What Leonardo DRS (DRS)'s AI Counter-UAS Partnership With Axon Vision Means For Shareholders

• In recent days, Axon Vision announced a cooperation agreement with Leonardo DRS to pursue AI-enabled situational awareness, lethality, and Counter-UAS solutions for the U.S. defense market, integrating Axon’s perception technology with Leonardo DRS’s advanced multi-spectral sensors and mission systems.
• This partnership highlights Leonardo DRS’s push to embed on-platform AI in turnkey combat systems, potentially strengthening its position in emerging force-protection and platform-modernization programs.
• We’ll now assess how this AI-focused Counter-UAS cooperation with Axon Vision could influence Leonardo DRS’s investment narrative and future growth drivers.

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Leonardo DRS Investment Narrative Recap

To own Leonardo DRS, you need to believe that demand for advanced sensing, computing, and force-protection solutions will support sustained contract wins and steady earnings growth. The Axon Vision cooperation reinforces the near term counter UAS and platform modernization catalyst, but it does not fundamentally change the key risks around U.S. defense budget concentration or margin pressure from higher R&D and input costs.

The Axon Vision agreement aligns closely with DRS’s March 2025 launch of its high performance Artificial Intelligence Processor, which targets real time, on platform battlefield processing. Together, these moves deepen the company’s positioning in AI enabled sensing and force protection, an area that could be important as U.S. and allied customers prioritize integrated counter UAS, survivability, and situational awareness capabilities across both manned and unmanned platforms.

Yet despite these AI focused opportunities, investors should be aware that concentrated U.S. defense exposure still leaves DRS vulnerable to...

Read the full narrative on Leonardo DRS (it's free!)

Leonardo DRS' narrative projects $4.1 billion revenue and $351.1 million earnings by 2028. This requires 6.6% yearly revenue growth and about a $101 million earnings increase from $250.0 million today.

Uncover how Leonardo DRS' forecasts yield a $47.30 fair value, a 43% upside to its current price.

Exploring Other Perspectives

Nine fair value estimates from the Simply Wall St Community span roughly US$15 to US$373 per share, highlighting very different views on DRS’s long term prospects. Against this wide range, the company’s dependence on large U.S. government programs remains a central issue that could influence how those expectations ultimately play out.

Explore 9 other fair value estimates on Leonardo DRS - why the stock might be worth less than half the current price!

Build Your Own Leonardo DRS Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Leonardo DRS research is our analysis highlighting 4 key rewards that could impact your investment decision.
• Our free Leonardo DRS research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Leonardo DRS' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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