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L3Harris Technologies (LHX) shares rose 14% in premarket trading after a $1 billion investment from the U.S. Department of Defense aimed at increasing production capacity for solid rocket motors. The funding will convert into common shares upon the IPO of L3Harris' Missile Solutions unit, set for late 2026.

The company reported 8.5% revenue growth over three years, totaling $21.74 billion, with operating and net margins of 10.61% and 8.09%, respectively. However, it faces declining gross margins and financial stress indicated by an Altman Z-Score of 2.69. Strong institutional ownership at 89.04% contrasts with insider selling of 14,171 shares recently, reflecting mixed investor sentiment amidst a high valuation.