Shares of L3Harris Technologies surged 17% to $280 in trading on September 23, bucking a broader market decline, after the company announced a pair of U.S. Navy awards that deepen its grip on two of the Pentagon's highest-priority programs: submarine modernization and cruise-missile restocking.

  • $139 Million Locks In the Submarine Monopoly. The Navy awarded L3Harris a $139 million contract to produce imaging masts for Virginia-class and Columbia-class nuclear submarines.

These masts replace traditional periscopes with telescoping arms carrying high-definition visible and infrared cameras, giving crews 360-degree visibility without hull-penetrating equipment.

L3Harris is the sole designer and manufacturer of all U.S. periscope systems — meaning there is no competitive alternative. That kind of sole-source position provides pricing power and contract continuity that investors prize.

  • Tomahawk Work Rides a $22.9 Billion Wave. L3Harris signed a multi-year agreement with the Naval Air Warfare Center at China Lake to manufacture critical missile components, including for Raytheon's Tomahawk cruise missile. The timing matters: this follows an August 2026 Navy announcement awarding Raytheon a contract valued at $22.9 billion to accelerate Tomahawk production.

L3Harris has supplied Tomahawk components for more than 30 years, including the solid-propellant booster that launches the missile and its blast-fragmentation warhead. As Raytheon ramps output, L3Harris's revenue from these parts scales in lockstep.

  • A Record Backlog Gives the Rally a Foundation. L3Harris reported Q2 2026 revenue of $5.9 billion (up 8%), EPS of $3.13 (up 28%), and a record backlog of $42 billion.

Management raised full-year revenue guidance to $23.2–$23.7 billion and EPS guidance to $11.80–$12.00. At $280, LHX trades at roughly 23–24× guided earnings — a premium, but one backed by $42 billion in contractual backlog, with about 40% expected to convert to revenue in the next 12 months.

  • The Missile Unit IPO Complicates the Picture. L3Harris postponed the planned IPO of its Missile Solutions unit to mid-2027 after concluding investors were undervaluing the business.

CEO Chris Kubasik said the unit is negotiating more than $20 billion in new contracts that would triple its backlog. Today's Tomahawk deal bolsters that argument — but until the spinoff prices, shareholders are betting the parent stock will capture full missile-unit value, a proposition the market has yet to validate.