Leidos Holdings, Inc. (LDOS) AI Stock Analysis

Leidos Holdings delivers services and solutions across defense, intelligence, civil, and health sectors. The company operates through three segments: Defense Solutions, Civil, and Health. Defense Solutions delivers national security capabilities across air, land, sea, space, and cyberspace, including command and control platforms, cybersecurity, data analytics, and logistics. The Civil segment offers air navigation system integration, advanced security detection, automation services, and environmental and infrastructure solutions. It also provides enterprise IT solutions, including cloud computing, mobility, application modernization, and digital workplace enablement. Clients include the U.S. Intelligence Community, Department of Defense, NASA, and commercial national security entities.

Revenue expanded from $13.74B in FY2021 to $17.17B in FY2025, reflecting a 5-year CAGR of 6.9%. Over that period, gross margin improved from 14.7% to 17.7%, while operating margin rose from 8.4% to 12.3%. Net income increased from $753.0M in FY2021 to $1.46B in FY2025, with EPS climbing from $6.61 to $11.99. In the trailing twelve months ended June 30, 2026, revenue stood at $17.63B with an operating margin of 11.7% and EPS of $10.71. During the latest quarter, revenue grew 7.2% year-over-year, while quarterly earnings declined 6.7%.

As of June 30, 2026, Leidos held $748.0M in cash and short-term investments against total debt of $6.58B, resulting in net debt of $5.83B. Shareholders' equity was $5.28B, yielding a debt-to-equity ratio of 1.24 and a current ratio of 1.63. In FY2025, operating cash flow reached $1.75B and free cash flow was $1.62B. Capital expenditures were $125.0M. The company allocated $944.0M to share buybacks and paid $211.0M in dividends during FY2025, contributing to a 5-year share count reduction of 10.6%.

Leidos trades at a trailing P/E of 11.7x and a forward P/E of 9.6x, compared to the median of its S&P 500 Technology peers of 31.5x and 20.9x, respectively. Its enterprise value stands at $21.48B, with an EV/EBITDA of 9.3x versus the peer median of 19.9x, and a price-to-sales ratio of 0.9x versus 6.3x. The stock has dropped 31.5% over the past year, underperforming the S&P 500 benchmark return of 16.8%. Over a 5-year span, the stock gained 32.7% compared to 83.0% for the S&P 500.

Leidos offers a forward annual dividend of $1.72 per share, representing a dividend yield of 1.38% as of October 16, 2026. Dividends are distributed quarterly and backed by a payout ratio of 14.1%. The company has paid consecutive dividends for 15 years, with a 5-year annualized dividend growth rate of 3.7%. The last ex-dividend date was September 15, 2026.

Wall Street coverage includes 4 Strong Buy, 2 Buy, and 11 Hold ratings, with zero Sell recommendations. The mean price target of $151.73 implies an upside of 21.5% from the last close of $124.85. For the fiscal year ending December 31, 2026, consensus estimates project revenue of $18.31B and EPS of $12.41, up 3.5%. For the next fiscal year, 17 analysts project revenue of $19.05B and EPS of $12.55. The company beat EPS estimates in each of the last 4 quarters, with next earnings scheduled for November 3, 2026.

This page is an AI-written research summary of Leidos Holdings, Inc. (LDOS). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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