Leonardo DRS (NASDAQ:DRS) Releases FY 2026 Earnings Guidance

Leonardo DRS (NASDAQ:DRS) updated its FY 2026 earnings guidance on Tuesday. The company provided EPS guidance of 1.260-1.300 for the period, compared to the consensus EPS estimate of 1.260. The company issued revenue guidance of $3.9 billion-$4.0 billion, compared to the consensus revenue estimate of $3.9 billion.

Wall Street Analyst Weigh In

A number of research firms have recently commented on DRS. Weiss Ratings raised shares of Leonardo DRS from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Friday, March 20th. Canaccord Genuity Group set a $54.00 target price on shares of Leonardo DRS in a report on Wednesday. Truist Financial raised shares of Leonardo DRS to a “strong-buy” rating in a research note on Friday, May 1st. Wall Street Zen cut shares of Leonardo DRS from a “buy” rating to a “hold” rating in a research note on Saturday. Finally, Morgan Stanley set a $47.00 price objective on Leonardo DRS in a report on Wednesday, February 25th. One analyst has rated the stock with a Strong Buy rating, four have given a Buy rating and three have assigned a Hold rating to the company. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus price target of $52.00.

Leonardo DRS Trading Up 2.7%

NASDAQ DRS traded up $1.07 during mid-day trading on Wednesday, hitting $40.77. The company’s stock had a trading volume of 292,175 shares, compared to its average volume of 1,189,402. The firm has a market capitalization of $10.84 billion, a P/E ratio of 39.50, a price-to-earnings-growth ratio of 2.95 and a beta of 0.29. The company has a debt-to-equity ratio of 0.12, a current ratio of 1.89 and a quick ratio of 1.60. Leonardo DRS has a 52-week low of $32.43 and a 52-week high of $49.31. The stock’s fifty day simple moving average is $44.56 and its two-hundred day simple moving average is $39.75.

Leonardo DRS (NASDAQ:DRS) last released its quarterly earnings data on Tuesday, May 5th. The company reported $0.26 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.21 by $0.05. Leonardo DRS had a net margin of 7.62% and a return on equity of 11.68%. The company had revenue of $846.00 million during the quarter, compared to the consensus estimate of $825.05 million. During the same period in the previous year, the firm earned $0.20 earnings per share. Leonardo DRS’s revenue for the quarter was up 5.9% on a year-over-year basis. Leonardo DRS has set its FY 2026 guidance at 1.260-1.300 EPS. Research analysts expect that Leonardo DRS will post 1.27 EPS for the current year.

Leonardo DRS Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, June 2nd. Shareholders of record on Tuesday, May 19th will be given a $0.09 dividend. The ex-dividend date of this dividend is Tuesday, May 19th. This represents a $0.36 annualized dividend and a yield of 0.9%. Leonardo DRS’s dividend payout ratio (DPR) is 34.95%.

Insider Transactions at Leonardo DRS

In other news, EVP Sally Wallace sold 28,960 shares of the stock in a transaction dated Thursday, April 2nd. The stock was sold at an average price of $46.35, for a total value of $1,342,296.00. Following the completion of the sale, the executive vice president owned 58,353 shares in the company, valued at approximately $2,704,661.55. This trade represents a 33.17% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Pamela Morrow sold 12,000 shares of the business’s stock in a transaction that occurred on Tuesday, March 3rd. The stock was sold at an average price of $45.20, for a total value of $542,400.00. Following the transaction, the senior vice president directly owned 6,494 shares in the company, valued at $293,528.80. This trade represents a 64.89% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 64,361 shares of company stock valued at $2,944,837 over the last quarter. Company insiders own 0.25% of the company’s stock.

More Leonardo DRS News

Here are the key news stories impacting Leonardo DRS this week:

• Positive Sentiment: Q1 beat — Leonardo DRS posted EPS of $0.26 vs. consensus $0.21 and revenue of $846M (up 5.9% YoY), with improved margins and ROE cited by management. This operational beat is the primary catalyst behind the intraday upside. Leonardo DRS Announces Financial Results for First Quarter 2026
• Positive Sentiment: Raised FY2026 guidance — management updated revenue guidance to $3.90B–$3.975B and adjusted EPS to $1.26–$1.30, modestly above/consistent with Street views, signaling confidence in program execution and sustaining the positive tone. Leonardo DRS forecasts 2026 revenue and adjusted EPS as Q1 execution lifts outlook
• Positive Sentiment: Dividend declared — the board announced a quarterly dividend of $0.09/share (ex-dividend May 19, payable June 2), providing a modest income component (?0.9% yield) that may support longer-term investor interest.
• Neutral Sentiment: Investor materials available — the company posted its slide deck and earnings call transcript, useful for digging into segment performance, backlog and program timing but not adding new headline news. Q1 2026 Earnings Call Transcript
• Neutral Sentiment: Analyst write-ups — Zacks and others summarized the beat and metrics; no major analyst revisions reported in the items provided, so near-term analyst risk appears limited. Zacks: Q1 Earnings and Revenues Beat Estimates

Institutional Investors Weigh In On Leonardo DRS

Large investors have recently added to or reduced their stakes in the company. Millennium Management LLC raised its position in shares of Leonardo DRS by 152.1% in the 3rd quarter. Millennium Management LLC now owns 1,776,185 shares of the company’s stock valued at $80,639,000 after purchasing an additional 1,071,708 shares in the last quarter. AQR Capital Management LLC raised its holdings in Leonardo DRS by 528.6% in the third quarter. AQR Capital Management LLC now owns 1,273,444 shares of the company’s stock valued at $56,000,000 after acquiring an additional 1,070,870 shares in the last quarter. UBS Group AG boosted its stake in Leonardo DRS by 566.2% during the 3rd quarter. UBS Group AG now owns 711,588 shares of the company’s stock valued at $32,306,000 after acquiring an additional 604,783 shares during the last quarter. Bank of America Corp DE boosted its stake in Leonardo DRS by 64.6% during the 2nd quarter. Bank of America Corp DE now owns 1,251,415 shares of the company’s stock valued at $58,166,000 after acquiring an additional 491,158 shares during the last quarter. Finally, Deutsche Bank AG grew its holdings in Leonardo DRS by 203.7% during the 4th quarter. Deutsche Bank AG now owns 530,899 shares of the company’s stock worth $18,098,000 after acquiring an additional 356,067 shares in the last quarter. 18.76% of the stock is owned by institutional investors and hedge funds.

Leonardo DRS Company Profile

Leonardo DRS is a U.S.-based defense technology company and wholly owned subsidiary of Italy’s Leonardo S.p.A. The firm specializes in developing and integrating mission-critical systems for military and government customers, with a primary focus on command, control, communications, computers, intelligence, surveillance and reconnaissance (C4ISR). Its core offerings encompass advanced sensors, targeting systems, radars and electronic warfare solutions designed to enhance situational awareness and operational effectiveness across land, sea and air domains.

The company’s portfolio includes naval combat management systems, unmanned vehicle sensors, power generation and distribution equipment, and training and simulation solutions.