L3Harris TechnologiesFRA:HRS +4.55%91 Operating Margin % is 11.18% as of Mar. 2026, which is 3% below its 10-year median of 11.54. GuruFocus rates FRA:HRS with a GF Score™ of 91/100 and a GF Value™ of €234.02 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 347 Aerospace & Defense companies, L3Harris Technologies ranks better than 60.23% on this metric.
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
L3Harris Technologies Operating Margin % Related Terms
L3Harris Technologies Operating Margin % Historical Data
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The historical data trend for L3Harris Technologies's Operating Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
FRA:HRS vs TDG, HEI.A, NOC: Operating Margin % Comparison
For the Aerospace & Defense subindustry, L3Harris Technologies's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
L3Harris Technologies Operating Margin % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, L3Harris Technologies's Operating Margin % distribution charts can be found below:
* The bar in red indicates where L3Harris Technologies's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
L3Harris Technologies's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
L3Harris Technologies (FRA:HRS) has a Operating Margin % of 11.18% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on L3Harris Technologies and its competitors. This is near median its historical median of 11.54. Over the past decade, L3Harris Technologies' Operating Margin % has ranged from 9.27 to 17.61. According to the industry distribution chart, L3Harris Technologies ranks #138 out of 347 companies in the Aerospace & Defense industry, placing it in the top 39.8%.
Is L3Harris Technologies' Operating Margin % too high?
L3Harris Technologies' current Operating Margin % of 11.18% is near median its 10-year median of 11.54. Over the past 10 years, this metric has ranged from a low of 9.27 to a high of 17.61. The Aerospace & Defense industry median Operating Margin % is 7.75. L3Harris Technologies' value of 11.18% is 44.3% above this industry median. Based on the distribution chart, L3Harris Technologies ranks #138 out of 347 companies in the Aerospace & Defense industry, which is above the industry midpoint. Overall, L3Harris Technologies has a GF Score™ of 91/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does L3Harris Technologies' Operating Margin % compare to TDG and HEI.A?
According to the Aerospace & Defense industry distribution chart, L3Harris Technologies ranks #138 out of 347 companies for Operating Margin %. This puts L3Harris Technologies in the upper half of its industry. The industry median Operating Margin % is 7.75. L3Harris Technologies' value of 11.18% is 44.3% above this benchmark. Historically, L3Harris Technologies' own Operating Margin % has ranged from 9.27 to 17.61 over the past decade. While the company's 10-year median is 11.54 vs. the industry median of 7.75, L3Harris Technologies has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for an Aerospace & Defense company?
The median Operating Margin % among Aerospace & Defense companies is 7.75, based on 347 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. L3Harris Technologies's current Operating Margin % of 11.18% is 44.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on L3Harris Technologies and its competitors. For the Aerospace & Defense industry, the median Operating Margin % is 7.75 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. L3Harris Technologies's current Operating Margin % is 11.18%, which is near median its own 10-year median of 11.54. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is L3Harris Technologies stock overvalued right now?
Based on GuruFocus' analysis, L3Harris Technologies (FRA:HRS) is currently considered Modestly Overvalued. The stock's GF Value™ is €234.02, compared to a current price of €259.90 — trading 11.1% above its estimated fair value. The current Operating Margin % is 11.18%, which is near median its 10-year median of 11.54 and 44.3% above the Aerospace & Defense industry median of 7.75. L3Harris Technologies' overall GF Score™ is 91/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For L3Harris Technologies (FRA:HRS), the current Operating Margin % is 11.18% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is L3Harris Technologies (FRA:HRS) Overvalued in 2026?
Based on GuruFocus' analysis, L3Harris Technologies stock appears to be overvalued.
The current stock price of €259.90 is trading 11.1% above its estimated GF Value™ of €234.02.
GuruFocus considers L3Harris Technologies to be Modestly Overvalued.
Key valuation signals for FRA:HRS:
Operating Margin %: 11.18% (near median its 10-year median of 11.54)
GF Value™: €234.02 vs. price of €259.90 (11.1% above fair value)
Industry Position: 44.3% above the Aerospace & Defense median (#138 of 347)
No single metric tells the full story. See the FRA:HRS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
In addition to its legacy software-defined radio franchise, L3Harris Technologies has through a series of acquisitions established franchises producing uncrewed aerial vehicles, sensors, avionics, space-based systems, missiles, and solid rocket motors. It is also adept at refitting civilian aircraft for military use, provides military and commercial training services, and maintains the US Federal Aviation Administration's communications infrastructure.
91GF Score
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