Leidos (NYSE:LDOS) Issues Quarterly Earnings Results

Leidos (NYSE:LDOS) posted its earnings results on Tuesday. The aerospace company reported $2.76 earnings per share for the quarter, beating analysts’ consensus estimates of $2.57 by $0.19, FiscalAI reports. Leidos had a return on equity of 32.95% and a net margin of 8.43%.The business had revenue of $4.21 billion during the quarter, compared to analyst estimates of $4.31 billion. During the same quarter in the previous year, the firm earned $2.37 EPS. The company’s quarterly revenue was down 3.6% compared to the same quarter last year. Leidos updated its FY 2026 guidance to 12.050-12.450 EPS.

Here are the key takeaways from Leidos’ conference call:

• 2025 outperformed guidance — revenue came in toward the top of guidance, adjusted EBITDA margin expanded to 14.1% (+120 bps YoY), non‑GAAP EPS grew 17%, and free cash flow rose 26%.
• Strong bookings and backlog — Q4 net bookings were $5.6 billion (book‑to‑bill 1.3x), funded backlog is up 15%, and Leidos won major awards including a $2.2 billion Air Force passive‑radar contract and a $455 million Cloud One program.
• Material capital deployment and M&A — Leidos agreed to acquire Entrust for $2.4 billion (planned financing: $500M cash, $500M commercial paper, $1.4B bonds) with pro forma gross leverage ~2.6x and will triple 2026 CapEx to $350 million to expand production capacity and classified facilities.
• 2026 guidance and momentum — management expects revenues of $17.5–$17.9 billion (up to ~4%), mid‑13s adjusted EBITDA margin, non‑GAAP EPS $12.05–$12.45, and a back‑half acceleration that could drive exit‑rate growth approaching double digits (guidance excludes Entrust).

Leidos Stock Performance

NYSE:LDOS opened at $171.74 on Thursday. The company has a market capitalization of $21.96 billion, a price-to-earnings ratio of 15.43, a PEG ratio of 1.13 and a beta of 0.59. The business has a 50 day moving average of $187.18 and a 200 day moving average of $186.57. The company has a debt-to-equity ratio of 0.93, a current ratio of 1.70 and a quick ratio of 1.50. Leidos has a 1-year low of $123.62 and a 1-year high of $205.77.

Leidos Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Tuesday, March 31st. Investors of record on Monday, March 16th will be given a $0.43 dividend. The ex-dividend date is Monday, March 16th. This represents a $1.72 dividend on an annualized basis and a yield of 1.0%. Leidos’s payout ratio is presently 16.04%.

Leidos News Roundup

Here are the key news stories impacting Leidos this week:

• Positive Sentiment: Q4 EPS beat and upgraded FY‑2026 guidance — Leidos reported non‑GAAP EPS above estimates and issued FY‑2026 EPS and revenue guidance above consensus, supporting upside expectations for profitability and growth. Leidos Q4 2025 Earnings Call Highlights
• Positive Sentiment: Record cash flow and $2.4B acquisition — Management highlighted record cash generation and announced the $2.4 billion Entrust deal to expand its energy business, which accelerates the NorthStar 2030 strategy and increases scale in higher‑margin areas. Defense Giant Leidos Delivers Record Cash Flow, Secures $2.4B Acquisition
• Positive Sentiment: Improved liquidity — Leidos expanded and extended its revolving credit facility, which reduces refinancing risk and supports M&A and working‑capital flexibility during the integration of Entrust. Leidos Expands and Extends Revolving Credit Facility Agreement
• Neutral Sentiment: Positive long‑term growth takes and conference presentation — Multiple bulls (Zacks, MSN) and management presentations at Citi emphasize longer‑term growth drivers (energy, systems integration), which support a multi‑year thesis but carry execution risk. Why Leidos (LDOS) is a Top Growth Stock for the Long-Term
• Negative Sentiment: Revenue miss tied to government shutdown — Q4 revenue fell short of consensus, which management attributed in part to a six‑week government shutdown; slower top‑line trends increase near‑term execution and backlog visibility concerns. Leidos misses quarterly revenue estimates on government shutdown impact
• Negative Sentiment: Analyst caution and market reaction — Some analysts cut targets (Baird lowered target) and several outlets argued the post‑earnings selloff was warranted given the revenue miss and uncertainty around integration/near‑term growth, which can cap upside until revenue momentum is clearer. Leidos price target lowered at Baird

Insider Activity at Leidos

In other news, insider Elizabeth A. Porter sold 3,000 shares of the business’s stock in a transaction that occurred on Tuesday, January 20th. The shares were sold at an average price of $192.21, for a total value of $576,630.00. Following the completion of the sale, the insider directly owned 38,575 shares in the company, valued at approximately $7,414,500.75. The trade was a 7.22% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Company insiders own 0.96% of the company’s stock.

Hedge Funds Weigh In On Leidos

Several institutional investors and hedge funds have recently made changes to their positions in the business. Wexford Capital LP bought a new stake in Leidos in the third quarter worth $32,000. DV Equities LLC bought a new position in shares of Leidos during the fourth quarter valued at about $33,000. Wilkerson Advisory Group LLC purchased a new position in shares of Leidos in the fourth quarter worth about $45,000. Kelleher Financial Advisors purchased a new position in shares of Leidos in the third quarter worth about $46,000. Finally, Towarzystwo Funduszy Inwestycyjnych PZU SA lifted its stake in shares of Leidos by 58.8% in the 3rd quarter. Towarzystwo Funduszy Inwestycyjnych PZU SA now owns 270 shares of the aerospace company’s stock valued at $51,000 after acquiring an additional 100 shares during the last quarter. Institutional investors own 76.12% of the company’s stock.

Analysts Set New Price Targets

A number of research firms recently weighed in on LDOS. Cantor Fitzgerald upped their target price on shares of Leidos from $185.00 to $225.00 and gave the stock an “overweight” rating in a report on Friday, October 31st. Truist Financial restated a “buy” rating and set a $220.00 target price (up from $200.00) on shares of Leidos in a research report on Tuesday, November 4th. Robert W. Baird lowered their price target on Leidos from $215.00 to $195.00 and set a “neutral” rating on the stock in a report on Wednesday. Royal Bank Of Canada dropped their price target on Leidos from $230.00 to $215.00 and set an “outperform” rating for the company in a research report on Wednesday. Finally, Stifel Nicolaus decreased their price objective on shares of Leidos from $220.00 to $205.00 and set a “hold” rating on the stock in a research report on Wednesday. Nine investment analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company’s stock. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $213.27.

About Leidos

Leidos is an American technology and engineering company that provides services and solutions to government and commercial customers, with a strong focus on national security, defense, intelligence, and civil government markets. The company delivers systems integration, engineering, cybersecurity, software development, data analytics, cloud migration and managed IT services, as well as mission support for complex programs. Leidos’ work spans areas such as C4ISR (command, control, communications, computers, intelligence, surveillance and reconnaissance), secure communications, sensors and systems engineering, and health IT solutions for public-sector healthcare programs.

Leidos traces its corporate roots to Science Applications International Corporation (SAIC) and emerged as an independent, publicly traded company following a corporate separation in 2013.