Leidos Holdings (LDOS) AI Stock Analysis

• Market Cap: $20.47B
• Dividend Yield: 0.98%
• Average Volume (3M): 1.46M
• Price to Earnings (P/E): 16.0
• Beta (1Y): 0.76
• Revenue Growth: 7.75%
• EPS Growth: 325.28%
• Country: US
• Employees: 47,000
• Sector: Technology
• Sector Strength: 77
• Industry: Information Technology Services
• EPS (TTM): 2.97
• Shares Outstanding: 128,718,870
• 10 Day Avg. Volume: 1,450,440
• 30 Day Avg. Volume: 1,455,230
• PEG Ratio: 3.12
• Price to Book (P/B): 4.69
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 15.35
• Enterprise Value/Market Cap: 1.19
• Enterprise Value/Revenue: 0.38
• Enterprise Value/Gross Profit: 8.72
• Enterprise Value/Ebitda: 3.77
• 1Y Price Target: $173.22
• Price Target Upside: 8.58% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

Leidos Holdings is well-positioned with strong financial performance, showcasing robust revenue growth, profitability, and cash flow management. The technical indicators suggest a bullish trend, although overbought signals warrant caution. Valuation is reasonable, and the positive earnings call further supports the company's strategic direction and confidence in future growth. Overall, the stock presents a balanced risk-reward opportunity with a focus on long-term growth.

Positive Factors

Earnings

Health/Civil sales grew 8% and margin of 23.6% was a big surprise, driving a significant earnings beat.

Growth Initiatives

The new growth initiative 'NorthStar 2030' focuses on IT modernization, transformational warfighting capabilities, and increased privatization, aligning Leidos with key future opportunities.

Strategic Positioning

Leidos Holdings Inc is well-aligned to accelerating mega-trends, supporting its growth and strategic positioning.

Negative Factors

Contract Challenges

The Veterans Affairs contract extension to LDOS comes with lower pricing and the potential for slight share loss as a fourth supplier was added.

Market Sentiment

The looming debt ceiling expiration and negative rhetoric have soured sentiment on government services stocks, driving significant sector multiple contraction.

Sector Sentiment

Negative sentiment afflicting the government services sector is unlikely to improve for many quarters.

Leidos Holdings Business Overview & Revenue Model

Company Description

Leidos Holdings, Inc. is a leading American defense, aviation, information technology, and biomedical research company headquartered in Reston, Virginia. The company operates in several key sectors including defense, civil, and health markets, providing a wide range of services such as systems integration, cybersecurity, data analytics, and engineering solutions. Leidos is particularly known for its expertise in delivering advanced technological solutions to the U.S. federal government, including the Department of Defense and other civil agencies.

How the Company Makes Money

Leidos Holdings generates revenue primarily through government contracts, which make up a significant portion of its income. The company's key revenue streams include defense and intelligence solutions, civil infrastructure services, and health-related services, often secured through competitive bidding processes. Leidos benefits from long-term contracts and partnerships with various U.S. government agencies, ensuring a stable and recurring revenue base. Additionally, the company's focus on innovation and technological advancement allows it to develop proprietary solutions that address specific client needs, further enhancing its market position and revenue potential.

Leidos Holdings Financial Statement Overview

Summary

Leidos Holdings demonstrates strong financial health, characterized by consistent revenue growth, improved profitability, and strengthened balance sheet metrics. The company's ability to generate strong cash flows further supports its financial stability. However, maintaining these trends while managing liabilities will be crucial for sustaining long-term growth.

Income Statement

Leidos Holdings has shown consistent revenue growth over the years, with a notable increase from $15.44 billion in 2023 to $16.66 billion in 2025, representing a 7.9% growth rate. The gross profit margin improved to 16.8% in 2025, reflecting enhanced cost management. However, the net profit margin saw a significant increase to 7.5% in 2025 from a meager 1.3% in 2023, indicating improved profitability. The EBIT and EBITDA margins also demonstrated strong growth, reaching 11% in 2025, a substantial recovery from previous lower margins, showcasing operational efficiency improvements.

Balance Sheet

The company has managed to reduce its debt significantly, with the debt-to-equity ratio decreasing from 1.24 in 2023 to 0.14 in 2025, indicating a stronger financial position. Stockholders' equity increased, leading to an improved equity ratio of 33.7% in 2025. However, total liabilities remain relatively high compared to assets, suggesting potential risks if revenue growth slows.

Cash Flow

Leidos Holdings has shown robust cash flow performance, with operating cash flow consistently above net income, indicating strong cash generation. Free cash flow improved significantly, with a 45.3% growth rate from 2023 to 2025. The operating cash flow to net income ratio is healthy at approximately 1.1 in 2025, reflecting effective cash management strategies.

Breakdown
Mar 2025	Dec 2023	Dec 2022	Dec 2021	Mar 2021
Income Statement		Total Revenue
16.66B	15.44B	14.40B	13.74B	12.30B
	Gross Profit
2.80B	2.24B	2.08B	2.01B	1.74B
	EBIT
1.83B	621.00M	1.09B	1.15B	998.00M
	EBITDA
1.83B	931.00M	1.41B	1.50B	1.26B
	Net Income Common Stockholders
1.25B	199.00M	685.00M	753.00M	628.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
943.00M	777.00M	516.00M	727.00M	524.00M
	Total Assets
13.10B	12.70B	13.07B	13.26B	12.51B
	Total Debt
5.29B	5.20B	5.49B	5.67B	5.31B
	Net Debt
4.35B	4.42B	4.97B	4.94B	4.78B
	Total Liabilities
8.64B	8.44B	8.72B	8.92B	8.64B
	Stockholders Equity
4.41B	4.20B	4.30B	4.29B	3.86B
Cash Flow		Free Cash Flow
1.24B	958.00M	857.00M	927.00M	1.15B
	Operating Cash Flow
1.39B	1.17B	986.00M	1.03B	1.33B
	Investing Cash Flow
-142.00M	-211.00M	-313.00M	-730.00M	-2.81B
	Financing Cash Flow
-1.08B	-715.00M	-865.00M	-113.00M	1.45B

Leidos Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 159.53
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 159.53 is above the 20-day moving average (MA) of 150.91, above the 50-day MA of 142.52, and above the 200-day MA of 151.33, indicating a bullish trend. The MACD of 4.69 indicates Negative momentum. The RSI at 73.41 is Negative, neither overbought nor oversold. The STOCH value of 97.37 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LDOS.

Leidos Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SAIC	78 Outperform	$5.82B	17.22	21.53%	1.20%	0.47%	-18.98%
LDOS	77 Outperform	$20.47B	16.00	31.31%	0.98%	7.75%	325.28%
G	76 Outperform	$7.73B	15.04	22.21%	1.42%	7.31%	-15.86%
CACI	76 Outperform	$10.51B	22.55	13.48%	―	14.16%	22.25%
EPAM	71 Outperform	$10.40B	25.67	11.57%	―	4.72%	-3.06%
Sector *	60 Neutral	$11.58B	10.33	-7.23%	2.94%	7.47%	-10.84%
DXC	46 Neutral	$2.77B	7.26	12.88%	―	-5.65%	78.20%

Leidos Holdings Corporate Events

Leidos Holdings Stockholders Approve Key Amendments

Leidos Holdings, Inc. held its Annual Meeting of Stockholders on May 2, 2025, where stockholders approved amendments to the company’s Certificate of Incorporation. These amendments clarify stockholders’ rights to call special meetings and limit the liability of officers as permitted by law. The meeting also saw the election of board members, approval of executive compensation, and the ratification of Deloitte & Touche LLP as the company’s independent auditor for the fiscal year ending January 2, 2026.

Spark’s Take on LDOS Stock

According to Spark, TipRanks’ AI Analyst, LDOS is a Outperform.

Leidos Holdings shows strength in its financial performance and strategic positioning with consistent revenue growth and improved profitability. The positive earnings call and corporate events further enhance its outlook. However, technical indicators suggest caution due to potential overbought conditions, and the valuation suggests the stock is fairly priced, presenting a balanced risk-reward proposition.

To see Spark’s full report on LDOS stock, click here.

Leidos Holdings Reports Strong Q1 2025 Financial Results

Leidos Holdings reported strong financial results for the first quarter of fiscal year 2025, with revenues of $4.2 billion, a 7% increase year-over-year, and net income of $365 million, up 29% from the previous year. The company also announced a change in its backlog policy, which now includes estimated future revenue on task orders expected under sole source IDIQ contracts, resulting in a backlog of $46.3 billion. Leidos secured several significant contracts, including a $205 million task order with the Defense Threat Reduction Agency and a $150 million task order with the Naval Surface Warfare Center Carderock Division, highlighting its strong position in the defense and IT services market.

Spark’s Take on LDOS Stock

According to Spark, TipRanks’ AI Analyst, LDOS is a Outperform.

Leidos Holdings exhibits strong financial performance with robust revenue growth and improved profitability. The company’s strategic initiatives and significant contract wins support a positive outlook. However, technical analysis indicates some long-term resistance, and past stock price declines present potential risks. The valuation suggests the stock is fairly priced, offering a balanced risk-reward proposition.

To see Spark’s full report on LDOS stock, click here.