Should L3Harris’ Earnings Beat and Raised Guidance Prompt Action From LHX Investors?

• L3Harris Technologies recently reported third-quarter 2025 earnings results, with sales rising to US$5.66 billion and net income increasing to US$462 million compared to the prior year.
• Beyond strong operational results, the company secured a US$2.2 billion international contract and raised its 2025 guidance, pointing to robust demand for its defense solutions.
• Next, we'll explore how the earnings beat and increased guidance influence L3Harris Technologies’ investment narrative and growth outlook.

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L3Harris Technologies Investment Narrative Recap

To be a shareholder in L3Harris Technologies, you need to believe in sustained defense spending, resilient international demand, and the company's ability to deliver on its high-value contracts and ongoing innovation. The recent earnings beat and updated 2025 guidance support near-term optimism and reinforce the view that management is executing well; however, the core short-term catalyst remains robust demand for missile defense and airborne surveillance platforms, while the greatest risk is ongoing budget constraints within the U.S. government. The immediate impact of this quarter's results does not materially change these key near-term drivers or risks.

The standout announcement this quarter was the $2.2 billion contract with South Korea for airborne early warning jets. This major international win underscores the company's exposure to global defense modernization trends, directly supporting one of L3Harris Technologies' most important growth catalysts and lending credibility to raised financial guidance.

On the other hand, investors should be aware that even with rising international orders, the risk of U.S. government budget uncertainty and funding delays...

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

L3Harris Technologies' narrative projects $24.9 billion in revenue and $2.7 billion in earnings by 2028. This requires 5.2% yearly revenue growth and a $1.0 billion increase in earnings from $1.7 billion today.

Uncover how L3Harris Technologies' forecasts yield a $323.28 fair value, a 12% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members set fair value estimates for L3Harris Technologies between US$323 and US$349, capturing two distinct perspectives on growth potential. While international contract wins boost optimism for some, others remain mindful of budget risks affecting future performance; explore these diverse opinions to balance your view.

Explore 2 other fair value estimates on L3Harris Technologies - why the stock might be worth just $323.28!

Build Your Own L3Harris Technologies Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your L3Harris Technologies research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.
• Our free L3Harris Technologies research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate L3Harris Technologies' overall financial health at a glance.

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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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