L3Harris Technologies, IncNYSE: LHX
Industrials · Aerospace & Defense
$295.51
-5.64%
Vol: 1.6M
Research Digest
Friday, June 19, 2026
L3Harris is advancing the IPO of its Axyv missile division, tapping JPMorgan and Morgan Stanley for a deal of up to $2 billion expected as soon as next month, lifting shares.
On June 16, 2026, reports (Bloomberg) said L3Harris selected JPMorgan and Morgan Stanley to lead the IPO of its Axyv missile systems division, which could raise up to $2 billion as soon as next month, following a confidential filing in April and a roughly $1 billion U.S. Department of Defense investment. L3Harris is expected to retain majority control, and the spinoff is seen as a way to unlock value and fund production expansion; the stock rose about 2% to near $309 on the news, which remains an active catalyst into June 19. Separately, L3Harris was selected by the U.S. Army to deliver VAMPIRE counter-drone systems in an order worth up to $106 million, reinforcing demand. Q1 2026 results showed $5.74 billion revenue (up about 6%), $2.72 EPS, $7.8 billion in orders, and a record $40.7 billion backlog. Analyst sentiment is constructive (Moderate/Strong Buy). Risks include IPO execution and pricing, a premium ~32x P/E modestly above fair value, and dependence on government defense budgets.
Previous Market Intelligence
13 daysJun 18No significant overnight updatesNeutral▶
No material news in the last 48 hours.
Jun 17L3Harris won a U.S. Army contract worth up to $106 million to deliver VAMPIRE counter-drone systems, with reports it may be preparing an IPO of its missile (Axyv) division.Positive▶
L3Harris was selected by the U.S. Army to deliver VAMPIRE counter-unmanned aircraft systems under a contract worth up to $106 million, announced around June 10, 2026; the system has logged over 350,000 operational hours in European combat since 2023. Separately, reports indicate L3Harris is preparing an IPO for its Axyv missile division, though the company declined to comment. These follow a strong fiscal Q1 2026 with EPS of $2.72 (vs. $2.52 expected) and revenue of $5.7 billion (vs. $5.43 billion expected), and a $25 million Huntsville manufacturing expansion. The stock trades near $304 with an analyst consensus target of ~$382, suggesting perceived undervaluation amid rising global defense budgets. Bear case: shares are roughly flat year-to-date despite strong fundamentals, and a missile-division IPO carries execution and valuation uncertainty.
Jun 16No significant overnight updatesNeutral▶
No material news in the last 48 hours.
Jun 15No significant overnight updatesNeutral▶
No material news in the last 48 hours. A June 10 counter-drone delivery announcement to the U.S. Army falls outside the 48-hour window.
Jun 14L3Harris was selected by the US Army to deliver VAMPIRE counter-drone systems under a contract worth up to $106 million, reinforcing its counter-UAS franchise.Positive▶
L3Harris Technologies (LHX) announced on June 10, 2026 that the US Army selected it to deliver VAMPIRE (Vehicle-Agnostic Modular Palletized ISR Rocket Equipment) counter-unmanned aircraft systems under a contract worth up to $106 million. The system provides reconnaissance and strike capability against drones and remotely piloted aircraft and has logged more than 350,000 operational hours in European combat since 2023. The award builds on L3Harris's strong fiscal Q1 2026, when EPS of $2.72 beat the $2.52 estimate on revenue of $5.7 billion versus $5.43 billion expected. It also follows a $170 million Falcon IV communications order from a Central European nation and a $25 million Huntsville manufacturing expansion. Analysts rate the stock Buy and see it as undervalued versus targets. The risk is heavy reliance on government defense budgets and program timing.
May 21L3Harris launched Wraith Shield counter-drone AI software on May 13 and raised 2026 EPS guidance to $11.40-$11.60 after Q1 revenue of $5.744B beat consensus by 12% YoY growth.Positive▶
L3Harris Technologies posted Q1 2026 revenue of $5.744B (up 12% YoY) and EPS of $2.72 vs the $2.58 consensus, prompting management to raise full-year EPS guidance to $11.40-$11.60. Shareholders re-elected all directors at the May 11 annual meeting and rejected a proposal to ease calling special meetings; the company continues to pursue an IPO of its Missile Solutions segment (backed by a $1B DoW convertible preferred) and to sell a majority stake in Space Propulsion & Power. On May 13, L3Harris and DataShapes AI unveiled Wraith Shield software, turning over 100,000 fielded tactical radios into AI-enabled counter-drone systems starting with the AN/PRC-171. Shares are near $307 despite a 15% monthly drawdown. Analyst actions include Bernstein cutting target to $405 and Deutsche Bank lowering to $300.
May 20L3Harris trading near $307-$302 in mid-May 2026 after 15% drawdown despite Q1 EPS beat of $2.72, raised FY guidance, and consensus PT of $382.53; Wraith Shield counter-drone launch May 13.Mixed▶
L3Harris stock is trading near $307.62 as of May 15, 2026, but has absorbed a 15% drawdown over the past month despite operationally strong results. Q1 EPS of $2.72 beat the $2.58 estimate and $5.7B revenue exceeded $5.4B consensus, with management raising full-year EPS guidance to $11.40-$11.60. On May 13, L3Harris and DataShapes AI announced Wraith Shield software, turning 100,000+ fielded tactical radios into AI-enabled counter-drone systems. The Missile Solutions (MSL) business, recently named Axyv, has filed a confidential S-1 with an IPO targeting H2 2026 following a $1B DoD strategic investment. CEO Christopher Kubasik presents at the Bernstein Strategic Decisions Conference May 27. Consensus PT of $382.53 implies meaningful upside from current levels. Risk: defense budget uncertainty and the recent drawdown suggest near-term technical weakness despite strong fundamentals.
May 19L3Harris finalizes deep space nuclear power source design and unveils Wraith Shield counter-drone software on May 13 and May 15.Positive▶
L3Harris announced on May 13 the Wraith Shield counter-drone software that turns 100,000+ Wraith-capable tactical radios into AI-enabled counter-drone systems via the AN/PRC-171 platform. On May 15, the company finalized design of its Next-Gen Radioisotope Thermoelectric Generator for NASA. May 7 saw selection by the US Air Force for ABMS digital infrastructure. CEO Kubasik presents at Bernstein May 27. Shares around $307 after a 15% monthly drawdown despite raised FY guidance ($11.40-$11.60 EPS). Risk: shareholder rejection of governance reform.
May 18L3Harris launched AI-enabled counter-drone Wraith Shield on May 13 and won U.S. Air Force ABMS digital infrastructure contract on May 7.Positive▶
On May 13, 2026, L3Harris and DataShapes AI unveiled Wraith Shield software, converting Wraith-capable tactical radios into AI-enabled counter-drone detection systems, deploying on the RF-9820S/AN/PRC-171 later in 2026. On May 7, the U.S. Air Force selected L3Harris to develop the secure digital infrastructure backbone for its Advanced Battle Management System network. Shares rose 3.3% on May 12 amid the news flow. At the May 11 annual meeting, shareholders re-elected all directors and rejected an easier-special-meeting reform, supporting management's missile-IPO and propulsion-divestiture plans. Bernstein lowered its target to $405 from $435 while JPMorgan and Argus maintained Buy.
May 15L3Harris wins US Air Force ABMS digital infrastructure contract and launches AI counter-drone Wraith Shield software on tactical radios.Positive▶
L3Harris was selected on May 7, 2026 by the US Air Force to develop key features of the secure, resilient digital infrastructure backbone for the Advanced Battle Management System (ABMS) command-and-control network. On May 13, L3Harris and DataShapes AI announced Wraith Shield software that converts existing Wraith-capable tactical radios into AI-enabled counter-drone detection and disruption systems. Q1 2026 (released May 7) revenue was $5.74B vs $5.4B consensus and adjusted EPS $2.72 vs $2.58 estimate; FY EPS guidance lifted to $11.40-$11.60. Shares rose 3.3% on May 12 to ~$309 and trade near $307.62 on May 14. The 2026 annual meeting (May 11) saw all 11 directors re-elected with 92.2% participation. Risk: Bernstein cut PT to $405 from $435 on May 4, citing defense-budget pacing.
May 14Deutsche Bank cuts L3Harris price target to $300 from $326 even as company posts blowout Q1 with 15% organic growth and 1.4x book-to-billMixed▶
L3Harris shares rose 3.3% to $309.47 on May 12, 2026 following strong Q1 2026 results showing $5.74B revenue (beating $5.4B consensus) and $2.72 diluted EPS (vs $2.58 estimate) with 15% organic revenue growth. The book-to-bill ratio hit 1.4x with $7.8B in bookings against $5.7B in revenue, signaling strong backlog momentum. On May 7, the U.S. Air Force selected L3Harris to develop key features of the Advanced Battle Management System (ABMS) secure digital infrastructure. The May 11 annual meeting saw all eleven directors elected. The company declared a $1.25 quarterly dividend with ex-date June 5. On May 12, Deutsche Bank lowered its price target to $300 from $326 while Bernstein trimmed to $405 from $435, though Goldman Sachs and Argus reaffirmed Buy.
May 13L3Harris shares rose 3.3% to $309.47 on May 12 after winning a U.S. Air Force contract on May 9 to build digital infrastructure for the Advanced Battle Management System (ABMS) network.Positive▶
On May 9, 2026, the U.S. Air Force selected L3Harris to develop the secure digital infrastructure underpinning the ABMS command-and-control network, a core element of the DoD's CJADC2 strategy. Shares rose 3.3% to $309.47 on May 12 on the win. On May 11, the company held its annual shareholder meeting where all 11 directors were re-elected with 92.2% of shares voting. The award builds on Q1 2026 revenue of $5.74B (+11.9% YoY) and raised full-year EPS guidance of $11.40-$11.60. Risk: insider selling and a recent 15% drawdown suggest caution despite the operationally strong quarter.
May 12L3Harris selected by US Air Force on May 9 to develop digital infrastructure backbone of Advanced Battle Management System (ABMS) networkPositive▶
The US Air Force selected L3Harris on May 9, 2026 to develop key features of the secure and resilient digital infrastructure underpinning its Advanced Battle Management System (ABMS) command and control network, strengthening data integration and providing real-time battlefield visibility. The win follows strong Q1 2026 results with revenue of $5.74B (beat $5.4B estimate) and EPS of $2.72 (beat $2.58), prompting raised full-year EPS guidance to $11.40-$11.60. L3Harris also confidentially filed an S-1 for its newly created Missile Solutions IPO under the name Axyv after a $1B Department of War investment closed in April, targeting H2 2026. Despite operational strength shares trade near $302, down 15% in a month. J.P. Morgan and Argus reaffirmed Buy in early May; Bernstein cut its target to $405 from $435.
Sector Peers
| Company | Price | Day | 1M | Fwd P/E | Beta | Mkt Cap |
|---|---|---|---|---|---|---|
| LHXL3HARRIS | $295.51 | -5.64% | — | 22.1x | 0.75 | $56.3B |
| GEGENERAL | $359.14 | +0.59% | — | 43.4x | 1.35 | $394.4B |
| RTXRTX | $186.23 | -3.30% | — | 26.3x | 0.30 | $268.3B |
| BABOEING | $223.65 | -0.88% | — | 54.1x | 1.21 | $178.5B |
| LMTLOCKHEED | $512.63 | -3.70% | — | 17.0x | 0.11 | $125.9B |
| HWMHOWMET | $278.83 | -1.55% | — | 44.9x | 1.19 | $108.2B |
Key Fundamentals
RSI (14-Day)
52-Week Range
Moving Averages
Price below 200d MA — bearish structure.