Track market-moving stories before they get noisy

Inspire Medical Systems (INSP - Free Report) came out with quarterly earnings of $0.1 per share, beating the Zacks Consensus Estimate of a loss of $0.36 per share. This compares to earnings of $0.1 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +127.62%. A quarter ago, it was expected that this maker of devices for treating obstructive sleep apnea would post earnings of $0.69 per share when it actually produced earnings of $1.65, delivering a surprise of +139.13%.

Over the last four quarters, the company has surpassed consensus EPS estimates four times.

Inspire, which belongs to the Zacks Medical Info Systems industry, posted revenues of $204.58 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 2.94%. This compares to year-ago revenues of $201.32 million. The company has topped consensus revenue estimates four times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Inspire shares have lost about 38.5% since the beginning of the year versus the S&P 500's gain of 5.6%.

What's Next for Inspire?While Inspire has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Inspire was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.20 on $225.16 million in revenues for the coming quarter and $1.82 on $960.88 million in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Medical Info Systems is currently in the top 35% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Another stock from the same industry, KORU Medical Systems, Inc. (KRMD - Free Report) , has yet to report results for the quarter ended March 2026. The results are expected to be released on May 6.

This company is expected to post quarterly loss of $0.02 per share in its upcoming report, which represents a year-over-year change of +33.3%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

KORU Medical Systems, Inc.'s revenues are expected to be $11.36 million, up 17.8% from the year-ago quarter.

Inspire Medical Systems, Inc. (INSP) Q1 2026 Earnings Call Transcript

Inspire Medical Systems, Inc. remains under pressure as Q1 revenue grew just 1.6% and management slashed 2026 guidance by up to 10%. INSP faces intensifying competition from GLP-1s and rival devices, reimbursement headwinds, and coding challenges with its new Inspire 5 system. Territory contraction and a shift to supporting existing accounts signal operational headwinds and a retreat from high-growth expansion.

A month has gone by since the last earnings report for Inspire Medical Systems (INSP - Free Report) . Shares have lost about 15.9% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Inspire due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.

Inspire Medical Q1 Earnings Beat Estimates, 2026 View Cut

Inspire Medical delivered first-quarter 2026 adjusted earnings per share of 10 cents, flat year over year. The figure beat the Zacks Consensus Estimate of a loss of 36 cents by 127.8%.

INSP’s Q1 Revenues in Detail

Inspire Medical registered revenues of $204.6 million in the first quarter, up 1.6% year over year. The figure beat the Zacks Consensus Estimate by 2.9%.

Per management, the revenue growth was primarily driven by increased market penetration, offset by the adverse effects of reimbursement disruption and the Wasteful and Inappropriate Service Reduction (WISeR) program.

As of March 31, 2026, INSP operated 284 U.S. sales territories and employed 288 field clinical representatives compared with 295 territories and 275 representatives at the end of 2025.

INSP’s Margin Analysis

In the first quarter, Inspire Medical’s gross profit increased 3.7% year over year to $176.9 million. The gross margin expanded 180 basis points (bps) to 86.5%.

Selling, general and administrative expenses increased 5.5% year over year to $152.2 million. Research and development expenses decreased 7.1% year over year to $25.8 million. Operating expenses of $178 million increased 3.4% year over year.

Adjusted operating profit totaled $0.3 million, up from an adjusted operating loss of $1.5 million in the prior-year quarter.

Inspire Medical’s Financial Position

Inspire Medical exited first-quarter 2026 with cash and cash equivalents and short-term investments of $283.8 million compared with $308 million at 2025-end.

Cumulative net cash provided by operating activities at the end of first-quarter 2026 was $12.8 million, against net cash used in operating activities of $6.7 million a year ago.

INSP Lowers 2026 Outlook

Inspire Medical has updated its revenue and earnings per share outlook for 2026.

The company has lowered its revenue guidance to $825 million-$875 million (representing a decline of 4-10% from 2025 levels) from the previously projected $950 million-$1 billion. The Zacks Consensus Estimate is pegged at $960.9 million.

INSP expects its adjusted earnings per share for 2026 to be in the band of $0.75-$1.25, down from prior guidance of $1.85-$2.35. The Zacks Consensus Estimate is pegged at $1.82.

How Have Estimates Been Moving Since Then?It turns out, estimates revision have trended downward during the past month.

The consensus estimate has shifted -209.07% due to these changes.

VGM ScoresCurrently, Inspire has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for value investors.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Inspire has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.

Deciding between high-growth healthcare players often involves choosing between specialized surgical tools and innovative patient therapies. Both Alphatec (ATEC +1.48%) and Inspire Medical Systems (INSP +2.21%) offer compelling opportunities for investors seeking medical device exposure.

Alphatec specializes in a full-stack approach to spine surgery, integrating imaging and surgical technology to improve clinical outcomes. Inspire focuses on neurostimulation for obstructive sleep apnea, offering an alternative to traditional breathing machines. While both operate in the medical technology field, their financial profiles and market maturity levels provide different entry points for retail investors.

The case for AlphatecAlphatec operates as a spine-focused technology provider, developing advanced hardware and software solutions for complex surgical procedures. It differentiates itself through an integrated ecosystem, utilizing subsidiaries like EOS imaging and SafeOp Surgical to support surgeons through the entire clinical workflow. The company primarily serves the U.S. hospital market but is actively expanding its international footprint in Europe and Japan to reach a broader patient base.

In FY 2025, revenue reached nearly $764.2 million, representing a significant 25.0% increase over the prior year as adoption of its spine solutions grew. Despite this top-line momentum, the company reported a net loss of approximately $143.4 million for the period. The net margin, which measures the percentage of revenue remaining after all expenses, improved to negative 18.8% from negative 26.5% during the previous fiscal year.

As of its December 2025 balance sheet, the debt-to-equity ratio is roughly 17.2x, meaning total debt is much higher than shareholder equity. The current ratio, which measures the ability to pay short-term debts with short-term assets, is approximately 2.1x. Note that stock-based compensation represented roughly 163.0% of operating cash flow, meaning reported cash generation is heavily inflated by this non-cash add-back.

Inspire Medical Systems provides a unique neurostimulation therapy for patients with obstructive sleep apnea who cannot tolerate standard continuous positive airway pressure treatments. The company focuses on its proprietary Inspire system, targeting sleep specialists and ear, nose, and throat surgeons across global markets. By addressing an underserved population, the company has established a leading position among medical device stocks specializing in advanced respiratory care.

For FY 2025, revenue reached close to $912.0 million, marking a 13.6% increase compared to the prior fiscal year. The company achieved a net income of roughly $145.4 million, showcasing its successful transition to sustained profitability over the last two years. This resulted in a net margin, which is the profit left from each dollar of sales, of approximately 15.9%, up from about 6.7%.

As of its December 2025 balance sheet, the debt-to-equity ratio is 0.0x, signifying the company carries no debt and maintains a clean capital structure. The current ratio, which measures how easily a company can pay short-term bills with liquid assets, is approximately 6.1x. Free cash flow, which is cash from operations minus capital expenditures, was nearly $78.5 million for FY 2025.

Risk profile comparisonAlphatec faces intense competition from established giants such as Medtronic, Johnson & Johnson, Zimmer Biomet, and Globus Medical. Regulatory hurdles are high, as products require strict FDA oversight and timely clearances to avoid sales restrictions. The company also relies on a limited number of third-party suppliers and faces pricing pressure from hospital consolidation.

Inspire depends almost entirely on its single Inspire system for revenue, making it vulnerable if market demand shifts. It competes with traditional therapy manufacturers like ResMed and Philips, alongside emerging competitors like Nyxoah and LivaNova. Legal risks include a Department of Justice investigation and potential changes in insurance reimbursement that could impact adoption.

Valuation comparisonInspire Medical Systems carries a higher Forward P/E based on future earnings estimates, while Alphatec shows a higher P/S ratio measuring price to sales.

MetricAlphatecInspire Medical SystemsSector BenchmarkForward P/E25.8x47.0x24.9xP/S ratio1.7x1.3xSector benchmark uses the SPDR XLV sector ETF.
Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.

Which stock would I buy in 2026?I'd go with Alphatec. Both companies are doing interesting things in medical devices, but the risk profiles right now are pretty different, and that matters a lot when deciding where to put your money.

Alphatec is gaining real traction in spine surgery. More surgeons are adopting its approach, case volumes are growing strongly, and the company is becoming more profitable as it scales. There's a hiccup with one part of the business, but the core surgical engine is healthy and moving in the right direction.

Inspire Medical Systems has a valuable product for sleep apnea patients with a long-term opportunity. But right now, the company is dealing with a major reimbursement and coding uncertainty tied to Medicare policy changes. That kind of regulatory overhang is hard to predict, and it's not the kind of uncertainty most investors want to sign up for.

Alphatec's growth story is cleaner and the momentum is more visible. I'll take that over a waiting game with Medicare.

Leonardo DRS, Inc. (NASDAQ: DRS - Get Free Report) has been assigned a consensus rating of "Moderate Buy" from the eight analysts that are covering the stock, Marketbeat Ratings reports. Three research analysts have rated the stock with a hold rating and five have issued a buy rating on the company. The average 1 year target

ARLINGTON, Va.--(BUSINESS WIRE)--Leonardo DRS, Inc. (Nasdaq: DRS) announced today the introduction of THOR - Tactical, High-Performance Embedded Computing, Open Architecture, Rugged - a rugged, open-architecture 3U VPX embedded computing chassis purpose-built to deliver high-performance processing at the tactical edge. Designed for combat vehicles, tactical platforms, and emerging mission environments, THOR provides the scalable computing backbone warfighters need to run artificial intelligence.

Leonardo DRS, Inc. (NASDAQ: DRS - Get Free Report) EVP Sally Wallace sold 28,960 shares of Leonardo DRS stock in a transaction on Thursday, April 2nd. The shares were sold at an average price of $46.35, for a total value of $1,342,296.00. Following the completion of the sale, the executive vice president owned 58,353 shares in

Leonardo DRS's growth is propelled by advanced sensing, electric propulsion, and tactical radar, but supply chain risks—especially rare earths—threaten operational continuity. ASC segment shows margin improvement, but IMS faces profit conversion challenges; Q4 2025 saw IMS margins drop sharply despite revenue growth. Expansion initiatives, including a new naval facility and increased capex, support future ambitions, yet rare earth supply risks remain unresolved and material.

ARLINGTON, Va.--(BUSINESS WIRE)--Leonardo DRS, Inc. (Nasdaq: DRS) announced today it is introducing a new 2 kVA AC Uninterruptible Power Supply (UPS) in the company's uninterruptible power supply family of products, delivering clean, conditioned backup power to help keep mission-critical electronics online through shipboard power disturbances. The product is designed and positioned as IP54-hardened, and military-qualified—built for harsh and unforgiving operating environments. “We designed this.

ARLINGTON, Va.--(BUSINESS WIRE)--Leonardo DRS, Inc. (Nasdaq: DRS), a leading provider of advanced defense technologies, today reported financial results for the first quarter 2026, which ended March 31, 2026.

CEO Commentary

“Leonardo DRS delivered a strong start to the year. Our first quarter 2026 results meaningfully outperformed expectations thanks to disciplined execution, program momentum and sustained demand for our differentiated technologies. We expanded profitability, while simultaneously increasing investment in innovation and expanding capacity to support the critical missions of our customers. We are encouraged by the performance in the first quarter but remain focused on delivering differentiated capabilities to our customers to generate consistent, profitable growth and long-term value for our stockholders,” said John Baylouny, President and CEO of Leonardo DRS.

Summary Financial Results

(In millions, except per share amounts)

First Quarter

2026

2025

Change

Revenues

$846

$799

6

%

Net Earnings

$62

$50

24

%

Net Margin

7.3

%

6.3

%

100 bps

Diluted weighted average number of shares outstanding (WASO)

268.670

268.775

Diluted Earnings Per Share (EPS)

$0.23

$0.19

21

%

Non-GAAP Financial Measures (1)

Adjusted EBITDA

$105

$82

28

%

Adjusted EBITDA Margin

12.4

%

10.3

%

210 bps

Adjusted Net Earnings

$69

$54

28

%

Adjusted Diluted EPS

$0.26

$0.20

30

%

  (1) The company reports its financials in accordance with U.S. generally accepted accounting principles (“GAAP”). Information about the company’s use of non-GAAP financial measures, including a reconciliation of the non-GAAP financial measures to the most comparable financial measures calculated and presented in accordance with U.S. GAAP, is provided under "Non-GAAP Financial Measures."

First quarter 2026 revenue growth was 6% year-over-year, reflecting increases on programs supporting tactical radars, infrared sensing and electric power and propulsion.

Adjusted EBITDA grew 28% over the prior year and was accompanied by meaningful margin expansion. Increased Adjusted EBITDA profitability was driven by strong program execution across the portfolio, including Columbia Class, and also reflected operating leverage on higher volume.

First quarter net earnings, Adjusted Net Earnings, diluted EPS and Adjusted Diluted EPS were all higher year-over-year, driven primarily by higher operational profitability and lower net interest expense.

Cash Flow

Net cash flow used in operating activities was $66 million for the first quarter. The company’s free cash outflow was $95 million in the quarter. Both operating and free cash outflows narrowed compared to first quarter 2025 driven by higher profitability and better working capital efficiency.

Dividends and Stock Repurchases

During the first quarter, the company paid dividends to stockholders totaling approximately $24 million or $0.09 per share of common stock. Leonardo DRS today announced that its Board of Directors declared a cash dividend of $0.09 per share of common stock payable on June 2, 2026, to stockholders of record on May 19, 2026.

Additionally, the company repurchased 91,238 shares of its common stock for approximately $4 million in the first quarter, pursuant to a previously announced stock repurchase program.

Balance Sheet

At first quarter end, the company had $328 million of cash and no outstanding borrowings under the company’s credit facility. The company’s strong balance sheet provides ample financial flexibility to fund growth initiatives and return capital over time.

Bookings and Funded Backlog (Dollars in millions)

First Quarter

2026

2025

Bookings

$885

$991

Book-to-Bill

1.0x

1.2x

Funded Backlog

$4,686

$4,354

The company received $885 million in new funded bookings in the first quarter. Customer demand was resilient across the portfolio, with the greatest momentum in electric power and propulsion, tactical radars and force protection. Exiting the first quarter, funded backlog reached a new record of $4.7 billion and was up 8% over the prior year.

Segment Results

Advanced Sensing and Computing (ASC) Segment

(Dollars in millions)

First Quarter

2026

2025

Change

Revenues

$559

$511

9

%

Operating Earnings

$40

$25

60

%

Operating Margin

7.2

%

4.9

%

230 bps

Bookings

$429

$669

Book-to-Bill

0.8x

1.3x

Non-GAAP Financial Measures (1)

Segment Adjusted EBITDA

$62

$42

48

%

Segment Adjusted EBITDA Margin

11.1

%

8.2

%

290 bps

(1) The company reports its financials in accordance with U.S. GAAP. Information about the company’s use of non-GAAP financial measures, including a reconciliation of the non-GAAP financial measures to the most comparable financial measures calculated and presented in accordance with U.S. GAAP, is provided under "Non-GAAP Financial Measures."

ASC quarterly bookings reflected solid demand for multi-modal sensing, including tactical radars, infrared and RF-based sensing technologies. Revenue growth in the segment came from programs related to tactical radars and infrared sensing. Adjusted EBITDA increased meaningfully, driven by improved program execution, favorable mix and higher volume.

Integrated Mission Systems (IMS) Segment

(Dollars in millions)

First Quarter

2026

2025

Change

Revenues

$295

$291

1

%

Operating Earnings

$37

$34

9

%

Operating Margin

12.5

%

11.7

%

80 bps

Bookings

$456

$322

Book-to-Bill

1.5x

1.1x

Non-GAAP Financial Measures (1)

Segment Adjusted EBITDA

$43

$40

8

%

Segment Adjusted EBITDA Margin

14.6

%

13.7

%

90 bps

(1) The company reports its financials in accordance with U.S. GAAP. Information about the company’s use of non-GAAP financial measures, including a reconciliation of the non-GAAP financial measures to the most comparable financial measures calculated and presented in accordance with U.S. GAAP, is provided under "Non-GAAP Financial Measures." Programs related to electric power and propulsion and force protection drove robust quarterly bookings in the IMS segment. Revenue increased modestly over first quarter 2025 on higher contribution from electric power and propulsion programs. Adjusted EBITDA growth and margin expansion were primarily driven by strong program execution throughout the segment, led by Columbia Class.

2026 Guidance

Leonardo DRS is increasing 2026 guidance as specified in the table below:

Measure

Current 2026 Guidance

Prior 2026 Guidance

Revenue

$3,900 million - $3,975 million

$3,850 million - $3,950 million

Adjusted EBITDA

$515 million - $530 million

$505 million - $525 million

Tax Rate

18.5%

18.5%

Diluted WASO

269.0 million

269.0 million

Adjusted Diluted EPS

$1.26 - $1.30

$1.20 - $1.26

The company does not provide a reconciliation of forward-looking Adjusted EBITDA and Adjusted Diluted EPS due to the inherent difficulty in forecasting and quantifying the adjustments that are necessary to calculate such non-GAAP measures without unreasonable effort. Material changes to any one of these items could have a significant effect on future GAAP results.

Conference Call

Leonardo DRS management will host a conference call beginning at 10:00 a.m. ET on May 5, 2026 to discuss the financial results for its first quarter 2026.

A live audio broadcast of the conference call along with a supplemental presentation will be available to the public through links on the Leonardo DRS Investor Relations website (https://investors.leonardodrs.com).

A replay of the conference call will be available on the Leonardo DRS website approximately 2 hours after the conclusion of the conference call.

About Leonardo DRS

Headquartered in Arlington, VA, Leonardo DRS, Inc. is an innovative and agile provider of advanced defense technology to U.S. national security customers and allies around the world. We specialize in the design, development and manufacture of advanced sensing, network computing, force protection and electric power and propulsion and other leading mission-critical technologies. Our innovative people are leading the way in developing disruptive technologies for autonomous, dynamic, interconnected and multi-domain capabilities to defend against new and emerging threats. For more information and to learn more about our full range of capabilities, visit www.LeonardoDRS.com.

Forward-Looking Statements

In this press release, when using the terms the “company”, “Leonardo DRS”, “we”, “us” and “our,” unless otherwise indicated or the context otherwise requires, we are referring to Leonardo DRS, Inc. This press release contains forward-looking statements and cautionary statements within the meaning of the Private Securities Litigation Reform Act of 1995. Some of the forward-looking statements can be identified by the use of forward-looking terms such as “believes,” “expects,” “may,” “will,” “shall,” “should,” “would,” “could,” “seeks,” “aims,” “strives,” “targets,” “projects,” “guidance,” “intends,” “plans,” “estimates,” “anticipates” or other comparable terms. Forward-looking statements include, without limitation, all matters that are not historical facts. They appear in a number of places throughout this press release and include, without limitation, statements regarding our intentions, beliefs, assumptions or current expectations concerning, among other things, financial goals, financial position, results of operations, cash flows, prospects, strategies or expectations and the impact of prevailing economic conditions.

Forward-looking statements are subject to known and unknown risks and uncertainties, many of which may be beyond our control. We caution you that forward-looking statements are not guarantees of future performance or outcomes and that actual performance and outcomes may differ materially from those made in or suggested by the forward-looking statements contained in this press release. In addition, even if future performance and outcomes are consistent with the forward-looking statements contained in this press release, those results or developments may not be indicative of results or developments in subsequent periods. New factors emerge from time to time that may cause our business not to develop as we expect and it is not possible for us to predict all of them. Factors that could cause actual results and outcomes to differ from those reflected in forward-looking statements include, without limitation: disruptions, including from government shutdowns, or deteriorations in our relationship with the relevant agencies of the U.S. government, as well as any failure to pass routine audits or otherwise comply with governmental requirements including those related to security clearance or procurement rules, including the False Claims Act; significant delays, including from government shutdowns, or reductions in appropriations for our programs and changes in U.S. government priorities and spending levels more broadly; any failure to comply with the amended and restated proxy agreement with the U.S. Department of War (“DoW”); the effect of inflation and other cost pressures on our supply chain and/or our labor costs; our mix of fixed-price, cost-plus and time-and-materials type contracts and any resulting impact on our cash flows due to cost overruns; failure to properly comply with various covenants of the agreements governing our debt could negatively impact our business; our dependence on U.S. government contracts, which often are only partially funded and are subject to immediate termination, some of which are classified and the concentration of our customer base in the U.S. defense industry; our use of estimates in pricing and accounting for many of our programs that are inherently uncertain and which may not prove to be accurate; our ability to realize the full value of our backlog; our ability to predict future capital needs or to obtain additional financing if needed, on terms acceptable to us, if at all; our ability to respond to the rapid technological changes in the markets in which we compete; the effect of global and regional economic downturns and rising interest rates; our ability to maintain an effective system of internal control over financial reporting; our inability to appropriately manage our inventory; our inability to fully realize the value of our total estimated contract value or bookings; our ability to compete efficiently, including due to U.S. government organizational conflict of interest rules which may limit new contract opportunities or require us to wind down existing contracts; our relationships with other industry participants, including any contractual disputes or the inability of our key suppliers to timely deliver our components, parts or services; preferences or set-asides for small or small disadvantaged businesses could impact our ability to be a prime contractor; any failure to meet our contractual obligations including due to potential impacts to our business from supply chain risks, such as longer lead times and shortages of electronics and other components; any security breach, including any cyber-attack, cyber intrusion, insider threat, or other significant disruption of our IT networks and related systems, as well as any act of terrorism or other threat to our physical security and personnel; our ability to fully exploit or obtain patents or other intellectual property protections necessary to secure our proprietary technology, including our ability to avoid infringing upon the intellectual property of third parties or prevent third parties from infringing upon our own intellectual property; the conduct of our employees, agents, affiliates, subcontractors, suppliers, business partners or joint ventures in which we participate which may impact our reputation and ability to do business; the outcome of litigation, arbitration, investigations, claims, disputes, enforcement actions and other legal proceedings in which we are involved; various geopolitical and economic factors, laws and regulations including the Foreign Corrupt Practices Act, the Export Control Act, the International Traffic in Arms Regulations, the Export Administration Regulations, recent U.S. tariffs imposed or threatened to be imposed on other countries and any related retaliatory actions taken by such countries and those that we are exposed to as a result of our international business; our ability to obtain export licenses necessary to conduct certain operations abroad, including any attempts by Congress to prevent proposed sales to certain foreign governments; our ability to attract and retain technical and other key personnel; the occurrence of prolonged work stoppages; the unavailability or inadequacy of our insurance coverage, customer indemnifications or other liability protections to cover all of our significant risks or to pay for material losses we incur; future changes in U.S. tax laws and regulations or interpretations thereof; future changes in the DoW’s and other governments’ budgets; certain limitations on our ability to use our net operating losses to offset future taxable income; termination of our leases or our inability to renew our leases on acceptable terms; changes in estimates used in accounting for our pension plans, including with respect to the funding status thereof; changes in future business or other market conditions that could cause business investments and/or recorded goodwill or other long-term assets to become impaired; adverse consequences from any acquisitions such as operating difficulties, dilution and other harmful consequences or any modification, delay or prevention of any future acquisition or investment activity by the Committee on Foreign Investment in the United States; natural disasters, severe weather or other significant disruptions; failure to properly contain a global pandemic in a timely manner could materially affect how we and our business partners operate; our compliance with environmental laws and regulations and any environmental liabilities that may affect our reputation or financial position; any conflict of interest that may arise because Leonardo US Holding, LLC, our majority stockholder, or Leonardo S.p.A., our indirect majority stockholder, may have interests that are different from, or conflict with, those of our other stockholders, including as a result of any ongoing business relationships Leonardo S.p.A. may have with us and their significant ownership in us may discourage change of control transactions (our amended and restated certificate of incorporation provides that we waive any interest or expectancy in corporate opportunities presented to Leonardo S.p.A); or our obligations to provide certain services to Leonardo S.p.A., which may divert human and financial resources from our business.

You should read this press release completely and with the understanding that actual future results may be materially different from expectations. All forward-looking statements made in this press release are qualified by these cautionary statements. These forward-looking statements are made only as of the date of this filing and we do not undertake any obligation, other than as may be required by law, to update or revise any forward-looking or cautionary statements to reflect changes in assumptions, the occurrence of events, unanticipated or otherwise and changes in future operating results over time or otherwise.

Other risks, uncertainties and factors, including those discussed in our latest SEC filings under “Risk Factors” of our latest Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, all of which may be viewed or obtained through the investor relations section of our website at www.LeonardoDRS.com, could cause our actual results to differ materially from those projected in any forward-looking statements we make. Readers should read the discussion of these factors carefully to better understand the risks and uncertainties inherent in our business and underlying any forward-looking statements.

Consolidated Statements of Earnings (Unaudited)

(Dollars in millions, except per share amounts)

Three Months Ended

March 31,

2026

2025

Revenues

846

799

Cost of revenues

(634

)

(618

)

Gross profit

212

181

General and administrative expenses

(130

)

(117

)

Amortization of acquired intangible assets

(5

)

(5

)

Operating earnings

77

59

Interest expense, net

—

(1

)

Earnings before taxes

77

58

Income tax provision

(15

)

(8

)

Net earnings

$62

$50

Net earnings per share from common stock:

Basic earnings per share

$0.23

$0.19

Diluted earnings per share

$0.23

$0.19

Consolidated Balance Sheets (Unaudited)

(Dollars in millions, except per share amounts)

March 31,

December 31,

2026

2025

ASSETS

Current assets:

Cash and cash equivalents

$328

$647

Accounts receivable, net

324

334

Contract assets

975

931

Inventories

371

352

Prepaid expenses

27

26

Other current assets

31

36

Total current assets

2,056

2,326

Noncurrent assets:

Property, plant and equipment, net

512

512

Intangible assets, net

106

112

Goodwill

1,238

1,238

Deferred tax assets

89

88

Other noncurrent assets

210

210

Total noncurrent assets

2,155

2,160

Total assets

$4,211

$4,486

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

Short-term borrowings and current portion of long-term debt

$11

$26

Accounts payable

187

351

Contract liabilities

640

585

Other current liabilities

267

269

Total current liabilities

1,105

1,231

Noncurrent liabilities:

Long-term debt

140

321

Pension and other postretirement benefit plan liabilities

32

35

Deferred tax liabilities

4

3

Other noncurrent liabilities

160

166

Total noncurrent liabilities

$336

$525

Stockholders' equity:

Preferred stock, $0.01 par value: 10,000,000 shares authorized; none issued

$—

$—

Common stock, $0.01 par value: 350,000,000 shares authorized; 265,965,593 and 265,822,404 shares issued and outstanding as of March 31, 2026 and December 31, 2025, respectively

3

3

Additional paid-in capital

5,062

5,083

Accumulated deficit

(2,253

)

(2,315

)

Accumulated other comprehensive loss

(42

)

(41

)

Total stockholders' equity

2,770

2,730

Total liabilities and stockholders' equity

$4,211

$4,486

Consolidated Statements of Cash Flows (Unaudited)

(Dollars in millions)

Three Months Ended

March 31,

2026

2025

Operating activities

Net earnings

$62

$50

Adjustments to reconcile net earnings to net cash used in operating activities:

Depreciation and amortization

24

23

Deferred income taxes

—

1

Stock-based compensation expense

4

8

Changes in assets and liabilities:

Accounts receivable

10

(1

)

Contract assets

(44

)

(110

)

Inventories

(19

)

(27

)

Prepaid expenses

(1

)

(1

)

Other current assets

4

14

Other noncurrent assets

4

6

Defined benefit obligations

(3

)

(5

)

Accounts payable

(152

)

(126

)

Contract liabilities

55

68

Other current liabilities

(3

)

(32

)

Other noncurrent liabilities

(7

)

(6

)

Net cash used in operating activities

(66

)

(138

)

Investing activities

Capital expenditures

(30

)

(32

)

Proceeds from sales of assets

1

—

Net cash used in investing activities

(29

)

(32

)

Financing activities

Net (decrease) increase in borrowings (maturities of 90 days or less)

(4

)

2

Repayments of borrowings

(191

)

(3

)

Proceeds from stock issuance

3

—

Repurchases of common stock

(4

)

(3

)

Payments of employee taxes withheld from stock-based awards

—

(17

)

Dividends paid

(7

)

(7

)

Dividends paid to related party

(17

)

(17

)

Other

(4

)

(3

)

Net cash used in financing activities

(224

)

(48

)

Effect of exchange rate changes on cash and cash equivalents

—

—

Net decrease in cash and cash equivalents

(319

)

(218

)

Cash and cash equivalents at beginning of year

647

598

Cash and cash equivalents at end of year

$328

$380

Non-GAAP Financial Measures (Unaudited)

In addition to the results reported in accordance with U.S. GAAP included throughout this document, the company has provided information regarding “Adjusted EBITDA,” “Adjusted EBITDA Margin,” “Segment Adjusted EBITDA,” “Segment Adjusted EBITDA Margin,” “Adjusted Net Earnings,” “Adjusted Diluted Earnings Per Share” and “Free Cash Flow” (each, a non-GAAP financial measure).

We believe the non-GAAP financial measures presented in this document will help investors understand our financial condition and operating results and assess our future prospects. We believe these non-GAAP financial measures, each of which is discussed in greater detail below, are important supplemental measures because they exclude unusual or non-recurring items as well as non-cash items that are unrelated to or may not be indicative of our ongoing operating results. Further, when read in conjunction with our GAAP results, these non-GAAP financial measures provide a baseline for analyzing trends in our underlying businesses and can be used by management as a tool to help make financial, operational and planning decisions. Finally, these measures are often used by analysts and other interested parties to evaluate companies in our industry by providing more comparable measures that are less affected by factors such as capital structure.

We recognize that these non-GAAP financial measures have limitations, including that they may be calculated differently by other companies or may be used under different circumstances or for different purposes, thereby affecting their comparability from company to company. In order to compensate for these and the other limitations discussed below, management does not consider these measures in isolation from or as alternatives to the comparable financial measures determined in accordance with U.S. GAAP. Readers should review the reconciliations below and should not rely on any single financial measure to evaluate our business.

We define these non-GAAP financial measures as:

Adjusted EBITDA and Adjusted EBITDA Margin are defined as net earnings before income taxes, interest expense, amortization of acquired intangible assets, depreciation, deal-related transaction costs, restructuring costs and other one-time non-operational events (which include non-service pension expense, legal liability accrual reversals, executive transition costs and foreign exchange impacts), then in the case of Adjusted EBITDA Margin dividing Adjusted EBITDA by revenues.

(Dollars in millions)

Three Months Ended

March 31,

2026

2025

Net earnings

$62

$50

Income tax provision

15

8

Interest expense, net

—

1

Amortization of intangibles

5

5

Depreciation

19

18

Other one-time non-operational events

4

—

Adjusted EBITDA

$105

$82

Adjusted EBITDA Margin

12.4

%

10.3

%

Segment Adjusted EBITDA and Segment Adjusted EBITDA Margin are defined as operating earnings before amortization of acquired intangible assets, depreciation, deal-related transaction costs, restructuring costs and other one-time non-operational events, then in the case of Segment Adjusted EBITDA Margin dividing Segment Adjusted EBITDA by revenues.

Advanced Sensing & Computing (ASC) Segment Adjusted EBITDA

(Dollars in millions)

Three Months Ended

March 31,

2026

2025

Operating earnings

$40

$25

Amortization of intangibles

5

5

Depreciation

13

12

Other one-time non-operational events

4

—

Segment Adjusted EBITDA

$62

$42

Segment Adjusted EBITDA Margin

11.1

%

8.2

%

Integrated Mission Systems (IMS) Segment Adjusted EBITDA

(Dollars in millions)

Three Months Ended

March 31,

2026

2025

Operating earnings

$37

$34

Depreciation

6

6

Segment Adjusted EBITDA

$43

$40

Segment Adjusted EBITDA Margin

14.6

%

13.7

%

Adjusted Net Earnings and Adjusted Diluted EPS are defined as net earnings excluding amortization of acquired intangible assets, deal-related transaction costs, restructuring costs and other one-time non-operational events (which include non-service pension expense, legal liability accrual reversals, executive transition costs and foreign exchange impacts) and the related tax impacts, then in the case of Adjusted Diluted EPS dividing Adjusted Net Earnings by the diluted weighted average number of shares outstanding (WASO).

(In millions, except per share amounts)

Three Months Ended

March 31,

2026

2025

Net earnings

$62

$50

Amortization of intangibles

5

5

Other one-time non-operational events

4

—

Tax effect of adjustments (1)

(2

)

(1

)

Adjusted Net Earnings

$69

$54

Per share information

Diluted WASO

268.670

268.775

Diluted EPS

$0.23

$0.19

Adjusted Diluted EPS

$0.26

$0.20

(1) Calculation uses an estimated statutory tax rate on non-GAAP adjustments. Free Cash Flow is defined as the sum of the cash flows provided by (used in) operating activities, transaction-related expenditures (net of tax), capital expenditures and proceeds from sale of assets.

(Dollars in millions)

Three Months Ended

March 31,

2026

2025

Net cash used in operating activities

($66

)

($138

)

Capital expenditures

(30

)

(32

)

Proceeds from sales of assets

1

—

Free Cash Flow

($95

)

($170

)

More News From Leonardo DRS, Inc.

For the quarter ended March 2026, Leonardo DRS, Inc. (DRS - Free Report) reported revenue of $846 million, up 5.9% over the same period last year. EPS came in at $0.26, compared to $0.20 in the year-ago quarter.

The reported revenue represents a surprise of +3.47% over the Zacks Consensus Estimate of $817.61 million. With the consensus EPS estimate being $0.21, the EPS surprise was +26.83%.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Leonardo DRS, Inc. performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Revenue- Integrated Mission Systems (IMS): $295 million compared to the $300.28 million average estimate based on two analysts. The reported number represents a change of +1.4% year over year.Revenue- Advanced Sensing and Computing (ASC): $559 million compared to the $526.33 million average estimate based on two analysts. The reported number represents a change of +9.4% year over year.Adjusted EBITDA- Integrated Mission Systems (IMS): $43 million versus the two-analyst average estimate of $42.58 million.Adjusted EBITDA- Advanced Sensing and Computing (ASC): $62 million versus $51.86 million estimated by two analysts on average.View all Key Company Metrics for Leonardo DRS, Inc. here>>>

Shares of Leonardo DRS, Inc. have returned -14.4% over the past month versus the Zacks S&P 500 composite's +9.5% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

Leonardo DRS, Inc. (DRS) has been upgraded to a Zacks Rank #2 (Buy), reflecting growing optimism about the company's earnings prospects. This might drive the stock higher in the near term.

-

Thermal Payload Optimized for High-Volume OEM Integration in Multiple Applications

ARLINGTON, Va.--(BUSINESS WIRE)--Leonardo DRS, Inc. (Nasdaq: DRS) announced today the launch of Tenum® 640 Orbit™, an advanced uncooled long-wave infrared (LWIR) thermal camera module optimized for unmanned air, ground, and maritime platforms. The company will debut Tenum® 640 Orbit™ at SOF Week in Tampa, FL (May 18-21).

“Unmanned systems are fielding at scale. Integrators and operators need thermal cameras that are both mission-capable and integration-friendly,” said Greg Christison, vice president, Sensors & Aviation, at Leonardo DRS. “Tenum® 640 Orbit™ is a size, weight, power and cost (SWAP-c) optimized OEM camera module to help accelerate integration timelines and enable broader deployment across small, unmanned platforms without compromising performance.”

Configured for high-volume integration for Group 1-3 UAV, Tenum® 640 Orbit™ is an ideal cost-optimized payload for unmanned aerial vehicle (UAV), unmanned ground vehicle (UGV), and unmanned surface vessel (USV) applications. The module is built around an uncooled VOx microbolometer and delivers 640 x 512 resolution with 10 µm pixel pitch in the 8-14 µm spectral band.

Tenum® 640 Orbit™ provides persistent high frame-rate thermal imagery for detection, tracking, navigation, and collision/obstacle avoidance in day/night and degraded-visibility environments, extending endurance for small unmanned systems in an ultra-compact footprint. The camera core supports 60 frames per second (fps) and delivers <20 mK thermal sensitivity. Built to streamline OEM integration, Tenum® 640 Orbit™ is Mobile Industry Processor Interface (MIPI) camera serial interface (CSI) / camera command set (CCS) compatible with optional USB connectivity and configurable video outputs.

Leonardo DRS will provide additional information and product demonstrations of Tenum® 640 Orbit™ at SOF Week (May 18-21). Attendees are invited to visit Leonardo DRS to learn how our uncooled camera technology enables scalable thermal imaging for unmanned platforms through simplified integration and cost-efficient deployment.

For more information, please visit LeonardoDRS.com/TenumOrbit.

About Leonardo DRS

Leonardo DRS, Inc. (Nasdaq: DRS) is at the forefront of developing transformative defense technologies using its proven agility and delivering innovative solutions for U.S. national security customers and allies worldwide. We specialize in rapidly providing high-performance, multi-domain capabilities across next-generation advanced sensing, network computing, force protection, and electric power and propulsion. Our reputation as a trusted provider is built on a continuous focus on practical innovation, delivering quality, and meeting our customers’ most demanding mission requirements. For further information on our complete range of capabilities, visit www.LeonardoDRS.com.

Forward-Looking Statements

This communication contains statements that constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Those statements reflect current expectations, assumptions and estimates of future performance and economic conditions. The company cautions investors that any forward-looking statements which include contract values, contract performance and our development and production of products are subject to risks and uncertainties that may cause actual results and future trends to differ materially from those matters expressed in or implied by such forward-looking statements.

More News From Leonardo DRS, Inc.

Back to Newsroom

Posted by Defense World Staff on Mar 31st, 2026

Assenagon Asset Management S.A. cut its position in Talos Energy Inc. (NYSE:TALO – Free Report) by 53.7% in the 4th quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 175,645 shares of the company’s stock after selling 203,423 shares during the period. Assenagon Asset Management S.A. owned 0.10% of Talos Energy worth $1,936,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors have also added to or reduced their stakes in the company. Sourcerock Group LLC boosted its holdings in Talos Energy by 11.0% in the second quarter. Sourcerock Group LLC now owns 11,193,177 shares of the company’s stock worth $94,918,000 after acquiring an additional 1,110,685 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its stake in Talos Energy by 25.0% in the third quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 2,965,543 shares of the company’s stock valued at $28,440,000 after acquiring an additional 592,509 shares during the period. American Century Companies Inc. increased its holdings in shares of Talos Energy by 8.6% during the third quarter. American Century Companies Inc. now owns 5,765,905 shares of the company’s stock valued at $55,295,000 after acquiring an additional 455,409 shares in the last quarter. CSM Advisors LLC bought a new stake in shares of Talos Energy during the third quarter valued at approximately $3,807,000. Finally, Soviero Asset Management LP acquired a new position in shares of Talos Energy during the third quarter worth approximately $3,644,000. 89.35% of the stock is owned by institutional investors.

Analysts Set New Price Targets TALO has been the topic of a number of recent research reports. Wall Street Zen cut Talos Energy from a “hold” rating to a “sell” rating in a report on Saturday, February 28th. Citigroup upped their price objective on shares of Talos Energy from $14.00 to $16.00 and gave the stock a “buy” rating in a report on Tuesday, March 10th. KeyCorp raised their price objective on shares of Talos Energy from $12.00 to $13.50 and gave the company an “overweight” rating in a research note on Friday, December 5th. Mizuho lifted their price objective on shares of Talos Energy from $14.00 to $15.00 and gave the company a “neutral” rating in a report on Tuesday, March 17th. Finally, Benchmark downgraded shares of Talos Energy from a “buy” rating to a “hold” rating in a research report on Thursday, March 5th. Three research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of “Hold” and a consensus price target of $14.63.

Get Our Latest Analysis on TALO

Talos Energy Stock Down 1.4% TALO stock opened at $16.35 on Tuesday. The firm has a market capitalization of $2.75 billion, a PE ratio of -5.76 and a beta of 0.54. The company has a quick ratio of 1.30, a current ratio of 1.30 and a debt-to-equity ratio of 0.57. Talos Energy Inc. has a twelve month low of $6.23 and a twelve month high of $17.00. The stock’s 50 day moving average is $13.16 and its 200-day moving average is $11.41.

Talos Energy (NYSE:TALO – Get Free Report) last announced its quarterly earnings results on Tuesday, February 24th. The company reported ($0.44) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.27) by ($0.17). The company had revenue of $392.24 million for the quarter, compared to the consensus estimate of $431.22 million. Talos Energy had a negative return on equity of 6.59% and a negative net margin of 27.77%.The company’s quarterly revenue was down 19.2% compared to the same quarter last year. During the same quarter last year, the company posted $0.08 EPS. Sell-side analysts expect that Talos Energy Inc. will post -0.44 EPS for the current fiscal year.

Talos Energy Company Profile (Free Report)

Talos Energy Inc is an independent oil and gas exploration and production company headquartered in Houston, Texas. Founded in 2012 by industry veterans Tim Duncan and Jeremy Rights, the firm completed its initial public offering in 2021 and trades on the New York Stock Exchange under the ticker symbol TALO. The company’s core operations focus on the acquisition, exploration, development and production of offshore hydrocarbon reserves, with a primary emphasis on the U.S. Gulf of Mexico basin.

Talos Energy’s asset portfolio spans deepwater and shelf opportunities in the Gulf of Mexico, where it holds interests in several producing fields and exploration blocks.

Further Reading Five stocks we like better than Talos Energy

Receive News & Ratings for Talos Energy Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Talos Energy and related companies with MarketBeat.com's FREE daily email newsletter.

« PREVIOUS HEADLINEAssenagon Asset Management S.A. Sells 38,199 Shares of Assurant, Inc. $AIZ

NEXT HEADLINE »Assenagon Asset Management S.A. Lowers Stock Holdings in ATI Inc. $ATI

Does Talos Energy (TALO) have what it takes to be a top stock pick for momentum investors? Let's find out.

Posted by Defense World Staff on Apr 3rd, 2026

Talos Energy Inc. (NYSE:TALO – Get Free Report) shares gapped up before the market opened on Thursday after KeyCorp raised their price target on the stock from $15.00 to $21.00. The stock had previously closed at $14.93, but opened at $15.81. KeyCorp currently has an overweight rating on the stock. Talos Energy shares last traded at $15.9330, with a volume of 211,736 shares trading hands.

Several other research analysts also recently commented on TALO. Mizuho increased their price objective on shares of Talos Energy from $14.00 to $15.00 and gave the company a “neutral” rating in a report on Tuesday, March 17th. Wall Street Zen cut Talos Energy from a “hold” rating to a “sell” rating in a report on Saturday, February 28th. Benchmark downgraded Talos Energy from a “buy” rating to a “hold” rating in a research report on Thursday, March 5th. Citigroup increased their price target on Talos Energy from $16.00 to $20.00 and gave the company a “buy” rating in a research note on Tuesday. Finally, Weiss Ratings reaffirmed a “sell (d)” rating on shares of Talos Energy in a research note on Monday, December 29th. Three equities research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, Talos Energy has a consensus rating of “Hold” and an average target price of $17.50.

Check Out Our Latest Stock Report on Talos Energy

Insider Buying and Selling In other Talos Energy news, insider Control Empresarial De Capital sold 1,352,000 shares of Talos Energy stock in a transaction on Friday, March 27th. The shares were sold at an average price of $16.68, for a total value of $22,551,360.00. Following the completion of the transaction, the insider directly owned 41,233,604 shares of the company’s stock, valued at $687,776,514.72. This trade represents a 3.17% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. 0.36% of the stock is owned by company insiders.

Key Stories Impacting Talos Energy Here are the key news stories impacting Talos Energy this week:

Positive Sentiment: KeyCorp raised its price target on TALO to $21 and assigned an “overweight” rating, implying meaningful upside vs. the current price — a catalyst that likely pushed buying interest. Benzinga Neutral Sentiment: Talos scheduled first‑quarter 2026 results for release after the close on May 5, with a conference call on May 6 — an imminent event that will likely drive short-term volatility depending on production, realized prices, and guidance. PR Newswire Neutral Sentiment: Recent coverage from Zacks highlights TALO as a momentum/energy sector idea — useful for sentiment and retail interest but not a guaranteed fundamental driver. Zacks Momentum Piece Neutral Sentiment: Analysts’ consensus rating sits at “Hold,” indicating mixed professional views; pockets of bullishness (KeyCorp) are being balanced by caution elsewhere. Analyst Consensus Negative Sentiment: Control Empresarial De Capital sold large blocks of TALO stock (960,000 shares on 3/26 and 1,352,000 shares on 3/27), reducing its stake by several percent — significant insider selling that can weigh on sentiment even if proceeds are for diversification/liquidity. SEC filing link: SEC Form 4 Negative Sentiment: Recent media coverage includes headlines about the stock “nosediving” in some outlets, reflecting short‑term volatility and negative sentiment that could pressure the price if echoed by broader market commentary. MSN Institutional Inflows and Outflows Institutional investors have recently made changes to their positions in the business. Royal Bank of Canada boosted its holdings in shares of Talos Energy by 11.8% in the 1st quarter. Royal Bank of Canada now owns 28,590 shares of the company’s stock worth $278,000 after purchasing an additional 3,007 shares during the period. AQR Capital Management LLC raised its holdings in Talos Energy by 152.1% during the 1st quarter. AQR Capital Management LLC now owns 90,915 shares of the company’s stock valued at $884,000 after buying an additional 54,854 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its holdings in Talos Energy by 4.6% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 86,196 shares of the company’s stock valued at $838,000 after buying an additional 3,783 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its position in Talos Energy by 16.2% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 2,183,496 shares of the company’s stock worth $21,224,000 after buying an additional 304,205 shares during the last quarter. Finally, JPMorgan Chase & Co. lifted its position in Talos Energy by 132.7% in the second quarter. JPMorgan Chase & Co. now owns 386,641 shares of the company’s stock worth $3,279,000 after buying an additional 220,502 shares during the last quarter. Institutional investors own 89.35% of the company’s stock.

Talos Energy Price Performance The company has a quick ratio of 1.30, a current ratio of 1.30 and a debt-to-equity ratio of 0.57. The company has a market capitalization of $2.64 billion, a PE ratio of -5.51 and a beta of 0.35. The firm’s 50 day simple moving average is $13.41 and its 200 day simple moving average is $11.51.

Talos Energy (NYSE:TALO – Get Free Report) last announced its earnings results on Tuesday, February 24th. The company reported ($0.44) earnings per share for the quarter, missing the consensus estimate of ($0.27) by ($0.17). The firm had revenue of $392.24 million during the quarter, compared to analysts’ expectations of $431.22 million. Talos Energy had a negative net margin of 27.77% and a negative return on equity of 6.59%. The company’s revenue was down 19.2% compared to the same quarter last year. During the same period in the prior year, the company posted $0.08 EPS. As a group, research analysts anticipate that Talos Energy Inc. will post -0.44 EPS for the current fiscal year.

About Talos Energy (Get Free Report)

Talos Energy Inc is an independent oil and gas exploration and production company headquartered in Houston, Texas. Founded in 2012 by industry veterans Tim Duncan and Jeremy Rights, the firm completed its initial public offering in 2021 and trades on the New York Stock Exchange under the ticker symbol TALO. The company’s core operations focus on the acquisition, exploration, development and production of offshore hydrocarbon reserves, with a primary emphasis on the U.S. Gulf of Mexico basin.

Talos Energy’s asset portfolio spans deepwater and shelf opportunities in the Gulf of Mexico, where it holds interests in several producing fields and exploration blocks.

Featured Stories Five stocks we like better than Talos Energy Receive News & Ratings for Talos Energy Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Talos Energy and related companies with MarketBeat.com's FREE daily email newsletter.

« PREVIOUS HEADLINEWoodward (NASDAQ:WWD) Upgraded at Wells Fargo & Company

NEXT HEADLINE »StandardAero (NYSE:SARO) Upgraded at Wells Fargo & Company

2,312,000 shares were sold directly for a total value of approximately $38.5 million across two open-market trades on March 26 and March 27, 2026. The sale represented 5.31% of Control Empresarial de Capitales S.A.

Talos Energy continues to deliver disciplined execution, stable production, and robust free cash flow, supporting my maintained Buy rating. TALO's 2026 guidance targets 85-90 Mboe/d production amid planned downtime and natural decline, with high CAPEX ($500-550M) reflecting capital intensity. Nearly half of 2026 Q1 production is hedged, limiting both downside and upside exposure to oil price swings in the short term.

Talos Energy (TALO - Free Report) is expected to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended March 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.

The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on May 5. On the other hand, if they miss, the stock may move lower.

While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.

Zacks Consensus EstimateThis independent oil and gas company is expected to post quarterly loss of $0.09 per share in its upcoming report, which represents a year-over-year change of -250%.

Revenues are expected to be $433.71 million, down 15.5% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 155.07% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for Talos Energy?For Talos Energy, the Most Accurate Estimate is the same as the Zacks Consensus Estimate, suggesting that there are no recent analyst views which differ from what have been considered to derive the consensus estimate. This has resulted in an Earnings ESP of 0%.

On the other hand, the stock currently carries a Zacks Rank of #2.

So, this combination makes it difficult to conclusively predict that Talos Energy will beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that Talos Energy would post a loss of$0.27 per share when it actually produced a loss of -$0.44, delivering a surprise of -62.96%.

Over the last four quarters, the company has beaten consensus EPS estimates two times.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Talos Energy doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

HOUSTON, May 5, 2026  /PRNewswire/ -- Talos Energy Inc. ("Talos" or the "Company") (NYSE: TALO) today announced its operational and financial results for the three months ended March 31, 2026. Talos also provided second quarter 2026 guidance for production and reiterated its operational and financial guidance for the full-year 2026.

Talos Energy Inc. (TALO) Q1 2026 Earnings Call Transcript

Does Talos Energy (TALO) have what it takes to be a top stock pick for momentum investors? Let's find out.

Vials produced by Gerresheimer are displayed at the annual Drug, Chemical & Associated Technologies Association (DCAT) week in New York City, U.S. March 19, 2024. REUTERS/Patrick Wingrove/File Photo Purchase Licensing Rights, opens new tab

CompaniesMUNICH, March 20 (Reuters) - U.S. packaging company Silgan Holdings (SLGN.N), opens new tab has signalled interest ​in taking over German medical packaging maker ‌Gerresheimer <GXIG.DE, opens new tab, according to two sources familiar with the matter.

Silgan is working with advisers on the approach that could value ​Gerresheimer at 41 euros per share, one source ​said, cautioning that there is no certainty ⁠there will be a bid and that a ​transaction will be completed.

Get a look at the day ahead in U.S. and global markets with the Morning Bid U.S. newsletter. Sign up here.

Gerresheimer declined to comment.

Silgan was ​not immediately available for comment.

Gerresheimer shares rose 6.7% following the news to trade at 18.9 euros.

Gerresheimer, worth about 600 million euros ($694 million), ​has seen its shares drop more than ​80% from its 2023 peak and the stock is down ‌37% ⁠since the start of the year.

The company said in late February that Germany's financial regulator BaFin is widening a probe into its financial statements, adding pressure ​on the ​medical products ⁠maker as it grapples with accounting issues and a plunging share price.

The Duesseldorf-based ​company held talks last year with ​private equity ⁠investors over a potential sale, but the conversations ended without an agreement.

($1 = 0.8644 euros)

Reporting by Alexander ⁠Huebner ​in Munich, Christoph Steitz in Frankfurt; ​Additional reporting by Milana Vinn in New York; writting by ​Andres Gonzalez; Editing by Miranda Murray and Louise Heavens

Our Standards: The Thomson Reuters Trust Principles., opens new tab

NORWALK, Conn.--(BUSINESS WIRE)--Silgan to Release First Quarter 2026 Earnings Results on April 29, 2026.