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

Leonardo DRS (NASDAQ:DRS) issued an update on its FY 2026 earnings guidance on Thursday. The company provided 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 subject of several recent analyst reports. Truist Financial raised shares of Leonardo DRS to a “strong-buy” rating in a research note on Friday, May 1st. Canaccord Genuity Group lifted their price target on shares of Leonardo DRS from $52.00 to $54.00 and gave the stock a “buy” rating in a research report on Wednesday, May 6th. Wall Street Zen raised shares of Leonardo DRS from a “hold” rating to a “buy” rating in a report on Sunday, May 10th. JPMorgan Chase & Co. upped their price objective on shares of Leonardo DRS from $48.00 to $53.00 and gave the company a “neutral” rating in a research report on Friday. Finally, Weiss Ratings raised Leonardo DRS from a “hold (c)” rating to a “hold (c+)” rating in a research note on Thursday, July 23rd. One equities research analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating and three have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, Leonardo DRS currently has an average rating of “Moderate Buy” and a consensus target price of $53.60.

Leonardo DRS Price Performance

DRS stock opened at $46.05 on Friday. The stock has a 50-day moving average price of $45.67 and a two-hundred day moving average price of $43.91. Leonardo DRS has a 1 year low of $32.43 and a 1 year high of $50.59. The stock has a market cap of $12.28 billion, a PE ratio of 38.70, a price-to-earnings-growth ratio of 3.29 and a beta of 0.36. 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 (NASDAQ:DRS) last issued its quarterly earnings results on Thursday, July 30th. The company reported $0.35 EPS for the quarter, beating analysts’ consensus estimates of $0.27 by $0.08. The company had revenue of $913.00 million for the quarter, compared to analyst estimates of $903.27 million. Leonardo DRS had a return on equity of 13.07% and a net margin of 8.52%.The company’s quarterly revenue was up 10.1% compared to the same quarter last year. During the same period in the previous year, the company posted $0.23 earnings per share. Leonardo DRS has set its FY 2026 guidance at 1.340-1.390 EPS. Equities analysts forecast that Leonardo DRS will post 1.3 EPS for the current fiscal year.

Leonardo DRS Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, August 27th. Shareholders of record on Thursday, August 13th will be paid a $0.09 dividend. The ex-dividend date is Thursday, August 13th. This represents a $0.36 annualized dividend and a yield of 0.8%. Leonardo DRS’s payout ratio is presently 30.25%.

Insiders Place Their Bets

In other Leonardo DRS news, EVP Sally Wallace sold 1,300 shares of the business’s stock in a transaction dated Thursday, June 11th. The shares were sold at an average price of $50.00, for a total transaction of $65,000.00. Following the sale, the executive vice president directly owned 57,053 shares of the company’s stock, valued at $2,852,650. The trade was a 2.23% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO John Baylouny sold 36,471 shares of the company’s stock in a transaction dated Thursday, June 18th. The shares were sold at an average price of $45.67, for a total transaction of $1,665,630.57. Following the completion of the sale, the chief executive officer directly 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 SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 65,364 shares of company stock valued at $2,994,785 over the last 90 days. 0.25% of the stock is currently owned by company insiders.

More Leonardo DRS News

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

• Positive Sentiment: Q2 earnings beat expectations: Adjusted EPS was $0.35 versus the $0.27 analyst consensus, while revenue rose 10% year over year to $913 million, exceeding estimates of $903.3 million. Net earnings increased 59% to $86 million, and adjusted EBITDA climbed 33% to $128 million. Leonardo DRS Announces Financial Results for Second Quarter 2026
• Positive Sentiment: Guidance was raised: Leonardo DRS increased its 2026 adjusted EPS outlook to $1.34-$1.39 from $1.26-$1.30, above the $1.30 consensus estimate. Adjusted EBITDA guidance was also raised to $525 million-$540 million, although revenue guidance was unchanged at $3.9 billion-$4.0 billion. Leonardo DRS 2026 Guidance and Raft Acquisition
• Positive Sentiment: Backlog and bookings support future growth: Quarterly bookings reached $1.1 billion, producing a 1.2x book-to-bill ratio, while funded backlog rose 17% year over year to a record $5.1 billion. Growth was led by tactical radar, infrared sensing, electric power and propulsion, and naval computing programs.
• Positive Sentiment: Raft acquisition expands software capabilities: DRS agreed to acquire Raft for $450 million, adding expertise in artificial intelligence, data fusion, and mission software. The deal could strengthen DRS’s position in multi-domain defense technology. Leonardo DRS Signs Agreement to Acquire Raft
• Neutral Sentiment: JPMorgan raised its price target to $53 from $48 but retained a Neutral rating. The higher target signals improved valuation potential, but the unchanged rating suggests limited conviction at the current valuation. Benzinga Price Target Update
• Negative Sentiment: Acquisition execution and funding remain risks: Raft is expected to require substantial capital, and the transaction faces closing, integration, regulatory, and potential debt-related risks. Management’s 2026 guidance excludes Raft’s contribution.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in DRS. Millennium Management LLC grew its stake in shares of Leonardo DRS by 152.1% in the third quarter. Millennium Management LLC now owns 1,776,185 shares of the company’s stock valued at $80,639,000 after acquiring an additional 1,071,708 shares in the last quarter. AQR Capital Management LLC raised its stake in Leonardo DRS by 528.6% in the 3rd quarter. AQR Capital Management LLC now owns 1,273,444 shares of the company’s stock worth $56,000,000 after purchasing an additional 1,070,870 shares in the last quarter. UBS Group AG boosted its holdings in Leonardo DRS by 566.2% in the 3rd quarter. UBS Group AG now owns 711,588 shares of the company’s stock valued at $32,306,000 after purchasing an additional 604,783 shares during the period. Bank of America Corp DE grew its position in shares of 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 worth $58,166,000 after purchasing an additional 491,158 shares in the last quarter. Finally, Deutsche Bank AG grew its position in shares of 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 purchasing an additional 356,067 shares in the last quarter. Institutional investors 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.