Upside case
Bull case
$548+85.9%
LHX would need investors to value it at roughly 47x earnings — about 22x more generous than today's 25x forward P/E. That requires meaningful multiple expansion on top of continued earnings growth.
Analysis OverviewBuyUpdated Jun 18, 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
$347
+17.8% vs today
Scenario Range
$262 – $548
Model bear to bull value window
Coverage
32
Published analyst ratings
Valuation Context
25.4x
Forward P/E · Market cap $55.1B
LHX price targets
Three scenarios for where LHX stock could go
Current
~$295
Confidence
54 / 100
Updated
Jun 18, 2026
Where we are now
Current · $295
Bear
$262
Base
$416
Bull
$548
Market caseClosest to today
Base case
$416+41.1%
At 36x 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
$262-11.1%
If investor confidence fades or macro conditions deteriorate, a 3x multiple contraction could push LHX down roughly 11% 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
$55.1B
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
$23.6B
+5.2% YoY
FY2
$25.3B
+7.1% YoY
EPS Outlook
FY1
$10.38
+12.8% YoY
FY2
$11.53
+11.1% YoY
Trailing FCF (TTM)$2.6B
FCF Margin: 11.5%
Next Earnings
July 23, 2026
Expected EPS
$2.79
Expected Revenue
$5.8B
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
Slightly expensive versus peers
Fair value est. $243 — implies -17.4% from today's price.
Premium to Fair Value
17.4%
above fair value
Deep DiscountFair ValueVery Expensive
vs S&P 500 Trailing P/E
LHX
34.6x
vs
S&P 500
24.4x
+41% premium
vs Industrials Trailing P/E
LHX
34.6x
vs
Industrials
25.6x
+35% premium
vs LHX 5Y Avg P/E
Today
34.6x
vs
5Y Average
31.3x
+10% premium
Forward PE
25.4x
S&P 500
18.8x
+35%
Industrials
21.2x
+20%
5Y Avg
—
—
Trailing PE
34.6x
S&P 500
24.4x
+41%
Industrials
25.6x
+35%
5Y Avg
31.3x
+10%
PEG Ratio
3.29x
S&P 500
1.66x
+99%
Industrials
1.65x
+100%
5Y Avg
—
—
EV/EBITDA
18.8x
S&P 500
15.2x
+24%
Industrials
13.9x
+36%
5Y Avg
18.1x
+4%
Price/FCF
20.5x
S&P 500
20.7x
-1%
Industrials
20.0x
+2%
5Y Avg
20.8x
-1%
Price/Sales
2.5x
S&P 500
3.1x
-19%
Industrials
1.6x
+61%
5Y Avg
2.3x
+11%
Dividend Yield
1.63%
S&P 500
1.91%
-15%
Industrials
1.21%
+34%
5Y Avg
2.00%
-19%
| Metric | LHX | S&P 500 | Industrials | 5Y Avg LHX |
|---|---|---|---|---|
| Forward PE | 25.4x | 18.8x+35% | 21.2x+20% | — |
| Trailing PE | 34.6x | 24.4x+41% | 25.6x+35% | 31.3x+10% |
| PEG Ratio | 3.29x | 1.66x+99% | 1.65x+100% | — |
| EV/EBITDA | 18.8x | 15.2x+24% | 13.9x+36% | 18.1x |
| Price/FCF | 20.5x | 20.7x | 20.0x | 20.8x |
| Price/Sales | 2.5x | 3.1x-19% | 1.6x+61% | 2.3x+11% |
| Dividend Yield | 1.63% | 1.91% | 1.21% | 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 3.7% 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
3.7%
Dividend
1.6%
Buyback
2.1%
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 June 17, 2026
High Risk
Financial Guidance
Modest Full-Year 2026 guidance despite strong Q1 performance has contributed to a 15% stock decline since February 2026.
High Risk
Finance & Corporate Risks
L3Harris Technologies disclosed 28 risk factors in its most recent earnings report, with the majority concentrated in the Finance & Corporate category.
Medium
Privacy Controversies
Involvement in surveillance technology like the 'Stingray' device has raised privacy concerns and drawn criticism for its use by law enforcement.
Medium
Stock Performance
LHX stock has underperformed, losing about 15% since February 2026, with current price targets implying only 12.16% upside potential.
Lower
Strategic Execution
The company's focus on executing strategic priorities and delivering value for investors may mitigate some risks, but challenges remain in the near term.
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 June 17, 2026
Mission-critical solutions provider
L3Harris Technologies provides agile end-to-end solutions that meet customers' mission-critical needs across various sectors, reinforcing its market position.
Bullish investment thesis
Multiple bullish theses highlight LHX's potential, with analysts summarizing positive outlooks on the company's growth and performance.
Defense and surveillance technology
Involvement in advanced surveillance technology like the 'Stingray' device underscores LHX's role in high-demand defense and security markets.
Strong financial metrics
LHX's trailing and forward P/E ratios indicate robust financial health and investor confidence in its future earnings potential.
Golden Dome missile defense
LHX operates critical layers of communications, sensors, and electronic warfare in missile defense architectures, showcasing its strategic importance in defense.
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
$294.82
52W Range Position
38%
52-Week Range
Current price plotted between the 52-week low and high.
52-Week Low
$243.84
+20.9% from the low
52-Week High
$379.23
-22.3% from the high
1 Month
-5.25%
3 Month
-19.97%
YTD
-3.2%
1 Year
+18.5%
3Y CAGR
+14.7%
5Y CAGR
+6.1%
10Y CAGR
+13.5%
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
25.4x
vs 19.8x median
+28% above peer median
Revenue Growth
+5.2%
vs +5.4% median
-4% 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. | $55.1B | 25.4x | +5.2% | 7.7% | Buy | +17.8% |
RTX RTX RTX Corporation | $249.9B | 26.7x | +6.0% | 8.0% | Buy | +20.9% |
NOC NOC Northrop Grumman Corporation | $74.1B | 18.7x | +4.0% | 10.8% | Buy | +40.7% |
LMT LMT Lockheed Martin Corporation | $117.8B | 17.1x | +4.8% | 6.4% | Buy | +24.3% |
GD GD General Dynamics Corporation | $94.7B | 21.0x | +5.4% | 8.1% | Buy | +17.5% |
BA BA The Boeing Company | $175.6B | — | +7.8% | 2.5% | Buy | +26.4% |
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 3.7% annually — 1.63% through dividends and 2.1% through buybacks.
Dividend SustainableFCF Well Covered
Total Shareholder Yield
3.7%
Dividend + buyback return per year
Buyback Yield
2.1%
Dividend Yield
1.63%
Payout Ratio
56.2%
How LHX Splits Its Return
Div 1.63%
Buyback 2.1%
Dividend 1.63%Buybacks 2.1%
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
Quarterly
4 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
2.1%
Shares Outstanding
Current diluted share count from the screening snapshot
187M
At 2.1%/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 $347, implying +17.8% from the current price of $295. The bear case scenario is $262 and the bull case is $548.
02What is the LHX stock price target for 2026?
The Wall Street consensus price target for LHX is $347 based on 32 analyst estimates. The high-end target is $364 (+23.5% from today), and the low-end target is $323 (+9.6%). The base case model target is $416.
03Is L3Harris Technologies, Inc. (LHX) stock overvalued in 2026?
LHX trades at 25.4x 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 slightly expensive versus peers. 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) Financial Guidance — Modest Full-Year 2026 guidance despite strong Q1 performance has contributed to a 15% stock decline since February 2026. (2) Finance & Corporate Risks — L3Harris Technologies disclosed 28 risk factors in its most recent earnings report, with the majority concentrated in the Finance & Corporate category. (3) Privacy Controversies — Involvement in surveillance technology like the 'Stingray' device has raised privacy concerns and drawn criticism for its use by law enforcement. 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 $23.6B (+5.2% year-over-year) and EPS of $10.38 (+12.8% year-over-year) for the upcoming fiscal year. The following year, analysts project $25.3B in revenue.
06When does L3Harris Technologies, Inc. (LHX) report its next earnings?
L3Harris Technologies, Inc. is expected to report its next earnings on approximately 2026-07-23. Consensus expects EPS of $2.79 and revenue of $5.8B. Over recent quarters, LHX has beaten EPS estimates 100% of the time.
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).