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How Is L3Harris' R&D Spending Driving Defense Technology Innovation?
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Key Takeaways
LHX invests in R&D to develop new technologies across communications, space and missile propulsion.
LHX's platform-agnostic approach helps adapt its technologies to changing defense requirements.
LHX combines innovation and flexibility to pursue new defense programs and customer opportunities.
L3Harris Technologies, Inc. (LHX - Free Report) is investing in research and development to expand its capabilities across defense and aerospace markets. The company spent $536 million on company-funded R&D in 2025, focusing on technologies that support its operations across multiple domains. This investment boosts its strategy of developing new solutions while responding to changing customer requirements.
L3Harris operates across communications, space and mission systems, integrated mission systems and missile propulsion. Its flexible business model allows it to serve as a prime contractor, merchant supplier or subcontractor, depending on program requirements. This approach enables the company to provide technologies across different customer platforms and work with both established defense contractors and newer industry participants.
LHX’s strategy also emphasizes innovation and the development of rapid solutions. Its platform-agnostic approach allows it to adapt to changing defense requirements, while investment in research and development helps broaden its technological capabilities. These priorities support L3Harris’ efforts to pursue new programs and strengthen its position across defense markets.
L3Harris ended 2025 with a contractual backlog of $38.7 billion, up 13% from the prior year. Continued investment in technology, combined with its flexible operating model and focus on execution, could help the company address future program opportunities.
Companies Investing in Defense Technology Innovation
The need for adaptable technologies across defense missions is encouraging companies to invest in research and development and broaden their technical capabilities. Northrop Grumman Corporation (NOC - Free Report) and RTX Corporation (RTX - Free Report) also develop advanced technologies for defense and aerospace applications.
Northrop Grumman develops systems for space, strategic deterrence, missile defense and other national security missions, supporting a range of complex defense requirements.
RTX develops defense and aerospace technologies, including missile defense systems, sensors and communications-related capabilities, for military and commercial applications.
Earnings Estimates for LHX
The Zacks Consensus Estimate for 2026 and 2027 earnings per share suggests year-over-year growth of 9.97% and 14.48%, respectively.
Image Source: Zacks Investment Research
LHX Stock Is Trading at a Discount
LHX is trading at a discount relative to the industry, with a forward 12-month price-to-sales of 1.76X compared with the industry average of 2.1X.
Image Source: Zacks Investment Research
LHX Stock Price Performance
Over the past month, LHX shares have fallen 6% compared with the industry’s 6.3% decline.
View the Zacks #1 Rank List
Image: Shutterstock
How Is L3Harris' R&D Spending Driving Defense Technology Innovation?
Key Takeaways
L3Harris Technologies, Inc. (LHX - Free Report) is investing in research and development to expand its capabilities across defense and aerospace markets. The company spent $536 million on company-funded R&D in 2025, focusing on technologies that support its operations across multiple domains. This investment boosts its strategy of developing new solutions while responding to changing customer requirements.
L3Harris operates across communications, space and mission systems, integrated mission systems and missile propulsion. Its flexible business model allows it to serve as a prime contractor, merchant supplier or subcontractor, depending on program requirements. This approach enables the company to provide technologies across different customer platforms and work with both established defense contractors and newer industry participants.
LHX’s strategy also emphasizes innovation and the development of rapid solutions. Its platform-agnostic approach allows it to adapt to changing defense requirements, while investment in research and development helps broaden its technological capabilities. These priorities support L3Harris’ efforts to pursue new programs and strengthen its position across defense markets.
L3Harris ended 2025 with a contractual backlog of $38.7 billion, up 13% from the prior year. Continued investment in technology, combined with its flexible operating model and focus on execution, could help the company address future program opportunities.
Companies Investing in Defense Technology Innovation
The need for adaptable technologies across defense missions is encouraging companies to invest in research and development and broaden their technical capabilities. Northrop Grumman Corporation (NOC - Free Report) and RTX Corporation (RTX - Free Report) also develop advanced technologies for defense and aerospace applications.
Northrop Grumman develops systems for space, strategic deterrence, missile defense and other national security missions, supporting a range of complex defense requirements.
RTX develops defense and aerospace technologies, including missile defense systems, sensors and communications-related capabilities, for military and commercial applications.
Earnings Estimates for LHX
The Zacks Consensus Estimate for 2026 and 2027 earnings per share suggests year-over-year growth of 9.97% and 14.48%, respectively.
Image Source: Zacks Investment Research
LHX Stock Is Trading at a Discount
LHX is trading at a discount relative to the industry, with a forward 12-month price-to-sales of 1.76X compared with the industry average of 2.1X.
Image Source: Zacks Investment Research
LHX Stock Price Performance
Over the past month, LHX shares have fallen 6% compared with the industry’s 6.3% decline.
Image Source: Zacks Investment Research
LHX’s Zacks Rank
LHX stock currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.