Stock Analysis

Did U.S. Space Force's Adoption of ATLAS Just Shift L3Harris Technologies' (LHX) Investment Narrative?

  • On October 7, 2025, the U.S. Space Force announced operational acceptance of L3Harris Technologies' Advanced Tracking and Launch Analysis System (ATLAS), designed to improve space domain awareness, intelligence, and threat response capabilities under a US$90 million contract awarded earlier this year.
  • This milestone elevates L3Harris' profile as a partner in national security innovation and underscores the company's expanding role in U.S. defense space initiatives.
  • We'll explore how operational acceptance of the ATLAS system by the U.S. Space Force could influence L3Harris' future growth outlook.

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L3Harris Technologies Investment Narrative Recap

To be a shareholder in L3Harris Technologies, you need to believe in the company’s ability to capitalize on rising U.S. defense spending, leverage its technological edge in areas like space and missile defense, and adapt to evolving government priorities. The recent operational acceptance of the ATLAS system by the U.S. Space Force is a positive development, elevating L3Harris’s status in defense space technology, but it does not materially change the most important near-term catalyst: U.S. government budget allocations to the space sector. The biggest risk remains ongoing budget constraints that could limit or delay project funding, making future government contracts less predictable. A recent announcement relevant to this news is the completion of L3Harris’s 92,000 square foot, next-generation spacecraft manufacturing facility, supporting growth in national security space programs. This move, combined with the ATLAS milestone, reinforces the company’s presence in U.S. defense space initiatives, aligning with broader catalysts such as anticipated growth in the defense sector and enhanced revenue opportunities tied to advanced space technology. Both announcements illustrate L3Harris’s ongoing investments to support future contract wins and project execution. In contrast, investors should be aware that even with increased space sector capabilities, government budget pressures could still...

Read the full narrative on L3Harris Technologies (it's free!)

L3Harris Technologies' outlook anticipates $24.9 billion in revenue and $2.7 billion in earnings by 2028. This projection is based on an annual revenue growth rate of 5.2% and a $1.0 billion increase in earnings from the current level of $1.7 billion.

Uncover how L3Harris Technologies' forecasts yield a $302.58 fair value, in line with its current price.

Exploring Other Perspectives

LHX Community Fair Values as at Oct 2025
LHX Community Fair Values as at Oct 2025

Simply Wall St Community fair value estimates for L3Harris Technologies span from US$302.58 to US$331.16, based on two different views. Several see continued growth in defense spending as a key catalyst, yet market outcomes will depend on how government budget decisions affect future contract flow and revenue streams.

Explore 2 other fair value estimates on L3Harris Technologies - why the stock might be worth as much as 9% more than the current price!

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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.

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