L3Harris Technologies, Inc. (LHX)

FairStock Score: 53/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for durable demand, honest accounting, and a price that leaves room for error. L3Harris sells mission-critical defense, space, and communications systems to governments, work with long contracts, clearances, and high switching costs; that is a real moat, though defense budgets and program timing drive results. In fiscal year 2025, the year ended 2026-01-02, the 10-K reported revenue of $21.9B, net income of $1.6B, and diluted EPS of $8.53. In fiscal year 2024, the year ended 2025-01-03, net income was $1.5B and diluted EPS $7.87; in fiscal year 2023, the year ended 2023-12-29, net income was $1.2B and diluted EPS $6.44. Profits grew, but FairStock's Lynch category is SLOW GROWER, based on about 7.5% annual profit growth over five years. In fiscal Q2 2026, the quarter ended 2026-07-03, revenue was $5.9B, net income $600.0M, and diluted EPS $3.13, up from $512.0M and $2.72 in fiscal Q1 2026, the quarter ended 2026-04-03. Trailing free cash flow is $2.8B, a 6.4% FCF yield, and the Piotroski F-Score is 8/9. But ROE is 9.34% and ROCE is 4.38%, while the Altman Z-Score is 1.57. At the 2026-10-13 close of $234.72, FairStock's P/E is 23.73, P/B is 2.20, and the Graham Number is $157.87, leaving a -48.68% margin of safety. A PEG of 0.85 offers some support if growth accelerates, but this is not a Graham bargain; the price already reflects much good news.

In plain English: L3Harris makes technology for military, space, and government customers. The business looks reasonably strong: sales and profits are growing and it produces plenty of cash. But the stock price looks high compared with the company's current earnings and accounting value.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-07-03) · fiscal Q1 2026 10-Q (period ended 2026-04-03) · fiscal Q4 2025 10-K (period ended 2026-01-02) · fiscal Q3 2025 10-Q (period ended 2025-10-03) · FY2025 10-K (period ended 2026-01-02) · FY2024 10-K (period ended 2025-01-03) · FY2023 10-K (period ended 2023-12-29)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer