L3Harris Technologies (LHX)
NYSE:LHX
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L3Harris Technologies
(NYSE:LHX)
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Rating:66Neutral
Price Target:
$346.00
â–¼(-1.24% Downside)
Action:ReiteratedDate:05/01/26
The score is driven primarily by solid underlying financials (steady growth, strong cash generation, and a strong latest balance-sheet snapshot) and a positive earnings-call setup (raised EPS guidance and record backlog). These positives are meaningfully offset by weak technical momentum (below key moving averages with negative MACD and low RSI) and a demanding valuation (high P/E with only a modest dividend yield).
Positive Factors
Record backlog & book-to-bill
A backlog >$40B and book-to-bill >1 provide multi-year revenue visibility and reduce near-term topline risk. This large executable backlog supports stable production funding, program continuity, and predictable revenue conversion, improving long-term planning and capacity utilization.
Negative Factors
Multi-year margin compression
Net margin has materially compressed versus prior years, reflecting mix shifts and higher investment in lower-average-margin areas. Sustained margin erosion could cap operating leverage, reduce cash-flow upside, and pressure returns even if revenue growth continues.
Read all positive and negative factors
Positive Factors
Negative Factors
Record backlog & book-to-bill
A backlog >$40B and book-to-bill >1 provide multi-year revenue visibility and reduce near-term topline risk. This large executable backlog supports stable production funding, program continuity, and predictable revenue conversion, improving long-term planning and capacity utilization.
Read all positive factors
L3Harris Technologies (LHX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$56.11B
Dividend Yield1.61%
Average Volume (3M)1.27M
Price to Earnings (P/E)32.5
Beta (1Y)0.43
Revenue Growth5.79%
EPS Growth9.31%
CountryUS
Employees47,000
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)9.26
Shares Outstanding186,294,950
10 Day Avg. Volume963,027
30 Day Avg. Volume1,274,855
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 Cap1.02
Enterprise Value/Revenue2.55
Enterprise Value/Gross Profit10.44
Enterprise Value/Ebitda15.95
Forecast
1Y Price Target
$389.40Price Target Upside11.15% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering13
EPS Forecast (FY)11.61
Revenue Forecast (FY)$23.53B
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 makes money primarily by selling defense and aerospace products and by providing long-term services tied to those products, with most revenue derived from government-funded contracts.
Key revenue streams include:
1) Product sales under g...
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:Apr 30, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 23, 2026
Earnings Call Sentiment Positive
The call conveyed strong operational momentum and strategic progress: robust organic revenue growth (+15%), record backlog (> $40B) with meaningful pending MAC opportunities (~$25B), notable segment outperformance (Space & Mission Systems +24%, Missile Solutions +18%), margin expansion, and significant structural actions (S-1 filed, $1B investment, asset sale). The primary negatives were a Q1 free cash flow outflow (-$187M) driven by working capital timing, some unfavorable EAC adjustments, and conservative full-year guidance despite the strong start. Overall, positive execution and substantial long-term visibility outweigh the transitory cash and program-estimate headwinds.Positive Updates
Strong Revenue and Organic Growth
Q1 revenue of $5.7 billion, up ~15% organically (over $600 million increase); organic growth in 9 of the last 10 quarters; company reaffirmed full-year revenue guidance of $23.0B–$23.5B (≈7% organic growth at midpoint).
Negative Updates
Free Cash Flow Outflow in Q1
Free cash flow was an outflow of $187 million in Q1, driven by working capital timing; management notes Q1 cash flow patterns are typical and full-year free cash flow guidance of $3.0 billion is reaffirmed with cash generation weighted to back half of year.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Revenue and Organic Growth
Q1 revenue of $5.7 billion, up ~15% organically (over $600 million increase); organic growth in 9 of the last 10 quarters; company reaffirmed full-year revenue guidance of $23.0B–$23.5B (≈7% organic growth at midpoint).
Read all positive updates
Company Guidance
Management reaffirmed FY‑2026 guidance for revenue of $23.0–$23.5 billion (about 7% organic growth at the midpoint), maintained segment operating margin guidance of low‑16%, raised the GAAP EPS range by $0.10 to $11.40–$11.60, and reaffirmed free cash flow guidance of $3.0 billion (with cash generation weighted to the back half of the year); supplemental guidance showed non‑service income up $20 million to $290 million and total pension income of $310 million. They also reiterated segment‑level revenue and margin guidance, noted the guidance and 2028 framework include Missile Solutions as it exists today, and do not assume impacts from the planned Missile Solutions IPO, the $1.0 billion Department of War investment, or the planned majority sale of the space propulsion business.L3Harris Technologies Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
77
Positive
Cash Flow
72
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 22.48B | 21.86B | 21.32B | 19.42B | 17.06B | 17.81B |
| Gross Profit | 5.50B | 5.63B | 4.75B | 4.43B | 4.93B | 5.38B |
| EBITDA | 3.60B | 3.75B | 3.56B | 2.93B | 2.50B | 3.52B |
| Net Income | 1.73B | 1.61B | 1.50B | 1.23B | 1.06B | 1.85B |
Balance Sheet | ||||||
| Total Assets | 41.38B | 41.20B | 42.00B | 41.69B | 33.52B | 34.71B |
| Cash, Cash Equivalents and Short-Term Investments | 590.00M | 1.07B | 615.00M | 560.00M | 880.00M | 941.00M |
| Total Debt | 2.17B | 10.44B | 12.98B | 13.95B | 7.79B | 7.83B |
| Total Liabilities | 21.70B | 21.56B | 22.42B | 22.86B | 14.90B | 15.39B |
| Stockholders Equity | 19.68B | 19.64B | 19.51B | 18.77B | 18.52B | 19.21B |
Cash Flow | ||||||
| Free Cash Flow | 2.59B | 2.68B | 2.15B | 1.65B | 1.91B | 2.35B |
| Operating Cash Flow | 3.05B | 3.11B | 2.56B | 2.10B | 2.16B | 2.69B |
| Investing Cash Flow | -434.00M | 407.00M | -263.00M | -7.02B | -250.00M | 1.39B |
| Financing Cash Flow | -2.56B | -3.08B | -2.22B | 4.59B | -1.95B | -4.41B |
L3Harris Technologies Technical Analysis
Neutral
350.35
Price Trends
354.88
Negative
331.91
Positive
304.95
Positive
Market Momentum
-0.13
Positive
46.30
Neutral
42.99
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 350.35 is below the 20-day moving average (MA) of 352.43, below the 50-day MA of 354.88, and above the 200-day MA of 304.95, indicating a neutral trend. The MACD of -0.13 indicates Positive momentum. The RSI at 46.30 is Neutral, neither overbought nor oversold. The STOCH value of 42.99 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | $94.04B | 21.10 | 17.41% | 1.73% | 9.35% | 10.49% | |
68 Neutral | $238.07B | 31.57 | 11.23% | 1.44% | 10.56% | 56.63% | |
67 Neutral | $78.44B | 27.70 | 28.05% | 1.55% | 4.95% | 26.05% | |
66 Neutral | $56.11B | 32.48 | 8.87% | 1.61% | 5.79% | 9.31% | |
64 Neutral | $12.40B | 25.05 | 12.05% | 1.53% | 12.08% | 10.89% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | $118.14B | 23.12 | 74.53% | 2.77% | 4.59% | -10.76% |
* Industrials Sector Average
LHX
L3Harris Technologies
301.18
85.49
39.63%
GD
General Dynamics
347.76
81.10
30.41%
HII
Huntington Ingalls
314.72
87.33
38.41%
LMT
Lockheed Martin
512.41
51.48
11.17%
NOC
Northrop Grumman
552.27
77.28
16.27%
RTX
RTX
176.78
50.25
39.71%
L3Harris Technologies Corporate Events
Business Operations and StrategyPrivate Placements and Financing
L3Harris Secures $1 Billion Missile Solutions Investment
Positive
Apr 23, 2026
L3Harris Technologies has closed a $1 billion strategic investment from the U.S. Department of War in its Missile Solutions business, the company announced on April 23, 2026. The funding, structured as a convertible preferred security with attache...
Business Operations and StrategyExecutive/Board Changes
L3Harris Restructures Leadership, Consolidates Segment Oversight
Neutral
Mar 12, 2026
On March 12, 2026, L3Harris Technologies announced a leadership restructuring under which Sam Mehta was appointed president overseeing both the Space Mission Systems and Communications Spectrum Dominance segments, effective March 16, 2026. The c...
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...
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.