What happened?
Shares of aerospace and defense company Leonardo DRS (NASDAQ: DRS) jumped 12% in the afternoon session after the company reported third-quarter 2026 financial results and raised its full-year financial guidance.
According to a company press release, Leonardo DRS reported that third-quarter organic revenue grew 11% to $1.066 billion, and net income increased 60% to $115 million. Adjusted earnings per share for the quarter was 46 cents. Bookings surpassed $1.6 billion, representing a 1.5x book-to-bill ratio. The company also updated its full-year 2026 outlook. It raised projected revenue to between $3.95 billion and $3.98 billion and adjusted diluted earnings per share to between $1.50 and $1.53, which was above the consensus expectation of $1.39. In addition, expected adjusted EBITDA was raised to between $545 million and $555 million.
The shares closed the day at $39.60, up 11.5% from the previous close.
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What is the market telling us
Leonardo DRS’s shares are somewhat volatile and have had 11 moves greater than 5% over the last year. But moves this big are rare even for Leonardo DRS and indicate this news significantly impacted the market’s perception of the business.
The biggest move we wrote about over the last year was 10 months ago when the stock gained 7.5% on the news that a Wells Fargo analyst maintained a Buy rating on the stock with a price target of $45 per share. This positive view was echoed by broader sentiment from the analyst community. In the three months prior, all six top analysts who covered the stock had rated it a Buy. Taken together, their 12-month price targets implied a potential upside of about 40.24%.
Leonardo DRS is up 10.9% since the beginning of the year, but at $38.58 per share, it is still trading 22.4% below its 52-week high of $49.69 from June 2026.
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