L3Harris (LHX)
NYSEIndustrialsAerospace & DefenseSnapshot 2026-09-04
$256.45-2.17%
Close 2026-09-04 · 1-day change
NYSEIndustrialsAerospace & DefenseSnapshot 2026-09-04
QuarterlyIQ Insights · LHX
How strong the business is — where it ranks within its sector on capital efficiency and cash generation, and how well management has been executing.
How this business ranks within industrials on a research-validated quality screen. As of 2026-09-04.
The screen ranks LHX against its sector on four durable signals: share dilution, return on capital, free-cash-flow yield, and FCF margin. Historically the highest-quality names tended toward better typical outcomes and fewer bad years over multi-year holds (strongest at three years, modest at one), and that pattern showed up even before the price moved. It characterizes business quality, not price direction.
Each leg is a sector-relative percentile (higher is better); 4 of 4 legs were available for this name. The composite is built from these four; the raw value follows each percentile for context.
A forward quality tilt, not a price prediction, and context for your own research rather than a recommendation. Not investment advice.
How management runs the business: capital, margins, balance sheet, and how reliably they guide and deliver.
Each factor is a parallel diagnostic with a clear read of what it shows and how names like it have historically fared. Never aggregated into a single score.
Operating income rose in 2 of the last 3 quarter-over-quarter moves. Historically, Industrials names rated neutral grew net income 51% of the time over the next year (vs 60% for the rest of the cohort, n=9249).
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
A guidance track record builds as the company issues and delivers on guidance.
Priorities management has stated in recent disclosures, with status and evidence drawn from earnings calls, filings, and press releases.
Focus on revenue growth across all segments driven by new program ramps, international volume, and record backlog expansion.
Stated as a priority in 6 of last 6 quarters. Revenue grew from $5.1B in 2025-Q1 to $5.9B in 2026-Q2, driven by new program ramps and international volume. Backlog reached a record $42B by 2026-Q2. Management consistently emphasizes growth and backlog expansion, and the financials show delivering progress.
“Strong orders, record backlog and double-digit first half growth reinforce our multi-year track record”
“We delivered a strong start to the year with robust orders and revenue growth coupled with progress across our strategic priorities”
“2025 revenue increased 3%, 5% organically reflecting organic growth across all segments”
“Robust organic revenue growth of 10%, reflecting our commitment to operational excellence and relentless focus on execution”
“Second quarter revenue increased 2%, 6% organically, reflecting growth across all segments”
“We’re building on our momentum with a strong start to the year, driven by solid operational execution and program performance”
Sustain and expand operating margins through improved program performance, cost savings initiatives, and portfolio mix optimization.
Management stated this priority in 6 of last 6 quarters. Operating margin improved from 10.2% in 2025-Q1 to 11.1% in 2026-Q2, and segment operating margin rose from 15.7% to 16.0% over the same period. The trajectory matches management's stated focus on margin expansion and cost savings, showing delivering progress.
“Operating margin of 11.1%, up 60 bps; Segment operating margin of 16.0%”
Deliver earnings per share growth consistent with or exceeding guidance through operational execution and financial discipline.
Stated in 6 of last 6 quarters. Diluted EPS increased from $2.04 in 2025-Q1 to $3.13 in 2026-Q2, reflecting strong earnings growth. Management raised 2026 EPS guidance to $11.8-$12.0 from $11.4-$11.6, consistent with delivering on earnings commitments.
Drive cash flow growth through operational improvements and disciplined capital expenditures to support shareholder returns and investments.
Management stated this priority in 6 of last 6 quarters. Free cash flow improved from negative $72M in 2025-Q1 to positive $771M in 2026-Q2, and operating cash flow rose from negative $95M to $879M over the same period. The trajectory shows delivering progress in cash generation and capital discipline.
Management prioritizes increasing revenue guidance and achieving sustained revenue growth across all segments through new program ramps and international demand.
Over the trailing year it converted 0.51x of net income into operating cash flow. Historically, Industrials names rated fragile grew net income 48% of the time over the next year (vs 59% for the rest of the cohort, n=4997).
Most sensitive to the broad stock market.
Not enough signal to read sensitivity to the US dollar, real (inflation-adjusted) rates, long-term interest rates, Fed net liquidity (low R² over the window).
10 material management or governance events in the past 24 months, led by executive changes. Historically, Industrials names rated neutral grew net income 58% of the time over the next year (vs 56% for the rest of the cohort, n=3431).
Not investment advice. As of 2026-09-04.
“Operating margin was 11.4% up 120 bps; Segment operating margin of 15.7% up 10 bps”
“2025 GAAP operating margin increased driven primarily by higher monetization of legacy end-of-life assets”
“Adjusted segment operating margin of 15.9%, up 10 bps”
“Adjusted segment operating margin expanded 30 bps to 15.9%”
“Adjusted segment operating margin expanded 50 bps to 15.6%”
“Diluted EPS of $3.13, up 28%”
“GAAP diluted EPS of $2.72, up 33%”
“Diluted EPS of $1.59; Non-GAAP diluted EPS of $2.86”
“Diluted EPS $2.46; Non-GAAP diluted EPS $2.70, up 10%”
“Diluted EPS of $2.44; Non-GAAP diluted EPS of $2.78, up 16%”
“Diluted EPS of $2.04; Non-GAAP diluted EPS of $2.41”
“Operating cash flow of $879 million; Free cash flow of $771 million, both up 37%”
“Cash used in operations was ($95) million; Free cash flow of ($187) million”
“Cash from operations $1.96 billion; Adjusted free cash flow $1.86 billion”
“Cash from operations $546 million; Adjusted free cash flow $449 million”
“Cash from operations $640 million; Adjusted free cash flow $574 million”
“Cash used in operations ($42) million; Adjusted free cash flow ($72) million”