Why Is LEONARDO DRS INC (DRS) Stock Up Today?

Leonardo DRS shares surged 11.90% to $39.73 on Wednesday, driven by a strong third-quarter earnings report and a significant upward revision to full-year guidance. The defense technology company beat consensus estimates for both adjusted earnings per share and revenue, prompting a sharp re-rating of the stock.

What Happened

Leonardo DRS reported third-quarter revenue of $1.1 billion, an 11% increase year-over-year, which exceeded the $1.029 billion consensus estimate. Net earnings rose 60% to $115 million, while adjusted EBITDA climbed 27% to $149 million. The company posted non-GAAP EPS of $0.46, surpassing the $0.35 analyst consensus by $0.11.

Management raised its fiscal 2026 adjusted EPS outlook to a range of $1.50 to $1.53, up from the previous $1.34 to $1.39 range. Sales guidance was also lifted to $3.950 billion to $3.985 billion, compared to the prior $3.900 billion to $3.975 billion estimate. The company declared a quarterly dividend of $0.09 per share, payable on November 25 to shareholders of record on November 25.

What The Data Shows

The stock opened at $36.59, a 3.1% gap above the prior close of $35.50, and traded as high as $39.83 at 9:45 AM ET. Volume stood at 0.5 million shares, which is 0.5 times the three-month daily average. The company has a market capitalization of $9.6 billion and a P/E ratio of 29.8. Trailing twelve-month revenue growth stands at 10.5%, with a net margin of 8.5% and a beta of 0.16.

The stock printed eight fresh 52-week highs and one fresh 52-week low on October 29, 2026. Over the last eight sessions, the share price has climbed 15.7% from $33.94 to $39.28. Recent insider activity includes three sales totaling $1.2 million over the last 90 days, with no buys recorded.

What To Watch

Investors will monitor the company's ability to sustain its raised fiscal 2026 guidance and the impact of its record backlog on future revenue recognition.