Leonardo DRS rises 11.7% after beating Q3 estimates and raising guidance

What happened

Leonardo DRS rose 11.7% on October 29, 2026, after third-quarter results beat estimates and the company raised and narrowed its full-year guidance. The firm reported earnings per share of $0.46 versus $0.35 expected, 30.0% above estimates, and said results included double-digit organic revenue growth, expanded margins and record bookings, according to filings and commentary. The report and guidance revision were described in a company release and in summaries by GlobeNewsWire and Zacks Investment Research. Trading volume was 2.1 times its 20-day average and the S&P 500 fell 0.3% on the same day.

How big was the move

The stock closed at $39.64, a session move that was 5.4 times a typical daily move for this stock. Over the last five sessions the stock rose 15.6%, while the Industrials sector median rose 1.4% on the day, leaving Leonardo DRS 10.3 percentage points better than the sector median. The S&P 500 rose 0.7% over five sessions, underscoring that the company-specific earnings news drove most of the move. The shares opened 6.4% above the previous close on October 29, 2026, and the stock’s market value was $9.21 billion.

The technical picture

At the close the stock was 11.1% above its 20-day moving average and 7.8% above its 50-day moving average, while 6.0% below its 200-day moving average. The 50-day average is below the 200-day average, a sign of a weak longer-term trend. The Relative Strength Index (14 days) read 69, inside a neutral range. The stock finished 21.6% below the 52-week high, had risen 8.2% over one month and fallen 13.9% over three months. Its beta of 1.09 indicates the stock tends to move about as much as the market, and 60-day annualized volatility was 34%, lower than 67% of its own readings over five years.

Fundamentals and valuation

For the four quarters through September 30, 2026, revenue was $3.88 billion, which grew 8.9% from a year earlier, and diluted earnings per share were $1.36, which rose 37.4% from a year earlier. Gross margin measured 25.3% versus 23.4% a year earlier, and operating margin was 10.8% versus 9.6% a year earlier. The company reported a free-cash-flow margin of 8.9% and return on invested capital of 10.4%. The balance sheet showed net cash of $119.0 million and share count over one year decreased by 0.2%.

On valuation, the stock traded at 29.1 times trailing earnings and 28.5 times expected earnings, with a free-cash-flow yield of 3.7%. Its price to trailing earnings was lower than 62% of its own readings over the past five years, where the five-year median is 31.2 times earnings. PromtFinance scores ranked the company 58 on Value (Neutral), 64 on Growth (Neutral), 78 on Quality (Positive), 49 on Momentum (Neutral), 94 on Revisions (Exceptional) and 81 on Stability (Strong).

Earnings and analyst expectations

The October 29, 2026, report showed earnings per share of $0.46 versus $0.35 expected, a 30.0% beat, and the company has beaten consensus estimates for 15 consecutive quarters. The average surprise over the last four reports was 23.9% above estimates, and typical two-day reactions after recent reports have seen the stock rose 3.0%. Analyst coverage includes nine analysts with a consensus rating of Buy, and 78% of those analysts rate the stock Buy or Strong Buy. The consensus price target is $48.50, 22.4% above the closing price. The next scheduled report is February 23, 2027.

What to watch

• February 23, 2027: next scheduled earnings report.
• Consensus price target $48.50, 22.4% above the closing price.
• The company reported revenue of $3.88 billion for the four quarters through September 30, 2026, and earnings per share of $0.46 in the last quarter.
• PromtFinance Revisions score 94 (Exceptional), indicating recent upward estimate momentum.
• Trading volume on October 29, 2026, was 2.1 times its 20-day average.