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Why L3Harris (LHX) Is Up 6.5% After Rocketdyne Spin-Off And Raised 2026 Guidance

Simply Wall St · 1d ago
  • In late July and early August 2026, L3Harris Technologies reported higher quarterly sales and earnings, raised its 2026 revenue and EPS guidance, completed a multi-year share repurchase program, and saw AE Industrial Partners acquire its space propulsion, power and electronics units to form Rocketdyne, with L3Harris retaining a minority stake and ongoing partnership.
  • The separation of Rocketdyne as an independent company under former L3Harris executive Kristin Houston, combined with long-term PAC-3 MSE and THAAD propulsion agreements with the Department of War and Lockheed Martin, reshapes L3Harris’s role in the missile supply chain while preserving exposure to space propulsion through its retained stake.
  • We’ll now examine how the long-term PAC-3 MSE and THAAD propulsion framework agreements may reshape L3Harris’s existing investment narrative.

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L3Harris Technologies Investment Narrative Recap

To own L3Harris today, you generally need to believe in resilient demand for advanced missile and space systems and the company’s ability to execute large, complex programs. The new PAC-3 MSE and THAAD propulsion frameworks look like the key short term catalyst, while contract execution and reliance on other prime contractors remains a central risk. The Rocketdyne separation and minority stake tweak the story, but do not appear to change that fundamental balance.

The THAAD and PAC-3 framework agreements, which outline seven years of propulsion production and significant capacity expansion, are the most relevant announcements here. They tie directly into the missile supply chain role that Rocketdyne’s separation reshapes, and they underpin the current focus on Missile Solutions as a driver for earnings, even as L3Harris continues investing heavily in new propulsion facilities and automation.

Yet behind the positive contract headlines, investors should also be aware that dependence on other contractors in these missile programs could...

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

L3Harris Technologies' narrative projects $28.1 billion revenue and $3.1 billion earnings by 2029. This requires 7.0% yearly revenue growth and about a $1.2 billion earnings increase from $1.9 billion today.

Uncover how L3Harris Technologies' forecasts yield a $374.00 fair value, a 29% upside to its current price.

Exploring Other Perspectives

LHX 1-Year Stock Price Chart
LHX 1-Year Stock Price Chart

Some of the lowest ranked analysts were assuming only about US$27.2 billion of revenue and roughly US$2.8 billion of earnings by 2029, so if you are weighing this more cautious view against the new THAAD and PAC 3 agreements, it is worth considering how much these long duration contracts and capacity investments might shift both the downside and upside narratives from here.

Explore 3 other fair value estimates on L3Harris Technologies - why the stock might be worth just $343.27!

The Verdict Is Yours

Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts.

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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.