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L3Harris Missile Spin Off And DoD Backing Test Current Valuation

Simply Wall St·02/14/2026 17:37:41
Listen to the news
  • L3Harris Technologies plans to spin off its Missile Solutions business through an IPO, separating the unit from its core operations.
  • The company has secured a $1b investment from the US Department of Defense tied to this missile-focused division.
  • These moves mark a major shift in how NYSE:LHX is structuring its portfolio within the defense sector.

For shareholders, the timing matters because NYSE:LHX comes into this move with a share price of $345.5 and a return of 78.2% over the past year. Over 3 and 5 years, returns of 72.1% and 102.3% highlight that the stock has already delivered substantial gains, so any change in business mix is likely to be watched closely.

The Missile Solutions spin off and the $1b DoD investment could reshape how investors think about L3Harris, including its growth profile and risk exposure. As details emerge around the IPO structure, the valuation of the missile unit, and capital allocation plans for the remaining business, investors will get a clearer picture of how these moves might affect future revenue streams and the company’s positioning relative to other defense contractors.

Stay updated on the most important news stories for L3Harris Technologies by adding it to your watchlist or portfolio. Alternatively, explore our Community to discover new perspectives on L3Harris Technologies.

NYSE:LHX Earnings & Revenue Growth as at Feb 2026
NYSE:LHX Earnings & Revenue Growth as at Feb 2026

4 things going right for L3Harris Technologies that this headline doesn't cover.

Quick Assessment

  • ⚖️ Price vs Analyst Target: At US$345.50 against a consensus target of US$380.63, L3Harris trades about 9% below the analyst average, which sits within a typical fair range.
  • ⚖️ Simply Wall St Valuation: The shares are described as trading close to estimated fair value, so this news may matter more for future expectations than for an obvious mispricing today.
  • ✅ Recent Momentum: The 30 day return of roughly 0.8% suggests steady, if modest, near term momentum as the spin off story develops.

There is only one way to know the right time to buy, sell or hold L3Harris Technologies. Head to Simply Wall St's company report for the latest analysis of L3Harris Technologies's Fair Value.

Key Considerations

  • 📊 The planned Missile Solutions spin off plus the US$1b DoD commitment could change how much of your thesis depends on missile exposure versus the remaining segments.
  • 📊 Keep an eye on the spin off valuation, the use of any proceeds, and whether the current P/E of about 40x shifts as the new corporate structure takes shape.
  • ⚠️ With two flagged minor risks including a high level of debt, consider how separation costs and capital needs for the missile unit could affect leverage.

Dig Deeper

For the full picture including more risks and rewards, check out the complete L3Harris Technologies analysis. Alternatively, you can check out the community page for L3Harris Technologies to see how other investors believe this latest news will impact the company's narrative.

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.