As global defense spending increases amid ongoing geopolitical tensions, companies such as AeroVironment, Inc. AVAV and L3Harris Technologies, Inc. LHX are drawing greater investor interest. Rising investments in unmanned systems, satellite communications, space hardware, cyber defense and advanced weapons are creating favorable conditions for both companies.
AeroVironment specializes in unmanned aerial systems and also provides space-qualified hardware designed for operations in geosynchronous, medium and low Earth orbits, as well as cislunar missions. In contrast, L3Harris is a diversified defense contractor with strong capabilities in communications, space systems, electronic warfare and tactical networks. Its larger operating scale allows it to deliver integrated solutions across multiple defense domains.
As governments continue to strengthen their defense capabilities with next-generation technologies, both AVAV and LHX are well-positioned to benefit. The next step is to compare their fundamentals and growth prospects to see which stock offers the more compelling investment opportunity.
AVAV continues to expand its defense footprint through new contracts and technology-driven initiatives. In January 2026, the U.S. Air Force awarded UES, a division of AeroVironment, a $75 million task order under the Functional Responsive Experimentation for Systems and Humans (FRESH) program. The award supports the development of next-generation biotechnology and materials science, aimed at modernizing defense systems at Wright-Patterson Air Force Base in Ohio.
Earlier in the month, AeroVironment also strengthened its presence in advanced airspace operations. The company, in partnership with CAL Analytics, completed the installation and initial operation of a new Beyond Visual Line of Sight (BVLOS) airspace management facility at the National Advanced Air Mobility Center of Excellence in Ohio. This project highlights AVAV’s progress in enabling safe, scalable, autonomous and advanced air mobility operations, further reinforcing its long-term growth potential in defense and emerging aerospace technologies.
L3Harris Technologies has maintained solid momentum through a combination of financial growth and recent defense program milestones. The company recently reported its fourth-quarter 2025 results, with revenues rising to $5.65 billion from $5.52 billion a year ago, reflecting a 2.4% increase. Earnings per share improved to $2.86 from $2.60, representing 10.0% year-over-year growth, supported by steady demand across its defense portfolio.
L3Harris delivered the first MC-55A aircraft to the U.S. Air Force in January 2026, following successful integration and mission system testing for Australia’s Peregrine program. The aircraft will support the Royal Australian Air Force by providing advanced electronic warfare and intelligence, surveillance and reconnaissance capabilities for multi-domain operations alongside allied forces.
Moreover, L3Harris secured a contract from LIG Nex1 to supply the next-generation imaging payload for South Korea’s GEO-KOMPSAT-5 geostationary weather satellite. The 18-channel meteorological imager is expected to enhance weather forecasting accuracy and timeliness over the Korean Peninsula, further highlighting LHX’s strength in space-based sensing and mission-critical technologies.
