What happened with LHX today?
No read yet
Uses news and trading volume to explain the day’s move and how it relates to the market.
Stop guessing. Get the call, a three-month target price, the best and worst cases, and a source for every claim.
L3Harris Technologies helps military and government customers communicate securely, gather intelligence and operate aircraft and space missions. It supplies equipment and combines sensors, communications and other components into working systems. Communications, aircraft mission systems and space systems generate most of its revenue. Its Aerojet Rocketdyne business also makes propulsion and armament systems for missiles and space missions.
Most revenue comes from the U.S. Government, either directly or through larger contractors that buy L3Harris equipment and services for their programs. International governments and allies are also customers. Most contracts have fixed prices, so controlling delivery costs matters to profit: L3Harris benefits from savings but bears overruns. Other government contracts reimburse allowable costs and pay an additional fee. Payments generally arrive as work progresses or milestones are met, with final amounts paid after delivery and acceptance.
The business depends heavily on U.S. Government program funding and procurement decisions. Congress authorizes funding over time, and the government can change or cancel contracts. Certain international sales require U.S. export licenses and other approvals, and Congress can block or delay proposed sales to foreign governments.
The risk section is the longest, dullest part of the filing. This keeps only what can really hurt you: where it hits, how hard, when it plays out.
Every company claims an edge. Each one is checked against hard numbers like margins and returns: which hold, and which line gives way first.
L3Harris depends heavily on U.S. and allied defense procurement; BAE Systems and Thales are also important rivals to watch beyond this list.
Northrop Grumman competes with L3Harris for defense mission systems, space systems and intelligence programs, tying both to U.S. military and intelligence procurement. Watch its awards and procurement disputes in Mission Systems and Space Systems for clues to competition facing L3Harris.
Lockheed Martin competes with L3Harris to supply military mission systems and space capabilities to U.S. agencies and allies. Its Rotary and Mission Systems and Space results are the areas to watch for demand and rivalry in those shared markets.
RTX competes with L3Harris in systems sold to military and government customers, with its Raytheon business the closest overlap. Raytheon's defense results are more relevant to L3Harris than RTX's commercial aircraft engines and aftermarket services.
Elbit Systems competes with L3Harris to sell military radios, data links, electro-optical sensors and electronic warfare systems to defense customers. Its radio and data-link business is a concrete place to watch competition facing L3Harris's tactical communications products.
Leonardo DRS competes with L3Harris to supply electro-optical sensing, electronic warfare and integrated mission capabilities to U.S. national-security customers and allied forces. Its Advanced Sensing and Computing results offer a focused view of the sensing market that L3Harris also serves.
General Dynamics' Mission Systems business competes with L3Harris for defense customers' technology and integrated mission-system work. Watch that business within Technologies rather than its business jets, ships or combat vehicles when assessing competition for L3Harris.
Kratos competes with L3Harris in rocket propulsion, hypersonic technology and systems that command and control satellites, selling to U.S. and allied defense customers. Watch its rocket motors and satellite ground systems for developments in those overlapping markets.
Leidos competes with L3Harris for government national-security, digital and defense-system programs, leaving both heavily exposed to U.S. government purchasing. In fiscal 2025, U.S. government contracts generated 87% of Leidos revenue, making its National Security & Digital and Defense Systems results useful areas to watch.
CACI competes with L3Harris to provide government customers with cyber, network and intelligence mission technologies, drawing most of its business from U.S. agencies. Its contract wins for software, data platforms and network capabilities are concrete signs of competition in these shared markets.
Teledyne competes with L3Harris in imaging, defense electronics and satellite-communications capabilities sold into industrial and defense markets. Its Aerospace and Defense Electronics results provide a more focused comparison than total sales, which also include instruments and other industrial technologies.
Karman Holdings shares L3Harris's exposure to missile and space-program production: it sells structures and propulsion systems mainly to contractors that deliver complete programs, while L3Harris supplies propulsion and armament systems. Watch Karman's hypersonic and strategic missile-defense revenue for demand in a program category both serve.
Boeing competes with L3Harris through Defense, Space & Security, but its sales of commercial aircraft to airlines bring substantial unrelated drivers. Watch that defense and space segment rather than commercial-aircraft results when judging what Boeing's news means for L3Harris.
RTX Corporation earningsRTX
RTX's Raytheon defense results will show how demand is changing for systems it and L3Harris both sell, and whether this competitor is gaining momentum.
Focus on Raytheon's defense results alongside progress on relevant programs and orders. Stronger business and a firm order picture would point to more government demand for systems both companies sell, but also a more capable rival for L3Harris. Weak results and little order momentum would offer less evidence of competitive pressure, but would not show that orders went to L3Harris. The takeaway is how strong shared-market demand and RTX's competitive momentum appear.
CACI INTERNATIONAL CLA earningsCACI
CACI's contract wins and related business results will show whether it is gaining ground against L3Harris in government cyber, network and intelligence programs.
Read CACI's contract wins alongside results in National Security & Digital and Defense Systems. More wins and stronger related business would show government customers placing more work with CACI in shared network, software and intelligence markets, making similar contracts harder for L3Harris to win. Fewer wins or weaker results would indicate less momentum from CACI, not that L3Harris has secured the work. The conclusion is how much government purchasing is intensifying this competition.
L3Harris Technologies, Inc. earningsThis company
L3Harris's report will show whether it can turn contracted work into delivered revenue while protecting margins and operating cash flow.
Read revenue, operating margin and operating cash flow together. Rising revenue with a steady or improving margin and solid cash flow would show that L3Harris is delivering more work without fixed-price contract costs eating into profit, and that cash is keeping pace. Slower revenue, a falling margin or weaker cash flow would raise questions about delivery delays, rising program costs or the timing of collections. The conclusion is whether L3Harris is turning its contracts into profitable deliveries that bring in cash.
Leonardo DRS, Inc. earningsDRS
Leonardo DRS's Advanced Sensing and Computing results will show how defense-customer demand is changing in a sensing market it shares with L3Harris.
Watch Leonardo DRS's Advanced Sensing and Computing results for signs of demand for its sensing products. Stronger results would indicate support from defense customers for these capabilities, while also showing L3Harris faces a more active competitor in this market. Weaker results would mean less momentum for the rival's business, but could also reflect softer market demand and would not by itself prove L3Harris gained share. The conclusion is how demand and competition are developing in this shared market.
Kratos Defense & Security Solutions, Inc. earningsKTOS
Kratos's rocket-motor results will show how demand is changing in related missile and hypersonic programs, where it competes with L3Harris in propulsion.
Focus on Kratos's rocket-motor results and progress in related programs. Stronger business and rising program demand would point to more work in propulsion markets, but also a more active rival for L3Harris's Aerojet Rocketdyne business. Weaker results or slower progress would suggest less momentum from Kratos, not that orders have shifted to L3Harris. The conclusion is how strong demand and competitive pressure are in propulsion.
Elbit Systems Ltd earningsESLT
Elbit Systems' radio and data-link results will show whether it is gaining defense orders in markets where its products compete with L3Harris tactical communications.
Watch Elbit Systems' radio and data-link results alongside related order progress. Stronger business and more orders would show demand for these products and more active competition for L3Harris's tactical communications offerings. Weaker business or fewer orders would mean less momentum for Elbit in this market, but would not establish that L3Harris won the orders. The conclusion is how active the shared communications market is and whether this rival is gaining ground.
