L3Harris (LHX) Stock Forecast & Price Target

L3Harris Technologies has demonstrated robust growth across its various segments, with a notable 12% increase in organic sales at Aerojet and a strong 15% rise in the missile solutions business for the quarter. The company has also increased its revenue guidance for 2025 by $100 million in both the IMS and SAS sectors, highlighting its positive momentum. Additionally, following strong performance, L3Harris has raised its free cash flow guidance for FY25 by $200 million to $2.65 billion, indicating a 9% uplift ahead of consensus expectations.

L3Harris Technologies is facing significant challenges reflected in its earnings report, with SAS operating margins dipping 30 basis points year-over-year to 12.3%, largely due to unfavorable asset sales and operational mix. Additionally, net EAC adjustments presented a substantial headwind of $15 million in 2Q25, marking a stark contrast to the prior year's results, which showed no negative impact. The company’s 2025 outlook indicates budget timing risks and declining activity in its Space segment, coupled with underperformance in the Integrated Mission Systems unit, which decreased 3% year-over-year, potentially undermining investor confidence.