Leidos Holdings (LDOS)
NYSE:LDOS
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Leidos Holdings
(NYSE:LDOS)
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Rating:68Neutral
Price Target:
$170.00
â–²(11.20% Upside)
Action:DowngradedDate:03/31/26
The score reflects strong underlying financial performance (profitability rebound and robust cash flow) and a supportive earnings outlook, partly offset by very weak technicals (downtrend and negative momentum) and added uncertainty from debt/revenue data anomalies plus acquisition-related leverage and integration risk.
Positive Factors
Cash Generation & Conversion
Sustained operating cash flow and near‑par free cash flow indicate durable earnings quality and strong cash conversion. This level of cash generation supports reinvestment, dividends, buybacks and selective M&A while providing flexibility to fund working capital and sustain operations across contracting cycles.
Negative Factors
Higher Pro Forma Leverage
Acquisition funding raises leverage to multi‑turn levels, increasing interest expense and reducing near‑term financial flexibility. Higher gross leverage constrains capital allocation optionality, elevates refinancing and covenant sensitivity risk, and places more emphasis on integration success and cash conversion to de‑lever.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash Generation & Conversion
Sustained operating cash flow and near‑par free cash flow indicate durable earnings quality and strong cash conversion. This level of cash generation supports reinvestment, dividends, buybacks and selective M&A while providing flexibility to fund working capital and sustain operations across contracting cycles.
Read all positive factors
Leidos Holdings (LDOS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$19.25B
Dividend Yield0.87%
Average Volume (3M)1.10M
Price to Earnings (P/E)16.7
Beta (1Y)0.76
Revenue Growth6.48%
EPS Growth22.17%
CountryUS
Employees47,000
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)2.76
Shares Outstanding125,928,550
10 Day Avg. Volume695,432
30 Day Avg. Volume1,096,736
Financial Highlights & Ratios
PEG Ratio0.84
Price to Book (P/B)4.94
Price to Sales (P/S)1.41
P/FCF Ratio14.95
Enterprise Value/Market Cap1.25
Enterprise Value/Revenue1.40
Enterprise Value/Gross Profit7.93
Enterprise Value/Ebitda9.99
Forecast
1Y Price Target
$205.09Price Target Upside34.15% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering12
EPS Forecast (FY)12.24
Revenue Forecast (FY)$17.86B
Leidos Holdings Business Overview & Revenue Model
Company Description
Leidos Holdings, Inc., together with its subsidiaries, provides services and solutions in the defense, intelligence, civil, and health markets in the United States and internationally. It operates through three segments: Defense Solutions, Civil, ...
How the Company Makes Money
Leidos makes money primarily by delivering contracted services and solutions—most of its revenue is generated from performing work under U.S. federal government contracts and subcontracts (including the Department of Defense, intelligence agencies...
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 Earnings Call Summary
Earnings Call Date:Feb 17, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 05, 2026
Earnings Call Sentiment Positive
The call emphasized strong financial and operational momentum — with margin expansion, double-digit EPS and cash growth, robust bookings and backlog, strategic M&A and targeted investments — while acknowledging near-term timing and cyclical headwinds (calendar effects, government shutdown, award slippage), incremental leverage from an acquisition, and planned higher capital spending that will temporarily reduce free cash flow. Management expects growth to accelerate through 2026 and positions the company to capture long-term defense, health, and energy opportunities.Positive Updates
Full-Year Revenue Growth
2025 revenues of $17.2B, up 3.1% year-over-year, with management stating the underlying business grew strongly across the portfolio after adjusting for calendar and shutdown impacts.
Negative Updates
Q4 Revenue Decline and Calendar/Government Impacts
Q4 revenue of $4.2B was down 3.6% year-over-year. Management noted a six-week U.S. government shutdown and an extra work week in 2024 that together reduced reported Q4 revenue growth by ~7 percentage points and reduced full-year growth by ~2 points.
Read all updates
Q4-2025 Updates
Positive
Negative
Full-Year Revenue Growth
2025 revenues of $17.2B, up 3.1% year-over-year, with management stating the underlying business grew strongly across the portfolio after adjusting for calendar and shutdown impacts.
Read all positive updates
Company Guidance
Leidos guided 2026 revenues of $17.5B–$17.9B (up to ~4% vs. 2025, with growth building through the year toward a double‑digit exit) and adjusted EBITDA margin in the mid‑13s, with non‑GAAP diluted EPS of $12.05–$12.45 (assumes ~ $200M interest expense, ~24% effective tax rate and ~129M weighted average shares); management expects operating cash flow of ~$1.75B (despite a ~$90M Section 174 timing headwind) and said free cash flow will be down as CapEx is tripled to $350M (vs. $312M IRAD + CapEx invested in 2025), the 2026 guide excludes the $2.4B Entrust acquisition (to close in Q2; pro forma gross leverage ~2.6x vs. current 1.9x with $1.1B cash and $4.6B debt), and reminds investors 2025 finished with $17.2B revenue, 14.1% adjusted EBITDA margin, $11.99 non‑GAAP EPS, $1.63B free cash flow (104% conversion), Q4 revenue $4.2B, Q4 net bookings $5.6B (book‑to‑bill 1.3x) and funded backlog up 15% (total backlog ≈ $49B).Leidos Holdings Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
78
Positive
Cash Flow
84
Very Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 17.17B | 16.66B | 15.44B | 14.40B | 13.74B |
| Gross Profit | 3.03B | 2.80B | 2.24B | 2.08B | 2.01B |
| EBITDA | 2.41B | 2.12B | 946.00M | 1.42B | 1.48B |
| Net Income | 1.46B | 1.25B | 199.00M | 685.00M | 753.00M |
Balance Sheet | |||||
| Total Assets | 13.49B | 13.10B | 12.70B | 13.07B | 13.26B |
| Cash, Cash Equivalents and Short-Term Investments | 1.20B | 943.00M | 777.00M | 516.00M | 727.00M |
| Total Debt | 5.93B | 5.29B | 5.20B | 5.49B | 5.67B |
| Total Liabilities | 8.53B | 8.64B | 8.44B | 8.72B | 8.92B |
| Stockholders Equity | 4.92B | 4.41B | 4.20B | 4.30B | 4.29B |
Cash Flow | |||||
| Free Cash Flow | 1.63B | 1.24B | 958.00M | 857.00M | 927.00M |
| Operating Cash Flow | 1.75B | 1.39B | 1.17B | 986.00M | 1.03B |
| Investing Cash Flow | -421.00M | -142.00M | -211.00M | -313.00M | -730.00M |
| Financing Cash Flow | -1.13B | -1.08B | -715.00M | -865.00M | -113.00M |
Leidos Holdings Technical Analysis
Negative
152.88
Price Trends
171.42
Negative
179.90
Negative
178.95
Negative
Market Momentum
-4.68
Negative
32.21
Neutral
44.27
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 152.88 is below the 20-day moving average (MA) of 160.70, below the 50-day MA of 171.42, and below the 200-day MA of 178.95, indicating a bearish trend. The MACD of -4.68 indicates Negative momentum. The RSI at 32.21 is Neutral, neither overbought nor oversold. The STOCH value of 44.27 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | $11.80B | 23.70 | 13.16% | ― | 12.61% | 11.85% | |
73 Outperform | $58.00B | 24.55 | 29.68% | 2.58% | 4.62% | 1.06% | |
68 Neutral | $19.25B | 16.69 | 31.07% | 0.87% | 6.48% | 22.17% | |
68 Neutral | $27.70B | 17.90 | 14.84% | 1.46% | 7.44% | -4.57% | |
68 Neutral | $3.98B | 13.47 | 23.73% | 1.69% | -0.38% | 31.38% | |
67 Neutral | $23.05B | 21.25 | 15.49% | 2.78% | -1.97% | 48.61% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
LDOS
Leidos Holdings
152.88
11.27
7.96%
CACI
Caci International
534.49
110.44
26.04%
CTSH
Cognizant
57.92
-11.65
-16.74%
INFY
Infosys
13.29
-3.30
-19.91%
SAIC
Science Applications
91.72
-24.18
-20.86%
WIT
Wipro
2.17
-0.57
-20.72%
Leidos Holdings Corporate Events
Business Operations and StrategyM&A Transactions
Leidos Closes ENTRUST Acquisition, Expands Energy Infrastructure Reach
Positive
Mar 30, 2026
On March 27, 2026, Leidos completed its $2.4 billion cash acquisition of ENTRUST Solutions Group’s parent company from Kohlberg, securing all outstanding shares and closing the previously announced stock purchase agreement. The deal, announc...
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
Leidos Issues Senior Notes to Fund Entrust Acquisition
Positive
Mar 3, 2026
On March 2, 2026, Leidos, Inc. issued and sold $600 million of 4.100% senior notes due 2029 and $800 million of 5.000% senior notes due 2036, raising an estimated $1.387 billion in net proceeds through an unsecured offering guaranteed by Leidos Ho...
Business Operations and StrategyPrivate Placements and Financing
Leidos Expands and Extends Revolving Credit Facility Agreement
Positive
Feb 17, 2026
On February 12, 2026, Leidos Holdings, Inc. and its subsidiaries entered into an amendment and restatement of their existing credit agreement, increasing the revolving credit facility from $1.0 billion to $1.5 billion and extending its maturity to...
Business Operations and StrategyStock BuybackDividendsFinancial DisclosuresM&A Transactions
Leidos Reports Strong 2025 Results and Dividend Declaration
Positive
Feb 17, 2026
Leidos Holdings reported on February 17, 2026 that full-year 2025 revenue rose 3% to $17.17 billion, with net income up 17% to $1.46 billion and diluted EPS up 21% to $11.14, driven by efficiencies on fixed-price programs and tighter cost control....
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
Leidos to Acquire ENTRUST, Expanding Energy Infrastructure Footprint
Positive
Jan 26, 2026
On Jan. 23, 2026, Leidos’ subsidiary Leidos, Inc. agreed to acquire ENTRUST Solutions Group (KENE Parent, Inc.) from KENE Holdings for an all-cash consideration of approximately $2.4 billion, with closing expected by the end of the second qu...
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.