Leonardo DRS (DRS) Earnings: Q3 2026 Results

The quarter ended September 30, 2026 and Leonardo DRS published the results on October 29, 2026. Revenue and diluted EPS are shown against Q3 2025, the same quarter a year earlier, which takes seasonal swings out of the comparison. Leonardo DRS reports EPS two ways: GAAP, under the accounting rules every US filer follows, and adjusted diluted, which leaves out items the company considers outside its operating results. The release reconciles the two, and when they diverge, the reconciliation says why.

• Segment revenue includes intersegment sales of $21 million in Q3 2026 and $3 million in Q3 2025, which the 10-Q eliminates to reach total revenue.

Source: Leonardo DRS Q3 2026 results, October 29, 2026. Also in the Form 10-Q for the quarter ended September 30, 2026. Figures as reported; checked against the release on November 10, 2026.

How Leonardo DRS splits revenue in its own release, under its own labels, for Q3 2026 against Q3 2025. Indented lines are parts of the line above them.

• Leonardo DRS's Advanced Sensing and Computing (ASC) revenue was $659 million in Q3 2026, up 14% from $580 million in Q3 2025, 62% of total revenue.
• Leonardo DRS's Integrated Mission Systems (IMS) revenue was $428 million in Q3 2026, up 12% from $383 million in Q3 2025, 40% of total revenue.

Segment lines are the figures writers cite most often, because they show where the growth in a quarter came from. Companies redraw their segments from time to time and restate the prior year to match, so a year-ago figure here can differ from the one printed a year ago. When that has happened, the note above says so.

From the earnings release

Leonardo DRS gives full-year guidance only, in a table in its release. The prior ranges were revenue of $3,900 million to $3,975 million and adjusted diluted EPS of $1.34 to $1.39. The guidance excludes the pending acquisition of Raft LLC.

In its Q3 2026 release, Leonardo DRS said:

“Leonardo DRS is increasing 2026 guidance for Revenue, Adjusted EBITDA and Adjusted Diluted EPS based on strong year-to-date performance”

“Revenue $3,950 million-$3,985 million”

“Adjusted EBITDA $545 million-$555 million”

“Adjusted Diluted EPS $1.50-$1.53”

Source: Leonardo DRS Q3 2026 release, Oct 29, 2026.

This is the company's own guidance as of Oct 29, 2026, quoted as given. Walnut does not make forecasts of its own. Analyst estimates for the coming quarters are on the DRS forecast page.

Revenue and diluted EPS for the last 5 quarters. Each date links to that quarter's release.

GAAP revenues and diluted EPS, each as first reported in that quarter's release.

We do not hold a confirmed date for Leonardo DRS's next report. Companies post the date on their investor relations site a few weeks ahead, usually with the time of the conference call.

Each quarter keeps its own page with the figures as reported, so a link to one stays pointed at the same numbers after the next report.

• Q3 2026 (this page), reported Oct 29, 2026

Leonardo DRS reported Q3 2026 revenues of $1,066 million, up 11% from $960 million. It runs two segments: Advanced Sensing and Computing (ASC), with $659 million, and Integrated Mission Systems (IMS), with $428 million, before $21 million of intersegment sales. Leonardo DRS said growth was led by tactical radars, naval power and propulsion programs and progress on space sensing programs. (Leonardo DRS Q3 2026 release, Oct 29, 2026; Leonardo DRS Form 10-Q, Q3 2026, Oct 29, 2026)

ASC revenue rose 14%, driven mainly by tactical radars and space sensing programs, and its bookings of $1,017 million gave a book-to-bill of 1.5x. IMS revenue rose 12% on strength across naval power and propulsion, and its operating margin rose to 15.0% from 12.5%. (Leonardo DRS Q3 2026 release, Oct 29, 2026)

The U.S. government is Leonardo DRS's largest customer, directly or as a subcontractor: 80% of total revenues in 2025, with the Navy and the Army each at 36%. No single contract was more than 10% of 2025 revenues. Most revenue is fixed-price: in Q3 2026, $563 million of ASC revenue and $343 million of IMS revenue came from fixed-price contracts. (Leonardo DRS Form 10-K, 2025, Feb 27, 2026; Leonardo DRS Form 10-Q, Q3 2026, Oct 29, 2026)

Leonardo DRS sells mostly in the United States. In Q3 2026, ASC had $558 million of U.S. revenue and $81 million international, and IMS $411 million U.S. and $16 million international. Leonardo S.p.A. of Italy indirectly owns about 71% of Leonardo DRS's common stock, which puts the company under foreign ownership, control or influence (FOCI) rules for classified work. (Leonardo DRS Form 10-Q, Q3 2026, Oct 29, 2026; Leonardo DRS Form 10-K, 2025, Feb 27, 2026)

Leonardo DRS's GAAP diluted EPS rose 65% to $0.43 in Q3 2026, and adjusted diluted EPS rose 59% to $0.46. Adjusted net earnings of $124 million add back to net earnings of $115 million the amortization of intangibles ($5 million), deal-related transaction costs ($4 million) and other one-time non-operational events ($3 million), less a tax effect. (Leonardo DRS Q3 2026 release, Oct 29, 2026)

Leonardo DRS's effective tax rate was 0.9% in Q3 2026 against 17.2% a year earlier, because of discrete tax benefits from a reduction in unrecognized tax benefits. Leonardo DRS's full-year guidance cut its tax rate assumption to 13.0% from 16.5%. (Leonardo DRS Form 10-Q, Q3 2026, Oct 29, 2026; Leonardo DRS Q3 2026 release, Oct 29, 2026)

Diluted weighted average shares were 268.275 million against 268.426 million. Leonardo DRS repurchased 288,633 shares for about $12 million in the quarter and paid dividends of about $24 million, or $0.09 per share. (Leonardo DRS Q3 2026 release, Oct 29, 2026)

Diluted EPS divides net income by the weighted average number of shares outstanding in the quarter, plus the shares that options and other equity awards could add. Buybacks shrink that count and lift EPS for the same profit; share issuance and stock awards enlarge it.

Leonardo DRS publishes full-year guidance in its release, not a quarterly outlook. After Q3 2026 it raised its 2026 revenue range to $3,950 million to $3,985 million, from $3,900 million to $3,975 million, adjusted EBITDA to $545 million to $555 million, and adjusted diluted EPS to $1.50 to $1.53, from $1.34 to $1.39. (Leonardo DRS Q3 2026 release, Oct 29, 2026)

The guidance excludes the pending acquisition of Raft LLC, a mission software company focused on multi-domain data fusion and artificial intelligence, which Leonardo DRS agreed on July 28, 2026 to buy for $450 million with cash on hand and borrowings under its revolving credit facility. (Leonardo DRS Q3 2026 release, Oct 29, 2026; Leonardo DRS Form 10-Q, Q3 2026, Oct 29, 2026)

A consensus figure is the average of the models published by the analysts who cover Leonardo DRS, collected by a data provider and revised up to the day of the report. A quarter that lands above it says how expectations were set as much as how the business did, and the share price on the day also reflects the guidance and the lines no consensus covers.

The consensus figures on this page are Yahoo Finance's, as pulled on the date shown. Each comes with the number of analysts behind it; the smaller that number, the more one revised estimate can move the average.

The figures below are the ones Leonardo DRS's own release and filings put weight on for Q3 2026, with the latest reported value for each.

What the quarter means for a holding is a separate question from what it reported. The case for and against owning DRS is on is DRS a buy or a sell?, what analysts expect next is on the DRS forecast, and what the company does is on the Leonardo DRS (DRS) stock page.

Every number on this page can be traced to a document Leonardo DRS published. Checking one takes a couple of minutes, and it is worth doing before you quote a figure anywhere.

• The results release is the document linked in the source line above. Companies publish it on their investor relations site at the moment results go out, and it carries the headline tables: revenue, operating income, net income and EPS for the quarter and the year-ago quarter.
• The same release is filed with the SEC as Exhibit 99.1 to a Form 8-K under Item 2.02, usually on the day of the report. The SEC copy does not change after the fact, which makes it the safer thing to link when you cite a number.
• The quarterly report (Form 10-Q) follows within a few weeks and carries the full financial statements, the segment note and management's discussion of what changed. The fourth quarter is covered by the annual report (Form 10-K) instead.
• Restated comparisons are flagged in the notes on this page. When a company redraws its segments or changes how it adjusts EPS, it restates the year-ago column, so the year-ago figure in a new release can differ from the one printed a year ago. This page always uses the comparison in the newer release, because that is the like-for-like one.

A walk-through of every line in a release, with what each one tells you, is in how to read an earnings report.