# L3Harris Technologies (LHX.US)

Canonical: https://gigainvestors.com/s/LHX

Analysis as of: 2026-10-16T07:29:49.994Z. Financial observations: FY1996–FY2025.

Listing currency: USD. Reporting currency: USD.

## Verdict

A wonderful business at too high a price

Quality tests for Buy: pass (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $240.50 per share; close as of 2026-10-15.

Estimated value: low $153.82 per share, central $174.24 per share, high $201.43 per share. Buy at or below the central value $174.24 per share. Valuation as of 2026-10-16T07:29:49.994Z; scenarios are not confidence intervals.

Expected annual return: 8.0% at the stated quote. About 8.0% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: pass

- 3 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 3

- Years with a net loss: 0

- Operating margin variation: 0.27×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.18×

- FY2017: 0.15×

- FY2018: 0.18×

- FY2019: 0.08×

- FY2020: 0.12×

- FY2021: 0.12×

- FY2022: 0.11×

- FY2023: 0.09×

- FY2024: 0.09×

- FY2025: 0.10×

### moat: pass

- ROIC, median of available years: 20.6%

- ROIC, second-lowest year: 14.5%

- Typical minus recent gross margin: 3.3 pp

- Typical gross margin (annual median): 29.0%

- Recent gross margin (lower of latest and 3-year median): 25.7%

- Years with nonpositive capital: 0

- Capital spending / revenue: 2.0%

- ROIC including acquisitions, ten-year median: 7.4%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 42.1%

- FY2017: 56.9%

- FY2018: 77.7%

- FY2019: 9.7%

- FY2020: 21.6%

- FY2021: 21.5%

- FY2022: 19.7%

- FY2023: 14.5%

- FY2024: 16.5%

- FY2025: 18.2%

### economics: pass

- Owner earnings / net income, 5-yr: 1.51×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $11B

- Net income, five-year total: $7.2B

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: -0.1 pp

- Working capital / revenue, change between three-year averages: 0.7 pp

- Working capital / revenue, final three-year average: 18.5%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.34×

- FY2022: 1.65×

- FY2023: 1.58×

- FY2024: 1.59×

- FY2025: 1.50×

### management: pass

- Historical market-dollar context (not the management verdict): 2017 to 2025 (8 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 56.9% vs 16.5%

- Per-share earnings: 3.13 to 7.88 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 5.8%

- Ordinary dilution, 5-year annual growth: -2.7%

- Market cap gain: $42B

- Cumulative retained earnings: $2.9B

- Diluted shares, 10-year annual growth: 5.8%

- Diluted shares, 5-year annual growth: -2.7%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 12.2%

- Per-share value change: $4.75

- Per-share value, starting three-year median: $3.13

- Per-share value, ending three-year median: $7.88

- Buybacks concentrated in cheaper years (correlation): 0.13

- Average buyback yield: 3.6%

- Buyback history: 9 years

- Debt-funded buybacks: Yes

- Acquisition spending: $27B

- Cumulative net income, 10 years: $11B

- ROIC, first three-year median: 56.9%

- ROIC, last three-year median: 16.5%

Chart: Earnings per share; fiscal year observations.

- FY2016: $2.59

- FY2017: $4.37

- FY2018: $5.83

- FY2019: $7.89

- FY2020: $5.18

- FY2021: $9.08

- FY2022: $5.49

- FY2023: $6.44

- FY2024: $7.88

- FY2025: $8.52

### accounting: pass

- Sloan accruals: -3.6%

- Receivables to sales index (DSRI): 1.04×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 11.8%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.93×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 1.35×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -5.0%

- FY2017: -0.3%

- FY2018: -0.5%

- FY2019: 1.0%

- FY2020: -4.5%

- FY2021: -2.4%

- FY2022: -3.3%

- FY2023: -2.1%

- FY2024: -2.5%

- FY2025: -3.6%

## Holders

- [Andrew Adams](https://gigainvestors.com/MPF): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Donald Yacktman](https://gigainvestors.com/YAM): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 34% since Feb 2026 · "L3Harris quarterly revenue misses estimates on government shutdown pressures" (finance.yahoo.com, Jan 2026) · sales +2.5%

Story as of 2026-10-16T09:59:04.229Z; price observation 2026-10-15.

Price needs cash profits to grow 5% a year for ten years

- 2025-05-06: L3Harris Receives $214 Million in Orders to Support German Armed Forces ([finance.yahoo.com](https://finance.yahoo.com/news/l3harris-receives-214-million-orders-140000673.html))

- 2025-07-24: L3Harris Beats on Q2 Earnings, Raises '25 Revenue View ([finance.yahoo.com](https://finance.yahoo.com/news/l3harris-beats-q2-earnings-raises-141700045.html))

- 2025-09-15: L3Harris Secures $292 Mln Javelin Propulsion Contract, Extends Production For 5 Years ([nasdaq.com](https://www.nasdaq.com/articles/l3harris-secures-292-mln-javelin-propulsion-contract-extends-production-5-years))

- 2025-12-23: L3Harris Wins $843M Deal to Produce 18 Infrared Satellites for SDA ([finance.yahoo.com](https://finance.yahoo.com/news/l3harris-wins-843m-deal-produce-150000730.html))

- 2026-01-13: L3Harris Surges On $1 Billion DoD Investment, Missile IPO Plans ([finance.yahoo.com](https://finance.yahoo.com/m/b736617b-60d2-31b4-88e9-cf560742d577/l3harris-surges-on-%241-billion.html))

- 2026-02-16: L3Harris Receives New Contract to Power THAAD Interceptors ([finance.yahoo.com](https://finance.yahoo.com/news/l3harris-receives-contract-power-thaad-150000752.html))

### Sales · FY2024–2025

sales +2.5%; source https://www.sec.gov/Archives/edgar/data/202058/000020205826000015/hrs-20260102.htm; observed 2026-02-12.

- FY2016: $6.0B 

- FY2017: $5.9B 

- FY2018: $6.2B 

- FY2019: $13B 

- FY2020: $18B 

- FY2021: $18B 

- FY2022: $17B 

- FY2023: $19B 

- FY2024: $21B 

- FY2025: $22B 

### Gross margin · FY2025

gross margin 25.7%; source https://www.sec.gov/Archives/edgar/data/202058/000020205826000015/hrs-20260102.htm; observed 2026-02-12.

- FY2016: 36.0% 

- FY2017: 34.6% 

- FY2018: 34.1% 

- FY2019: 18.2% 

- FY2020: 29.2% 

- FY2021: 30.2% 

- FY2022: 28.9% 

- FY2023: 26.3% 

- FY2024: 25.9% 

- FY2025: 25.7% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in aerospace & defense; annual sales are USD 21.9 billion.

- Source: https://www.sec.gov/Archives/edgar/data/202058/000020205826000015/hrs-20260102.htm (filed 2026-02-12); FY2025: revenue 21865000000; grossProfit 5625000000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); LHX.US: L3Harris Technologies, Inc. provides mission-critical solutions for government and commercial customers worldwide. It operates through three segments: Space & Mission Systems (SMS), Communications & Spectrum Dominance (CSD), and Missile Solutions (MSL). The SMS segment integrates satellite and payload capabilities, including missile warning and defense, with maritime, air special missions, and other global defense and civil government programs. Its MSL segment unites propulsion, hypersonic, and other advanced missile technologies. The CSD segment provides tactical radios, software, waveforms, satellite terminals, and end-to-end battlefield systems for the U.S. Department of Defense, international, federal, and state agency customers; broadband communications; integrated vision solutions, such as helmet-mounted integrated night vision goggles with image intensifier tubes and weapon-mounted sights, aiming lasers, and range finders; and public safety radios and system applications and equipment. The company was formerly known as Harris Corporation and changed its name to L3Harris Technologies, Inc. in June 2019. L3Harris Technologies, Inc. was founded in 1895 and is headquartered in Melbourne, Florida.

### Why customers stay

Margins ranged from 25.7% to 26.3% during 2023–25; it earns 20.6% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); FY2023: grossProfit / revenue = 26.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); FY2024: grossProfit / revenue = 25.9%.

- Source: https://www.sec.gov/Archives/edgar/data/202058/000020205826000015/hrs-20260102.htm (filed 2026-02-12); FY2025: grossProfit / revenue = 25.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); 10-year return on capital observations [[2016,0.4205254766266368],[2017,0.5693372263485115],[2018,0.7765884863089064],[2019,0.09713472552716894],[2020,0.21633649918238923],[2021,0.21518387545523757],[2022,0.19736711920259659],[2023,0.1450470898565511],[2024,0.1651161532859398],[2025,0.18229450437688424]]; median 0.2062754973289171. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back USD 1.2 billion of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); FY2016: growth capex 0; upkeep 152000000; owner earnings 533000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); FY2017: growth capex 0; upkeep 119000000; owner earnings 735000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); FY2018: growth capex 0; upkeep 136000000; owner earnings 822000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); FY2019: growth capex 0; upkeep 173000000; owner earnings 2054000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); FY2020: growth capex 0; upkeep 368000000; owner earnings 1783000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); FY2021: growth capex 0; upkeep 335000000; owner earnings 2478000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); FY2022: growth capex 0; upkeep 252000000; owner earnings 1748000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); FY2023: growth capex 0; upkeep 449000000; owner earnings 1944000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); FY2024: growth capex 0; upkeep 408000000; owner earnings 2383000000. Growth capex / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/202058/000020205826000015/hrs-20260102.htm (filed 2026-02-12); FY2025: growth capex 0; upkeep 424000000; owner earnings 2406000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); Dividend observations: [[2016,252000000],[2017,262000000],[2018,272000000],[2019,337000000],[2020,725000000],[2021,817000000],[2022,864000000],[2023,868000000],[2024,886000000],[2025,903000000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/202058/000020205826000015/hrs-20260102.htm (filed 2026-02-12); FY2025: cash repurchases 1154000000 USD.

### Are managers owners

Insiders own 0.5% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); LHX.US SharesStats.PercentInsiders = 0.451 percentage points; cache date 2026-10-16.

### What could break it

"Business and Operational Risks" (SEC filing, Feb 2026)

- Source: https://www.sec.gov/Archives/edgar/data/202058/000020205826000015/hrs-20260102.htm (filed 2026-02-12); Business and Operational Risks

### What the price says

The price assumes cash profits grow 5% yearly over ten years; actual growth was 12.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); Ten-year compound average after fade. Initial solved rate 0.05936124765371907. Price 240.5; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 4.02621722846442 → FY2025 12.770700636942674. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $89.21 per share

- 2016-11: $103.56 per share

- 2016-12: $102.47 per share

- 2017-01: $102.71 per share

- 2017-02: $109.90 per share

- 2017-03: $111.27 per share

- 2017-04: $111.89 per share

- 2017-05: $112.16 per share

- 2017-06: $109.08 per share

- 2017-07: $114.47 per share

- 2017-08: $122.90 per share

- 2017-09: $131.68 per share

- 2017-10: $139.32 per share

- 2017-11: $144.50 per share

- 2017-12: $141.65 per share

- 2018-01: $159.38 per share

- 2018-02: $156.15 per share

- 2018-03: $161.28 per share

- 2018-04: $156.42 per share

- 2018-05: $150.47 per share

- 2018-06: $144.54 per share

- 2018-07: $164.95 per share

- 2018-08: $162.51 per share

- 2018-09: $169.21 per share

- 2018-10: $148.71 per share

- 2018-11: $142.95 per share

- 2018-12: $134.65 per share

- 2019-01: $153.18 per share

- 2019-02: $164.93 per share

- 2019-03: $159.71 per share

- 2019-04: $168.50 per share

- 2019-05: $187.19 per share

- 2019-06: $189.13 per share

- 2019-07: $207.60 per share

- 2019-08: $211.41 per share

- 2019-09: $208.64 per share

- 2019-10: $206.31 per share

- 2019-11: $201.09 per share

- 2019-12: $197.87 per share

- 2020-01: $221.33 per share

- 2020-02: $197.73 per share

- 2020-03: $180.12 per share

- 2020-04: $193.70 per share

- 2020-05: $199.45 per share

- 2020-06: $169.67 per share

- 2020-07: $168.33 per share

- 2020-08: $180.74 per share

- 2020-09: $169.84 per share

- 2020-10: $161.11 per share

- 2020-11: $191.99 per share

- 2020-12: $189.02 per share

- 2021-01: $171.51 per share

- 2021-02: $181.91 per share

- 2021-03: $202.68 per share

- 2021-04: $209.23 per share

- 2021-05: $218.06 per share

- 2021-06: $216.15 per share

- 2021-07: $226.74 per share

- 2021-08: $233.01 per share

- 2021-09: $220.24 per share

- 2021-10: $230.54 per share

- 2021-11: $209.08 per share

- 2021-12: $213.24 per share

- 2022-01: $209.29 per share

- 2022-02: $252.31 per share

- 2022-03: $248.47 per share

- 2022-04: $232.26 per share

- 2022-05: $240.90 per share

- 2022-06: $241.70 per share

- 2022-07: $239.97 per share

- 2022-08: $228.19 per share

- 2022-09: $207.83 per share

- 2022-10: $246.47 per share

- 2022-11: $227.08 per share

- 2022-12: $208.21 per share

- 2023-01: $214.82 per share

- 2023-02: $211.19 per share

- 2023-03: $196.24 per share

- 2023-04: $195.15 per share

- 2023-05: $175.92 per share

- 2023-06: $195.77 per share

- 2023-07: $189.49 per share

- 2023-08: $178.09 per share

- 2023-09: $174.12 per share

- 2023-10: $179.41 per share

- 2023-11: $190.81 per share

- 2023-12: $210.62 per share

- 2024-01: $208.42 per share

- 2024-02: $211.66 per share

- 2024-03: $213.10 per share

- 2024-04: $214.05 per share

- 2024-05: $224.83 per share

- 2024-06: $224.58 per share

- 2024-07: $226.89 per share

- 2024-08: $236.67 per share

- 2024-09: $237.87 per share

- 2024-10: $247.47 per share

- 2024-11: $246.25 per share

- 2024-12: $210.28 per share

- 2025-01: $212.01 per share

- 2025-02: $206.11 per share

- 2025-03: $209.31 per share

- 2025-04: $220.02 per share

- 2025-05: $244.34 per share

- 2025-06: $250.84 per share

- 2025-07: $274.82 per share

- 2025-08: $277.62 per share

- 2025-09: $305.41 per share

- 2025-10: $289.10 per share

- 2025-11: $278.69 per share

- 2025-12: $293.57 per share

- 2026-01: $342.85 per share

- 2026-02: $364.54 per share

- 2026-03: $345.15 per share

- 2026-04: $320.55 per share

- 2026-05: $315.18 per share

- 2026-06: $290.59 per share

- 2026-07: $277.06 per share

- 2026-08: $266.25 per share

- 2026-09: $236.78 per share

- 2026-10: $234.72 per share

## Annual estimated value (USD per share)

- FY2016: low $52.01 per share, central $61.90 per share, high $71.61 per share

- FY2017: low $58.30 per share, central $65.93 per share, high $76.09 per share

- FY2018: low $64.67 per share, central $73.25 per share, high $84.66 per share

- FY2019: low $112.06 per share, central $133.44 per share, high $154.83 per share

- FY2020: low $125.29 per share, central $149.90 per share, high $173.91 per share

- FY2021: low $130.58 per share, central $148.19 per share, high $171.62 per share

- FY2022: low $131.23 per share, central $148.94 per share, high $172.51 per share

- FY2023: low $114.99 per share, central $130.72 per share, high $151.66 per share

- FY2024: low $126.21 per share, central $143.48 per share, high $166.46 per share

- FY2025: low $142.94 per share, central $162.19 per share, high $187.81 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:35:34.746Z where newer inputs omit a numeric field or fiscal period.

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/202058/000020205826000015/hrs-20260102.htm); period 2026-01-02, filed 2026-02-12.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.