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L3Harris Technologies, Inc.
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S&P 500
$44.2B
Market Cap
35.4
P/E
2.02
PEG
5.9%
ROCE
8.2%
ROE
0.53
D/E
9.7%
OPM
-36.6%
% from 52W High
26
α RS
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About

L3Harris Technologies, Inc. provides mission-critical solutions for government and commercial customers worldwide. It operates through three segments: Space & Mission Systems (SMS), Communications & Spectrum Dominance (CSD), and Missile Solutions (MSL). The SMS segment integrates satellite and payload capabilities, including missile warning and defense, with maritime, air special missions, and other global defense and civil government programs. Its MSL segment unites propulsion, hypersonic, and other advanced missile technologies. The CSD segment provides tactical radios, software, waveforms, satellite terminals, and end-to-end battlefield systems for the U.S. Department of Defense, international, federal, and state agency customers; broadband communications; integrated vision solutions, such as helmet-mounted integrated night vision goggles with image intensifier tubes and weapon-mounted sights, aiming lasers, and range finders; and public safety radios and system applications and equipment. 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.

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⭐ Superinvestors Holding LHX
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Manager Shares Value % of Fund Period
Cathie Wood ARK Investment Management 389.7K $134.5M 1.05% Mar 2026
David Tepper Appaloosa LP 198.0K $68.3M 1.15% Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

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Good quarter Investor Presentation One-Pager? Q2 2026
Revenue
$5.881B
+8% YoY
Operating Income
$654M
+15% YoY
Operating Margin
11.1%
+0.6pp YoY
Diluted EPS (GAAP)
$3.13
+28% YoY
What Went Right
  • Orders of $7.3 billion drove a 1.2x book-to-bill and lifted backlog to a record $42 billion, up over $1 billion.
  • All three segments grew revenue, with total revenue up 8% to $5.881B and international sales up over 20% (+$254M), now 23% of revenue.
  • Missiles momentum continued: Missile Solutions revenue grew 14%, $20B+ in new contracts are being negotiated, and a $12B THAAD/PAC-3 framework agreement was signed.
What to Watch
  • Missile Solutions IPO pushed out to mid-2027 because current market conditions do not reflect the value being built.
  • The pending divestiture of commercial space propulsion creates an approximate $0.20 EPS headwind, and Missile Solutions guidance has been adjusted for the August closing.
  • Management flagged broader defense budget uncertainty — CR, reconciliation, executive orders — though it expects the highest U.S. defense budget in history.
Management Guidance
  • FY2026 revenue raised to $23.2B-$23.7B, up $200M on both ends versus prior $23.0B-$23.5B.
  • FY2026 diluted EPS raised to $11.80-$12.00, up $0.40 versus prior $11.40-$11.60.
  • FY2026 segment operating margin maintained at low 16% and free cash flow reaffirmed at $3.0B.
Investor Lens
The investment thesis looks stronger after this quarter: record backlog, a raised FY26 guide, broad-based segment growth and an accelerating missile franchise with a $12B framework agreement and $20B+ in negotiations. The deliberate decision to delay the missile IPO until mid-2027 removes near-term IPO distraction while management continues to invest in capacity. The main caveats are the commercial space propulsion divestiture headwind and ongoing budget uncertainty, but the strong cash generation and ~$4B expected cash on hand provide significant flexibility.
From investor presentation · AI-generated analysis · Not investment advice
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📈 STRONG Strong Q2: revenue up 8% to $5.9B, EPS up 28% to $3.13
Revenue
Q2 revenue rose 8% YoY to $5.881B, helped by all three segments. Space & Mission Systems grew 7% to $2.966B, Communications & Spectrum Dominance grew 4% to $1.943B, and Missile Solutions grew 14% to $1.054B.
Profitability
Operating income increased 15% to $654M, and segment operating income rose 9% to $942M. GAAP diluted EPS came in at $3.13, up 28% from $2.44, driven by higher volume, improved program performance and lower corporate expense.
Margins
Segment operating margin was 16.0%, up 10bps, while GAAP operating margin improved 60bps to 11.1%. Segment margin performance was led by Communications & Spectrum Dominance at 26.9% (up 230bps), partially offset by Space & Mission Systems margin declining 60bps to 9.8% on a prior-year product line gain.
Balance Sheet
Operating cash flow was $879M and free cash flow was $771M, both up 37% YoY. Capital expenditures were $108M, missile capacity commitments total $2B, and management expects roughly $4B of cash on hand before any debt paydown or buybacks following the commercial space propulsion divestiture.
Key Risks
Key risks flagged were delayed missile IPO market conditions, the ~$0.20 EPS headwind from the commercial space propulsion divestiture, and broader defense budget uncertainty from a potential CR or reconciliation. Management also noted the non-cash preferred stock deemed dividend cost of $55M.
Outlook
FY2026 revenue guidance was raised to $23.2B-$23.7B and EPS to $11.80-$12.00, with low-16% segment operating margin and $3.0B free cash flow reaffirmed. Management expects the U.S. defense budget to reach record levels and anticipates a supplemental to fund multi-year munition contracts.
Generated by AI · Q2 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q2 2026 Q2 2026 2026-07-29
Q2 saw 8% revenue growth, strong segment performance, and a $1B Pentagon investment accelerating missile capacity. Full-year guidance was raised for both revenue and EPS, with a robust backlog and international sales up 20%. Missile Solutions IPO delayed to mid-2027 due to market conditions.
Q1 2026 Q1 2026 2026-04-30
Q1 revenue grew 15% organically to $5.7B, with record backlog and strong international demand. Guidance for 2026 was reaffirmed, with EPS raised and robust growth in Space & Mission Systems, Missile Solutions, and Communications.
Q4 2025 Q4 2025 2026-01-29
Delivered record orders, 5% organic revenue growth, and expanding margins in 2025, with 2026 guidance for 7% organic growth, $3B free cash flow, and continued strong segment performance. Major investments and portfolio realignment position for sustained industry leadership.
Q3 2025 Q3 2025 2025-10-30
Double-digit organic growth, margin expansion, and record backlog highlight strong execution and global demand, especially in missile and space systems. Raised 2025 guidance and robust international wins position for durable growth, though government funding delays remain a risk.
Q2 2025 Q2 2025 2025-07-24
Strong organic growth, record orders, and margin expansion highlight robust execution and portfolio alignment with defense priorities. Raised 2025 and 2026 guidance, driven by demand in space, missile, and communications, with significant investments in capacity and technology.
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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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Investment Risk:
Investing in securities, including US equities and ETFs, involves inherent risks including the potential loss of principal. All investments are subject to market fluctuations, economic conditions, regulatory changes, and other factors that may affect their value. Past performance is not indicative of future results. This analysis is provided for informational and educational purposes only and should not be construed as investment advice under any circumstances.

No Investment Recommendation:
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Information Sources:
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