L3Harris (LHX) Stock Forecast & Price Target

L3Harris Technologies has demonstrated robust financial performance, with notable organic sales growth of approximately 12% in its Aerojet segment and strong adjusted operating margins of 13.3%. Additionally, the company's increased revenue guidance for 2025 by $100 million reflects positive momentum in its Integrated Mission Solutions (IMS) and Space and Avionics Systems (SAS) sectors. The firm also achieved a 9% increase in free cash flow guidance for FY25 to $2.65 billion, bolstered by a 15% increase in its missile solutions business this quarter, indicating a solid foundation for continued profitability and growth.

L3Harris Technologies faces a challenging financial outlook due to declining operating margins and significant headwinds from estimated cost adjustments (EACs), which negatively impacted results by $15 million in 2Q25 compared to no impact in the prior year. The Integrated Mission Systems (IMS) division displayed a year-over-year decline of 3%, raising concerns despite a slight organic increase, indicating potential instability in performance across critical segments. Furthermore, the company's 2025 outlook is clouded by budget timing risks and expected softness in its Space segment, pointing to broader uncertainties in revenue generation and operational efficiency.