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Leidos Holdings
(NYSE:LDOS)
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Rating:80Outperform
Price Target:
$165.00
▲(47.14% Upside)
Action:Reiterated
Date:08/04/26
The score is driven primarily by strong financial performance—especially robust free cash flow and solid margins—reinforced by a constructive earnings call that included raised guidance and strong Defense momentum. Attractive valuation (low P/E with a dividend) further supports the rating. The main offsets are balance-sheet leverage and longer-term technical weakness (still below the 100/200-day averages), alongside ongoing Health segment uncertainties.
Positive Factors
Exceptional Cash Generation
Strong operating and free cash flow supports internal investment, debt reduction and shareholder returns. FCF closely tracking earnings also indicates solid earnings quality, although working-capital movements remain a monitoring point.
Negative Factors
Elevated Balance-Sheet Leverage
Leverage increases financial risk and reduces flexibility if government spending, contract performance or cash conversion weakens. Although equity has grown and returns are strong, debt remains a meaningful constraint on resilience.
Read all positive and negative factors
Positive Factors
Negative Factors
Exceptional Cash Generation
Strong operating and free cash flow supports internal investment, debt reduction and shareholder returns. FCF closely tracking earnings also indicates solid earnings quality, although working-capital movements remain a monitoring point.
Read all positive factors
Leidos Holdings Key Performance Indicators (KPIs)
Any
Revenue by Customer Type
Shows revenue distribution among different customer groups, indicating which sectors or demographics are most lucrative and where there might be potential for growth or diversification.
Shows revenue distribution among different customer groups, indicating which sectors or demographics are most lucrative and where there might be potential for growth or diversification.
Data provided by:
The Fly
The FlyLeidos Holdings (LDOS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$18.36B
Dividend Yield1.2%
Average Volume (3M)1.80M
Price to Earnings (P/E)13.1
Beta (1Y)0.80
Revenue Growth3.41%
EPS Growth1.68%
CountryUS
Employees50,000
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)10.81
Shares Outstanding125,492,210
10 Day Avg. Volume1,388,314
30 Day Avg. Volume1,798,922
Financial Highlights & Ratios
PEG Ratio0.82
Price to Book (P/B)4.94
Price to Sales (P/S)1.41
P/FCF Ratio14.95
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$149.83Price Target Upside33.61% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering14
EPS Forecast (FY)12.37
Revenue Forecast (FY)$18.32B
Leidos Holdings Business Overview & Revenue Model
Company Description
Leidos Holdings, Inc., along with its various subsidiaries, delivers a broad spectrum of services and innovative solutions across key markets: defense, intelligence, civil government, and health. The company operates both domestically within the U...
How the Company Makes Money
Leidos makes money mainly by performing contracted work and delivering technology-enabled services and solutions, with a large portion of its revenue tied to U.S. federal government spending. Its revenue model is largely contract-driven and typica...
Leidos Holdings Earnings Call Summary
Earnings Call Date:Aug 04, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 03, 2026
Earnings Call Sentiment Positive
The call conveyed solid overall financial performance with record revenue, strong margins and exceptional cash generation, plus accelerating Defense momentum and a large near-term pipeline of proposals. Management raised full-year guidance and reduced leverage while completing share repurchases and progressing strategic actions (Entrust integration, SES JV). Key negatives center on the Health segment: the VA's suspension of incentive payments, near-term revenue/margin pressure from the MDE market and some uncertainty around MHS GENESIS and agency in-sourcing trends. Management indicates these health headwinds are largely accounted for in the updated guidance and expects offset from Defense, Homeland and digital growth pillars.Positive Updates
Record Quarterly Revenue and Organic Growth
Revenue of $4.56 billion in Q2, up 7% year-over-year (4% organic), marking a record quarter for the company.
Negative Updates
Health Segment Revenue Contraction
Health revenues contracted in Q2 due to full incorporation of a fourth vendor on the VBA Medical Disability Examination (MDE) regions contract; Health is expected to sustain Q2 revenue levels for the remainder of the year.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Quarterly Revenue and Organic Growth
Revenue of $4.56 billion in Q2, up 7% year-over-year (4% organic), marking a record quarter for the company.
Read all positive updates
Company Guidance
Leidos said it is raising its 2026 outlook: management increased the revenue midpoint (Tom: +$100M) and raised operating cash flow guidance by $50M, while Chris noted the company also increased the lower end of the revenue range by $200M and non‑GAAP diluted EPS guidance by $0.10 (Tom said midpoint EPS +$0.05); CapEx is now expected to be about $250M, implying free cash flow up roughly $150M for the year. The company is maintaining an adjusted EBITDA margin target in the mid‑13% range, and its guidance excludes any impact from the pending SES/Analogic JV. On an organic basis Leidos expects the rest of the company to grow ~7% in revenues and ~19% in adjusted EBITDA in 2026; segment outlooks include Health roughly flat at Q2 revenue run‑rate with non‑GAAP OI margins around 20%, and Defense accelerating to high single‑digit growth for the year (double‑digit if you exclude airborne ISR).Leidos Holdings Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
62
Positive
Cash Flow
86
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 17.63B | 17.17B | 16.66B | 15.44B | 14.40B | 13.74B |
| Gross Profit | 3.07B | 3.03B | 2.80B | 2.24B | 2.08B | 2.01B |
| EBITDA | 2.29B | 2.41B | 2.12B | 946.00M | 1.42B | 1.48B |
| Net Income | 1.39B | 1.46B | 1.25B | 199.00M | 685.00M | 753.00M |
Balance Sheet | ||||||
| Total Assets | 15.63B | 13.49B | 13.10B | 12.70B | 13.07B | 13.26B |
| Cash, Cash Equivalents and Short-Term Investments | 748.00M | 1.20B | 943.00M | 777.00M | 516.00M | 727.00M |
| Total Debt | 6.58B | 5.93B | 5.29B | 5.20B | 5.49B | 5.67B |
| Total Liabilities | 10.30B | 8.53B | 8.64B | 8.44B | 8.72B | 8.92B |
| Stockholders Equity | 5.28B | 4.92B | 4.41B | 4.20B | 4.30B | 4.29B |
Cash Flow | ||||||
| Free Cash Flow | 2.16B | 1.63B | 1.24B | 958.00M | 857.00M | 927.00M |
| Operating Cash Flow | 2.30B | 1.75B | 1.39B | 1.17B | 986.00M | 1.03B |
| Investing Cash Flow | -2.48B | -421.00M | -142.00M | -211.00M | -313.00M | -730.00M |
| Financing Cash Flow | 34.00M | -1.13B | -1.08B | -715.00M | -865.00M | -113.00M |
Leidos Holdings Technical Analysis
Positive
112.14
Price Trends
116.87
Positive
128.63
Positive
155.80
Negative
Market Momentum
8.68
Negative
76.86
Negative
90.09
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LDOS, the sentiment is Positive. The current price of 112.14 is below the 20-day moving average (MA) of 129.30, below the 50-day MA of 116.87, and below the 200-day MA of 155.80, indicating a neutral trend. The MACD of 8.68 indicates Negative momentum. The RSI at 76.86 is Negative, neither overbought nor oversold. The STOCH value of 90.09 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LDOS.
Leidos Holdings Risk Analysis
Leidos Holdings disclosed 1 risk factors in its most recent earnings report. Leidos Holdings reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Leidos Holdings Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $18.36B | 13.08 | 27.55% | 1.51% | 3.41% | 1.68% | |
76 Outperform | $27.45B | 13.07 | 14.94% | 2.82% | 5.64% | -5.39% | |
75 Outperform | $14.64B | 26.62 | 12.68% | ― | 10.89% | 7.95% | |
75 Outperform | $47.35B | 14.38 | 33.03% | 4.71% | -0.64% | 5.69% | |
73 Outperform | $5.44B | 14.13 | 27.22% | 1.24% | -2.90% | 24.61% | |
65 Neutral | $18.55B | 14.33 | 15.58% | 1.11% | -0.12% | -7.87% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
LDOS
Leidos Holdings
141.37
-37.19
-20.83%
CACI
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646.35
160.33
32.99%
CTSH
Cognizant
60.92
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-12.36%
INFY
Infosys
11.83
-4.70
-28.44%
SAIC
Science Applications
126.29
9.74
8.35%
WIT
Wipro
1.91
-0.80
-29.49%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.