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 earnings per share (EPS) guidance of 1.340-1.390 for the period, compared to the consensus earnings per share 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.

Wall Street Analyst Weigh In

DRS has been the topic of a number of analyst reports. Weiss Ratings raised Leonardo DRS from a “hold (c)” rating to a “hold (c+)” rating in a research note on Thursday, July 23rd. Wall Street Zen raised Leonardo DRS from a “hold” rating to a “buy” rating in a research note on Sunday, May 10th. Canaccord Genuity Group upped their price objective on Leonardo DRS from $52.00 to $54.00 and gave the company a “buy” rating in a report on Wednesday, May 6th. Finally, Truist Financial raised Leonardo DRS to a “strong-buy” rating in a research note on Friday, May 1st. One analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $53.75.

Leonardo DRS Price Performance

Shares of DRS stock opened at $46.54 on Thursday. Leonardo DRS has a 12-month low of $32.43 and a 12-month high of $50.59. The firm has a market capitalization of $12.42 billion, a price-to-earnings ratio of 43.50, a price-to-earnings-growth ratio of 3.55 and a beta of 0.36. The company has a quick ratio of 1.52, a current ratio of 1.86 and a debt-to-equity ratio of 0.05. The firm has a fifty day moving average of $45.63 and a 200-day moving average of $43.86.

Leonardo DRS (NASDAQ:DRS) last issued its quarterly earnings data on Thursday, July 30th. The company reported $0.35 EPS for the quarter, topping the consensus estimate of $0.27 by $0.08. The business had revenue of $913.00 million for the quarter, compared to the consensus estimate of $902.19 million. Leonardo DRS had a return on equity of 12.02% and a net margin of 7.85%.The firm’s revenue was up 10.1% compared to the same quarter last year. During the same quarter last year, the business posted $0.23 EPS. Leonardo DRS has set its FY 2026 guidance at 1.340-1.390 EPS. On average, equities research analysts forecast that Leonardo DRS will post 1.3 earnings per share for the current year.

Leonardo DRS Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Tuesday, June 2nd. Stockholders of record on Tuesday, May 19th were given a dividend of $0.09 per share. The ex-dividend date of this dividend was Tuesday, May 19th. This represents a $0.36 dividend on an annualized basis and a dividend yield of 0.8%. Leonardo DRS’s dividend payout ratio (DPR) is currently 33.64%.

Insiders Place Their Bets

In related news, Director Reuben Jeffery III bought 25,000 shares of the company’s stock in a transaction on Tuesday, May 19th. The shares were purchased at an average cost of $42.77 per share, for a total transaction of $1,069,250.00. Following the acquisition, the director owned 25,000 shares of the company’s stock, valued at approximately $1,069,250. This represents a ∞ increase in their position. The purchase was disclosed in a filing with the SEC, which can be accessed through this link. Also, EVP Jason Rinsky sold 3,865 shares of Leonardo DRS stock in a transaction that occurred on Wednesday, June 3rd. The shares were sold at an average price of $46.87, for a total transaction of $181,152.55. Following the completion of the transaction, the executive vice president directly owned 31,310 shares in the company, valued at approximately $1,467,499.70. The trade was a 10.99% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 65,364 shares of company stock worth $2,994,785 in the last three months. 0.25% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of the company. Mercer Global Advisors Inc. ADV boosted its position in Leonardo DRS by 125.2% during the 4th quarter. Mercer Global Advisors Inc. ADV now owns 21,301 shares of the company’s stock worth $726,000 after acquiring an additional 11,843 shares during the last quarter. Jain Global LLC acquired a new stake in shares of Leonardo DRS in the fourth quarter valued at approximately $711,000. XTX Topco Ltd raised its holdings in shares of Leonardo DRS by 193.3% in the fourth quarter. XTX Topco Ltd now owns 19,794 shares of the company’s stock valued at $675,000 after purchasing an additional 13,046 shares during the last quarter. Bank of Montreal Can lifted its position in shares of Leonardo DRS by 1.6% in the fourth quarter. Bank of Montreal Can now owns 19,513 shares of the company’s stock worth $665,000 after purchasing an additional 309 shares in the last quarter. Finally, Aviva PLC boosted its holdings in Leonardo DRS by 33.1% during the fourth quarter. Aviva PLC now owns 18,039 shares of the company’s stock worth $615,000 after purchasing an additional 4,484 shares during the last quarter. 18.76% of the stock is owned by institutional investors and hedge funds.

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.