Key Stats for L3Harris Stock
- Past week’s performance: about +2% with shares recently around $349.66
- 52-week range: $193.09 to $369.59
- Valuation model target price: $473.92
- Implied upside: 35.5% over the next 2.9 years
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What Happened?
L3Harris Technologies (LHX) shares edged higher this week as investors reacted to a mix of strong fundamentals and fresh defense news. The stock is trading near record territory after a powerful run in 2025 and a solid start to 2026, so even small moves now come on top of big prior gains.
The company recently reported strong full-year 2025 results, with revenue rising to about $21.9 billion and non‑GAAP EPS reaching $10.73, which reinforced confidence that demand across its defense portfolio remains healthy.
News also helped sentiment this week because L3Harris announced a record fuzing‑delivery milestone after shipping nearly 500,000 fuzes in 2025, or about an 80% increase versus the prior year.
At the same time, filings show that CEO Christopher Kubasik has adopted a trading plan to sell options and shares later in 2026, and this is drawing some attention but is structured as a scheduled program rather than a reaction to near‑term events.
Fundamentally, the stock still screens as a premium‑quality defense name, but investors are watching valuation because the trailing P/E ratio has moved into the 30–40x range depending on the metric, which is above historical averages.
However, the latest earnings report showed expanding margins, strong cash generation with about $3.1 billion in operating cash flow, and disciplined capital allocation, so many investors remain comfortable paying up for the company’s growth profile and contract visibility.
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Is L3Harris Stock Undervalued?
Under valuation model assumptions realized through 2028 the stock is modeled using:
- Revenue growth (CAGR): 6.7%
- Operating margins: 16.1%
- Exit P/E multiple: 28.1x
Based on these inputs, the model estimates a target price of $473.92, implying a 35.5% total return from the current share price of $349.66 and an annualized return of 11.0% over the next 2.9 years.
Execution across the company’s three main segments will be crucial for these assumptions, because recent results show only low‑single‑digit reported revenue growth even as orders accelerate.
Continued strength in classified space programs, missile‑warning payloads, and other Space & Mission Systems contracts could help sustain the mid‑single‑digit revenue CAGR embedded in the model, and the recent fuze‑delivery milestone suggests Missile Solutions is scaling into demand.
If L3Harris keeps turning record orders into revenue and cash flow while managing program execution and portfolio changes, the current valuation model suggests the stock can deliver double‑digit annualized returns without requiring heroic assumptions.
However, any setbacks in major programs, contract awards, or regulatory decisions on capital returns could pressure the multiple, so investors should keep monitoring quarterly results and defense‑budget developments.
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