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Leonardo DRS (DRS) earnings and revenue breakdown
Latest: Q3 2026 · 10-Q filed Oct 29, 2026 · Leonardo DRS (DRS) Q3 2026 earnings results →
Q3 2026 Revenue up 11% year over year to $1.1B · 11¢ of every $1 of revenue kept as net profit · operating margin 10.9%
Leonardo DRS made $1.1B in Q3 2026 (+11% Y/Y). Operating margin 10.9%, net earnings $115M. See where every dollar goes — costs, profit and cash — as a Sankey from the 10-Q filed Oct 29, 2026.
Drawing the Sankey…
Open the interactive Sankey → click any line for what the company wrote about it, compare Y/Y and Q/Q, export as PNG or PDF
What changed this quarter
Revenue was $1.1B in Q3 2026, up 11% year over year and up 17% from the previous quarter.
Gross margin was 24.7%, up 1.5 points from Q3 2025. Operating profit was $0.12B, a 10.9% margin (up 1.2 points year over year). Of the extra revenue versus Q3 2025, 22% reached operating profit, above the 10% margin then. Operating expenses grew 14% against revenue growth of 11%. Net earnings were $0.12B, up 60% year over year. The effective tax rate was 0.9%.
Operating cash flow was $0.10B (down 10% year over year), 83% of net earnings. Non-cash charges added back $0.03B of depreciation and amortization and $0.01B of share-based compensation. Working capital and other items used $0.05B. After capital expenditures, net ($0.04B), free cash flow as the company reports it was $0.06B.
Quarterly history
| Quarter | Form | Filed | Revenue | Y/Y | Op. margin | Net earnings | Op. cash flow |
|---|---|---|---|---|---|---|---|
| Q3 2026 | 10-Q | Oct 29, 2026 | $1.1B | +11% | 10.9% | $115M | $96.0M |
| Q2 2026 | 10-Q | Jul 30, 2026 | $913M | +10% | 11.2% | $86.0M | $35.0M |
| Q1 2026 | 10-Q | May 5, 2026 | $846M | +6% | 9.1% | $62.0M | −$66.0M |
| Q4 2025 | 10-K | Feb 27, 2026 | $1.1B | +8% | 11.9% | $102M | $425M |
| Q3 2025 | 10-Q | Oct 29, 2025 | $960M | +18% | 9.7% | $72.0M | $107M |
| Q2 2025 | 10-Q | Jul 30, 2025 | $829M | +10% | 8.4% | $54.0M | −$28.0M |
| Q1 2025 | 10-Q | May 1, 2025 | $799M | +16% | 7.4% | $50.0M | −$138M |
Charts
Interactive views
The same charts as the app — open one to draw it.
💵Where each $1 goesinteractive
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🌏Named in Asian annual reportsinteractive
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🔄Rotation against the market and its industry (RRG)interactive
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🔍Earnings qualityinteractive
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⚖️Fair value by methodinteractive
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🔭Outlook & guidanceinteractive
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📈Investments: gains and what it boughtinteractive
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🏭Its industry’s money flow (input-output)interactive
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Customers and suppliers named in filings
Sells to
- U.S. government — 80% of its revenue · Stated in 10-K (sentence) · source
About Leonardo DRS
Leonardo DRS, Inc. provides advanced defense technology to U.S. national security customers and allied defense forces worldwide. We specialize in the design, development, manufacture, and integration of advanced sensing, network computing, force protection, and electric power and propulsion technologies and solutions. As a mid-sized defense technology company, our combination of operational speed and agility, deep domain expertise, and established positions on priority defense platforms has resulted in a durable and diversified portfolio of programs across the DoW. We believe DRS is well positioned to support current operational requirements, while facilitating the DoW’s rapid transition toward more autonomous, software-enabled, interconnected, and multi-domain capabilities required to address increasingly complex and proliferating threats.
In its own words, from its 10-K, filed Feb 27, 2026.
Leonardo DRS against its Search, Detection, Navigation, Guidance, Aeronautical Sys peers
The largest companies of the same SEC industry, each at its latest quarter. Revenue growth: +11% against the peers' median +9%. Operating margin: 10.9% against the peers' median 11.4%.
| Company | Quarter | Revenue | Y/Y | Op. margin |
|---|---|---|---|---|
| DRS Leonardo DRS | Q3 2026 | $1.1B | +11% | 10.9% |
| NOC Northrop Grumman | Q3 2026 | $11.1B | +7% | 11.4% |
| LHX L3Harris Technologies | Q3 2026 | $6.1B | +7% | 13.0% |
| GRMN Garmin | Q3 2026 | $2.0B | +12% | 30.8% |
| TDY Teledyne Technologies | Q3 2026 | $1.7B | +9% | 20.6% |
| LUNR Intuitive Machines | Q2 2026 | $206M | +310% | -22.9% |
| LYNX Lyntris | Q3 2026 | $194M | +90% | 5.7% |
| CODA Coda Octopus Group | Q3 FY26 | $7.7M | +9% | 19.9% |
| MIND Mind Technology | Q2 FY27 | $5.6M | -58% | -31.9% |
Source: Leonardo DRS 10-Q on SEC EDGAR · CIK 1833756 · Search, Detection, Navigation, Guidance, Aeronautical Sys
Guidance and outlook
13F: who owns DRS and who is buying
More on DRS
- How Leonardo DRS makes money: revenue by segment
- Leonardo DRS next earnings date and what analysts expect
- Leonardo DRS stock forecast, price target and fair value
- Who owns Leonardo DRS stock: holders, funds and Congress trades
- Leonardo DRS guidance and outlook
- Is Leonardo DRS a takeover target? LBO and rumors
- Leonardo DRS recalls, complaints and regulation
History
Every quarter: Q3 2026 results · Q2 2026 results · Q1 2026 results · Q4 2025 results · Q3 2025 results · Q2 2025 results · Q1 2025 results