What changed
$LHX — Designs and manufactures advanced defense electronics systems.
🎯 Q1 FY26 | Rev $6B | EPS $2.91 vs $2.57 🟢 | Margin 15.7%
💡 Consensus expected EPS of $2.57, but LHX delivered $2.91 (13% beat) on 12% revenue growth and 15% organic growth. The market is still pricing in a defense contractor with low growth and margin compression, but LHX is demonstrating accelerating organic growth (15%), record backlog ($40.7B, book-to-bill 1.4x), and expanding margins (operating margin...
🏢 Business Quality: 8/10 | Valuation: fair
📉 Reward/Risk: Upside 15% to $348 (18x FY2026 EPS of ~$11.50) vs downside 10% to $273 (16x FY2026 EPS of ~$10.50). Ratio: 1.5:1.
🔮 Catalyst: Continued execution on record backlog and margin expansion. Next catalyst: Q2 2026 earnings (late July) where organic growth >10% and segment margin >16% would confirm the trend.
Also in play: $HII $NOC $LMT $RTX $GD $AVAV