L3Harris Technologies (LHX) is back in focus after raising its 2026 revenue and earnings outlook, while reporting first quarter sales of US$5,744 million and diluted EPS from continuing operations of US$2.72.

The raised 2026 guidance and strong first quarter results come after a period where the share price has eased, with a 1 month share price return of down 12.5% and a 3 month share price return of down 9.1%. However, the 1 year total shareholder return of 44.2% and 3 year total shareholder return of 78.9% still point to solid longer term gains, suggesting that recent weakness may reflect changing risk perceptions rather than a reset of the broader story.

If this defense update has your attention, it could be a good moment to look at other companies tied to military and critical infrastructure demand through our 38 power grid technology and infrastructure stocks

So with stronger guidance, a recent share price pullback, and the stock trading around a 24% discount to one intrinsic value estimate and analyst targets near US$382, is there still a buying opportunity here, or is future growth already priced in?

Most Popular Narrative: 19.1% Undervalued

At the last close of $309.47, the most followed narrative places L3Harris Technologies' fair value at $382.53, using a structured long term cash flow view and a specific discount rate of 8.31%.

The analysts are assuming L3Harris Technologies's revenue will grow by 7.3% annually over the next 3 years. Analysts assume that profit margins will increase from 7.7% today to 10.7% in 3 years time.

Want to see what is driving that higher fair value? The narrative leans heavily on rising margins, steady revenue expansion, and a future earnings multiple that still compresses from today. Curious how those ingredients combine into one price target?

Result: Fair Value of $382.53 (UNDERVALUED)

However, the bullish narrative could be challenged if fixed price development contracts squeeze margins, or if tighter U.S. and European defense budgets limit future program funding.

Next Steps

With the mix of stronger guidance, recent share price weakness, and both risks and rewards in play, it makes sense to move quickly and test the story against your own expectations using the full breakdown of 6 key rewards and 2 important warning signs

Looking for more investment ideas?

If L3Harris has you thinking more broadly about your portfolio, this is the moment to widen the search and pressure test other opportunities before the market moves first.

• Target resilient value by scanning for companies that look mispriced on quality and fundamentals through the 44 high quality undervalued stocks.
• Secure your income stream by checking out stocks with higher yields and robust payout profiles via the 13 dividend fortresses.
• Reduce portfolio stress by focusing on companies with stronger finances using the 69 resilient stocks with low risk scores.

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.