📊 LHX Key Takeaways
Is L3Harris Technologies, Inc.. /DE/ (LHX) a Good Investment?
L3Harris demonstrates adequate profitability margins (8.9% net margin) typical of defense contractors, but faces critical cash generation issues with negative operating cash flow of -95M and negative free cash flow of -194M despite reporting positive accounting earnings. Poor capital efficiency (ROE 2.6%, ROA 1.2%) and deteriorating liquidity position (current ratio 1.03x, quick ratio 0.89x) signal structural financial stress that contradicts the stability expected from a mature defense/aerospace supplier.
L3Harris generates strong free cash flow (12.3% FCF margin) with excellent interest coverage (30.6x) and moderate leverage, underpinning durable fundamentals. Liquidity is adequate and EPS rose 8.4% YoY despite flat net income, indicating effective capital allocation. While margins and returns are mid-tier, the cash profile and balance sheet quality support a constructive outlook.
Why Buy L3Harris Technologies, Inc.. /DE/ Stock? LHX Key Strengths
- Solid gross margin of 32.6% demonstrates pricing power and operational efficiency in core business
- Manageable leverage with debt-to-equity of 0.47x and strong interest coverage of 9.4x showing adequate debt servicing capacity
- Operating income of $652M and net income of $512M indicate profitable underlying operations
- Strong free cash flow generation and cash conversion
- Excellent interest coverage with moderate leverage
- EPS growth outpacing net income, signaling efficient capital allocation
LHX Stock Risks: L3Harris Technologies, Inc.. /DE/ Investment Risks
- Negative operating cash flow of -95M and negative free cash flow of -194M in mature business indicates potential working capital deterioration or structural cash generation issues
- Weak capital efficiency with ROE of 2.6% and ROA of 1.2% suggests $41.4B in assets is not being productively deployed
- Liquidity stress signals with current ratio barely above 1.0 (1.03x) and quick ratio below 1.0 (0.89x) despite $9.2B long-term debt obligations
- Flat net income growth (+0.0% YoY) with EPS growth driven by share buybacks rather than organic expansion
- Flat net income YoY suggests limited near-term growth
- Low margin profile could face cost/mix pressure
- Liquidity just above 1x and cash modest relative to long-term debt
Key Metrics to Watch
- Operating cash flow trend and cash conversion rate - critical for investment viability
- Working capital management and customer payment cycles - may explain negative OCF
- Return on invested capital (ROIC) - must improve from current 1-2% range to justify capital base
- Liquidity position and cash reserve adequacy relative to debt maturity schedule
- Operating margin trajectory
- Free cash flow margin consistency
L3Harris Technologies, Inc.. /DE/ (LHX) Financial Metrics & Key Ratios
💡 AI Analyst Insight
L3Harris Technologies, Inc.. /DE/ presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
LHX Profit Margin, ROE & Profitability Analysis
LHX vs Market Sector: How L3Harris Technologies, Inc.. /DE/ Compares
How L3Harris Technologies, Inc.. /DE/ compares to Market sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is L3Harris Technologies, Inc.. /DE/ Stock Overvalued? LHX Valuation Analysis 2026
Based on fundamental analysis, L3Harris Technologies, Inc.. /DE/ has mixed fundamental signals relative to the Market sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
L3Harris Technologies, Inc.. /DE/ Balance Sheet: LHX Debt, Cash & Liquidity
LHX Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: L3Harris Technologies, Inc.. /DE/'s revenue has grown significantly by 20% over the 5-year period, indicating strong business expansion. The most recent EPS of $6.44 reflects profitable operations.
LHX Revenue Growth, EPS Growth & YoY Performance
LHX Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $5.1B | $386.0M | $2.04 |
| Q3 2025 | $5.3B | $400.0M | $2.10 |
| Q2 2025 | $5.3B | $366.0M | $1.92 |
| Q1 2025 | $5.1B | $283.0M | $1.48 |
| Q3 2024 | $4.9B | $383.0M | $2.02 |
| Q2 2024 | $4.7B | $349.0M | $1.83 |
| Q1 2024 | $4.5B | $283.0M | $1.48 |
| Q3 2023 | $4.2B | -$300.0M | $-1.56 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
L3Harris Technologies, Inc.. /DE/ Dividends, Buybacks & Capital Allocation
LHX SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for L3Harris Technologies, Inc.. /DE/ (CIK: 0000202058)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| May 12, 2026 | 4 | xslF345X06/wk-form4_1778620928.xml | View → |
| May 12, 2026 | 4 | xslF345X06/wk-form4_1778620916.xml | View → |
| May 12, 2026 | 4 | xslF345X06/wk-form4_1778620898.xml | View → |
| May 12, 2026 | 4 | xslF345X06/wk-form4_1778620878.xml | View → |
| May 12, 2026 | 4 | xslF345X06/wk-form4_1778620865.xml | View → |
❓ Frequently Asked Questions about LHX
What is the AI rating for LHX?
L3Harris Technologies, Inc.. /DE/ (LHX) has a Combined AI Rating of HOLD from Claude (SELL) and ChatGPT (BUY) with 72% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are LHX's key strengths?
Claude: Solid gross margin of 32.6% demonstrates pricing power and operational efficiency in core business. Manageable leverage with debt-to-equity of 0.47x and strong interest coverage of 9.4x showing adequate debt servicing capacity. ChatGPT: Strong free cash flow generation and cash conversion. Excellent interest coverage with moderate leverage.
What are the risks of investing in LHX?
Claude: Negative operating cash flow of -95M and negative free cash flow of -194M in mature business indicates potential working capital deterioration or structural cash generation issues. Weak capital efficiency with ROE of 2.6% and ROA of 1.2% suggests $41.4B in assets is not being productively deployed. ChatGPT: Flat net income YoY suggests limited near-term growth. Low margin profile could face cost/mix pressure.
What is LHX's revenue and growth?
L3Harris Technologies, Inc.. /DE/ reported revenue of $5.7B.
Does LHX pay dividends?
L3Harris Technologies, Inc.. /DE/ pays dividends, with $238.0M distributed to shareholders in the trailing twelve months.
Where can I find LHX SEC filings?
Official SEC filings for L3Harris Technologies, Inc.. /DE/ (CIK: 0000202058) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is LHX's EPS?
L3Harris Technologies, Inc.. /DE/ has a diluted EPS of $2.72.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is LHX a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, L3Harris Technologies, Inc.. /DE/ has a HOLD rating with 72% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is LHX stock overvalued or undervalued?
Valuation metrics for LHX: ROE of 2.6% (sector avg: 15%), net margin of 8.9% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy LHX stock in 2026?
Our dual AI analysis gives L3Harris Technologies, Inc.. /DE/ a combined HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is LHX's free cash flow?
L3Harris Technologies, Inc.. /DE/'s operating cash flow is $-95.0M, with capital expenditures of $99.0M. FCF margin is -3.4%.
How does LHX compare to other Market stocks?
Vs Default sector averages: Net margin 8.9% (avg: 12%), ROE 2.6% (avg: 15%), current ratio 1.03 (avg: 1.8).