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

Leonardo DRS (NASDAQ:DRS) updated its FY 2026 earnings guidance on Thursday morning. The company provided earnings per share (EPS) guidance of 1.340-1.390 for the period, compared to the consensus EPS estimate of 1.300. The company issued revenue guidance of $3.9 billion-$4.0 billion, compared to the consensus revenue estimate of $3.9 billion.

Analysts Set New Price Targets

DRS has been the topic of several recent research reports. Wall Street Zen upgraded shares of Leonardo DRS from a “hold” rating to a “buy” rating in a research report on Sunday, May 10th. Canaccord Genuity Group raised their target price on shares of Leonardo DRS from $52.00 to $54.00 and gave the company a “buy” rating in a report on Wednesday, May 6th. JPMorgan Chase & Co. lifted their target price on shares of Leonardo DRS from $48.00 to $53.00 and gave the stock a “neutral” rating in a research report on Friday. Truist Financial raised shares of Leonardo DRS to a “strong-buy” rating in a report on Friday, May 1st. Finally, Weiss Ratings raised shares of Leonardo DRS from a “hold (c)” rating to a “hold (c+)” rating in a report on Thursday, July 23rd. One analyst has rated the stock with a Strong Buy rating, two have given a Buy rating and three have given a Hold rating to the company’s stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $53.60.

Leonardo DRS Price Performance

Shares of NASDAQ:DRS traded up $0.01 on Friday, hitting $45.63. The company had a trading volume of 380,254 shares, compared to its average volume of 1,122,927. The company has a current ratio of 1.86, a quick ratio of 1.52 and a debt-to-equity ratio of 0.05. Leonardo DRS has a 52-week low of $32.43 and a 52-week high of $50.59. The business has a 50 day moving average of $45.65 and a 200 day moving average of $43.90. The company has a market cap of $12.17 billion, a PE ratio of 42.65, a PEG ratio of 3.36 and a beta of 0.36.

Leonardo DRS (NASDAQ:DRS) last posted its quarterly earnings data on Thursday, July 30th. The company reported $0.35 EPS for the quarter, beating analysts’ consensus estimates of $0.27 by $0.08. Leonardo DRS had a return on equity of 12.02% and a net margin of 7.85%.The business had revenue of $913.00 million for the quarter, compared to analyst estimates of $903.27 million. During the same quarter last year, the company earned $0.23 earnings per share. The business’s revenue for the quarter was up 10.1% compared to the same quarter last year. Leonardo DRS has set its FY 2026 guidance at 1.340-1.390 EPS. As a group, equities analysts anticipate that Leonardo DRS will post 1.3 earnings per share for the current fiscal year.

Leonardo DRS Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, August 27th. Investors of record on Thursday, August 13th will be paid a dividend of $0.09 per share. The ex-dividend date of this dividend is Thursday, August 13th. This represents a $0.36 annualized dividend and a dividend yield of 0.8%. Leonardo DRS’s dividend payout ratio is presently 33.64%.

Insider Activity at Leonardo DRS

In other news, SVP Pamela Morrow sold 11,545 shares of the company’s stock in a transaction dated Wednesday, May 27th. The shares were sold at an average price of $45.13, for a total transaction of $521,025.85. Following the completion of the transaction, the senior vice president owned 10,551 shares of the company’s stock, valued at $476,166.63. This represents a 52.25% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, CEO John Baylouny sold 36,471 shares of the stock in a transaction dated Thursday, June 18th. The stock was sold at an average price of $45.67, for a total transaction of $1,665,630.57. Following the transaction, the chief executive officer owned 122,435 shares in the company, valued at approximately $5,591,606.45. The trade was a 22.95% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 65,364 shares of company stock worth $2,994,785. Company insiders own 0.25% of the company’s stock.

Trending Headlines about Leonardo DRS

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

• Positive Sentiment: Q2 earnings and revenue exceeded expectations. Adjusted EPS was $0.35 versus the $0.27 consensus estimate, while revenue reached $913 million versus expectations of approximately $903 million. Revenue increased 10% year over year, and adjusted EBITDA rose 33% to $128 million. Leonardo DRS Surpasses Q2 Earnings and Revenue Estimates
• Positive Sentiment: Demand and profitability improved materially. Net earnings climbed 59% to $86 million, adjusted EBITDA margin expanded to 14.0% from 11.6%, and bookings totaled $1.1 billion. Funded backlog reached a record $5.1 billion, up 17% year over year, providing greater visibility into future sales. Leonardo DRS Announces Second-Quarter 2026 Results
• Positive Sentiment: Management raised its 2026 outlook. Adjusted EPS guidance increased to $1.34–$1.39 from $1.26–$1.30, and adjusted EBITDA guidance rose to $525 million–$540 million. Revenue guidance was maintained at $3.9 billion–$3.975 billion. Leonardo DRS Raises 2026 EPS Outlook
• Positive Sentiment: The $450 million Raft acquisition could strengthen long-term growth. Raft adds capabilities in multi-domain artificial intelligence, data fusion and mission software, areas that could broaden DRS’s defense technology offering. The company also declared a quarterly dividend of $0.09 per share, payable August 27 to shareholders of record August 13. Leonardo DRS Signs Agreement to Acquire Raft
• Neutral Sentiment: Investors will weigh acquisition execution and valuation. The updated guidance excludes Raft, so the deal’s eventual contribution is not yet reflected in the outlook. Integration costs, financing needs and the ability to capture expected strategic benefits remain important considerations for a stock trading at a relatively high earnings multiple.

Hedge Funds Weigh In On Leonardo DRS

A number of hedge funds have recently made changes to their positions in the stock. Quarry LP increased its holdings in shares of Leonardo DRS by 7,041.7% during the 4th quarter. Quarry LP now owns 857 shares of the company’s stock worth $29,000 after buying an additional 845 shares during the last quarter. PNC Financial Services Group Inc. raised its holdings in shares of Leonardo DRS by 435.0% in the 3rd quarter. PNC Financial Services Group Inc. now owns 1,161 shares of the company’s stock worth $53,000 after purchasing an additional 944 shares during the period. Kestra Advisory Services LLC purchased a new position in shares of Leonardo DRS in the 4th quarter worth about $48,000. Osaic Holdings Inc. lifted its stake in shares of Leonardo DRS by 17.0% in the 2nd quarter. Osaic Holdings Inc. now owns 2,383 shares of the company’s stock valued at $111,000 after purchasing an additional 347 shares in the last quarter. Finally, Cerity Partners LLC acquired a new position in shares of Leonardo DRS in the 2nd quarter valued at about $204,000. Institutional investors and hedge funds own 18.76% of the company’s stock.

About Leonardo DRS

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.