Leonardo DRS (NASDAQ:DRS) Shares Up 8.7% on Better-Than-Expected Earnings

Leonardo DRS, Inc. (NASDAQ:DRS)’s share price was up 8.7% during mid-day trading on Tuesday following a stronger than expected earnings report. The company traded as high as $40.89 and last traded at $41.4560. Approximately 260,701 shares changed hands during mid-day trading, a decline of 78% from the average daily volume of 1,185,880 shares. The stock had previously closed at $38.14.

The company reported $0.42 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.37 by $0.05. The firm had revenue of $1.06 billion during the quarter, compared to analyst estimates of $994.79 million. Leonardo DRS had a net margin of 7.43% and a return on equity of 11.37%. Leonardo DRS’s revenue was up 8.1% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.38 EPS. Leonardo DRS has set its FY 2026 guidance at 1.200-1.260 EPS.

Leonardo DRS Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, March 24th. Stockholders of record on Tuesday, March 10th will be paid a $0.09 dividend. This represents a $0.36 dividend on an annualized basis and a dividend yield of 0.8%. The ex-dividend date of this dividend is Tuesday, March 10th. Leonardo DRS’s payout ratio is currently 36.73%.

More Leonardo DRS News

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

• Positive Sentiment: Q4 beat — DRS reported $0.42 EPS vs. $0.37 expected and revenue of ~$1.06B (up ~8% YoY), which topped analyst estimates and pushed the stock higher. MarketBeat Earnings Summary
• Positive Sentiment: Revenue/growth guidance — management set FY2026 revenue guidance roughly $3.9–$4.0B (above consensus) and a target of 6%–8% organic revenue growth, signaling continued top-line momentum. Investing.com: Earnings & Guidance
• Positive Sentiment: Demand and defense tailwinds — commentary and coverage note robust customer demand, increased defense spending, and investments in innovation/capacity that support the outlook and helped drive investor enthusiasm. Fool: Why DRS Trounced the Market
• Neutral Sentiment: Dividend declared — the board approved a quarterly dividend of $0.09/share (yield ~0.8%), payable Mar 24 to holders of record Mar 10; modest yield, but signals shareholder returns. (Company announcement)
• Neutral Sentiment: Mixed guidance detail — management gave FY2026 EPS guidance of $1.20–$1.26 (roughly in line with consensus at the top end), so while revenue guidance was upbeat, EPS guidance left some ambiguity around margin/earnings upside. BusinessWire: Financial Results & Guidance

Analysts Set New Price Targets

DRS has been the subject of a number of research analyst reports. Canaccord Genuity Group reissued a “buy” rating and issued a $50.00 price target on shares of Leonardo DRS in a report on Thursday, October 30th. Weiss Ratings reissued a “buy (b-)” rating on shares of Leonardo DRS in a research note on Monday, December 29th. Wall Street Zen raised Leonardo DRS from a “hold” rating to a “buy” rating in a research note on Saturday, February 14th. Morgan Stanley set a $40.00 price objective on shares of Leonardo DRS in a research note on Tuesday, December 16th. Finally, Zacks Research cut shares of Leonardo DRS from a “strong-buy” rating to a “hold” rating in a report on Thursday, October 30th. Six analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus price target of $47.14.

Insider Buying and Selling at Leonardo DRS

In related news, CFO Michael Dippold sold 10,588 shares of Leonardo DRS stock in a transaction on Monday, January 5th. The stock was sold at an average price of $37.00, for a total transaction of $391,756.00. Following the completion of the sale, the chief financial officer owned 42,952 shares of the company’s stock, valued at approximately $1,589,224. This trade represents a 19.78% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, EVP Sally Wallace sold 1,300 shares of the business’s stock in a transaction dated Monday, January 5th. The shares were sold at an average price of $35.17, for a total value of $45,721.00. Following the completion of the transaction, the executive vice president owned 58,353 shares in the company, valued at $2,052,275.01. This trade represents a 2.18% decrease in their position. The SEC filing for this sale provides additional information. 0.12% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the stock. True Wealth Design LLC boosted its position in Leonardo DRS by 122.6% during the third quarter. True Wealth Design LLC now owns 541 shares of the company’s stock worth $25,000 after purchasing an additional 298 shares during the period. Steward Partners Investment Advisory LLC lifted its position in Leonardo DRS by 91.7% during the 2nd quarter. Steward Partners Investment Advisory LLC now owns 575 shares of the company’s stock worth $27,000 after acquiring an additional 275 shares during the last quarter. Quarry LP grew its position in shares of Leonardo DRS by 7,041.7% in the fourth quarter. Quarry LP now owns 857 shares of the company’s stock valued at $29,000 after purchasing an additional 845 shares during the last quarter. Clearstead Advisors LLC increased its stake in shares of Leonardo DRS by 564.1% in the third quarter. Clearstead Advisors LLC now owns 684 shares of the company’s stock worth $31,000 after purchasing an additional 581 shares during the period. Finally, GAMMA Investing LLC lifted its position in shares of Leonardo DRS by 72.2% during the 3rd quarter. GAMMA Investing LLC now owns 751 shares of the company’s stock worth $34,000 after purchasing an additional 315 shares during the last quarter. 18.76% of the stock is owned by institutional investors.

Leonardo DRS Stock Performance

The firm has a 50 day moving average of $38.57 and a two-hundred day moving average of $38.98. The stock has a market cap of $11.66 billion, a P/E ratio of 44.71, 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 quick ratio of 1.63 and a current ratio of 2.00.

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.