Leonardo DRS (DRS) is moving higher as investors react to the company’s first-quarter 2026 earnings update released on May 5, 2026. The quarter showed solid top-line growth, sharp profitability improvement, and a higher full-year outlook—supporting the bid in the shares in the next session. (investors.leonardodrs.com)

For Q1 2026, Leonardo DRS reported revenue of $846 million (up 6% year-over-year) and net earnings of $62 million (up 24% year-over-year). Adjusted EBITDA increased to $105 million (up 28% year-over-year) and adjusted diluted EPS rose to $0.26 (up 30% year-over-year), alongside record funded backlog of $4.7 billion (up 8% year-over-year). (investors.leonardodrs.com)

Management increased 2026 guidance across key metrics, including raising the revenue range to $3.9 billion–$3.975 billion versus its prior $3.85 billion–$3.95 billion range, and lifting adjusted EBITDA guidance to $515 million–$530 million from $505 million–$525 million. The company also raised adjusted diluted EPS guidance to $1.26–$1.30 from $1.20–$1.26, reinforcing expectations for improved earnings power this year. (investors.leonardodrs.com)

Traders will be watching whether bookings and backlog conversion stay strong through the next quarter, particularly in tactical radars, infrared sensing, and electric power and propulsion programs that drove Q1 momentum. Any follow-through in margin expansion and cash-flow seasonality commentary will matter as the market recalibrates full-year expectations after the guidance increase. (investors.leonardodrs.com)