Analyst Consensus ?
ConsensusBuy9 ratings
Bullish777.8%
Neutral222.2%
Bearish00.0%
Leonardo DRS, Inc. · DRS · FY2026 Q3 · Calendar Q4 2026
Leonardo DRS raises FY26 outlook as backlog reaches $5.6 billion
Leonardo DRS's Q3 results support a constructive operating thesis: demand across radar, propulsion, counter-UAS and space sensing is translating into bookings, backlog and higher FY26 guidance. The main tests are execution, supply availability, RAFT integration and the durability of margin gains.
Reported Before market openNASDAQIndustrials
$10.58B market cap
100quality score
Earnings scorecard
Reported versus consensus
Reported EPS
$0.46
Consensus $0.35
EPS surprise
+30.0%
Reported versus consensus
Reported revenue
$1.07B
Consensus $1.03B
Revenue surprise
+3.6%
Reported versus consensus
Market reaction
prior-close to event-session close
Stock move
+11.7%
Event window
SPY move
-0.4%
Same window
Abnormal move
+12.0%
Stock minus SPY
Volume
2.1×
Versus trailing sessions
Subsequent drift
0.0%
Up to 20 sessions
DRSSPY benchmark
Ask FN2 about DRS FY2026 Q3
Transcript, numbers and history already loaded
Why did DRS rise 11.7% after beating EPS estimates in FY2026 Q3?What changed in DRS's guidance and outlook in FY2026 Q3?Give me the bull and bear case for DRS after FY2026 Q3 earnings.
Free account. Your question opens in FN2 with this report's transcript and numbers attached.
Transcript intelligence
What changed
Compared with the prior quarter, management reported faster bookings, a larger funded backlog and another increase to the FY26 revenue and EBITDA outlook. The company also highlighted additional radar, propulsion, counter-UAS and space-related wins, while RAFT remains pending.
Guidance delta
FY26 revenue outlook was raised to $3.95-$3.985 billion and adjusted EBITDA outlook to $545-$555 million.
Key takeaways
- Q3 revenue grew 11% year over year, while adjusted EBITDA margin expanded to 14%.
- Bookings exceeded $1.6 billion and funded backlog reached a record $5.6 billion.
- Management cited demand for tactical radars, electric propulsion, counter-UAS and space sensing.
Management priorities
- Scale radar production through DRS UK and domestic facilities.
- Expand Charleston capacity for electric propulsion.
- Integrate RAFT AI software with DRS hardware and expand THOR edge-computing offerings.
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Try FN2 freeEarnings History
Estimate
Beat
Miss
Match
Analyst 52W Price Targets
$39.64Current
$30Low
$45.73Average
$59High
Latest persisted target per named analyst; persisted current price from FN2's market snapshot as of Oct 30, 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 current price $39.64. 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 | +13.5% | Oct 22, 2026 |
| Morgan Stanley | Justin Lang | $44 | $35.47 | +11.0% | Oct 16, 2026 |
| Guggenheim | Michael Ciarmoli | $51 | $35.91 | +28.7% | Sep 14, 2026 |
| Canaccord Genuity | Austin Moeller | $54 | $39.7 | +36.2% | May 6, 2026 |
| Truist Financial | Analyst unavailable | $59 | $43.58 | +48.8% | Feb 25, 2026 |
| Morgan Stanley | Analyst unavailable | $47 | $43.61 | +18.6% | Feb 25, 2026 |
| Truist Financial | Michael Ciarmoli | $54 | $38.84 | +36.2% | Jan 9, 2026 |
| Morgan Stanley | Kristine Liwag | $40 | $33.69 | +0.9% | Dec 16, 2025 |
| BTIG | Andre Madrid | $49 | $41.77 | +23.6% | May 5, 2025 |
| Truist Financial | Michael Ciarmoli | $37 | $32.17 | -6.7% | Jan 14, 2025 |
| Truist Financial | Michael Ciarmoli | $36 | $31.64 | -9.2% | Oct 31, 2024 |
| Bank of America Securities | Ronald Epstein | $30 | $28.58 | -24.3% | Sep 24, 2024 |
| Robert W. Baird | Peter Arment | $30 | $28 | -24.3% | Jul 31, 2024 |
| Truist Financial | Michael Ciarmoli | $30 | $28.37 | -24.3% | Jul 17, 2024 |
| Truist Financial | Michael Ciarmoli | $27 | $23.65 | -31.9% | Jun 5, 2024 |
| Morgan Stanley | Kristine Liwag | $26 | $24.07 | -34.4% | May 24, 2024 |
| Truist Financial | Michael Ciarmoli | $19 | $16.2 | -52.1% | 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.…
Industrials peers this season
Latest reports in the same sector| Company | Quarter | EPS surprise | Market move | Headline |
|---|---|---|---|---|
| TT Trane Technologies plc | FY2026 Q3 · Calendar Q4 2026 | — | -3.9% | Trane raises revenue outlook as HVAC and data-center demand stay strong |
| HWM Howmet Aerospace Inc. | FY2026 Q3 · Calendar Q4 2026 | — | +5.5% | Howmet Q3: Strong Demand, Higher Guidance, and Capacity Risk |
| EME EMCOR Group, Inc. | FY2026 Q3 · Calendar Q4 2026 | — | +1.6% | EMCOR raises 2026 outlook as data-center demand lifts RPO |
| LHX L3Harris Technologies, Inc. | FY2026 Q3 · Calendar Q4 2026 | — | +6.8% | L3Harris lifts guidance as backlog and cash flow accelerate |
| AOS A. O. Smith Corporation | FY2026 Q3 · Calendar Q4 2026 | — | +2.9% | A. O. Smith refocuses on North America as boilers lead growth |
| STRL Sterling Infrastructure, Inc. | FY2026 Q3 · Calendar Q4 2026 | +22.3% | -0.4% | Sterling raises 2026 outlook as E-Infrastructure demand accelerates |
Latest beats and misses
Who reports nextBeat on EPS
- KIM-PLFY2026 Q3 · October 29, 2026+101.6% EPS— move
- MRKFY2026 Q3 · October 29, 2026+19.1% EPS+3.8% move
- TYLFY2026 Q3 · October 28, 2026+1.1% EPS+3.6% move
- EHCFY2026 Q3 · October 28, 2026+11.8% EPS+7.7% move
- AGIFY2026 Q3 · October 28, 20260.0% EPS-9.0% move
- ARFY2026 Q3 · October 28, 2026+22.3% EPS-2.2% 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 · 2026-10-29T19:06:11.288360+00:00
- FN2 earnings calendar · 2026-10-30T01:23:13.979536+00:00
- Polygon adjusted daily market bars · 2026-10-30T01:40:42.026569+00:00
- Financial Modeling Prep analyst price-target consensus and quote snapshot · 2026-10-30T01:40:42.023631+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 2026-10-30. For educational purposes only; not investment advice.