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Leidos Holdings
(NYSE:LDOS)
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Rating:75Outperform
Price Target:
$132.00
▼(-1.89% Downside)
Action:Reiterated
Date:10/05/26
The score is driven primarily by strong financial performance (healthy margins and standout free cash flow generation/growth) and attractive valuation (low P/E with a dividend). These positives are tempered by weak technical trend signals (below major moving averages with negative MACD) and some segment-level risk flagged on the earnings call (Health-related uncertainty), partially offset by raised guidance and strong Defense/Homeland momentum.
Positive Factors
Exceptional cash generation
Leidos is producing substantial operating and free cash flow, with FCF closely tracking net income and growing strongly. This supports internal funding for investment, debt reduction, shareholder returns, and resilience across contract cycles, while reinforcing the quality of reported earnings.
Negative Factors
Meaningful financial leverage
Leverage increases financial risk and can constrain capital allocation if contract performance or government spending softens. Although returns on equity are strong, debt obligations reduce flexibility to absorb weaker results, pursue investments, or manage unexpected program-related pressure.
Read all positive and negative factors
Positive Factors
Negative Factors
Exceptional cash generation
Leidos is producing substantial operating and free cash flow, with FCF closely tracking net income and growing strongly. This supports internal funding for investment, debt reduction, shareholder returns, and resilience across contract cycles, while reinforcing the quality of reported earnings.
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
$15.27B
Dividend Yield1.41%
Average Volume (3M)1.24M
Price to Earnings (P/E)11.3
Beta (1Y)0.82
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. Volume1,220,547
30 Day Avg. Volume1,241,999
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 Cap1.28
Enterprise Value/Revenue1.11
Enterprise Value/Gross Profit6.35
Enterprise Value/Ebitda8.27
Forecast
1Y Price Target
$144.27Price Target Upside7.23% Upside
Rating ConsensusHold
Number of Analyst Covering13
EPS Forecast (FY)12.4
Revenue Forecast (FY)$18.33B
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 delivering services and technology solutions under contracts, with the U.S. federal government (including the Department of Defense and other civilian agencies) as its largest customer base. Revenue is recognized as wo...
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 | 2.36B | 2.40B | 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
Negative
134.54
Price Trends
130.57
Negative
122.12
Negative
144.72
Negative
Market Momentum
-3.27
Positive
45.93
Neutral
45.61
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LDOS, the sentiment is Negative. The current price of 134.54 is above the 20-day moving average (MA) of 123.52, above the 50-day MA of 130.57, and below the 200-day MA of 144.72, indicating a bearish trend. The MACD of -3.27 indicates Positive momentum. The RSI at 45.93 is Neutral, neither overbought nor oversold. The STOCH value of 45.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
81 Outperform | $127.93B | 15.30 | 26.77% | 3.12% | 6.47% | 11.19% | |
75 Outperform | $15.27B | 11.26 | 27.55% | 1.41% | 3.41% | 1.68% | |
75 Outperform | $13.50B | 25.15 | 12.68% | ― | 10.89% | 7.95% | |
70 Outperform | $5.64B | 15.60 | 25.89% | 1.10% | -0.78% | 3.90% | |
65 Neutral | $213.99B | 19.84 | 33.52% | 2.97% | 7.90% | 82.11% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
57 Neutral | $4.81B | 30.67 | 6.01% | ― | -5.84% | -60.23% |
* Technology Sector Average
LDOS
Leidos Holdings
121.68
-62.13
-33.80%
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227.13
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SAIC
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134.66
39.63
41.71%
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45.08
-41.28
-47.80%
Leidos Holdings Corporate Events
Business Operations and StrategyM&A Transactions
Leidos Forms Analogic Security Screening Joint Venture
Positive
Oct 5, 2026
On Oct. 5, 2026, Leidos and investment firm Altaris closed their previously announced deal to form a U.S.-based joint venture operating under the Analogic brand to advance security screening at airports, borders and critical infrastructure worldwi...
Business Operations and StrategyExecutive/Board Changes
Leidos Appoints AT&T Executive Jeff McElfresh to Board
Positive
Oct 1, 2026
On Oct. 1, 2026, Leidos Holdings expanded its board of directors from 10 to 11 members and appointed Jeffery S. (Jeff) McElfresh, ATT’s chief operating officer, as an independent director effective the same day. McElfresh joined the Corporat...
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.