Melbourne, Florida-based L3Harris Technologies, Inc. (LHX) is a global defense technology company. It develops mission-critical systems, communications, sensors, electronic warfare, space, and surveillance technologies for government and defense customers, supporting national security, civil services, transportation safety, and other complex missions worldwide. The company has a market capitalization of approximately $49.7 billion.
Despite the rising geopolitical conflicts, shares of this defense technology giant have significantly underperformed the broader market over the past year. LHX has plunged 3.4% over this period, while the broader S&P 500 Index ($SPX) has rallied 20.5%. LHX has also declined 9.1% so far this year, well behind the S&P 500’s 12.1% year-to-date gain.
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Narrowing the comparison, LHX has underperformed the iShares U.S. Aerospace & Defense ETF (ITA), which has climbed 21.7% over the past year and 10.6% year-to-date.
www.barchart.com On July 29, L3Harris Technologies reported its Q2 FY2026 earnings, sending shares down 2.5%. Revenue rose 8.4% to $5.88 billion, driven by growth across all three segments and strong execution against its record backlog. The company’s EPS increased 28.3% to $3.13, while free cash flow rose 37.4% to $771 million. Orders totaled $7.3 billion, resulting in a 1.2x book-to-bill ratio and pushing total backlog to a record $42 billion.
For the current fiscal year ending in December 2026, analysts project LHX’s diluted EPS to increase 10.7% to $11.88. The company’s earnings history is impressive, as LHX has surpassed consensus EPS estimates in each of the past four quarters.
Among the 19 analysts covering LHX stock, the consensus rating is “Moderate Buy,” based on 13 “Strong Buy” ratings and six “Hold” ratings.
www.barchart.com LHX’s configuration is more bearish than it was a month ago, when the stock had 14 “Strong Buy” recommendations.
On August 18, Deutsche Bank analyst Scott Deuschle lowered L3Harris Technologies’ price target to $268 from $285 while maintaining a “Hold” rating, following an update to the firm’s model after the Q2 report and CEO change.
The mean price target of $366.78 implies 37.5% upside from LHX’s current share price, while the Street-high target of $443 suggests 66.1% upside.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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