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    Why L3Harris Technologies (LHX) Is Back In The Spotlight

    Simply Wall St·09/10/2026 23:30:44
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    L3Harris Technologies (LHX) has received a US$4.7 billion undefinitized contract from Lockheed Martin to supply propulsion systems for PAC-3 MSE interceptors. The contract extends over seven years and reinforces the company’s focus on missile solutions.

    L3Harris Technologies’ share price has come under pressure in recent months, with the stock down 19.31% on a 90 day share price return basis and 18.43% year to date. However, the 3 year total shareholder return of 53.36% and 5 year total shareholder return of 24.15% point to a stronger longer term record. This new US$4.7b PAC 3 contract may influence how investors weigh near term execution risk against that longer track record.

    Scan 39 power grid technology and infrastructure stocks to see which defense and infrastructure companies, alongside L3Harris Technologies, are positioning for sustained demand in missiles, radar and grid upgrades.

    L3Harris Technologies now sits at a lower share price with a fresh US$4.7b contract in hand. Do you pay up for that contract today, or wait for an even cheaper entry before the valuation work stacks up for you?

    Most Popular Narrative: 27.6% Undervalued

    The most followed narrative puts L3Harris Technologies' fair value at $343.27 against a last close of $248.37, framing the recent PAC-3 win inside a bigger rerating story.

    The U.S. defense budget is expected to grow, with new defense initiatives and a potential increase in funding that could benefit L3Harris, supporting revenue growth. L3Harris is well-positioned in several key growth areas, such as missile warning and tracking, due to recent investments and capability alignment, likely increasing future revenue.

    Read the complete narrative.

    Want to see how that growth script actually translates into a higher fair value for L3Harris Technologies? The narrative leans heavily on compounding revenue, rising margins and a future earnings multiple that has to stay above a tight threshold. Curious which specific assumptions need to hold together for that $343.27 figure to stack up over time?

    Result: Fair Value of $343.27 (UNDERVALUED)

    Have a read of the narrative in full and understand what's behind the forecasts.

    Still, L3Harris Technologies faces real pressure if fixed price missile and space contracts squeeze margins, or if U.S. and European defense budgets tighten unexpectedly.

    Find out about the key risks to this L3Harris Technologies narrative.

    Next Steps

    Mixed on the story so far? Take a moment now to weigh the upside against the pressure points by reviewing the full breakdown in the 6 key rewards and 1 important warning sign.

    Looking for more investment ideas beyond L3Harris Technologies?

    If L3Harris Technologies has your attention, do not stop here. Use this moment to scan the wider market and line up your next set of candidates.

    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.