sheet reporting inconsistency

Inconsistent debt reporting creates uncertainty about true leverage and liquidity position, complicating credit assessment and planning. Even with leverage improving (~0.61 D/E TTM), unclear debt metrics can mask refinancing needs or covenant risk during multiyear program funding and IPO execution.

Program execution and remediation risk (IMS/Maritime)

Material program performance issues in IMS/Maritime and acknowledged past delinquencies indicate execution risk that can recur. For defense prime contractors, such issues drive cost overruns, margin volatility, remediation expenses and potential contract penalties, undermining durable margin predictability.

Higher CapEx and supply-chain scaling risk for missile ramp

A meaningful CapEx increase to scale missile production and the need to expand supplier capacity create long-term execution and working-capital pressures. Industrial-base constraints and supplier ramp risks could delay deliveries, raise unit costs, and strain cash allocation during the Missile Solutions IPO and production scale-up.

L3Harris Technologies Business Overview & Revenue Model

Company Description

L3Harris Technologies, Inc., an aerospace and defense technology company, provides mission-critical solutions for government and commercial customers worldwide. The company's Integrated Mission Systems segment provides multi-mission intelligence, surveillance, and reconnaissance (ISR) systems; and communication systems, as well as fleet management support, sensor development, modification, and periodic depot maintenance services for ISR and airborne missions. It also manufactures and integrates mission systems for maritime platforms, such as signals intelligence and multi-intelligence platforms; unmanned surface and undersea autonomous solutions; and power and ship control systems and other electronic and electrical products and systems. In addition, this segment offers advanced electro-optical and infrared solutions. Its Space and Airborne Systems segment offers space payloads, sensors, and full-mission solutions; classified intelligence and cyber defense solutions; mission avionics; and electronic warfare systems. The company's Communication Systems segment provides tactical communications; broadband secured mobile networked communication equipment, including airborne, space, and surface data link terminals, ground stations, and transportable tactical satellite communication (SATCOM) systems for use in manned aircraft, unmanned aerial vehicles, and naval ships; and helmet and weapon mounted integrated night vision systems. This segment also offers radios, systems applications, and equipment for critical public safety and professional communications; and SATCOM terminals and battlefield management networks. Its Aviation Systems segment offers defense aviation products; commercial pilot training; and mission networks solutions for air traffic management. The company was formerly known as Harris Corporation and changed its name to L3Harris Technologies, Inc. in June 2019. L3Harris Technologies, Inc. was founded in 1895 and is headquartered in Melbourne, Florida.

How the Company Makes Money

L3Harris generates revenue primarily through contracts with government and defense agencies, as well as commercial clients. Its revenue model is largely based on the sale of products, services, and solutions that cater to the aerospace and defense sectors. Key revenue streams include the provision of communication systems, electronic warfare technologies, and advanced avionics. The company also earns income from maintenance, repair, and overhaul (MRO) services, which support its systems throughout their lifecycle. Significant partnerships with the U.S. government and international defense organizations further bolster its revenue, as they often lead to multi-year contracts and long-term engagements. Additionally, L3Harris invests in research and development to innovate and expand its product offerings, thereby enhancing its competitive position and revenue potential.

L3Harris Technologies Financial Statement Overview

Summary

Fundamentals are solid, led by strong cash generation (TTM operating cash flow ~$3.1B; free cash flow ~$2.7B with ~42% growth) and steady profitability (EBIT margin ~12.2%, EBITDA margin ~17.9%) alongside improving revenue and net margin versus the last annual period. The main constraint is balance-sheet uncertainty due to reported debt data inconsistencies, despite leverage ratios appearing manageable and improving.

Income Statement

TTM (Trailing-Twelve-Months) revenue increased to ~$21.9B with strong reported growth, and profitability improved versus the last annual period (net margin ~8.1% vs ~7.0%). Operating profitability is solid (EBIT margin ~12.2%; EBITDA margin ~17.9%), suggesting good cost control and program execution. Offsetting this, margins remain below the company’s stronger 2021 levels (net margin ~10.4%), indicating some longer-term compression and earnings variability across cycles.

Balance Sheet

Leverage looks manageable with debt-to-equity around ~0.61 in TTM (Trailing-Twelve-Months), an improvement from ~0.74 in 2023, and equity remains sizable (~$19.6B). Returns to shareholders are trending better (ROE ~9.1% TTM vs ~7.7% in the last annual period), indicating improving efficiency. However, the debt figures show inconsistencies across periods (TTM total debt listed as 0 while leverage ratios still imply meaningful debt), which adds uncertainty and keeps the balance sheet score from being higher.

Cash Flow

Cash generation is a clear strength: TTM (Trailing-Twelve-Months) operating cash flow is ~$3.1B and free cash flow is ~$2.7B, with very strong free cash flow growth (~42%). Free cash flow remains well-supported by earnings (free cash flow to net income ~0.83), signaling good cash conversion. The main weakness is that cash flow coverage metrics appear lower than ideal and somewhat inconsistent versus historical levels, suggesting periodic working-capital swings or timing effects.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	21.86B	21.32B	19.42B	17.06B	17.81B
Gross Profit	5.63B	4.75B	4.43B	4.93B	5.38B
EBITDA	3.75B	3.56B	2.93B	2.50B	3.52B
Net Income	1.61B	1.50B	1.23B	1.06B	1.85B
Balance Sheet
Total Assets	41.20B	42.00B	41.69B	33.52B	34.71B
Cash, Cash Equivalents and Short-Term Investments	1.07B	615.00M	560.00M	880.00M	941.00M
Total Debt	10.44B	12.98B	13.95B	7.79B	7.83B
Total Liabilities	21.56B	22.42B	22.86B	14.90B	15.39B
Stockholders Equity	19.64B	19.51B	18.77B	18.52B	19.21B
Cash Flow
Free Cash Flow	2.68B	2.15B	1.65B	1.91B	2.35B
Operating Cash Flow	3.11B	2.56B	2.10B	2.16B	2.69B
Investing Cash Flow	407.00M	-263.00M	-7.02B	-250.00M	1.39B
Financing Cash Flow	-3.08B	-2.22B	4.59B	-1.95B	-4.41B

L3Harris Technologies Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 378.48
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LHX, the sentiment is Positive. The current price of 378.48 is above the 20-day moving average (MA) of 350.32, above the 50-day MA of 334.32, and above the 200-day MA of 287.29, indicating a bullish trend. The MACD of 7.45 indicates Negative momentum. The RSI at 68.20 is Neutral, neither overbought nor oversold. The STOCH value of 91.25 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LHX.

L3Harris Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NOC	77 Outperform	$109.00B	24.91	26.17%	1.55%	-0.14%	72.35%
LHX	75 Outperform	$70.69B	42.76	8.20%	1.61%	2.83%	47.00%
RTX	75 Outperform	$284.78B	40.83	10.74%	1.44%	8.79%	39.63%
GD	74 Outperform	$98.63B	23.10	17.66%	1.73%	11.86%	17.39%
LMT	74 Outperform	$155.70B	30.63	76.87%	2.77%	2.88%	-35.15%
HII	67 Neutral	$17.81B	28.88	12.42%	1.53%	2.60%	-18.22%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

L3Harris Technologies Corporate Events

L3Harris Names New CFO, Refocuses Missile Solutions

L3Harris Technologies is a U.S.-based defense technology company that positions itself as a “Trusted Disruptor” in defense tech, providing end-to-end mission-critical solutions across space, air, land, sea and cyber domains for national security customers. The company focuses on advanced technologies and systems that support military and government operations, with an emphasis on innovation and integrated capabilities.

L3Harris Technologies announced on March 2, 2026, that Kenneth Sharp will become Senior Vice President and Chief Financial Officer effective March 16, 2026, succeeding Kenneth Bedingfield, who will concentrate on leading the Missile Solutions segment and scaling solid rocket motor production ahead of a planned initial public offering later in 2026. Sharp joins from Peraton and brings more than 30 years of financial leadership in defense and technology, and his offer package includes a $875,000 base salary, performance-based incentives, significant equity awards, and a $1 million sign-on bonus, signaling L3Harris’ commitment to strengthening its financial leadership as it positions Missile Solutions for growth and enhanced strategic focus.

The most recent analyst rating on (LHX) stock is a Buy with a $410.00 price target. To see the full list of analyst forecasts on L3Harris Technologies stock, see the LHX Stock Forecast page.

L3Harris CEO Adopts Rule 10b5-1 Stock Sale Plan

On February 4, 2026, L3Harris Technologies Chairman and CEO Christopher Kubasik adopted a Rule 10b5-1 trading plan during the company’s open trading window to systematically sell a portion of his holdings in the company. The plan provides for the potential sale of up to 129,501 vested stock options granted in 2019, which expire in 2029, and 60,000 shares of common stock between May 2026 and October 30, 2026, subject to minimum price thresholds, while his remaining ownership stake will remain well above the company’s stock ownership guidelines; the company noted that future similar plans by other insiders may not be separately disclosed beyond standard SEC filings.

The most recent analyst rating on (LHX) stock is a Buy with a $395.00 price target. To see the full list of analyst forecasts on L3Harris Technologies stock, see the LHX Stock Forecast page.

L3Harris Restructures Into Three Focused Defense Segments

Effective January 5, 2026, L3Harris Technologies reorganized its operating structure from four to three business segments—Space & Mission Systems, Communications & Spectrum Dominance, and Missile Solutions—in a move designed to better align its portfolio with evolving warfare requirements and the needs of defense customers. The reshuffle consolidates satellite, payload, maritime, special missions, resilient communications, electronic warfare, propulsion, hypersonics and advanced missile technologies into more focused units, with Sam Mehta, Jon Rambeau and Ken Bedingfield named segment leaders and Bedingfield retaining his role as CFO, while former Space & Airborne Systems president Edward Zoiss transitioned on January 2, 2026, to become Vice President of Engineering & Innovation; the company said it will detail the financial and reporting realignment under the new structure during its January 29 earnings call, signaling operational and strategic implications for how investors and other stakeholders assess its performance.

The most recent analyst rating on (LHX) stock is a Buy with a $367.00 price target. To see the full list of analyst forecasts on L3Harris Technologies stock, see the LHX Stock Forecast page.