L3Harris Technologies, Inc. research snapshot
LHX AI stock analysis currently reads L3Harris Technologies as a mission-critical aerospace and defense supplier with scale in space systems, electronic warfare, resilient communications, sensors, and missile propulsion. At the July 8, 2026 data cutoff, LHX traded near $295.40 with a verified market value near $55.03 billion. The bullish case rests on a record $40.7 billion Q1 2026 backlog, higher defense demand, missile production growth, and margin progress. The caution is that leverage, program execution, government funding timing, and a 32.07x TTM PE leave less margin for disappointment.
Current price
$295.40
Market cap
$55.03 billion verified market cap
AI score
68 / 100
Rating
Defense electronics and missile systems compounder with strong backlog, improving growth, and debt-plus-valuation risk
Trend status
Mixed technical trend: price is near the 50-day average but still below the 200-day average
Data cutoff (updated weekly)
July 8, 2026
Informational use only. This page is not investment advice.
| Dimension | Conclusion | Confidence |
|---|---|---|
| Business quality | L3Harris sells mission-critical space, ISR, electronic warfare, communications, sensors, avionics, maritime systems, and missile propulsion into defense and government markets. | High |
| Moat | The moat comes from classified program incumbency, trusted defense relationships, certified engineering, spectrum and mission knowledge, propulsion assets, and switching costs in long-cycle platforms. | High |
| Management | Chairman and CEO Christopher Kubasik has led LHX since June 2021 and is executing around portfolio focus, LHX NeXt cost actions, backlog conversion, debt reduction, and defense growth priorities. | Medium-high |
| Financial trend | FY2025 revenue rose 3% to $21.865 billion and Q1 2026 revenue rose 12% to $5.7 billion, with Q1 orders of $7.8 billion and backlog reaching $40.7 billion. | High |
| Valuation | At $295.40, verified math shows about 32.07x TTM EPS, 2.80x book value, 21.25x free cash flow per share, and a 1.69% dividend yield. | High |
| Technical trend | The stock is near its 50-day moving average around $294.87 but below the 200-day moving average near $302.26, with RSI near 41.94. | Medium |
| Risk level | Risk is moderate because LHX has high-quality defense demand but also meaningful debt, contract execution risk, program mix risk, divestiture timing, and budget exposure. | Medium-high |
| AI confidence | Descriptive confidence is high because public data coverage is deep. Forecast confidence is medium because return outcomes depend on execution, policy, rates, and valuation multiples. | High data confidence |
| Investment certainty | Investment certainty is medium. LHX owns strategic assets, but the current price needs backlog conversion, cash generation, and margin progress to justify upside. | Medium |
LHX AI stock forecast
The LHX AI stock forecast is scenario-based, not a precise price prediction. Using the July 8, 2026 research cutoff, a $295.40 stock price, $9.21 TTM EPS, and a three-year model, the tested valuation anchors were about $388.20 in a bull case, $282.10 in a base case, and $156.00 in a bear case before dividends.
$370 to $400
More likely if Q2 2026 results confirm strong orders, missile and munitions production scales, Space & Mission Systems keeps growing, Communication & Spectrum Dominance sustains high margins, debt falls, and investors keep paying a premium defense multiple.
$270 to $295
More likely if EPS compounds in the high single digits, backlog converts at normal margins, free cash flow improves after weak Q1 timing, and the market values LHX around a mid-20s earnings multiple.
$145 to $165
More likely if program costs rise, government funding slips, Missile Solutions margins disappoint, the Space Technology disposal creates uncertainty, debt reduction stalls, or defense primes rerate to lower industrial multiples.
LHX AI technical analysis
LHX AI technical analysis is mixed as of the July 8, 2026 data cutoff. StockAnalysis showed a $295.40 close on July 7, 2026, day range of $294.38 to $304.50, and 1,245,526 shares traded. Investing.com showed RSI near 41.94, a 50-day moving average near $294.87, a 200-day moving average near $302.26, and a daily strong-sell technical summary.
| Level | Value | Why it matters |
|---|---|---|
| Current price | $295.40 | StockAnalysis closing quote for July 7, 2026, used as the reference price for valuation and market-cap math. |
| Immediate support | $294 to $295 | This zone combines the July 7 intraday low near $294.38 with the Investing.com 50-day moving average reference near $294.87. |
| Deeper support | $291 to $292 | Recent StockAnalysis cash-flow page references showed a late-June close near $291.25, giving the next lower trading band. |
| Near resistance | $302 to $305 | The 200-day moving average near $302.26 and the July 7 intraday high near $304.50 define the first repair zone. |
| 50-day moving average | $294.87 | Price is close to this short-term trend marker, so the setup needs follow-through rather than a single close. |
| 200-day moving average | $302.26 | The stock remains below this longer-term trend marker, keeping the broader technical read cautious. |
| Momentum | RSI 41.94 | RSI is below neutral but not deeply oversold. A rebound needs confirmation above the 200-day area. |
| Volume | 1.25 million shares on July 7 | A move above $305 should be judged against recent participation, not just price alone. |
| Volatility | Beta near 0.51 | LHX is lower beta than the broad market, but earnings, budget headlines, missile production news, and debt updates can still move the stock. |
| Invalidation | Close below $291 | A close below the late-June trading band would weaken the current stabilization attempt and put focus back on execution risk. |
LHX AI trading strategy
The LHX AI trading strategy below is a rules-based research framework, not personal financial advice. It links price action with Q2 2026 earnings, order activity, backlog conversion, Missile Solutions margin progress, free cash flow, debt reduction, and valuation discipline.
Watch for LHX to close above the $302 to $305 resistance zone with convincing volume while Q2 results confirm revenue growth, strong orders, improving margins, and 2026 guidance credibility.
Treat a failed move above the 200-day average followed by a close below $295 as a warning. A close below $291 weakens the setup.
If LHX pulls back toward $291 to $295 without a cut to EPS guidance, backlog quality, or free cash flow expectations, compare the reset price with the base scenario and debt trajectory.
Do not average down only because defense demand is strong. Require evidence that cash conversion, program execution, and leverage are improving.
Track Q2 2026 earnings on July 29, orders, book-to-bill, backlog near $40.7 billion, Space & Mission Systems growth, CSD margins, Missile Solutions production and margin, free cash flow, total debt, buybacks, and dividend policy.
Lower the rating if EPS growth slows while LHX still trades above a mid-20s earnings multiple or if debt reduction and free cash flow lag management targets.
Investment research summary
Customers pay L3Harris because national security missions need secure communications, ISR sensors, space payloads, electronic warfare, maritime systems, avionics, and missile propulsion that must work inside regulated and classified operating environments.
LHX benefits from program incumbency, security clearances, specialized engineering, spectrum expertise, propulsion manufacturing, customer trust, and switching costs in mission-critical defense systems. The moat is strongest where integration knowledge and certification matter.
The thesis fails if backlog converts at poor margins, missile production ramps create cost overruns, U.S. funding timing changes, classified program issues return, debt stays high, or investors stop paying a premium for defense growth.
Christopher Kubasik has more than 30 years of aerospace and defense experience and became LHX CEO in June 2021. The key management test is not storytelling. It is converting demand into cash while simplifying the portfolio and reducing leverage.
LHX sits in long-duration defense trends: space and missile warning, resilient communications, electronic warfare, munitions replenishment, hypersonics, solid rocket motors, ISR, and allied modernization. Demand is durable but politically funded.
At 32.07x TTM EPS and 21.25x free cash flow per share, LHX is not priced as a neglected contractor. Margin of safety improves if EPS growth, cash generation, debt reduction, and backlog quality become clearer or if the price resets toward the base-case range.
Source-backed data
Every metric below includes a source and last verification date.
| Metric | Value | Source | Last verified |
|---|---|---|---|
| LHX quote reference | $295.40 closing price as of July 7, 2026 | StockAnalysis LHX quote | July 8, 2026 |
| Market capitalization verification | $55.03 billion calculated and reported market cap, verified from $295.40 x 186.29 million shares | Pineify financial_rigor.py and StockAnalysis LHX statistics | July 8, 2026 |
| Shares outstanding | 186.29 million shares outstanding, down 1.12% year over year | StockAnalysis LHX statistics | July 8, 2026 |
| FY2025 revenue and net income | $21.865 billion revenue and $1.606 billion net income, cross-validated with 0% variance | L3Harris FY2025 results and 2025 Form 10-K | July 8, 2026 |
| FY2025 segment revenue | Communication Systems $5.673B, Integrated Mission Systems $6.630B, Space & Airborne Systems $6.946B, Aerojet Rocketdyne $2.845B before eliminations | L3Harris FY2025 results | July 8, 2026 |
| Q1 2026 revenue and backlog | $5.7 billion revenue, $7.8 billion orders, 1.4x book-to-bill, and record $40.7 billion backlog | L3Harris Q1 2026 results | July 8, 2026 |
| Q1 2026 cash and debt | $590 million cash, $350 million short-term debt, $1.816 billion current long-term debt, and $9.191 billion long-term debt | L3Harris Q1 2026 results | July 8, 2026 |
| TTM valuation inputs | $22.48B revenue, $1.73B net income, $9.21 EPS, $13.90 FCF per share, $105.47 book value per share | StockAnalysis LHX statistics and financials | July 8, 2026 |
| Technical trend | RSI 41.935, 50-day MA $294.87, 200-day MA $302.26, July 7 range $294.38 to $304.50 | Investing.com technicals and StockAnalysis quote | July 8, 2026 |
| Insider ownership | 0.31% of shares owned by insiders | StockAnalysis LHX statistics | July 8, 2026 |
| CEO and management context | Christopher Kubasik is Chairman and CEO, appointed CEO in June 2021, with more than 30 years of aerospace and defense experience | L3Harris leadership page | July 8, 2026 |
| Business description | L3Harris provides mission-critical solutions across Space & Mission Systems, Communications & Spectrum Dominance, and Missile Solutions | StockAnalysis company profile | July 8, 2026 |
This LHX AI stock analysis page is an informational research tool only and is not investment advice, a recommendation, or a promise of future return. Forecast scenarios are based on public data available at the stated cutoff date, use simplified assumptions, and can be wrong if business, market, policy, or valuation conditions change.
