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

Leonardo DRS (NASDAQ:DRS) updated its FY 2026 earnings guidance on Tuesday. The company provided earnings per share guidance of 1.260-1.300 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 $3.9 billion.

Wall Street Analyst Weigh In

A number of analysts have recently issued reports on the company. Weiss Ratings cut Leonardo DRS from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Wednesday. Morgan Stanley set a $47.00 price objective on Leonardo DRS in a research report on Wednesday, February 25th. Truist Financial upgraded Leonardo DRS to a “strong-buy” rating in a research report on Friday, May 1st. Wall Street Zen cut Leonardo DRS from a “buy” rating to a “hold” rating in a research report on Saturday, May 2nd. Finally, Canaccord Genuity Group boosted their price objective on Leonardo DRS from $52.00 to $54.00 and gave the company a “buy” rating in a research report on Wednesday. One equities research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and four have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $52.00.

Leonardo DRS Price Performance

NASDAQ:DRS traded down $0.35 during trading hours on Thursday, reaching $41.44. The company had a trading volume of 1,150,621 shares, compared to its average volume of 1,199,057. The stock has a 50-day moving average of $44.63 and a two-hundred day moving average of $39.77. Leonardo DRS has a one year low of $32.43 and a one year high of $49.31. The firm has a market capitalization of $11.02 billion, a PE ratio of 38.73, a PEG ratio of 2.88 and a beta of 0.29. The company has a quick ratio of 1.60, a current ratio of 1.89 and a debt-to-equity ratio of 0.12.

Leonardo DRS (NASDAQ:DRS) last announced its quarterly earnings results on Tuesday, May 5th. The company reported $0.26 earnings per share for the quarter, beating analysts’ consensus estimates of $0.21 by $0.05. Leonardo DRS had a return on equity of 12.15% and a net margin of 7.85%.The firm had revenue of $846.00 million for the quarter, compared to analysts’ expectations of $825.05 million. During the same period in the prior year, the business posted $0.20 earnings per share. The business’s revenue was up 5.9% compared to the same quarter last year. Leonardo DRS has set its FY 2026 guidance at 1.260-1.300 EPS. Analysts forecast that Leonardo DRS will post 1.29 earnings per share for the current year.

Leonardo DRS Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Tuesday, June 2nd. Shareholders of record on Tuesday, May 19th will be given a $0.09 dividend. The ex-dividend date is Tuesday, May 19th. This represents a $0.36 dividend on an annualized basis and a yield of 0.9%. Leonardo DRS’s payout ratio is 33.64%.

Insider Buying and Selling at Leonardo DRS

In other Leonardo DRS news, EVP Sally Wallace sold 28,960 shares of the business’s stock in a transaction dated 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 transaction, the executive vice president directly owned 58,353 shares in the company, valued at $2,704,661.55. The trade was a 33.17% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Michael Dippold sold 16,330 shares of the business’s stock in a transaction dated Monday, March 16th. The shares were sold at an average price of $45.27, for a total transaction of $739,259.10. Following the completion of the transaction, the chief financial officer owned 26,622 shares in the company, valued at approximately $1,205,177.94. This trade represents a 38.02% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 64,361 shares of company stock worth $2,944,837 over the last ninety days. Corporate insiders own 0.25% of the company’s stock.

Hedge Funds Weigh In On Leonardo DRS

A number of institutional investors and hedge funds have recently bought and sold shares of the business. Virtu Financial LLC boosted its stake in Leonardo DRS by 23.0% in the fourth quarter. Virtu Financial LLC now owns 15,886 shares of the company’s stock worth $542,000 after purchasing an additional 2,972 shares in the last quarter. Mercer Global Advisors Inc. ADV boosted its stake in Leonardo DRS by 125.2% in the fourth quarter. Mercer Global Advisors Inc. ADV now owns 21,301 shares of the company’s stock worth $726,000 after purchasing an additional 11,843 shares in the last quarter. Vident Advisory LLC boosted its stake in Leonardo DRS by 23.2% in the fourth quarter. Vident Advisory LLC now owns 149,677 shares of the company’s stock worth $5,102,000 after purchasing an additional 28,222 shares in the last quarter. XTX Topco Ltd boosted its stake in Leonardo DRS by 193.3% in the fourth quarter. XTX Topco Ltd now owns 19,794 shares of the company’s stock worth $675,000 after purchasing an additional 13,046 shares in the last quarter. Finally, Voloridge Investment Management LLC boosted its stake in Leonardo DRS by 110.0% in the fourth quarter. Voloridge Investment Management LLC now owns 607,029 shares of the company’s stock worth $20,694,000 after purchasing an additional 317,997 shares in the last quarter. 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.