Is the RSD-G AI Smart Display Launch Transforming the Investment Case for Leonardo DRS (DRS)?

• In early September 2025, Leonardo DRS announced the launch of its Rugged Smart Displays - Ground (RSD-G), a new line of high-performance AI-enabled smart display systems for ground combat vehicles, offering advanced situational awareness and real-time sensor fusion for military operators.
• This product introduction highlights the increasing integration of embedded AI and modular computing in military technology, aligning Leonardo DRS with the accelerating demand for intelligent, networked battlefield solutions among U.S. and allied forces.
• We'll explore how the RSD-G launch, showcasing embedded AI and advanced network connectivity, could influence Leonardo DRS's investment narrative and outlook.

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Leonardo DRS Investment Narrative Recap

To believe in Leonardo DRS as a shareholder, you must have conviction in continued growth in defense modernization and strong demand for advanced networked battlefield solutions globally. The RSD-G smart display launch supports the company’s focus on embedded AI and real-time situational awareness but does not materially shift the current near-term catalyst, which is centered on U.S. and allied defense budget increases. The biggest risk remains exposure to U.S. federal contracts and shifting governmental priorities.

Among the recent announcements, the March 2025 introduction of the Artificial Intelligence Processor (AIP) is highly relevant to RSD-G, as both highlight ongoing integration of AI to enhance real-time battlefield decision-making. These innovation efforts are core to supporting the company's pursuit of higher-margin defense technology contracts and aligning with multiyear modernization funding accelerations.

Yet, despite promising innovation, investors should be aware that reliance on large U.S. contracts could become problematic if budget cycles shift or...

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

Leonardo DRS is projected to reach $4.1 billion in revenue and $351.1 million in earnings by 2028. This outlook assumes annual revenue growth of 6.6% and represents an earnings increase of $101.1 million from the current earnings of $250.0 million.

Uncover how Leonardo DRS' forecasts yield a $49.00 fair value, a 19% upside to its current price.

Exploring Other Perspectives

Nine different fair value estimates from the Simply Wall St Community range from US$15 to US$372.97 per share. While these opinions vary greatly, many participants are closely watching the potential effects of contract concentration and budget volatility on the company’s future earnings and revenue growth.

Explore 9 other fair value estimates on Leonardo DRS - why the stock might be worth over 9x more than 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 2 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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