Leonardo (BIT:LDO) just released third quarter and nine month 2026 figures, reporting higher sales and net income than a year earlier. The update gives investors fresh numbers to reassess the stock.
The earnings release lands after a choppy stretch for Leonardo, with the share price down 7.13% over the past week and 17.84% over 90 days. The stock still shows a 3-year total shareholder return of about 3.4x and a very large 5-year gain. Recent weakness points to fading short term momentum, while the longer record reflects material value creation for long term holders.
Scan other aerospace and defense plays showing solid fundamentals right now with the hand picked list of solid balance sheet and fundamentals (190 results) that may complement or contrast your view on Leonardo after these results.
Bulls point to Leonardo's higher sales and earnings, while bears highlight the sharp pullback in the share price. Do the current valuation metrics back the optimism or the caution?
Most Popular Narrative: 29.6% Undervalued
Leonardo last closed at €48.07, while the most followed narrative framework places fair value closer to €68.28 using a 10.33% discount rate. That gap sets up a story that leans on defence order visibility, higher margin projects and cash generation to justify a higher valuation.
The pivot from legacy platforms to integrated, multi-domain and open-architecture systems, illustrated by offerings such as the Michelangelo air defence dome that is expected to reach about €6b of orders in 2026 to 2030 and roughly €21b to 2035, could increase higher margin Defence Electronics weight in the mix and support ROS expansion.
See why 90 investors see Leonardo as 30% undervalued.
Result: Fair Value of €68.28 (UNDERVALUED)
Still, the narrative only holds if Aerostructures stops draining over €100m of cash and if governance turbulence after the 2026 CEO change does not deepen.
Find out about the key risks to this Leonardo narrative.
Next Steps
Sentiment in this piece leans positive on Leonardo, yet the real test is how the data fits your own risk and return expectations. If you want a quick way to check what the market is optimistic about right now, review the 5 key rewards.
Looking for more investment ideas beyond Leonardo?
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