New York, February 1, 2026, 13:01 EST — Market closed
- L3Harris shares dropped 3.7% on Friday, underperforming several major defense rivals
- The company secured a contract from the U.S. Navy for its Red Wolf precision-strike weapon
- Investors enter Monday focused on contract flow, funding chatter, and Friday’s U.S. jobs report
Shares of L3Harris Technologies slipped 3.7% Friday, closing at $342.85. The defense contractor had just announced a new U.S. Navy contract for a long-range precision-strike weapon. U.S. markets remain closed Sunday and will reopen Monday.
The context is crucial for a sector dependent on “rearm and refill” budgets—missile defense, electronic warfare, and space programs—while Washington demands suppliers speed up deliveries. Traders remain open to paying for backlog but show little tolerance for delays and unclear guidance.
L3Harris fueled concerns late last week, reporting quarterly revenue that missed estimates. The company blamed a 43-day U.S. government shutdown for delayed contract awards. Supply-chain issues tied to trade tensions also weighed on results. On top of that, L3Harris flagged its outlook includes a space technology unit it’s agreed to partially sell, a factor that could shake up next year’s figures. (Reuters)
On Friday, L3Harris announced it won a U.S. Navy contract to develop Red Wolf vehicles for the Marine Corps’ precision-strike initiative. The company calls Red Wolf a long-range missile capable of striking moving targets — including ships — at distances beyond 200 nautical miles (roughly 230 miles). (Reuters)
In a separate release, L3Harris highlighted that this selection follows 52 “launched effects” vehicle flights and recent low-altitude test firings from a Marine AH-1Z helicopter. CEO Christopher Kubasik emphasized the “urgent need for cost-effective alternatives to exquisite munitions” — the industry term for pricey, high-end missiles. (L3Harris® Fast. Forward.)
On Friday, L3Harris lagged behind major defense competitors as Lockheed Martin and RTX both gained. The stock saw heavier-than-usual trading volume, topping its 50-day average, MarketWatch data shows. (MarketWatch)
Investors are now asking if Red Wolf will evolve into a significant production effort or remain, at least for the moment, a technology victory with few immediate dollars attached. L3Harris kept the financial details under wraps in its announcements, and the market has swiftly shrugged off “award” headlines that don’t deliver clear revenue timelines.
Funding issues are also at play. The recent shutdown disrupted procurement schedules and highlighted how even critical programs can stall when Washington halts spending, leaving contractors to deal with erratic timelines and cash flow fluctuations.
The downside scenario is clear: new awards roll in, but deliveries fall behind, or budget disputes stall contract progress, leaving the stock valued for a cycle that falters. If the space portfolio reshuffle hits reported revenue, it would only add more turbulence.
All eyes shift to Monday’s open to see if defense stocks can maintain their momentum. The U.S. January employment report, due Friday at 8:30 a.m. ET, remains a crucial catalyst for rates—and could move industrials and defense names sharply. (Bls)
