NYSEIndustrialsAerospace & DefenseSnapshot 2026-08-31
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Create your account →Warn: Primary pillar under pressure — Achieve revenue near $23.25B in FY26: FY26 revenue guidance $23.2B-$23.7B vs $23.25B target.
L3Harris grows sales about 12% a year, helped by new orders and facility expansions. Profit margin is guided to stay near 16%. The company raised EPS guidance to about $11.5 for 2026. Free cash flow is expected above $3 billion, supporting financial strength.
The recent 18% stock drop shows market worries. Growth could slow below 12%. Profit margins might shrink under cost pressures. EPS could miss raised guidance if demand weakens.
The price is about 1% below our fair value near $298. Analysts expect roughly 12% revenue growth. Our view aligns with these expectations but sees risk from market stress.
Breaks if: EPS falls below $10.5 in FY26
Breaks if: free cash flow falls below $2.65B in FY26
Breaks if: operating margin falls below 15% in FY26
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a durable compounder with a focus on revenue growth and margin improvement. The current thesis state indicates a cautious watch due to recent mixed performance and management transitions.
The market currently prices LHX as relatively cheap compared to peers, with a slight expectations gap suggesting that some caution is already reflected in the valuation. The fragility in execution quality is noted, but the overall market sentiment remains neutral.
Management is on track with priorities to increase revenue and improve operating margins, as evidenced by recent financial performance. However, the recent CEO transition and a medium confidence level introduce some uncertainty in execution.
The long-term thesis hinges on the performance of sector bellwethers like SPCX, GE, and RTX, which could influence LHX's trajectory. Additionally, any significant changes in guidance or performance could impact credibility and market perception.
The most important moves since the prior daily snapshot.
Mixed, the news cuts both ways. The company beat earnings expectations recently. However, management stability decreased with the CEO's departure. This raises concerns about future leadership and execution. The market's revenue guidance remains unchanged despite the leadership change.
as of 2026-08-31
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Breaks if: revenue falls below $22B in FY26
The outlook for LHX over the next 1 to 3 years remains cautious, with several factors at play that could affect its performance. Not investment advice.
