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, missile propulsion, resilient communications, electronic warfare, sensors, and ISR. At the August 2, 2026 data cutoff, LHX traded near $277.06 with a verified market value near $51.59 billion. The bullish case rests on a record $42 billion backlog, raised 2026 guidance, an approximately $1 billion Department of War investment in the missile business, and a THAAD and PAC-3 framework worth roughly $12 billion in future production revenue. The caution is that the stock trades about 27% below its 52-week high, leverage is still meaningful, and the missile capacity ramp plus federal budget debate leave room for disappointment.
Current price
$277.06
Market cap
$51.59 billion verified market cap
AI score
70 / 100
Rating
Defense electronics, space, and missile propulsion compounder with record backlog and raised guidance, tempered by leverage and execution risk
Trend status
Cautious technical trend: price is below the 50-day and 200-day moving averages near the lower end of its 52-week range
Data cutoff (updated monthly)
August 4, 2026
Informational use only. This page is not investment advice.
| Dimension | Conclusion | Confidence |
|---|---|---|
| Business quality | L3Harris sells mission-critical space, ISR, electronic warfare, resilient communications, sensors, avionics, maritime systems, and missile propulsion into defense and government markets. | High |
| Moat | The moat comes from classified program incumbency, security clearances, certified engineering, spectrum and mission knowledge, sole-source solid rocket motor positions on PAC-3, propulsion scale, and switching costs in long-cycle platforms. | High |
| Management | Chairman and CEO Christopher Kubasik has led LHX since June 2021 and is executing the Trusted Disruptor plan: a missile turnaround with deliveries up over 60%, a DoW investment, raised guidance, and delayed Missile Solutions IPO to mid-2027. | Medium-high |
| Financial trend | Q2 2026 revenue rose 8% to $5.881 billion, diluted EPS rose 28% to $3.13, orders reached $7.3 billion, and backlog hit a record $42 billion, with TTM revenue at $22.93 billion. | High |
| Valuation | At $277.06, verified math shows about 27.99x TTM EPS, 2.59x book value, 18.37x free cash flow per share, a forward PE near 22, and a 1.81% dividend yield. | High |
| Technical trend | The stock is below its 50-day moving average around $297.93 and its 200-day moving average near $316.12, with RSI near 39.85 and a 52-week range of $262.68 to $379.23. | Medium |
| Risk level | Risk is moderate because LHX has high-quality defense demand but also meaningful debt, missile capacity investment risk, budget exposure, program mix risk, and divestiture timing. | 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 and raised guidance, but the current price needs missile ramp execution, 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 August 2, 2026 research cutoff, a $277.06 stock price, $9.90 TTM EPS, and a three-year model, the tested valuation anchors were about $410 in a bull case, $310 in a base case, and $200 in a bear case before dividends.
$390 to $430
More likely if THAAD and PAC-3 frameworks and more than $20 billion of negotiated missile contracts convert, missile and space growth stays in the mid-teens, segment margins hold at low 16%, debt falls, and investors keep paying a premium defense multiple.
$295 to $325
More likely if EPS compounds near the consensus path of roughly $11.98 for 2026 and $13.63 for 2027, free cash flow delivers about $3 billion, segment margins stay near 16%, and the market keeps LHX around a low-20s earnings multiple.
$185 to $215
More likely if budget debate slows order flow, missile capacity ramps create cost overruns, THAAD and PAC-3 margins disappoint, the commercial space propulsion divestiture drags, debt reduction stalls, or defense primes rerate to lower industrial multiples.
LHX AI technical analysis
LHX AI technical analysis is cautious as of the August 2, 2026 data cutoff. StockAnalysis showed a $277.06 close on July 31, 2026, a day range of $270.17 to $279.53, a 52-week range of $262.68 to $379.23, and volume of about 2.28 million shares. StockAnalysis S&P Global data showed RSI near 39.85, a 50-day moving average near $297.93, and a 200-day moving average near $316.12, with the price below both.
| Level | Value | Why it matters |
|---|---|---|
| Current price | $277.06 | StockAnalysis closing quote for July 31, 2026, used as the reference price for valuation and market-cap math. |
| Immediate support | $270 to $272 | This zone combines the July 31 intraday low near $270.17 with the round-number area just below the close. |
| Deeper support | $262 to $265 | The 52-week low near $262.68 defines the next meaningful trading floor below current price. |
| Near resistance | $294 to $298 | The 50-day moving average near $297.93 sits just above the current price and is the first repair zone. |
| Stronger resistance | $316 | The 200-day moving average near $316.12 is the next trend marker if the stock clears the 50-day area. |
| 50-day moving average | $297.93 | Price is below this short-term trend marker, so the setup needs follow-through rather than a single close. |
| 200-day moving average | $316.12 | The stock remains well below this longer-term trend marker, keeping the broader technical read cautious. |
| Momentum | RSI 39.85 | RSI is below neutral but not deeply oversold. A rebound needs confirmation above the 50-day area. |
| Volume | 2.28 million shares on July 31 | July 31 volume ran above the 20-day average near 1.38 million shares after earnings, so follow-through is still being tested. |
| Volatility | Beta near 0.52 | 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 $262.68 | A close below the 52-week low would weaken the stabilization attempt and put focus back on budget and 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 the Q3 2026 earnings update, order activity, backlog conversion, missile capacity ramp, free cash flow, debt reduction, and the commercial space propulsion divestiture.
Watch for LHX to close above the $294 to $298 resistance zone and then the $316 area with convincing volume while Q3 results confirm order intake, backlog growth, segment margins, and delivery against raised 2026 guidance.
Treat a failed move above the 50-day average followed by a close below $270 as a warning. A close below the 52-week low near $262.68 weakens the setup.
If LHX pulls back toward $262 to $272 without a cut to EPS guidance, backlog quality, or free cash flow expectations, compare the reset price with the base scenario and the debt trajectory.
Do not average down only because defense demand is strong. Require evidence that missile ramp costs, cash conversion, program execution, and leverage are improving.
Track the Q3 2026 earnings release expected in late October 2026, orders and book-to-bill, backlog near $42 billion, Missile Solutions ramp and margins, the commercial space propulsion divestiture close, free cash flow near $3 billion, total debt, buybacks, and dividend policy.
Lower the rating if EPS growth slows while LHX still trades above a low-20s earnings multiple, or if free cash flow and debt reduction 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, certified engineering, spectrum expertise, sole-source solid rocket motor positions on PAC-3, propulsion manufacturing scale, customer trust, and switching costs in mission-critical defense systems. The moat is strongest where integration knowledge and certification matter.
The thesis fails if missile capacity investment creates cost overruns, THAAD and PAC-3 framework margins disappoint, U.S. budget debate slows order flow, the commercial space propulsion divestiture creates drag, 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, with Kenneth Sharp as CFO. The key management test is no longer demand, it is converting record backlog into cash at promised margins while building missile capacity and reducing leverage.
LHX sits in long-duration defense trends: space and missile warning, resilient communications, electronic warfare, munitions replenishment, solid rocket motors, hypersonics, ISR, and allied modernization. Demand is durable but politically funded and now driven by wartime production goals.
At 27.99x TTM EPS and 18.37x free cash flow, LHX is not priced as a neglected contractor, but it trades about 27% below its 52-week high. Margin of safety improves if EPS growth, free cash flow, debt reduction, and missile margins 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 | $277.06 closing price as of July 31, 2026 | StockAnalysis LHX quote | August 2, 2026 |
| Market capitalization verification | $51.59 billion calculated market cap, verified from $277.06 x 186.21 million shares | StockAnalysis LHX statistics | August 2, 2026 |
| Shares outstanding | 186.21 million shares outstanding, down 0.82% year over year | StockAnalysis LHX statistics | August 2, 2026 |
| TTM valuation inputs | $22.93B revenue, $1.86B net income, $9.90 EPS, $15.08 FCF per share, $106.80 book value per share | StockAnalysis LHX statistics and financials | August 2, 2026 |
| Q2 2026 revenue and EPS | $5.881 billion revenue up 8%, GAAP diluted EPS $3.13 up 28%, operating margin 11.1% | L3Harris Q2 2026 results (Business Wire) | July 29, 2026 |
| Q2 2026 orders and backlog | $7.3 billion orders, 1.2x book-to-bill, record $42 billion backlog | L3Harris Q2 2026 results (Business Wire) | July 29, 2026 |
| Q2 2026 segment revenue | Space & Mission Systems $2.966B, Communications & Spectrum Dominance $1.943B, Missile Solutions $1.054B | L3Harris Q2 2026 results (Business Wire) | July 29, 2026 |
| Q2 2026 cash flow | Operating cash flow $879 million and free cash flow $771 million, both up 37% | L3Harris Q2 2026 results (Business Wire) | July 29, 2026 |
| Raised 2026 guidance | Revenue $23.2B to $23.7B, GAAP EPS $11.80 to $12.00, free cash flow about $3.0B | L3Harris Q2 2026 results (Business Wire) | July 29, 2026 |
| Balance sheet as of July 3, 2026 | $1.521 billion cash, about $11.0 billion total debt, and $968 million subsidiary Series A preferred stock | L3Harris Q2 2026 10-Q | July 30, 2026 |
| Technical trend | RSI 39.85, 50-day MA $297.93, 200-day MA $316.12, 52-week range $262.68 to $379.23, beta 0.52 | StockAnalysis LHX statistics | August 2, 2026 |
| Analyst consensus | Buy consensus from 18 analysts with an average price target of $365.38 | StockAnalysis LHX forecast (S&P Global) | July 31, 2026 |
| Dividend | Annual dividend of $5.00, yield 1.81%, 24 years of dividend growth, ex-dividend date September 4, 2026 | StockAnalysis LHX dividend | August 2, 2026 |
| Insider ownership | 0.31% of shares owned by insiders | StockAnalysis LHX statistics | August 2, 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; Kenneth Sharp is Senior Vice President and CFO | StockAnalysis LHX company profile | July 31, 2026 |
| Business description | L3Harris provides mission-critical solutions across Space & Mission Systems, Communications & Spectrum Dominance, and Missile Solutions | StockAnalysis LHX company profile | July 31, 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.
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