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 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.

Leonardo DRS Stock Performance

DRS traded down $0.89 during trading on Tuesday, reaching $39.12. 441,563 shares of the company were exchanged, compared to its average volume of 1,188,658. The stock has a market cap of $10.40 billion, a P/E ratio of 38.20, a PEG ratio of 2.97 and a beta of 0.29. The firm has a 50 day moving average of $44.57 and a 200 day moving average of $39.76. The company has a current ratio of 1.89, a quick ratio of 1.60 and a debt-to-equity ratio of 0.12. Leonardo DRS has a 52 week low of $32.43 and a 52 week high of $49.31.

Leonardo DRS (NASDAQ:DRS) last issued its quarterly earnings data on Tuesday, May 5th. The company reported $0.26 EPS for the quarter, topping analysts’ consensus estimates of $0.21 by $0.05. Leonardo DRS had a return on equity of 11.68% and a net margin of 7.62%.The business’s revenue for the quarter was up 5.9% compared to the same quarter last year. During the same quarter in the prior year, the company posted $0.20 earnings per share. Leonardo DRS has set its FY 2026 guidance at 1.260-1.300 EPS. On average, sell-side analysts forecast that Leonardo DRS will post 1.26 EPS for the current fiscal year.

Leonardo DRS Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, March 24th. Investors of record on Tuesday, March 10th were paid a dividend of $0.09 per share. This represents a $0.36 dividend on an annualized basis and a yield of 0.9%. The ex-dividend date was Tuesday, March 10th. Leonardo DRS’s dividend payout ratio is presently 34.95%.

Analysts Set New Price Targets

DRS has been the subject of a number of recent research reports. Weiss Ratings upgraded Leonardo DRS from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Friday, March 20th. Wall Street Zen cut Leonardo DRS from a “buy” rating to a “hold” rating in a research note on Saturday. Bank of America increased their price target on Leonardo DRS from $50.00 to $55.00 and gave the stock a “buy” rating in a research note on Wednesday, March 25th. Truist Financial raised Leonardo DRS to a “strong-buy” rating in a research note on Friday. Finally, Morgan Stanley set a $47.00 price target on Leonardo DRS in a research note on Wednesday, February 25th. One analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating and three have given a Hold rating to the company. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average target price of $51.33.

Insider Activity

In other news, CFO Michael Dippold sold 7,071 shares of the company’s stock in a transaction on Thursday, April 2nd. The stock was sold at an average price of $45.38, for a total transaction of $320,881.98. Following the completion of the sale, the chief financial officer directly owned 63,778 shares of the company’s stock, valued at $2,894,245.64. This represents a 9.98% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Sally Wallace sold 28,960 shares of the company’s stock in a transaction on Thursday, April 2nd. The shares were sold at an average price of $46.35, for a total value of $1,342,296.00. Following the sale, the executive vice president directly owned 58,353 shares of the company’s stock, valued at approximately $2,704,661.55. This represents a 33.17% 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. Insiders sold a total of 64,361 shares of company stock valued at $2,944,837 over the last three months. Insiders own 0.25% of the company’s stock.

Hedge Funds Weigh In On Leonardo DRS

Institutional investors and hedge funds have recently bought and sold shares of the business. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its position in shares of 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 worth $1,441,000 after purchasing an additional 1,922 shares in the last quarter. Millennium Management LLC increased its stake 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 lifted its position in 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 worth $4,882,000 after buying an additional 12,712 shares in the last quarter. Intech Investment Management LLC boosted its stake in shares of Leonardo DRS by 18.6% during 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 during the period. Finally, Acadian Asset Management LLC purchased a new position in shares of Leonardo DRS during the 1st quarter valued at $225,000. Hedge funds and other institutional investors own 18.76% of the company’s stock.

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.