L3Harris Technologies (LHX) closed out FY 2025 with fourth quarter revenue of US$5.6b and basic EPS of US$1.60, alongside net income of US$300m, while trailing twelve month EPS stood at US$8.57 on revenue of US$21.9b and net income of US$1.6b. Over the past six quarters, the company has seen quarterly revenue move from US$5.3b in Q3 2024 to US$5.6b in Q4 2025, with basic EPS ranging between US$1.60 and US$2.47 and net income between US$300m and US$462m, setting a clear earnings profile for investors to assess. With a 7.3% net margin over the last year, this latest print gives investors a clear read on how profitability is holding up.

See our full analysis for L3Harris Technologies.

With the headline numbers on the table, the next step is to see how this earnings story lines up with the most common narratives around L3Harris and where the fresh data may challenge what investors think they know.

7.3% net margin keeps profitability steady

• Over the last 12 months, L3Harris converted US$21.9b of revenue into US$1.6b of net income, which works out to a 7.3% net margin compared with 7.0% the prior year.
• What stands out for the bullish view is that five year earnings growth of 1.2% per year and 7.1% growth over the last year now sit alongside this 7.3% margin, which
  • shows that earnings growth in the recent period has been stronger than the longer term average while margins have been stable rather than sharply compressed,
  • yet the improvement is still measured enough that it does not point to a dramatic profitability shift, so bulls need to weigh this gradual progress against their optimism on future earnings growth.

Stronger recent earnings growth and a 7.3% net margin help explain why some investors lean positive on L3Harris, while still keeping expectations grounded.

📊 Read the full L3Harris Technologies Consensus Narrative.

Valuation sits between DCF and peer multiples

• The shares trade at US$356.02 compared with a DCF fair value estimate of US$386.05, implying roughly 7.8% headroom to that DCF number, while the current P/E of 41.5x is close to the US Aerospace & Defense industry average of 41.7x but above the peer average of 36.8x.
• Critics highlight that the richer P/E versus peers could limit enthusiasm, and the numbers give both sides material to point to,
  • because anyone focusing on the DCF fair value can point to the 7.8% gap as a cushion, whereas investors who care more about relative P/E will see the 41.5x multiple as more demanding than the 36.8x peer average,
  • and both lenses are being applied to the same earnings base that has grown 1.2% per year over five years, which is steady but not aggressive compared with what a higher multiple might usually imply.

Forecast 15.2% earnings growth meets higher debt

• Forward looking data in the summary points to forecast earnings growth of 15.2% per year and revenue growth of 5.9% per year, alongside a 1.4% dividend yield and a flag that L3Harris carries a high level of debt.
• Bears argue that higher leverage is an important check on enthusiasm, and the figures underline why this trade off matters,
  • since the combination of 15.2% forecast earnings growth and a 1.4% dividend offers income plus growth on paper, yet the high debt level stands out in the risk summary and can limit flexibility if conditions tighten,
  • and with net margin at 7.3% and the stock already on a 41.5x P/E, skeptics can point to the balance between these obligations and future growth expectations as a key factor they want to see handled carefully.

For many investors, the real question is how comfortable they are with that mix of forecast growth, income, and leverage on top of today's valuation.

Next Steps

Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on L3Harris Technologies's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.

See What Else Is Out There

L3Harris pairs a 7.3% net margin and steady five year earnings growth with a relatively high P/E and a balance sheet flagged for high debt.

If that mix of richer valuation and higher leverage feels uncomfortable, use our solid balance sheet and fundamentals stocks screener (389 results) to quickly identify companies with stronger balance sheets and more financial flexibility.

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.