Analyst Consensus ?
ConsensusBuy9 ratings
Bullish777.8%
Neutral222.2%
Bearish00.0%
Leonardo DRS, Inc. · DRS · FY2025 Q4 · Calendar Q1 2026
Leonardo DRS pairs record 2025 bookings with investment-led 2026 growth
Record bookings, an $8.7 billion backlog and demand across sensing, propulsion and space programs support the stated 2026 growth outlook. The evidence is constructive, but substantially higher R&D and capital spending, supply constraints and long program-conversion cycles make the earnings payoff dependent on execution.
Reported Before market openNASDAQIndustrials
$10.05B market cap
100quality score
Earnings scorecard
Reported versus consensus
Reported EPS
$0.42
Consensus $0.37
EPS surprise
+13.5%
Reported versus consensus
Reported revenue
$1.06B
Consensus $994.8M
Revenue surprise
+6.5%
Reported versus consensus
Market reaction
prior-close to event-session close
Stock move
+14.9%
Event window
SPY move
+0.7%
Same window
Abnormal move
+14.2%
Stock minus SPY
Volume
2.8×
Versus trailing sessions
Subsequent drift
+0.5%
Up to 20 sessions
DRSSPY benchmark
Ask FN2 about DRS FY2025 Q4
Transcript, numbers and history already loaded
Why did DRS rise 14.9% after beating EPS estimates in FY2025 Q4?What changed in DRS's guidance and outlook in FY2025 Q4?Give me the bull and bear case for DRS after FY2025 Q4 earnings.
Free account. Your question opens in FN2 with this report's transcript and numbers attached.
Transcript intelligence
What changed
Management’s FY2025 review highlighted record bookings, 13% revenue growth and 19% free cash flow growth despite a prolonged government shutdown. For 2026, the company maintained an outlook for 6–8% organic revenue growth, with capex approaching 5% of revenue. Investment priorities include expanding production capacity and advancing space, sensing, radar and electric-propulsion programs.
Guidance delta
Management maintained its 2026 outlook: organic revenue growth of 6–8%, with capex approaching 5% of revenue. The supplied analysis does not identify a change to that outlook in this call.
Key takeaways
- FY2025 delivered record bookings, 13% revenue growth and 19% free cash flow growth, according to the transcript analysis.
- The $8.7 billion backlog provides visibility into 2026, while management’s outlook calls for 6–8% organic revenue growth.
- R&D rose 40% and capex increased more than 60% in 2025, directed toward space, infrared sensing, tactical radars and electric propulsion.
- The call analysis flags critical-material supply, margin pressure and elongated program conversion as factors that could complicate the growth outlook.
Management priorities
- Scale the new naval power facility in Charleston and ramp production of tactical radars, infrared sensors and electric propulsion modules.
- Execute the SDA Tracking Layer program and pursue additional space-based sensor opportunities, including crypto-enabled software-defined radios.
- Expand counter-UAS and unmanned capabilities and pursue international opportunities through European partnerships.
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Try FN2 freeEarnings History
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Analyst 52W Price Targets
$37.68Previous close
$30Low
$45.73Average
$59High
Latest persisted target per named analyst; persisted previous close from FN2's market snapshot as of Nov 2, 2026. Not an FN2 forecast.
Firm-level rating actions
FMP grade actions identify the grading firm, not a named analyst.
| Firm | Rating | Prior rating | Action | Date |
|---|---|---|---|---|
| Morgan Stanley | Equal Weight | Equal Weight | Maintain | Oct 19, 2026 |
| JP Morgan | Neutral | Neutral | Maintain | Jul 31, 2026 |
| Canaccord Genuity | Buy | Buy | Maintain | May 6, 2026 |
| B of A Securities | Buy | Buy | Maintain | Mar 25, 2026 |
| Truist Securities | Buy | Buy | Maintain | Oct 30, 2025 |
| Baird | Outperform | Outperform | Maintain | Oct 31, 2024 |
| BTIG | Buy | Buy | Maintain | Aug 1, 2024 |
| CJS Securities | Outperform | Outperform | Maintain | Apr 4, 2023 |
| Vertical Research | Buy | Buy | Maintain | Nov 30, 2022 |
Named analyst price targets
Upside is calculated against the persisted previous close $37.68. FMP does not supply a rating on these named-analyst rows.
| Firm | Analyst | 52W target | Price when posted | Upside | Date |
|---|---|---|---|---|---|
| Oppenheimer | Analyst unavailable | $45 | $33.98 | +19.4% | Oct 22, 2026 |
| Morgan Stanley | Justin Lang | $44 | $35.47 | +16.8% | Oct 16, 2026 |
| Guggenheim | Michael Ciarmoli | $51 | $35.91 | +35.4% | Sep 14, 2026 |
| Canaccord Genuity | Austin Moeller | $54 | $39.7 | +43.3% | May 6, 2026 |
| Truist Financial | Analyst unavailable | $59 | $43.58 | +56.6% | Feb 25, 2026 |
| Morgan Stanley | Analyst unavailable | $47 | $43.61 | +24.7% | Feb 25, 2026 |
| Truist Financial | Michael Ciarmoli | $54 | $38.84 | +43.3% | Jan 9, 2026 |
| Morgan Stanley | Kristine Liwag | $40 | $33.69 | +6.2% | Dec 16, 2025 |
| BTIG | Andre Madrid | $49 | $41.77 | +30.0% | May 5, 2025 |
| Truist Financial | Michael Ciarmoli | $37 | $32.17 | -1.8% | Jan 14, 2025 |
| Truist Financial | Michael Ciarmoli | $36 | $31.64 | -4.5% | Oct 31, 2024 |
| Bank of America Securities | Ronald Epstein | $30 | $28.58 | -20.4% | Sep 24, 2024 |
| Robert W. Baird | Peter Arment | $30 | $28 | -20.4% | Jul 31, 2024 |
| Truist Financial | Michael Ciarmoli | $30 | $28.37 | -20.4% | Jul 17, 2024 |
| Truist Financial | Michael Ciarmoli | $27 | $23.65 | -28.3% | Jun 5, 2024 |
| Morgan Stanley | Kristine Liwag | $26 | $24.07 | -31.0% | May 24, 2024 |
| Truist Financial | Michael Ciarmoli | $19 | $16.2 | -49.6% | Jun 9, 2023 |
Track every rating change on DRS the moment it posts. Free to start.
Start freeCompany context
Snapshot as of publicationEstablished in Arlington, Virginia, in 1969, Leonardo DRS, Inc. is a leading supplier of advanced defense products and technologies. The company's diverse portfolio addresses military requirements across various environments, including land, air, sea, space, and cybersecurity, with additional applications in the commercial sector. Its operations are organized into two primary divisions: Advanced Sensing and Computing, and Integrated Mission Systems. DRS provides sophisticated sensing solutions, such as infrared systems for threat identification and improving situational awareness, alongside uncooled infrared technologies and systems designed to mitigate brownout conditions. Their electronic warfare (EW) capabilities encompass airborne, vehicle-mounted, and soldier-borne systems, supported by specialized EW software, training tools, and intelligence services.…
Historical context
All DRS earningsIndustrials peers this season
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|---|---|---|---|---|
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| RBC RBC Bearings Incorporated | FY2027 Q2 · Calendar Q4 2026 | +5.9% | -6.8% | RBC Bearings: Strong Q2, capacity investment supports second half |
| CNI Canadian National Railway Company | FY2026 Q3 · Calendar Q4 2026 | +3.4% | -0.3% | CN posts strong Q3, maintains EPS outlook and expands Mexico strategy |
| NVT nVent Electric plc | FY2026 Q3 · Calendar Q4 2026 | +8.6% | -8.8% | nVent raises outlook as data-center demand and Maverick broaden growth |
| MTZ MasTec, Inc. | FY2026 Q3 · Calendar Q4 2026 | +0.3% | +0.8% | MasTec posts record Q3 as power and data-center demand accelerates |
| IR Ingersoll Rand Inc. | FY2026 Q3 · Calendar Q4 2026 | +18.5% | +0.2% | Ingersoll Rand raises FY2026 outlook as orders accelerate |
Latest beats and misses
Who reports nextBeat on EPS
- CHDFY2026 Q3 · October 30, 2026+2.2% EPS+1.2% move
- AZNFY2026 Q3 · October 30, 2026+7.3% EPS+7.0% move
- FRTFY2026 Q3 · October 30, 2026+3.9% EPS-1.1% move
- CVXFY2026 Q3 · October 30, 2026+8.4% EPS+1.8% move
- BTSGFY2026 Q3 · October 30, 2026+14.2% EPS+11.1% move
- EXCFY2026 Q3 · October 30, 2026+10.4% EPS+0.5% move
Missed on EPS
- GLPIFY2026 Q3 · October 29, 2026-11.5% EPS-1.3% move
- LYBFY2026 Q3 · October 30, 2026-1.2% EPS+5.0% move
- CCJFY2026 Q3 · October 30, 2026-101.4% EPS-7.9% move
- VALEFY2026 Q3 · October 29, 2026-24.6% EPS+1.9% move
- DLR-PLFY2026 Q3 · October 29, 2026-8.4% EPS— move
- DLR-PKFY2026 Q3 · October 29, 2026-8.4% EPS— move
Get the DRS recap when the next report posts
One email per quarter with the scorecard, the market reaction and what changed on the call. No account needed.
Sources
- Earnings call transcript and parsed analysis · 2026-05-11T10:29:34.698584+00:00
- FN2 earnings calendar · 2026-07-26T00:37:12.209961+00:00
- Polygon adjusted daily market bars · 2026-11-02T11:30:46.992626+00:00
- Financial Modeling Prep analyst price-target consensus and quote snapshot · 2026-11-02T11:30:46.989555+00:00
Methodology
Reported and consensus figures come from FN2's earnings event records. Market reaction and volume are calculated from daily adjusted bars around the event; abnormal move subtracts the SPY move over the same window.
Analyst target low, average, and high values are derived at request time from each named analyst's latest persisted FMP target. The current-price marker comes from FN2's persisted market snapshot. They are sell-side estimates, not an FN2 valuation or recommendation.
Transcript intelligence is a structured synthesis of the current and prior earnings-call analyses. Missing values stay missing and are never estimated.
By FN2 Research · Updated · As of 2026-11-02. For educational purposes only; not investment advice.