L3Harris Technologies (LHX)
NYSE:LHX
Top Page
L3Harris Technologies
(NYSE:LHX)
Select Model
Select Model
Rating:75Outperform
Price Target:
$410.00
â–²(16.47% Upside)
Action:ReiteratedDate: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.
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.
Read all positive and negative factors
Positive Factors
Negative 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.
Read all positive factors
L3Harris Technologies (LHX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$65.75B
Dividend Yield1.61%
Average Volume (3M)1.38M
Price to Earnings (P/E)47.4
Beta (1Y)0.48
Revenue Growth2.83%
EPS Growth47.00%
CountryUS
Employees47,000
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)2.86
Shares Outstanding186,776,260
10 Day Avg. Volume1,487,761
30 Day Avg. Volume1,383,554
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 Cap1.14
Enterprise Value/Revenue3.42
Enterprise Value/Gross Profit14.18
Enterprise Value/Ebitda20.91
Forecast
1Y Price Target
$397.08Price Target Upside12.80% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering14
EPS Forecast (FY)11.59
Revenue Forecast (FY)$23.43B
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, ...
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...
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 Earnings Call Summary
Earnings Call Date:Jan 29, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 23, 2026
Earnings Call Sentiment Positive
The call emphasized strong financial performance (revenue growth, margin expansion, EPS and free cash flow growth), a record backlog and major contract wins, successful cost savings delivered early, and strategic moves (government investment and planned IPO) designed to scale missile production. Headwinds discussed were execution-related impacts to specific programs (notably IMS/Maritime), funding timing uncertainty from government appropriations/shutdowns, stepped-up CapEx to scale missile capacity, and supply-chain scaling risk. Overall, the positives — including robust guidance (7% organic growth midpoint), exceeded cost savings, strong cash generation, and strategic government partnership — materially outweigh the highlighted challenges.Positive Updates
Record Revenue and Organic Growth
Fiscal 2025 revenue of $21.9 billion, up 5% organically year-over-year; Q4 revenue $5.6 billion, up 6% organically.
Negative Updates
Program Performance and Margin Pressure in IMS
IMS Q4 operating margin declined to 11.1%, down 270 basis points, largely due to the CAS divestiture and unfavorable program performance in Maritime.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Revenue and Organic Growth
Fiscal 2025 revenue of $21.9 billion, up 5% organically year-over-year; Q4 revenue $5.6 billion, up 6% organically.
Read all positive updates
Company Guidance
Management guided 2026 revenue of $23.0–$23.5 billion (about 7% organic growth at the midpoint), a company segment operating margin in the low‑16% range, GAAP diluted EPS of $11.30–$11.50, free cash flow of $3.0 billion, and CapEx of roughly $600 million (~2.5% of sales); at the segment level they forecast SMS revenue of $11.5 billion (mid‑10% operating margin), CSD revenue of ≈$8.0 billion (≈25% margin), and MSL revenue of ≈$4.4 billion (mid‑12% margins, ~ $620 million EBITDA), with shares outstanding expected to be roughly flat vs. year‑end 2025, dividends unchanged, and guidance modeled to include a full year of the space propulsion & power business.L3Harris Technologies Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
66
Positive
Cash Flow
84
Very Positive
| 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
Neutral
352.02
Price Trends
353.09
Negative
321.61
Positive
296.39
Positive
Market Momentum
0.94
Positive
47.14
Neutral
21.88
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 352.02 is below the 20-day moving average (MA) of 361.85, below the 50-day MA of 353.09, and above the 200-day MA of 296.39, indicating a neutral trend. The MACD of 0.94 indicates Positive momentum. The RSI at 47.14 is Neutral, neither overbought nor oversold. The STOCH value of 21.88 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | $98.10B | 19.57 | 26.50% | 1.55% | -0.14% | 72.35% | |
75 Outperform | $65.75B | 47.45 | 8.28% | 1.61% | 2.83% | 47.00% | |
75 Outperform | $261.75B | 36.54 | 10.62% | 1.44% | 8.79% | 39.63% | |
74 Outperform | $95.31B | 21.58 | 17.57% | 1.73% | 11.86% | 17.39% | |
74 Outperform | $143.62B | 22.26 | 80.53% | 2.77% | 2.88% | -35.15% | |
67 Neutral | $15.80B | 22.09 | 12.28% | 1.53% | 2.60% | -18.22% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
LHX
L3Harris Technologies
352.02
142.90
68.34%
GD
General Dynamics
352.50
88.11
33.33%
HII
Huntington Ingalls
402.56
203.13
101.86%
LMT
Lockheed Martin
624.20
193.68
44.99%
NOC
Northrop Grumman
691.21
185.52
36.69%
RTX
RTX
195.00
63.79
48.61%
L3Harris Technologies Corporate Events
Business Operations and StrategyExecutive/Board Changes
L3Harris Names New CFO, Refocuses Missile Solutions
Positive
Mar 2, 2026
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 nationa...
Regulatory Filings and Compliance
L3Harris CEO Adopts Rule 10b5-1 Stock Sale Plan
Neutral
Feb 6, 2026
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 fo...
Business Operations and StrategyExecutive/Board ChangesFinancial Disclosures
L3Harris Restructures Into Three Focused Defense Segments
Positive
Jan 5, 2026
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 al...
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.