Stock AnalysisJuly 14, 2026 · 6 min read

Is L3Harris Stock (LHX) Halal? Current Quantitative Sharia Screen

L3Harris Technologies is a defense-technology contractor; this page combines current filing-backed ratios with qualitative analysis of missile propulsion, electronic warfare, communications and end use.

Time-sensitive screening snapshot: financial ratios and business mix can change after each filing. This is educational research, not a fatwa or investment advice. Verify the latest filing and your preferred Sharia standard before acting.

The Short Answer

L3Harris stock (LHX) remains haram for a conservative Muslim investor. Its latest filing identifies a Missile Solutions segment covering propulsion, fuzing, guidance and complete weapons systems, while other segments include electronic warfare, missile warning, targeting and resilient battlefield communications. The current financial ratios are below the examined asset-based limits, but those numbers do not cleanse a core defense-technology business.

Current quantitative Sharia screen

Based on 10-Q figures for the period ended 2026-04-03; calculated 2026-07-14.

USD · millions
Interest-bearing debt / assets
27.45%Within limit
Below 33.333% under FTSE Yasaar

11,357 / 41,380

Cash + interest-bearing securities / assets
1.43%Within limit
Below 33.333% under FTSE Yasaar

590 / 41,380

Receivables + cash / assets
14.58%Within limit
Below 50% under FTSE Yasaar

6,032 / 41,380

FTSE Yasaar
v4.6, February 2026
Financial
Incomplete
Overall
Incomplete

Debt/assets are 27.45%, liquidity is 1.43% and receivables plus cash are 14.58%, below the examined FTSE asset limits. Gross interest income is unavailable and the full activity numerator is not disclosed, so the result remains incomplete; Missile Solutions is a separate $990 million lower-bound proxy.

MSCI Islamic (total-assets series)
October 2024 methodology
Financial
Pass
Overall
Incomplete

Debt/assets, liquidity and receivables-plus-cash are below the examined MSCI total-assets limits. The overall record remains incomplete because gross interest income and program-level prohibited revenue are not fully disclosed. This is a calculation against the named method, not an index-membership claim.

Malaysia SAC financial ratios
single 5% activity benchmark adopted November 2025
Financial
Pass
Overall
Incomplete

Debt/assets and liquidity are below the examined Malaysia SAC financial limits, but the filing does not provide a universal product-level activity numerator or gross interest-income figure. This is a calculation against SAC ratios, not an official classification of a U.S.-listed security.

Market-cap denominator methods
MSCI M-Series, S&P and Dow Jones methods differ
Financial
Not calculated
Overall
Incomplete

A properly licensed historical market-cap series is not stored. A different denominator cannot resolve the direct missile and weapons-system activity concern or unavailable income numerator.

Business-activity disclosure

L3Harris is a defense-technology company whose 2026 reporting reorganized its activities into Space & Mission Systems, Communication & Spectrum Dominance and Missile Solutions. Missile Solutions generated $990 million in the quarter and includes propulsion, fuzing, guidance, advanced sensing, weapons-release and complete weapons systems. SMS and CSD also include missile warning, defense communications, electronic warfare, targeting, sensors and mission systems, but public reporting does not allocate every capability between direct weapons, defense support, civil-government and commercial uses.

Limitation: The filing reports revenue by segment, customer relationship, contract type and geography, not by every product's prohibited end use. The $990 million Missile Solutions figure is a measured lower bound, not a claim that all SMS or CSD revenue is prohibited or that all remaining revenue is permissible.

Purification

The Missile Solutions lower bound is a business-activity proxy, not a scholar-approved purification percentage. Gross non-compliant investment income is unavailable and no fixed donation percentage is asserted; investors should follow qualified guidance for an impermissible holding.

Inputs, assumptions and primary sources
  • Inputs use L3Harris' April 3, 2026 Form 10-Q; amounts are USD millions and revenue is for the thirteen-week first quarter.
  • Debt uses $350 million of short-term debt, $1,816 million of current long-term debt and $9,191 million of long-term debt, net of discounts and issuance costs. Operating liabilities are not silently added.
  • Cash uses $590 million of cash and cash equivalents. The filing does not present a separate current interest-bearing securities balance; no unsupported amount is entered.
  • Receivables use $1,912 million of net receivables plus $3,530 million of contract assets because the filing identifies both balances as contract-related assets generated by the operating programs.
  • Total revenue is $5,744 million. The filing reports $136 million of net interest expense but no standalone gross interest-income numerator; income is therefore unavailable rather than estimated from interest expense.
  • Missile Solutions revenue of $990 million is entered as a conservative lower-bound proxy for direct missile, munition and propulsion activity. Space & Mission Systems and Communication & Spectrum Dominance contain mixed defense, civil-government and commercial-adjacent work, so they are not classified wholesale.

This is a reproducible financial screen, not a fatwa. A failed total-assets screen can coexist with a pass under a market-cap methodology. ZakatInvest keeps the qualitative assessment separate so numerical thresholds do not erase material context.

This is a reproducible ZakatInvest calculation from L3Harris' first-quarter 2026 Form 10-Q for the period ended April 3, 2026. It is not a fatwa, an index-membership claim or personalized investment advice.

Current Quantitative Screen (April 3, 2026)

  • Debt / assets: 27.45% — $11,357 million against $41,380 million of assets
  • Cash / assets: 1.43% — $590 million of cash and cash equivalents
  • Receivables + cash / assets: 14.58% — net receivables plus contract assets and cash
  • Gross interest income: Not available — the filing reports net interest expense but no standalone income numerator
  • Missile Solutions lower bound: 17.24% of quarterly revenue — $990 million; this is a measured segment proxy, not a complete prohibited-revenue total
  • Market-cap denominator methods: Not calculated because a licensed, reproducible historical market-cap series is not stored

Debt, liquidity and receivables-plus-cash are below the examined asset-based limits. The income screen and full activity allocation remain incomplete. The lower-bound Missile Solutions figure is nevertheless a direct, disclosed indicator of weapons-related exposure.

L3Harris's Business Activity

L3Harris reorganized its reporting for 2026 into three segments:

  • Space & Mission Systems: missile warning and defense, satellite and payload capabilities, intelligence, maritime and air special missions, and civil-government programs.
  • Communication & Spectrum Dominance: resilient battlefield communications, tactical data links, electronic warfare, ISR, targeting sensors, night vision and weapon-mounted systems.
  • Missile Solutions: propulsion, maneuvering, control, fuzing, advanced sensing, guidance, weapons-release systems and complete weapons systems.

First-quarter revenue was $2,990 million for SMS, $1,855 million for CSD and $990 million for MSL. Those segment labels include mixed defense, civil-government and commercial-adjacent work, so the quantitative record uses MSL as a lower bound rather than classifying every SMS or CSD dollar wholesale.

Why LHX Fails the Qualitative Business Screen

1. Missile propulsion and weapons systems

The Missile Solutions segment directly covers propulsion, fuzing, guidance and complete weapons systems supporting missile defense, strategic deterrence and precision-strike programs. That is a direct weapons-related activity, not merely neutral manufacturing.

2. Electronic warfare and targeting systems

Communication & Spectrum Dominance includes electronic warfare, ISR, targeting sensors, night vision, weapon sights and aiming lasers. These capabilities are integral to military operations even when the underlying technologies have civilian analogues.

3. Missile warning and defense

Space & Mission Systems includes missile warning and defense, intelligence and special-mission capabilities. Civil-government and space work may be permissible in form, but the filing does not provide enough program-level detail to carve out a clean consolidated result.

4. Aerojet Rocketdyne remains material

The 2023 Aerojet Rocketdyne acquisition added missile propulsion to L3Harris. A subsequent $1 billion Department of War investment agreement for the subsidiary was announced after the balance-sheet date and will affect future screening context once reflected in filed financial statements.

5. Commercial-adjacent products cannot carve out the parent

Public-safety communications, civil-government programs, space exploration and other commercial-adjacent work exist, but they do not automatically separate the consolidated issuer from its direct missile and weapons-system activities.

How to Read the Result

LHX's current balance-sheet ratios are not the decisive issue: the examined debt, liquidity and receivables measures are below the named asset-based limits. The decisive concern is the direct weapons and missile activity, supported by the disclosed Missile Solutions lower bound and the broader electronic-warfare, targeting and defense-communications context.

Bottom Line

L3Harris Technologies is currently haram under a conservative business-activity analysis. As of April 3, 2026, debt/assets are 27.45%, receivables plus cash/assets are 14.58% and Missile Solutions represented 17.24% of quarterly revenue before considering defense-related SMS and CSD work. The financial ratios should be read alongside—not substituted for—the missile-propulsion and weapons-systems analysis.

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