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Relative valuation derived from Technology sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 50GRADE C+
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
9.0%
Sector: -1.4%
Dividend Analysis audit
GROWTH
1.60%
Trailing Yield
$1.60
Per $100 Invested
Modest dividend — capital prioritized for reinvestment.
Est. Payout Ratio
61%MID
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, L3HARRIS TECHNOLOGIES, INC. /DE/ (LHX) receives a "Hold" rating with a composite score of 54.8/100, ranked #227 out of 4446 stocks. Key factor scores: Quality 50/100, Value 52/100, Momentum 66/100. This is quantitative analysis only — not investment advice.
L3HARRIS TECHNOLOGIES, INC. /DE/ (LHX) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does L3HARRIS TECHNOLOGIES, INC. /DE/ Do?
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. L3HARRIS TECHNOLOGIES, INC. /DE/ (LHX) is classified as a large-cap stock in the Technology sector, specifically within the Electronic Equipment industry. The company is led by CEO Christopher E. Kubasik and employs approximately 46,000 people, headquartered in Melbourne, Florida. With a market capitalization of $66.1B, LHX is one of the prominent companies in the Technology sector.
L3HARRIS TECHNOLOGIES, INC. /DE/ (LHX) Stock Rating — Hold (April 2026)
As of April 2026, L3HARRIS TECHNOLOGIES, INC. /DE/ receives a Hold rating with a composite score of 54.8/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.LHX ranks #227 out of 4,446 stocks in our coverage universe. Within the Technology sector, L3HARRIS TECHNOLOGIES, INC. /DE/ ranks #6 of 584 stocks, placing it in the top 10% of its Technology peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
LHX Stock Price and 52-Week Range
L3HARRIS TECHNOLOGIES, INC. /DE/ (LHX) currently trades at $353.59. The stock lost $4.38 (1.2%) in the most recent trading session. The 52-week high for LHX is $377.60, which means the stock is currently trading -6.4% from its annual peak. The 52-week low is $195.72, putting the stock 80.7% above its annual trough. Recent trading volume was 1.3M shares, reflecting moderate market activity.
Is LHX Overvalued or Undervalued? — Valuation Analysis
L3HARRIS TECHNOLOGIES, INC. /DE/ (LHX) carries a value factor score of 52/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 38.33x, compared to the Technology sector average of 45.27x — a discount of 15%. The price-to-book ratio stands at 3.44x, versus the sector average of 3.16x. The price-to-sales ratio is 3.12x, compared to 1.06x for the average Technology stock. On an enterprise value basis, LHX trades at 21.94x EV/EBITDA, versus 12.79x for the sector.
Overall, LHX's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
L3HARRIS TECHNOLOGIES, INC. /DE/ Profitability — ROE, Margins, and Quality Score
L3HARRIS TECHNOLOGIES, INC. /DE/ (LHX) earns a quality factor score of 50/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 9.0%, compared to the Technology sector average of -1.4%, which is below typical expectations for high-quality companies. Return on assets (ROA) comes in at 4.3% versus the sector average of -1.0%.
On a margin basis, L3HARRIS TECHNOLOGIES, INC. /DE/ reports gross margins of 25.5%, compared to 50.9% for the sector. The operating margin is 10.6% (sector: -0.5%). Net profit margin stands at 8.1%, versus -1.5% for the average Technology stock. Revenue growth is running at 10.3% on a trailing basis, compared to 14.2% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
LHX Debt, Balance Sheet, and Financial Health
L3HARRIS TECHNOLOGIES, INC. /DE/ has a debt-to-equity ratio of 110.0%, compared to the Technology sector average of 43.0%. Leverage is within a manageable range for the industry, though investors should monitor debt trends over time. The current ratio is 1.19x, suggesting adequate working capital coverage.
LHX has a beta of 0.48, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for L3HARRIS TECHNOLOGIES, INC. /DE/ is 90/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
L3HARRIS TECHNOLOGIES, INC. /DE/ Revenue and Earnings History — Quarterly Trend
In TTM 2026, L3HARRIS TECHNOLOGIES, INC. /DE/ reported revenue of $21.64B and earnings per share (EPS) of $8.57. Net income for the quarter was $1.76B. Gross margin was 25.5%. Operating income came in at $2.29B.
In FY 2026, L3HARRIS TECHNOLOGIES, INC. /DE/ reported revenue of $38.08B and earnings per share (EPS) of $8.57. Net income for the quarter was $1.61B. Gross margin was 25.7%. Revenue grew 78.6% year-over-year compared to FY 2025. Operating income came in at $2.11B.
In Q3 2026, L3HARRIS TECHNOLOGIES, INC. /DE/ reported revenue of $5.66B and earnings per share (EPS) of $2.47. Net income for the quarter was $462M. Gross margin was 26.4%. Operating income came in at $621M.
In Q2 2025, L3HARRIS TECHNOLOGIES, INC. /DE/ reported revenue of $5.43B and earnings per share (EPS) of $2.45. Net income for the quarter was $458M. Gross margin was 24.6%. Operating income came in at $571M.
Over the past 8 quarters, L3HARRIS TECHNOLOGIES, INC. /DE/ has demonstrated a growth trajectory, with revenue expanding from $21.32B to $21.64B. Investors analyzing LHX stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
LHX Dividend Yield and Income Analysis
L3HARRIS TECHNOLOGIES, INC. /DE/ (LHX) currently pays a dividend yield of 1.6%. At this yield, a $10,000 investment in LHX stock would generate approximately $$160.00 in annual dividend income. The net margin of 8.1% provides reasonable coverage for the dividend, though investors should monitor payout sustainability.
LHX Momentum and Technical Analysis Profile
L3HARRIS TECHNOLOGIES, INC. /DE/ (LHX) has a momentum factor score of 66/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 29/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 36/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
LHX vs Competitors — Technology Sector Ranking and Peer Comparison
Within the Technology sector, L3HARRIS TECHNOLOGIES, INC. /DE/ (LHX) ranks #6 out of 584 stocks based on the Blank Capital composite score. This places LHX in the top decile of all Technology stocks in our coverage universe. Key competitors and sector peers include IHS Holding Ltd (IHS) with a score of 55.0/100, VERISIGN INC/CA (VRSN) with a score of 56.0/100, ESCO TECHNOLOGIES INC (ESE) with a score of 51.7/100, CareCloud, Inc. (CCLD) with a score of 46.9/100, and MMTec, Inc. (MTC) with a score of 47.4/100.
Comparing LHX against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full LHX vs S&P 500 (SPY) comparison to assess how L3HARRIS TECHNOLOGIES, INC. /DE/ stacks up against the broader market across all factor dimensions.
LHX Next Earnings Date
No upcoming earnings date has been announced for L3HARRIS TECHNOLOGIES, INC. /DE/ (LHX) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy LHX? — Investment Thesis Summary
L3HARRIS TECHNOLOGIES, INC. /DE/ presents a balanced picture with arguments on both sides. Price momentum is positive at 66/100, suggesting the trend favors buyers. Low volatility (stability score 90/100) reduces downside risk.
In summary, L3HARRIS TECHNOLOGIES, INC. /DE/ (LHX) earns a Hold rating with a composite score of 54.8/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on LHX stock.
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Institutional Research Dossier
L3HARRIS TECHNOLOGIES, INC. /DE/ (LHX) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
L3Harris Technologies is currently rated as a Hold, and this assessment stems from a balanced view of its strengths and weaknesses. While the company operates in a relatively stable sector with high barriers to entry and demonstrates solid profitability metrics compared to its peers, its valuation appears stretched, and its capital allocation strategy raises concerns. The primary takeaway is that L3Harris is a fundamentally sound company operating in a favorable industry, but its current price may not fully reflect its growth prospects and inherent risks.
The company's strong position in the aerospace and defense industry, coupled with its robust profitability and stability scores, suggests a degree of resilience. However, the relatively low investment score, driven by capital allocation and growth concerns, coupled with a high debt-to-equity ratio, tempers our enthusiasm. The Hold rating reflects the need for a more compelling valuation or clearer signals of improved capital allocation and growth initiatives before recommending a more bullish stance.
Business Strategy & Overview
L3Harris Technologies operates as a diversified aerospace and defense technology company, providing mission-critical solutions to government and commercial customers globally. The company's business is structured around four main segments: Integrated Mission Systems, Space and Airborne Systems, Communication Systems, and Aviation Systems. Each segment caters to specific needs within the defense and aerospace sectors, ranging from ISR systems and electronic warfare to tactical communications and air traffic management solutions. This diversification helps mitigate risk and allows L3Harris to capitalize on various opportunities within the broader defense and aerospace market.
The company's revenue generation is primarily driven by government contracts, particularly with the U.S. Department of Defense. These contracts often involve long-term engagements, providing a degree of revenue visibility and stability. L3Harris also pursues commercial opportunities, leveraging its technological expertise to serve civilian markets. The company's strategic positioning emphasizes technological innovation and integration, focusing on developing advanced solutions that address evolving customer needs. This includes investments in areas such as artificial intelligence, cybersecurity, and advanced sensors.
L3Harris's strategic focus on mergers and acquisitions (M&A) has been a key component of its growth strategy. The merger between L3 Technologies and Harris Corporation in 2019 created a larger, more diversified entity with enhanced scale and capabilities. The company continues to evaluate potential acquisitions to expand its product portfolio, enhance its technological capabilities, and gain access to new markets. However, the success of this strategy hinges on effective integration and realization of synergies.
The company operates within a highly regulated industry, subject to stringent government oversight and compliance requirements. This creates barriers to entry for new competitors but also imposes significant compliance costs on existing players. L3Harris's ability to navigate this regulatory landscape and maintain strong relationships with government customers is crucial to its long-term success. The company's product pipeline includes a range of advanced technologies and solutions designed to address emerging threats and evolving customer requirements. This includes investments in next-generation communication systems, advanced sensors, and autonomous systems.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
10.3%
Sector: 14.2%
-28% VS SCTR
Economic Moat Analysis
L3Harris possesses a narrow economic moat, primarily derived from intangible assets and switching costs. The company's intangible assets stem from its proprietary technologies, specialized expertise, and established relationships with government customers. These factors create barriers to entry for new competitors and allow L3Harris to command premium pricing for its products and services. However, the moat is not wide due to the presence of other large, well-established players in the defense and aerospace industry, such as Lockheed Martin, Boeing, and Northrop Grumman.
Switching costs also contribute to L3Harris's moat. Government contracts often involve long-term engagements and require significant integration with existing systems. This creates high switching costs for customers, making it difficult and expensive to switch to alternative providers. The company's established track record and reputation for reliability further enhance its competitive advantage. However, the government's ability to negotiate contract terms and promote competition limits the extent to which L3Harris can exploit its switching cost advantage.
Network effects are not a significant source of competitive advantage for L3Harris. While some of its communication systems may benefit from network effects, this is not a primary driver of its overall business. Cost advantages are also not a major source of moat. While L3Harris benefits from economies of scale, it does not possess a significant cost advantage over its larger competitors. Efficient scale is not a relevant factor in this industry, as the market is large enough to support multiple players.
The company's moat is vulnerable to technological disruption and changes in government spending priorities. Emerging technologies, such as artificial intelligence and quantum computing, could potentially disrupt existing defense and aerospace systems, creating opportunities for new competitors. Changes in government spending priorities could also impact L3Harris's revenue and profitability. The company's ability to adapt to these changes and maintain its technological edge is crucial to preserving its moat.
Financial Health & Profitability
L3Harris's financial health presents a mixed picture. The company demonstrates solid revenue growth, with a TTM revenue of $38.08 billion and a revenue growth rate of 10.3%. This growth rate is slightly below the sector average of 14.0%, indicating that L3Harris is not growing as rapidly as its peers. However, the company's profitability metrics are strong, with a TTM net income of $1.61 billion and an operating margin of 10.6%. These metrics are significantly better than the sector averages, which are negative. This suggests that L3Harris is more efficient and profitable than its peers.
The company's return on equity (ROE) of 9.0% is also strong compared to the sector average of -1.5%. This indicates that L3Harris is effectively utilizing its equity to generate profits. However, the company's gross margin of 25.5% is significantly lower than the sector average of 51.2%. This suggests that L3Harris's cost of goods sold is relatively high compared to its peers. The current ratio of 1.19 indicates that L3Harris has sufficient current assets to cover its current liabilities.
The company's debt-to-equity ratio of 110.00 is relatively high compared to the sector average of 43.00. This indicates that L3Harris is more leveraged than its peers, which could increase its financial risk. The quarterly financial history reveals a consistent trend of revenue growth and profitability. However, the free cash flow (FCF) data is incomplete, making it difficult to assess the company's cash flow generation capabilities. The operating margin has fluctuated between 7.3% and 11.0% over the past few quarters, indicating some variability in the company's profitability.
The significant fluctuations in free cash flow across the quarters, particularly the large negative figures in Q1 and Q2 of FY2024, warrant further investigation. These negative FCF figures could be due to a variety of factors, such as increased capital expenditures, changes in working capital, or acquisitions. The company's ability to generate consistent and positive free cash flow is crucial to its long-term financial health. The high debt-to-equity ratio, coupled with the fluctuating FCF, raises concerns about the company's financial flexibility and its ability to fund future growth initiatives.
Valuation Assessment
L3Harris's valuation presents a mixed picture. The company's price-to-earnings (P/E) ratio of 41.2x is slightly below the sector average of 45.3x, suggesting that the stock is relatively fairly valued compared to its peers. However, the P/E ratio is still high, indicating that investors are expecting strong future earnings growth. The company's enterprise value-to-EBITDA (EV/EBITDA) ratio of 7.8x is significantly below the sector average of 13.0x, suggesting that the stock is undervalued based on its earnings before interest, taxes, depreciation, and amortization. This could be due to the company's strong profitability and cash flow generation.
The lack of available free cash flow data makes it difficult to assess the company's valuation based on FCF yield. A discounted cash flow (DCF) analysis would be necessary to determine the intrinsic value of the stock. However, based on the available data, it appears that L3Harris is fairly valued to slightly overvalued. The high P/E ratio suggests that investors are expecting strong future earnings growth, while the relatively low EV/EBITDA ratio suggests that the stock is undervalued based on its current earnings.
The company's valuation is sensitive to changes in interest rates, economic growth, and government spending priorities. Rising interest rates could increase the company's cost of capital and reduce its valuation. Slower economic growth could reduce demand for the company's products and services, leading to lower earnings and a lower valuation. Changes in government spending priorities could also impact the company's revenue and profitability, affecting its valuation.
Considering the company's solid profitability, stable industry, and potential for future growth, a fair valuation would likely be closer to the sector average for P/E, but the lower EV/EBITDA suggests some undervaluation. However, the high debt levels and inconsistent FCF generation temper enthusiasm. A more compelling entry point would require either a pullback in the stock price or clearer evidence of improved capital allocation and growth initiatives.
Risk & Uncertainty
L3Harris faces several specific risks and uncertainties that could impact its business and financial performance. One of the primary risks is its reliance on government contracts, particularly with the U.S. Department of Defense. Changes in government spending priorities, budget cuts, or political instability could significantly reduce the company's revenue and profitability. The company's ability to secure and maintain these contracts is crucial to its long-term success.
Another risk is the intense competition within the defense and aerospace industry. L3Harris competes with other large, well-established players, such as Lockheed Martin, Boeing, and Northrop Grumman. These competitors have significant resources and established relationships with government customers. The company's ability to differentiate itself through technological innovation and superior performance is crucial to maintaining its competitive edge.
The company also faces risks related to technological disruption. Emerging technologies, such as artificial intelligence and quantum computing, could potentially disrupt existing defense and aerospace systems, creating opportunities for new competitors. L3Harris's ability to adapt to these changes and maintain its technological leadership is crucial to its long-term success. The high debt levels also pose a risk, as they increase the company's financial leverage and make it more vulnerable to economic downturns.
Regulatory risks are also significant. The defense and aerospace industry is highly regulated, subject to stringent government oversight and compliance requirements. Changes in regulations or increased enforcement could increase the company's compliance costs and impact its profitability. The company's ability to navigate this regulatory landscape and maintain strong relationships with government customers is crucial to its long-term success. Finally, the success of L3Harris's M&A strategy is not guaranteed. Integrating acquired businesses and realizing synergies can be challenging, and failed acquisitions could negatively impact the company's financial performance.
Bulls Say / Bears Say
The Bull Case
BULL VIEWL3Harris's strong position in the growing defense and aerospace market, coupled with its focus on technological innovation, will drive long-term revenue and earnings growth.
BULL VIEWThe company's high stability score and consistent profitability make it a safe and reliable investment in a volatile market environment.
BULL VIEWL3Harris's relatively low EV/EBITDA ratio compared to its peers suggests that the stock is undervalued and has significant upside potential.
The Bear Case
BEAR VIEWL3Harris's high debt-to-equity ratio and inconsistent free cash flow generation raise concerns about its financial flexibility and ability to fund future growth.
BEAR VIEWThe company's reliance on government contracts makes it vulnerable to changes in government spending priorities and budget cuts.
BEAR VIEWL3Harris's relatively low gross margin compared to its peers suggests that it lacks a significant competitive advantage and may struggle to maintain its profitability.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score LHX and 4,400+ other equities.
L3HARRIS TECHNOLOGIES, INC. /DE/ exhibits a 65% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
4.3%
Sector: -1.0%
Gross Margin
Pricing power and cost efficiency
25.5%
Sector: 50.9%
Operating Margin
Core business profitability
10.6%
Sector: -0.5%
Net Margin
Bottom-line profitability
8.1%
Sector: -1.5%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
Sector Avg Yield0.00%
Yield Delta—
Income Projection audit
A $10,000 investment would generate approximately $160 annually in dividends at the current trailing rate.
