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With a market cap of $37.5 billion, L3Harris Technologies, Inc. (LHX) is a leading provider of defense and aerospace solutions. Headquartered in Melbourne, Florida, L3Harris specializes in communication systems, surveillance technologies, and mission-critical defense solutions, serving government agencies and commercial markets worldwide.
Shares of L3Harris have underperformed the broader market over the past year. The stock has declined 6.9% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 20.7%. In 2025, LHX is down 5.4% compared to SPX’s 2.2% rise on a YTD basis.
Looking further, LHX has also underperformed compared to the SPDR S&P Aerospace & Defense ETF (XAR). The exchange-traded fund has gained about 20.8% over the past year.
L3Harris' shares have underperformed the broader index and peers due to subdued revenue growth, higher interest expenses, and integration challenges from recent acquisitions. The company reported Q4 earnings on Jan. 30, with shares seeing a modest gain. Adjusted EPS rose 4% year over year to $3.47, surpassing Wall Street’s $3.43 estimate, while revenue grew 3% to $5.52 billion, slightly above the $5.51 billion forecast. For 2025, L3Harris projects revenue between $21.8 billion and $22.2 billion, non-GAAP EPS is anticipated to be between $10.55 and $10.85, and adjusted free cash flow is estimated to be between $2.4 billion and $2.5 billion, reflecting a revised EPS methodology that excludes intangible amortization.
For the current fiscal year, ending in December, analysts expect L3Harris’ EPS to decline 15.1% year over year to $11.12 on a diluted basis. The company's earnings surprise history is robust. It beat the consensus estimate in all four quarters.
Among the 20 analysts covering LHX stock, the consensus rating is a “Moderate Buy.” That’s based on 14 “Strong Buy” ratings, five “Holds,” and one “Strong Sell.”
This configuration is more bullish than two months ago, with 13 analysts suggesting a “Strong Buy.”
On Feb. 10, Citi (C) lowered L3Harris Technologies' price target to $285 from $291, maintaining a “Buy” rating, citing in-line Q4 results and a slight EPS reduction for 2025-2027 due to higher interest expenses.
The mean price target is $261.36, representing a premium of 31.3% compared to LHX’s current price levels. The Street-high price target of $324 suggests upside potential of 62.7%.
