New York, January 9, 2026, 15:28 EST — Regular session
- L3Harris shares rose with a broader bid in U.S. defense names
- Investors weighed Trump’s push for higher military spending against tighter rules on payouts
- Focus turns to L3Harris earnings on Jan. 29
L3Harris Technologies (LHX.N) shares rose 2.8% to $334.84 in afternoon trading on Friday, after touching $337.97 earlier in the session.
The stock is moving on a policy one-two punch: talk of a bigger Pentagon budget, and fresh pressure on contractors to speed up deliveries. That matters now because the sector’s valuation leans on two things that Washington can change fast — future orders and how much cash comes back to shareholders.
Defense contractors are seeking legal advice after President Donald Trump signed an executive order tying share buybacks — company repurchases of their own stock — dividends and executive pay to weapons delivery schedules, three sources told Reuters. White House spokeswoman Anna Kelly said the order means “the days of defense contractors prioritizing investor returns over military readiness are over,” while L3Harris’s CEO told employees that “meeting this moment will require increased investment.” Morgan Stanley estimates the sector’s biggest names, including L3Harris, paid about $8 billion in dividends and bought back roughly $10 billion in stock over the last 12 months; the order gives the Secretary of War 30 days to flag contractors that fall behind schedule. (Reuters)
The group also drew bids after Trump called for a $1.5 trillion U.S. military budget for 2027, well above the $901 billion approved for 2026 — a plan that would still need congressional authorization. “This potential budget increase would offset the negative investor sentiment from the potential capital allocation restrictions, but there is significant uncertainty,” RBC Capital Markets analysts led by Ken Herbert wrote. Neil Wilson, investor strategist at Saxo Bank, said “geopolitics is the inescapable story of 2026 thus far.” (Reuters)
The iShares U.S. Aerospace & Defense ETF was up 2.3%, outpacing a 0.8% rise in the S&P 500’s SPDR ETF. Among large-cap peers, Lockheed Martin gained 5.1%, Northrop Grumman 4.2% and RTX 0.8%.
But the budget math is far from settled, and the politics could cut both ways for the sector. Moody’s analyst David Rogovic said a 50% jump in defense spending is “highly unlikely to be offset elsewhere,” warning it would widen deficits and lift the interest burden over time. (Reuters)
L3Harris is trading near the top of its 52-week range of $193.09 to $338.23. The shares are also well above their 50-day moving average around $290; the 200-day moving average — a running average price traders often use as a rough support line — sits near $265. (MarketWatch)
Next up is L3Harris’s fourth-quarter earnings on Jan. 29, with an earnings call scheduled for 10:30 a.m. ET. Investors will be listening for any changes in cash-return plans and for management’s read on production pressure and contract timing. (L3Harris)
