Key Stats for L3Harris Stock
- This Week Performance: -1.3%
- 52-Week Range: $195.7 to $379.2
- Current Price: $361.7
What Happened?
What began as a sprawling defense contractor with a broken rocket business has quietly become the Pentagon’s most indispensable missile supplier, with L3Harris (LHX) posting record $38 billion backlog and guiding to $23.3 billion in 2026 revenue at 7% organic growth.
J.P. Morgan raised its price target to $410 from $395 on February 26, maintaining its “Overweight” rating, citing expectations that L3Harris’s Missile Solutions segment, which manufactures the solid rocket motors and propulsion systems powering THAAD and PAC-3 interceptors, will nearly double by 2028 on $3 billion of capital investment.
The missile business delivered 12% organic growth in 2025 and is guiding to high-teens growth in 2026, outpacing peers as L3Harris holds sole-source positions on roughly 80% of over 30 missile programs and produces more than 100,000 propulsion components annually.
CEO Christopher Kubasik stated at the February 25 Investor Day that “capacity is going to be the new capability for the defense industry,” tying the remark directly to the company’s plans to add 60 new production buildings and $3 billion in facilities investment through 2028.
With the Department of War committing a $1 billion anchor investment into a planned Missile Solutions IPO in the second half of 2026, L3Harris’s $27 billion revenue target and $3.5 billion free cash flow framework by 2028 rests on a structural demand cycle, with THAAD production tripling, PAC-3 quadrupling, and Tomahawk demand rising 5x under the Pentagon’s Munitions Acceleration Council programs.
Wall Street’s Take on LHX Stock
The Pentagon’s $1 billion anchor investment into Missile Solutions, which manufactures the solid rocket motors powering THAAD and PAC-3 interceptors, directly de-risks the single largest capex cycle in L3Harris’s history and removes the most common bear-case objection.
L3Harris grew 2025 revenue 5% “organically” to $21.9 billion according to CFO Kenneth Bedingfield, expanded segment operating margin to 15.8%, and grew non-GAAP EPS 11% to $10.73, a combination that has historically preceded multiple expansion in defense names with durable backlog.
Meanwhile, its GAAP EPS is forecast at $11.30 to $11.50 in 2026, representing 35.8% growth year-over-year, while TIKR consensus estimates project EPS reaching $15.48 by 2028, implying a 9.3% GAAP EPS CAGR through 2030.
Thirteen analysts currently rate L3Harris a buy, two an outperform, six a hold, and one an underperform, with a mean price target of $388.11 against a March 10 close of $361.72, implying 7.3% upside on consensus alone before accounting for the Missile Solutions IPO optionality.
The spread between the Street’s low target of $283 and high of $443 reflects a binary read on whether Pentagon munitions acceleration contracts materialize at the pace management is guiding, with THAAD at 3x and PAC-3 at 4x current production volumes.
What Does the Valuation Model Say?
TIKR’s mid-case model prices LHX at $464.42 by December 2030, implying 28.4% total return at a 5.3% annualized IRR, built on a 6.9% revenue CAGR and net income margins expanding from 9.2% in 2025 to 9.7% by 2028.
The model assumes only modest multiple contraction of 1% annually, which is conservative given that Missile Solutions, a high-teens growth propulsion business, will carry a standalone public market valuation separate from LHX’s legacy defense prime multiple.
The market is pricing L3Harris as a traditional prime at a blended multiple, but 16% of 2026 revenue is a fast-growing, soon-to-be-public missile business management expects to double by end of decade.
Also, L3Harris grew free cash flow 27.1% in 2025 to $2.74 billion and guides to $3.0 billion in 2026, even as CapEx jumps 40% to $600 million.
The Missile Solutions IPO in the second half of 2026 is the single event that forces the market to assign a standalone growth multiple to the propulsion business, and the number to watch is whether MSL’s $4.4 billion 2026 revenue guidance holds through Q2 earnings.
Should You Invest in L3Harris Technologies, Inc.?
The only way to really know is to look at the numbers yourself. TIKR gives you free access to the same institutional-quality financial data that professional analysts use to answer exactly that question.
Pull up LHX stock and you’ll see years of historical financials, what Wall Street analysts expect for revenue and earnings in the quarters ahead, how valuation multiples have moved over time, and whether price targets are trending up or down.
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