L3Harris Technologies (LHX) has improved its H2 guidance and increased 2026 targets after reporting "strong" Q2 results, RBC said in a note emailed Friday.
The investment firm said the company's management remains confident in its ability to capture opportunities from new Department of Defense programs and a solid book-to-bill ratio of 1.5x.
RBC analysts also believe that the updated 2025 guidance suggests around 6% organic growth for H2, yet the company thinks the forecast for ongoing booking momentum stays strong as global support in the CS sector is also progressing as planned for an increase in H2.
At the respective midpoints, L3Harris anticipates revenue of $21.75 billion and adjusted EPS of $10.50. The company also anticipates generating about 2.2 billion in free cash flow in H2. Meanwhile, the 2026 forecast indicates about 6% organic growth, achieving $23 billion in sales, the analysts said.
The firm maintained its sector perform rating on the stock and raised its price target to $280 from $265.
Shares of L3Harris Technologies were down more than 1% in recent trading.
Price: 268.64, Change: -4.58, Percent Change: -1.68
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