L3Harris Technologies, Inc. · LHX · FY2025 Q1 · Calendar Q2 2025
L3Harris Maintains Guidance as Margins Expand and Demand Broadens
The supplied analysis supports a constructive but qualified view: management maintained guidance and pointed to margin expansion, international awards, cost efficiencies and defense, space, satcom and AI growth opportunities. The case remains dependent on execution, budget timing, fixed-price program performance and European demand.
Earnings scorecard
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Transcript intelligence
What changed
Relative to the prior-quarter analysis, the current analysis emphasizes Q1 margin expansion to 15.6%, the $1.1 billion Dutch network modernization award, completion of the commercial aviation divestiture, and partnerships with Kuiper, Shield AI and Palantir. Guidance remained maintained, while the analysis added concerns around F-35 timing, classified-program margins, FY2026 budget visibility and pension and capital-deployment effects on EPS.
Guidance delta
Management maintained 2025 revenue guidance of $21.4-$21.7 billion, mid-15% operating margin guidance, and $2.4-$2.5 billion free cash flow guidance.
Key takeaways
- Q1 operating margin expanded to 15.6% despite a twelve-week quarter.
- Management highlighted a $1.2 billion LHX NEXT cost-saving run-rate and continued enterprise transformation.
- International growth included a $1.1 billion Dutch network modernization award.
- Partnerships with Kuiper, Shield AI and Palantir broaden hybrid satcom, AI-enabled electronic warfare and C5ISR offerings.
- Growth opportunities include defense appropriations, international awards, Golden Dome, Aerojet Rocketdyne and cost efficiencies.
Management priorities
- Complete LHX NEXT and achieve a $1.2 billion run-rate savings target.
- Pursue Golden Dome opportunities and launch additional HPTSS satellites.
- Scale hybrid satcom with Kuiper Government Solutions.
- Expand AI-enabled electronic-warfare capabilities with Shield AI and integrate Palantir Foundry.
- Continue portfolio optimization and integrate Aerojet Rocketdyne.
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Analyst 52W Price Targets
Latest persisted target per named analyst; persisted current price from FN2's market snapshot as of Oct 10, 2026. Not an FN2 forecast.
Firm-level rating actions
FMP grade actions identify the grading firm, not a named analyst.
| Firm | Rating | Prior rating | Action | Date |
|---|---|---|---|---|
| TD Cowen | Buy | Buy | Maintain | Oct 9, 2026 |
| Bernstein | Outperform | Outperform | Maintain | Sep 23, 2026 |
| UBS | Neutral | Neutral | Maintain | Aug 3, 2026 |
| Susquehanna | Positive | Positive | Maintain | Jul 31, 2026 |
| BNP Paribas | Neutral | Neutral | Maintain | Jul 30, 2026 |
| JP Morgan | Overweight | Overweight | Maintain | Feb 5, 2026 |
| Citigroup | Buy | Buy | Maintain | Feb 5, 2026 |
| Morgan Stanley | Overweight | Overweight | Maintain | Feb 2, 2026 |
| RBC Capital | Sector Perform | Sector Perform | Maintain | Jan 30, 2026 |
| Truist Securities | Buy | Buy | Maintain | Oct 15, 2025 |
| Barclays | Overweight | Overweight | Maintain | Jul 29, 2025 |
| Baird | Outperform | Outperform | Maintain | Jul 25, 2025 |
| Goldman Sachs | Buy | Sell | Upgrade | Apr 11, 2025 |
| Wells Fargo | Overweight | Overweight | Maintain | Apr 8, 2025 |
| Jefferies | Buy | Buy | Maintain | Mar 31, 2025 |
| B of A Securities | Buy | Buy | Maintain | Feb 4, 2025 |
| Raymond James | Market Perform | Outperform | Downgrade | Jan 2, 2025 |
| Deutsche Bank | Hold | Hold | Maintain | Jan 2, 2025 |
| Argus Research | Buy | Hold | Upgrade | Nov 26, 2024 |
| Wolfe Research | Outperform | Peer Perform | Upgrade | Oct 10, 2024 |
| Alembic Global | Overweight | Neutral | Upgrade | Apr 22, 2024 |
| Credit Suisse | Outperform | Outperform | Maintain | May 1, 2023 |
| Cowen & Co. | Outperform | Outperform | Maintain | Jan 12, 2023 |
| Benchmark | Hold | Buy | Downgrade | Apr 27, 2021 |
| Seaport Global | Buy | Buy | Maintain | May 19, 2020 |
| SunTrust Robinson Humphrey | Buy | Buy | Maintain | Apr 16, 2020 |
| CFRA | Buy | Buy | Maintain | Feb 4, 2020 |
| Buckingham Research | Buy | Buy | Maintain | Aug 8, 2019 |
| Vertical Research | Buy | Buy | Maintain | Jul 3, 2019 |
| Argus | Buy | Buy | Maintain | Apr 4, 2018 |
| Sterne Agee | Buy | Neutral | Upgrade | Feb 9, 2015 |
| Stifel Nicolaus | Hold | Hold | Maintain | May 21, 2013 |
| Oppenheimer | Underperform | Perform | Downgrade | Mar 6, 2013 |
| Lazard | Sell | Neutral | Downgrade | Oct 15, 2012 |
Named analyst price targets
Upside is calculated against the persisted current price $236.97. FMP does not supply a rating on these named-analyst rows.
| Firm | Analyst | 52W target | Price when posted | Upside | Date |
|---|---|---|---|---|---|
| Guggenheim | Analyst unavailable | $365 | $248.93 | +54.0% | Sep 14, 2026 |
| Jefferies | Analyst unavailable | $315 | $262.17 | +32.9% | Aug 26, 2026 |
| UBS | Gavin Parsons | $323 | $343.92 | +36.3% | Jan 14, 2026 |
| Truist Financial | Michael Ciarmoli | $364 | $343.76 | +53.6% | Jan 14, 2026 |
| Vertical Research | Robert Stallard | $355 | $350.48 | +49.8% | Jan 13, 2026 |
| Morgan Stanley | Analyst unavailable | $367 | $288.5 | +54.9% | Dec 16, 2025 |
| Morgan Stanley | Analyst unavailable | $350 | $299.99 | +47.7% | Oct 15, 2025 |
| Susquehanna | Charles Minervino | $300 | $260.96 | +26.6% | Jul 14, 2025 |
| Morgan Stanley | Kristine Liwag | $260 | $230.68 | +9.7% | Dec 19, 2024 |
| Jefferies | Sheila Kahyaoglu | $295 | $245.07 | +24.5% | Oct 30, 2024 |
| Citigroup | Jonathan Raviv | $291 | $244.52 | +22.8% | Oct 24, 2024 |
| Bernstein | Douglas Harned | $289 | $242.35 | +22.0% | Oct 11, 2024 |
| Wolfe Research | Myles Walton | $300 | $241.64 | +26.6% | Oct 10, 2024 |
| Deutsche Bank | Scott Deuschle | $250 | $244.66 | +5.5% | Oct 3, 2024 |
| Jefferies | Sheila Kahyaoglu | $275 | $230.09 | +16.0% | Aug 23, 2024 |
| RBC Capital | Sector Perform | $240 | $227.88 | +1.3% | Aug 14, 2024 |
| Morgan Stanley | Kristine Liwag | $257 | $230.62 | +8.5% | Aug 9, 2024 |
| Deutsche Bank | Scott Deuschle | $257 | $243.27 | +8.5% | Jul 26, 2024 |
| Deutsche Bank | Bryan Keane | $295 | $222.45 | +24.5% | Jun 19, 2024 |
| Wells Fargo | Matthew Akers | $245 | $214.75 | +3.4% | May 7, 2024 |
| Barclays | David Strauss | $245 | $217.06 | +3.4% | Apr 30, 2024 |
| RBC Capital | Ken Herbert | $250 | $215.63 | +5.5% | Apr 29, 2024 |
| US Capital Advisors | Peter Skibitski | $238 | $208.14 | +0.4% | Apr 22, 2024 |
| Robert W. Baird | Peter Arment | $219 | $180.12 | -7.6% | Oct 31, 2023 |
| Raymond James | Brian Gesuale | $210 | $174.36 | -11.4% | Oct 30, 2023 |
| Wells Fargo | Jonathan Raviv | $193 | $175.98 | -18.6% | Sep 18, 2023 |
| Wells Fargo | Matthew Akers | $209 | $172.72 | -11.8% | Sep 18, 2023 |
| Robert W. Baird | Peter Arment | $222 | $203.33 | -6.3% | Jul 26, 2023 |
| Credit Suisse | Scott Deuschle | $240 | $194.68 | +1.3% | Mar 27, 2023 |
| Wells Fargo | Analyst unavailable | $230 | $214.77 | -2.9% | Feb 1, 2023 |
| Cowen & Co. | Analyst unavailable | $240 | $199.91 | +1.3% | Jan 12, 2023 |
| Wells Fargo | Analyst unavailable | $219 | $201.95 | -7.6% | Jan 11, 2023 |
| Morgan Stanley | Analyst unavailable | $278 | $218.04 | +17.3% | Dec 15, 2022 |
| J.P. Morgan | Analyst unavailable | $250 | $215.61 | +5.5% | Dec 12, 2022 |
| RBC Capital | Ken Herbert | $285 | $231.97 | +20.3% | Aug 30, 2022 |
| Jefferies | Sheila Kahyaoglu | $300 | $235.21 | +26.6% | May 3, 2022 |
| Susquehanna | Analyst unavailable | $298 | $232.38 | +25.8% | May 2, 2022 |
| Raymond James | Analyst unavailable | $290 | $236.2 | +22.4% | Apr 29, 2022 |
| Jefferies | Sheila Kahyaoglu | $320 | $250.11 | +35.0% | Mar 14, 2022 |
| J.P. Morgan | Seth Seifman | $237 | $209 | +0.0% | Feb 1, 2022 |
| Susquehanna | Charles Minervino | $255 | $209 | +7.6% | Feb 1, 2022 |
| Wolfe Research | Michael Maugeri | $266 | $227.86 | +12.3% | Jan 14, 2022 |
| Goldman Sachs | Noah Poponak | $207 | $219.25 | -12.6% | Sep 23, 2021 |
| Cowen & Co. | Gautam Khanna | $250 | $219.05 | +5.5% | Sep 16, 2021 |
| Credit Suisse | Robert Spingarn | $254 | $226.35 | +7.2% | Aug 4, 2021 |
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Start freeCompany context
Snapshot as of publicationL3Harris Technologies, Inc. is a prominent technology firm specializing in aerospace and defense, delivering vital, high-stakes solutions to governmental and commercial clients across the globe. Its diverse operations are organized into several key segments: The Integrated Mission Systems division is responsible for providing versatile intelligence, surveillance, and reconnaissance (ISR) platforms, alongside various communication technologies. This unit also offers comprehensive support for fleet management, as well as the development, modification, and routine maintenance of sensors for ISR and airborne operations. Furthermore, it develops and integrates specialized mission systems tailored for naval vessels and maritime operations, including sophisticated signals and multi-intelligence platforms, autonomous surface and undersea vehicles, and advanced power and ship control electronics. Cutting-edge electro-optical and infrared technologies are also part of its offerings.…
Historical context
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Sources
- Earnings call transcript and parsed analysis · 2026-05-11T10:29:34.698584+00:00
- FN2 earnings calendar · 2025-04-10T00:01:43.729046+00:00
- Polygon adjusted daily market bars · 2026-10-10T09:00:42.616973+00:00
- Financial Modeling Prep analyst price-target consensus and quote snapshot · 2026-10-10T09:00:42.614226+00:00
Methodology
Reported and consensus figures come from FN2's earnings event records. Market reaction and volume are calculated from daily adjusted bars around the event; abnormal move subtracts the SPY move over the same window.
Analyst target low, average, and high values are derived at request time from each named analyst's latest persisted FMP target. The current-price marker comes from FN2's persisted market snapshot. They are sell-side estimates, not an FN2 valuation or recommendation.
Transcript intelligence is a structured synthesis of the current and prior earnings-call analyses. Missing values stay missing and are never estimated.
By FN2 Research · Updated · As of 2026-10-10. For educational purposes only; not investment advice.