Upside case
Bull case
$815+169.7%
LHX would need investors to value it at roughly 70x earnings — about 44x more generous than today's 26x forward P/E. That requires meaningful multiple expansion on top of continued earnings growth.
Analysis OverviewBuyUpdated May 1, 2026
L3Harris Technologies, Inc. (LHX) Stock Analysis
Wall Street verdict, consensus price target, and analyst rating breakdown — everything needed to frame the risk/reward at today's price.
Analyst consensus
Buy
Covering
32
analysts
24 bullish · 2 bearish · 32 covering LHX
Strong Buy
0
Buy
24
Hold
6
Sell
2
Strong Sell
0
Consensus Target
$352
+16.6% vs today
Scenario Range
$191 – $815
Model bear to bull value window
Coverage
32
Published analyst ratings
Valuation Context
26.1x
Forward P/E · Market cap $56.4B
LHX price targets
Three scenarios for where LHX stock could go
Current
~$302
Confidence
63 / 100
Updated
May 1, 2026
Where we are now
Current · $302
Bear
$191
Base
$389
Bull
$815
Market caseClosest to today
Base case
$389+28.8%
At 34x on FY1 earnings, the base case reflects a reasonable but not stretched valuation. It prices in continued growth without assuming an exceptional setup.
Stress case
Bear case
$191-36.8%
If investor confidence fades or macro conditions deteriorate, a 10x multiple contraction could push LHX down roughly 37% from where it trades now.
Not financial advice. Model confidence reflects internal scenario assumptions, not a guarantee of returns. Past performance does not predict future results.
L3Harris Technologies, Inc.
LHX · NYSEIndustrialsAerospace & DefenseJanuary year-end
L3Harris Technologies is a defense technology company that provides mission-critical solutions for government and commercial customers worldwide. It generates revenue through three main segments: Integrated Mission Systems (~40% of sales), Space and Airborne Systems (~35%), and Communication Systems (~25%), offering everything from intelligence systems to tactical communications. The company's competitive advantage lies in its deep integration of L3 and Harris technologies—creating comprehensive, hard-to-replicate defense solutions with strong government relationships and security clearances.
Market Cap
$56.4B
Revenue TTM
$22.5B
Net Income TTM
$1.7B
Net Margin
7.7%
LHX Revenue and Earnings Performance
Quarterly beat-or-miss track record against analyst estimates, plus forward revenue and EPS outlook for the next two fiscal years.
EPS Beat Rate
100%Exceptional
12 quarters tracked
Revenue Beat Rate
75%Exceptional
vs consensus estimates
Avg EPS Surprise
+4.2%
above Street consensus
Beat / Miss Record
BeatMissLeft = EPS · Right = Revenue
Q3 2025
Q4 2025
Q1 2026
Q2 2026
Last 4 Quarters
EPS beats: 4 of 4Q3 2025
EPS
$2.78/$2.48
Revenue
$5.4B/$5.3B
Q4 2025
EPS
$2.70/$2.58
Revenue
$5.7B/$5.5B
Q1 2026
EPS
$2.86/$2.76
Revenue
$5.6B/$5.8B
Q2 2026
EPS
$2.72/$2.53
Revenue
$5.7B/$5.4B
| Quarter | EPS (Actual / Est) | EPS Surprise | Revenue (Actual / Est) | Rev Surprise |
|---|---|---|---|---|
| Q3 2025 | $2.78/$2.48 | +12.1% | $5.4B/$5.3B | +2.1% |
| Q4 2025 | $2.70/$2.58 | +4.7% | $5.7B/$5.5B | +2.4% |
| Q1 2026 | $2.86/$2.76 | +3.6% | $5.6B/$5.8B | -2.1% |
| Q2 2026 | $2.72/$2.53 | +7.5% | $5.7B/$5.4B | +6.0% |
FY1–FY2 Estimates
Revenue Outlook
FY1
$23.5B
+4.6% YoY
FY2
$24.8B
+5.6% YoY
EPS Outlook
FY1
$10.30
+12.0% YoY
FY2
$10.99
+6.7% YoY
Trailing FCF (TTM)$2.6B
FCF Margin: 11.5%
Next Earnings
—
Expected EPS
—
Expected Revenue
—
LHX beat EPS estimates in 4 of 4 tracked quarters. A perfect track record raises the bar for the upcoming report.
LHX Revenue Breakdown by Segment
Product and geographic revenue mix from the latest annual disclosure, with year-over-year growth by segment.
Latest disclosure
FY 2025
Total disclosed revenue $22.1B
Product Mix
Latest annual revenue by segment or product family
Space and Airborne Systems
31.4%
+1.1% YoY
Tap, hover, or focus a slice to inspect segment detail.
Geographic Mix
Latest annual revenue by reported region
Communication Systems Segment
41.6%
YoY unavailable
Tap, hover, or focus a slice to inspect segment detail.
Space and Airborne Systems is the largest disclosed segment at 31.4% of FY 2025 revenue, up 1.1% YoY.
Communication Systems Segment is the largest reported region at 41.6%, with no year-over-year comparison yet.
LHX Valuation Snapshot
Current multiples compared to the S&P 500, the company's sector, and its own five-year average.
Relative Value Signal
Overvalued
Fair value est. $229 — implies -27.0% from today's price.
Premium to Fair Value
27.0%
above fair value
Deep DiscountFair ValueVery Expensive
vs S&P 500 Trailing P/E
LHX
35.4x
vs
S&P 500
25.2x
+40% premium
vs Industrials Trailing P/E
LHX
35.4x
vs
Industrials
25.9x
+37% premium
vs LHX 5Y Avg P/E
Today
35.4x
vs
5Y Average
31.3x
+13% premium
Forward PE
26.1x
S&P 500
19.1x
+37%
Industrials
20.8x
+25%
5Y Avg
—
—
Trailing PE
35.4x
S&P 500
25.2x
+40%
Industrials
25.9x
+37%
5Y Avg
31.3x
+13%
PEG Ratio
3.38x
S&P 500
1.75x
+93%
Industrials
1.59x
+113%
5Y Avg
—
—
EV/EBITDA
19.3x
S&P 500
15.3x
+26%
Industrials
13.9x
+39%
5Y Avg
18.1x
+6%
Price/FCF
21.0x
S&P 500
21.3x
-1%
Industrials
20.6x
+2%
5Y Avg
20.8x
+1%
Price/Sales
2.6x
S&P 500
3.1x
-18%
Industrials
1.6x
+62%
5Y Avg
2.3x
+14%
Dividend Yield
1.59%
S&P 500
1.88%
-16%
Industrials
1.24%
+28%
5Y Avg
2.00%
-21%
| Metric | LHX | S&P 500 | Industrials | 5Y Avg LHX |
|---|---|---|---|---|
| Forward PE | 26.1x | 19.1x+37% | 20.8x+25% | — |
| Trailing PE | 35.4x | 25.2x+40% | 25.9x+37% | 31.3x+13% |
| PEG Ratio | 3.38x | 1.75x+93% | 1.59x+113% | — |
| EV/EBITDA | 19.3x | 15.3x+26% | 13.9x+39% | 18.1x |
| Price/FCF | 21.0x | 21.3x | 20.6x | 20.8x |
| Price/Sales | 2.6x | 3.1x-18% | 1.6x+62% | 2.3x+14% |
| Dividend Yield | 1.59% | 1.88% | 1.24% | 2.00% |
LHX trades above S&P 500 benchmarks on 4 of 6 measured multiples — is elevated on some multiples, but competitive on others — a mixed valuation picture.
Forward P/E and PEG reflect analyst consensus estimates. Historical averages use trailing ratios where forward data is unavailable.S&P 500 and sector benchmarks both use trailing median P/E — similar readings indicate the broader index and sector are priced alike.
Open valuation toolLHX Financial Health
Verdict
Strong
LHX generates $2.6B in free cash flow at a 11.5% margin — returns 3.6% of market cap to shareholders annually.
Cash Engine
Revenue, margins, and cash generation
Revenue (TTM)
Trailing-twelve-month sales base
$22.5B
Revenue Growth
TTM vs prior year
+5.8%
Gross Margin
Gross profit as a share of revenue
24.5%
Operating Margin
Operating income divided by revenue
10.0%
Net Margin
Net income divided by revenue
7.7%
EPS (TTM)
Diluted earnings per share, trailing twelve months
$9.20
Free Cash Flow (TTM)
Cash generation after capex
$2.6B
FCF Margin
FCF as share of revenue — the primary cash quality signal
11.5%
Capital Quality
ROIC, leverage, and debt serviceability
ROIC
Return on invested capital — primary competitive quality signal
5.4%
ROA
Return on assets, trailing twelve months
4.2%
Cash & Equivalents
Liquid assets on the balance sheet
$1.1B
Net Debt
Total debt minus cash
$9.4B
Debt Serviceability
Net debt as a multiple of annual free cash flow
3.6× FCF
~3.6 years to full repayment at current FCF run-rate
ROE
Return on equity, trailing twelve months
8.9%
Shareholder Returns
How capital is returned to owners
Total shareholder yield
3.6%
Dividend
1.6%
Buyback
2.0%
Share Repurchases
Trailing buyback outflow — dollar magnitude of capital returned
$1.2B
Dividend / Share
Annualized trailing dividend per share
$4.79
Payout Ratio
Share of earnings distributed as dividends
56.2%
Shares Outstanding
Declining as buybacks retire shares
187M
All figures from the trailing twelve months. ROIC uses invested capital (equity + net debt).
Open full ratios pageLHX Stock Risk Factors
Key factors that could pressure the stock price, compress the multiple, or weigh on future results.
AI analysis · updated April 11, 2026
High Risk
Leverage & Debt Maturity
LHX carries approximately $11.22 billion of debt, with a portion due within the next 12 months. The high leverage requires careful cash‑flow management; failure to service debt could trigger financial distress and impact credit terms.
High Risk
Gov Contract Revenue Concentration
Roughly 75% of LHX revenue comes from U.S. Government contracts. Shifts in defense spending or policy changes could materially reduce top line and earnings.
High Risk
Fixed-Price Contract Exposure
LHX’s mix includes many fixed‑price, cost‑plus, and time‑and‑material contracts. Fixed‑price deals, especially for development, expose the company to losses if cost overruns or sustained inflation occur.
High Risk
Intangible Asset Impairment
A significant portion of LHX’s assets are goodwill and other intangibles from acquisitions. Adverse market conditions could trigger impairment charges, eroding earnings and book value.
Medium
Supply Chain Vulnerability
Geopolitical events and other factors can disrupt LHX’s supply chain, potentially delaying production and increasing costs. Such disruptions could affect delivery schedules and margins.
Lower
Regulatory & Compliance Risk
As a defense contractor, LHX faces strict ITAR, EAR, and FCPA regulations, and is subject to FTC scrutiny over component sales to competitors. Non‑compliance or enforcement actions could lead to fines, contract cancellations, or reputational damage.
These are risk mechanisms, not predictions. The key question is which would force a cut to earnings estimates or a lower multiple than the market currently prices in.
Why LHX Stock Could Outperform
Structural drivers behind the upside case and why the stock could outperform over the next 12 months.
AI analysis · updated April 11, 2026
Robust Financial Growth & Guidance
L3Harris has posted strong financial performance, with its Aerojet segment reporting significant organic sales growth and robust operating margins. The company has raised its 2025 revenue guidance for key sectors and increased free‑cash‑flow guidance for FY25, underscoring solid financial health.
Government Investment & Contract Visibility
The firm is well‑positioned to benefit from direct U.S. government investment, highlighted by recent Pentagon actions such as a preferred‑stock investment. This guarantees demand and provides long‑term revenue visibility, with a notable increase in backlog and record order fulfillment.
Operational Efficiency & Capital Returns
L3Harris shows improving return on assets, return on equity, and return on invested capital relative to its 3‑year averages. Its free‑cash‑flow growth remains strong, indicating efficient capital deployment.
Software & AI Transition for Margin Expansion
The company’s shift into software and AI is expected to create greater profit margins and strategic advantages, positioning it for higher operating leverage in the defense sector.
Consistent Dividend Growth
L3Harris has increased its dividend for 24 consecutive years, providing a steady income stream for investors and reinforcing its commitment to shareholder returns.
A real bull case compounds — each driver matters most when it strengthens margins, supports capital returns, and keeps the company above the market's minimum growth bar simultaneously.
LHX Stock Price Performance
52-week range context and price returns across multiple time horizons. Dividend contribution is shown separately in the Capital Return section.
Current Price
$302.20
52W Range Position
53%
52-Week Range
Current price plotted between the 52-week low and high.
52-Week Low
$214.10
+41.1% from the low
52-Week High
$379.23
-20.3% from the high
1 Month
-15.76%
3 Month
-13.57%
YTD
-0.7%
1 Year
+39.8%
3Y CAGR
+17.3%
5Y CAGR
+6.8%
10Y CAGR
+15.0%
Range context matters because valuation compression and earnings misses rarely hit from the same starting point. A stock already far below its high can still fall, but it is no longer carrying the same embedded optimism as one pressing a fresh peak.
LHX vs Peers
Valuation, growth, and margin comparison against the closest publicly traded peers for this company.
Peer Set
Accurate peer set
Forward PE
26.1x
vs 21.1x median
+24% above peer median
Revenue Growth
+4.6%
vs +6.1% median
-26% below peer median
Net Margin
7.7%
vs 8.0% median
-4% below peer median
| Company | Mkt Cap | Fwd PE | Rev Grw | Margin | Rating | Upside |
|---|---|---|---|---|---|---|
LHX LHX L3Harris Technologies, Inc. | $56.4B | 26.1x | +4.6% | 7.7% | Buy | +16.6% |
RTX RTX RTX Corporation | $238.0B | 25.5x | +7.0% | 8.0% | Buy | +27.2% |
NOC NOC Northrop Grumman Corporation | $79.4B | 20.0x | +3.4% | 10.8% | Buy | +30.9% |
LMT LMT Lockheed Martin Corporation | $118.5B | 17.2x | +5.1% | 6.4% | Buy | +23.5% |
GD GD General Dynamics Corporation | $93.9B | 21.1x | +6.1% | 8.1% | Buy | +17.7% |
BA BA The Boeing Company | $181.3B | 4955.4x | +14.0% | 2.5% | Buy | +14.7% |
This peer comparison reflects companies with similar business models, product lines, or market positioning, supplemented by industry grouping when direct matches are limited.
LHX Dividend and Capital Return
LHX returns 3.6% annually — 1.58% through dividends and 2.0% through buybacks.
Dividend SustainableFCF Well Covered
Total Shareholder Yield
3.6%
Dividend + buyback return per year
Buyback Yield
2.0%
Dividend Yield
1.58%
Payout Ratio
56.2%
How LHX Splits Its Return
Div 1.58%
Buyback 2.0%
Dividend 1.58%Buybacks 2.0%
Dividend Profile
Yield, cadence, and growth quality
Dividend / Share
Trailing annualized cash dividend
$4.79
Growth Streak
Consecutive years of dividend increases
24Y
3Y Div CAGR
2.3%
5Y Div CAGR
7.1%
Ex-Dividend Date
—
Payment Cadence
Semi-Annual
5 payments over the last 12 months
Buyback Engine
How much per-share support comes from repurchases
Repurchases (TTM)
Cash used for buybacks in the latest trailing period
$1.2B
Estimated Shares Retired
4M
Approx. Share Reduction
2.0%
Shares Outstanding
Current diluted share count from the screening snapshot
187M
At 2.0%/year, buybacks mechanically lift EPS even with flat earnings — each remaining share represents a slightly larger piece of the company.
| Year | Div / Share | YoY Grw | BB Yield | Total Yield |
|---|---|---|---|---|
| 2026 | $2.50 | — | — | — |
| 2025 | $4.80 | +3.4% | 2.0% | 3.6% |
| 2024 | $4.64 | +1.8% | 1.4% | 3.6% |
| 2023 | $4.56 | +1.8% | 1.3% | 3.5% |
| 2022 | $4.48 | +9.8% | 2.7% | 4.8% |
FAQ
7 questionsLHX Investor Questions
Common questions answered from live analyst data and company financials.
01Is L3Harris Technologies, Inc. (LHX) stock a buy or sell in 2026?
L3Harris Technologies, Inc. (LHX) is rated Buy by Wall Street analysts as of 2026. Of 32 analysts covering the stock, 24 rate it Buy or Strong Buy, 6 rate it Hold, and 2 rate it Sell or Strong Sell. The consensus 12-month price target is $352, implying +16.6% from the current price of $302. The bear case scenario is $191 and the bull case is $815.
02What is the LHX stock price target for 2026?
The Wall Street consensus price target for LHX is $352 based on 32 analyst estimates. The high-end target is $367 (+21.4% from today), and the low-end target is $323 (+6.9%). The base case model target is $389.
03Is L3Harris Technologies, Inc. (LHX) stock overvalued in 2026?
LHX trades at 26.1x times forward earnings. The stock trades at a notable premium to the broad market, which is typical for businesses with strong free cash flow and above-average growth expectations. Based on current multiples versus the peer group, the relative model signals overvalued. Whether the stock is over or undervalued ultimately depends on whether consensus earnings estimates are achievable.
04What are the main risks for L3Harris Technologies, Inc. (LHX) stock in 2026?
The primary risks for LHX in 2026 are: (1) Leverage & Debt Maturity — LHX carries approximately $11. (2) Gov Contract Revenue Concentration — Roughly 75% of LHX revenue comes from U. (3) Fixed-Price Contract Exposure — LHX’s mix includes many fixed‑price, cost‑plus, and time‑and‑material contracts. Each factor has the potential to pressure earnings or compress the stock's valuation multiple.
05What is L3Harris Technologies, Inc.'s revenue and earnings forecast?
Analyst consensus estimates LHX will report consensus revenue of $23.5B (+4.6% year-over-year) and EPS of $10.30 (+12.0% year-over-year) for the upcoming fiscal year. The following year, analysts project $24.8B in revenue.
06When does L3Harris Technologies, Inc. (LHX) report its next earnings?
A confirmed upcoming earnings date for LHX is not yet available. Check the Earnings section above for the most recent quarterly report dates and forward estimates.
07How much free cash flow does L3Harris Technologies, Inc. generate?
L3Harris Technologies, Inc. (LHX) generated $2.6B in free cash flow over the trailing twelve months — a free cash flow margin of 11.5%. LHX returns capital to shareholders through dividends (1.6% yield) and share repurchases ($1.2B TTM).