L3Harris has posted four consecutive earnings beats with an average 8.3% surprise and the setup offers an approximately 2.9-to-1 reward-to-risk ratio with 13% upside to the take-profit level, but the stock currently trades below its rising long-term moving average in a technical distribution pattern, and 75% revenue exposure to a single customer creates sensitivity to defense budget developments.
Thesis pillars
- Us Government Customer Concentration→Stable
- Four Quarter Earnings Execution→Stable
- Favorable Risk Reward Meaningful Upside→Stable
- +1 more pillar — see the Why tab for full reasoning
L3Harris Technologies, Inc. (LHX) Stock Analysis
Range Bound setup · Catalyst-Driven edge
Industrials · Aerospace & Defense
Hold if already holding. Not a fresh buy at $301.58, but acceptable to hold if already in. Reasons: Concentration risk — Customer: U.S. Government (75.0%); Concentration risk — Supplier: single supplier (certain components).
L3Harris Technologies delivers defense electronics and mission systems across four segments — Communication Systems, Integrated Mission Systems, Space & Airborne Systems, and Aerojet Rocketdyne — supporting U.S. and allied customers in over 100 countries. In fiscal 2025, 75% of... Read more
Hold if already holding. Not a fresh buy at $301.58, but acceptable to hold if already in. Reasons: Concentration risk — Customer: U.S. Government (75.0%); Concentration risk — Supplier: single supplier (certain components). Chart setup: RSI 46 mid-range, Bollinger mid-band. Maintain position. Not compelling to add more. Score 5.8/10, moderate confidence.
Passes 6/7 gates (positive momentum, favorable risk/reward ratio, clean insider activity, earnings proximity 18d clear, semi cycle peak clear, materials cycle peak clear). Suitability: moderate.
About L3Harris Technologies, Inc.
About L3Harris Technologies, Inc.
L3Harris Technologies carried a $38.7 billion contractual backlog into fiscal 2026, with 70% expected to convert by fiscal year-end 2027. In fiscal 2025, U.S. Government customers drove 75% of revenue while international sales of $4.8 billion (22% of revenue) spanned over 100 countries. The company's 45,000 employees — 90% in the U.S. — included 18,000 engineers and scientists across four defense segments.
L3Harris earns revenue across four segments: Communication Systems delivers tactical radios, battlefield communications, and public safety networks; Integrated Mission Systems provides airborne ISR, naval systems, and targeting sensors; Space & Airborne Systems covers space ISR, cyber intelligence, and airborne combat platforms; and Aerojet Rocketdyne supplies missile propulsion and space power systems. In fiscal 2025, approximately 75% of revenue came from fixed-price contracts, which allow L3Harris to capture cost savings but expose it to overrun risk on development programs. The company competes primarily against BAE Systems, General Dynamics, Lockheed Martin, Northrop Grumman, and RTX, as well as non-traditional entrants such as Anduril and Silvus Technologies. The company relied on a limited number of certified microelectronics suppliers and acknowledged single-source dependencies for certain components, a risk compounded by geopolitical restrictions on materials previously sourced from Russia and China.
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L3Harris's 10-K discloses single-source supplier dependence for certain components, with procurement of microelectronics limited to U.S. Government-approved supply sources — 'heightened regulatory requirements' further narrowing available qualified vendors. Materials previously sourced from Russia, including specialty metals, are now subject to sanctions, and certain components from China face trade restrictions. Identifying and qualifying alternative dual-source suppliers is acknowledged as 'difficult, time-consuming' and may increase costs, with no guarantee of success.
See also: Industrials · Aerospace & Defense
From L3Harris Technologies, Inc.'s most recent 10-K filing, extracted June 11, 2026.
Recent developments
updated 2026-07-07Recent Developments — L3Harris Technologies, Inc.
Latest news
- NEWS Why L3Harris (LHX) is Poised to Beat Earnings Estimates Again - Yahoo! Finance Canada — Yahoo! Finance Canada positive
- NEWS M&T Bank Corp Purchases 396,077 Shares of L3Harris Technologies Inc $LHX - MarketBeat — MarketBeat neutral
- NEWS L3Harris Technologies (NYSE: LHX) rings the opening bell® - qz.com — qz.com positive
- NEWS A Look At L3Harris Technologies (LHX) Valuation After Its US$1b Solid Rocket Motor Expansion Plan - simplywall.st — simplywall.st positive
- NEWS Eos Management L.P. Acquires 8,024 Shares of L3Harris Technologies Inc $LHX - MarketBeat — MarketBeat neutral
Generated 2026-07-07T12:51:46Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- HIGHCustomerU.S. Government75%10-K Item 1: 'the percentage of our revenue that was derived from sales to U.S. Government customers...was 75%'
- HIGHSuppliersingle supplier (certain components)10-K Item 1A: 'we depend upon a single supplier for certain components'
Material Events(8-K, last 90d)
- 2026-03-12Item 5.02LOWSam Mehta appointed President, Space & Mission Systems and Communications & Spectrum Dominance, effective March 16, 2026. Mehta previously served as President of Space & Mission Systems since January 3, 2026, and President of Communication Systems since 2023. No departure cited.SEC filing →
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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Rating Breakdown
10 dimensions · all in-band
Price Targets
Position Sizing
Analyst Consensus
Earnings
Verdict History
Frequently Asked Questions
Hold if already holding. Not a fresh buy at $301.58, but acceptable to hold if already in. Reasons: Concentration risk — Customer: U.S. Government (75.0%); Concentration risk — Supplier: single supplier (certain components). Chart setup: RSI 46 mid-range, Bollinger mid-band. Maintain position. Not compelling to add more. Target $342.90 (+13.7%), stop $282.79 (−6.6%), A.R:R 2.2:1. Score 5.8/10, moderate confidence.
Take-profit target: $342.90 (+13.8% upside). Target $342.90 (+13.7%), stop $282.79 (−6.6%), A.R:R 2.2:1. Stop-loss: $282.79.
Concentration risk — Customer: U.S. Government (75.0%); Concentration risk — Supplier: single supplier (certain components).
L3Harris Technologies, Inc. trades at a P/E of 32.8 (forward 22.1). TrendMatrix value score: 4.8/10. Verdict: Hold.
24 analysts cover LHX with a consensus score of 4.0/5. Average price target: $381.
What does L3Harris Technologies, Inc. do?L3Harris Technologies delivers defense electronics and mission systems across four segments — Communication Systems,...
L3Harris Technologies delivers defense electronics and mission systems across four segments — Communication Systems, Integrated Mission Systems, Space & Airborne Systems, and Aerojet Rocketdyne — supporting U.S. and allied customers in over 100 countries. In fiscal 2025, 75% of revenue came from U.S. Government customers; contractual backlog stood at $38.7 billion, with approximately 45% expected to convert within fiscal 2026. The company employed approximately 45,000 people, 90% in the U.S.