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

Leonardo DRS (NASDAQ:DRS) issued an update on its FY 2026 earnings guidance on Tuesday morning. The company provided earnings per share guidance of 1.200-1.260 for the period, compared to the consensus earnings per share estimate of 1.260. The company issued revenue guidance of $3.9 billion-$4.0 billion, compared to the consensus revenue estimate of $3.8 billion.

Leonardo DRS Stock Performance

Shares of Leonardo DRS stock traded down $1.79 during midday trading on Wednesday, hitting $42.03. The company had a trading volume of 135,132 shares, compared to its average volume of 1,237,016. Leonardo DRS has a 1-year low of $28.17 and a 1-year high of $49.31. The business’s 50 day simple moving average is $38.57 and its two-hundred day simple moving average is $38.98. The stock has a market cap of $11.18 billion, a PE ratio of 42.86, a P/E/G ratio of 1.90 and a beta of 0.45. The company has a debt-to-equity ratio of 0.12, a current ratio of 2.00 and a quick ratio of 1.63.

Leonardo DRS (NASDAQ:DRS) last released its earnings results on Tuesday, February 24th. The company reported $0.42 earnings per share for the quarter, beating the consensus estimate of $0.37 by $0.05. The business had revenue of $1.06 billion during the quarter, compared to analysts’ expectations of $994.79 million. Leonardo DRS had a net margin of 7.43% and a return on equity of 11.37%. The firm’s revenue was up 8.1% on a year-over-year basis. During the same quarter last year, the company earned $0.38 earnings per share. Leonardo DRS has set its FY 2026 guidance at 1.200-1.260 EPS. As a group, equities analysts predict that Leonardo DRS will post 1.04 EPS for the current fiscal year.

Leonardo DRS Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, March 24th. Investors of record on Tuesday, March 10th will be given a dividend of $0.09 per share. This represents a $0.36 annualized dividend and a dividend yield of 0.9%. The ex-dividend date is Tuesday, March 10th. Leonardo DRS’s dividend payout ratio (DPR) is 36.73%.

Analyst Ratings Changes

Several equities analysts have recently issued reports on the company. Truist Financial set a $54.00 price target on shares of Leonardo DRS in a research note on Friday, January 9th. Morgan Stanley set a $40.00 target price on shares of Leonardo DRS in a research report on Tuesday, December 16th. Canaccord Genuity Group reissued a “buy” rating and issued a $50.00 price target on shares of Leonardo DRS in a research note on Thursday, October 30th. Zacks Research cut Leonardo DRS from a “strong-buy” rating to a “hold” rating in a research note on Thursday, October 30th. Finally, Weiss Ratings reiterated a “buy (b-)” rating on shares of Leonardo DRS in a report on Monday, December 29th. Six analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $47.14.

Insider Buying and Selling at Leonardo DRS

In related news, CFO Michael Dippold sold 10,588 shares of the company’s stock in a transaction dated Monday, January 5th. The stock was sold at an average price of $37.00, for a total transaction of $391,756.00. Following the sale, the chief financial officer owned 42,952 shares in the company, valued at approximately $1,589,224. This represents a 19.78% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, EVP Sally Wallace sold 1,300 shares of the business’s stock in a transaction that occurred on Monday, January 5th. The stock was sold at an average price of $35.17, for a total value of $45,721.00. Following the transaction, the executive vice president directly owned 58,353 shares in the company, valued at $2,052,275.01. This trade represents a 2.18% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Corporate insiders own 0.12% of the company’s stock.

Key Stories Impacting Leonardo DRS

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

• Positive Sentiment: Q4 beat — Leonardo DRS reported $0.42 EPS vs. ~$0.37 expected and revenue of $1.06B vs. ~$994.8M, showing organic growth and margin expansion; management called out strong customer demand. Business Wire — Financial Results for Fourth Quarter and Full Year 2025
• Positive Sentiment: Revenue guidance and demand outlook — Company guided FY‑2026 revenue to ~$3.9–4.0B (above consensus of ~$3.8B) and is targeting 6–8% organic growth while investing in capacity and innovation; defense spending tailwinds cited as a growth driver. Why Leonardo DRS Stock Trounced the Market Today
• Neutral Sentiment: Dividend declared — Board approved a quarterly dividend of $0.09/share (record Mar 10, payable Mar 24), ~0.8% yield; modest income signal but not a major return to shareholders.
• Neutral Sentiment: Investor materials and call available — Earnings presentation, slide deck and full earnings call transcript were released for deeper detail on bookings, backlog and segment trends. Earnings Call Transcript
• Neutral Sentiment: Analyst coverage and writeups confirm the beat — Multiple outlets (Zacks, Seeking Alpha, Investing.com) highlighted the upside to estimates and reiterated the stock move was earnings-driven. Zacks — Q4 Earnings and Revenues Beat Estimates
• Negative Sentiment: Valuation and recent run — The stock has rallied ~50% over the past year and now trades at a high multiple (PE ~45); some commentary asks whether upside is now limited and if it’s late to reassess the name. Is It Too Late To Reassess Leonardo DRS After Its 1-Year 50% Rally
• Negative Sentiment: EPS guidance range is conservative — FY‑2026 EPS was guided to $1.20–1.26 (street ~1.26), so while revenue guidance came in strong the EPS range leaves little upside to estimates and warrants watching margin/ops execution. Business Wire — Financial Results and Guidance

Institutional Trading of Leonardo DRS

Several hedge funds and other institutional investors have recently modified their holdings of DRS. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its stake in Leonardo DRS by 4.6% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 43,817 shares of the company’s stock valued at $1,441,000 after purchasing an additional 1,922 shares in the last quarter. Millennium Management LLC increased its holdings in Leonardo DRS by 29.0% in the 1st quarter. Millennium Management LLC now owns 369,749 shares of the company’s stock valued at $12,157,000 after buying an additional 83,077 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its position in shares of Leonardo DRS by 9.4% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 148,474 shares of the company’s stock valued at $4,882,000 after buying an additional 12,712 shares in the last quarter. Intech Investment Management LLC raised its position in shares of Leonardo DRS by 18.6% in the 1st quarter. Intech Investment Management LLC now owns 48,560 shares of the company’s stock valued at $1,597,000 after buying an additional 7,625 shares in the last quarter. Finally, Acadian Asset Management LLC bought a new stake in shares of Leonardo DRS during the 1st quarter worth approximately $225,000. 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.