Leidos (NYSE:LDOS – Get Free Report) issued an update on its FY 2026 earnings guidance on Tuesday morning. The company provided earnings per share guidance of 12.200-12.500 for the period, compared to the consensus estimate of 12.310. The company issued revenue guidance of $18.2 billion-$18.4 billion, compared to the consensus revenue estimate of $18.2 billion.
Leidos Price Performance
Shares of Leidos stock traded down $2.42 during trading on Wednesday, hitting $128.18. 384,198 shares of the company’s stock traded hands, compared to its average volume of 1,309,210. The company has a debt-to-equity ratio of 1.19, a current ratio of 1.40 and a quick ratio of 1.29. The firm’s fifty day moving average price is $113.27 and its 200 day moving average price is $145.47. Leidos has a twelve month low of $98.86 and a twelve month high of $205.77. The company has a market cap of $16.12 billion, a PE ratio of 11.74, a PEG ratio of 1.74 and a beta of 0.52.
Leidos (NYSE:LDOS – Get Free Report) last released its earnings results on Tuesday, August 4th. The aerospace company reported $3.26 EPS for the quarter, beating the consensus estimate of $2.91 by $0.35. Leidos had a return on equity of 31.92% and a net margin of 8.15%.The company had revenue of $4.56 billion during the quarter, compared to analysts’ expectations of $4.44 billion. During the same period last year, the firm earned $3.21 EPS. The business’s revenue for the quarter was up 7.2% on a year-over-year basis. Leidos has set its FY 2026 guidance at 12.200-12.500 EPS. Analysts forecast that Leidos will post 12.3 earnings per share for the current year.
Leidos Announces Dividend
Leidos declared that its Board of Directors has approved a stock buyback program on Friday, July 31st that allows the company to buyback 20,000,000 outstanding shares. This buyback authorization allows the aerospace company to purchase shares of its stock through open market purchases. Shares buyback programs are typically a sign that the company’s management believes its shares are undervalued.
Analyst Ratings Changes
A number of brokerages have weighed in on LDOS. The Goldman Sachs Group cut their target price on shares of Leidos from $171.00 to $152.00 and set a “neutral” rating on the stock in a research report on Tuesday, July 14th. Jefferies Financial Group lowered their target price on Leidos from $140.00 to $110.00 and set a “hold” rating on the stock in a research report on Wednesday, July 1st. Weiss Ratings downgraded shares of Leidos from a “hold (c+)” rating to a “hold (c)” rating in a report on Monday, June 8th. Stifel Nicolaus lowered their price objective on Leidos from $205.00 to $193.00 and set a “hold” rating on the stock in a research note on Wednesday, May 6th. Finally, Royal Bank Of Canada reiterated an “outperform” rating and issued a $170.00 target price on shares of Leidos in a research note on Wednesday. One research analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating and ten have assigned a Hold rating to the company. According to MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus target price of $160.13.
Insider Activity at Leidos
In other news, Director Gary Stephen May sold 1,484 shares of the stock in a transaction on Thursday, May 7th. The shares were sold at an average price of $132.75, for a total value of $197,001.00. Following the completion of the sale, the director directly owned 10,137 shares of the company’s stock, valued at $1,345,686.75. This represents a 12.77% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. 0.77% of the stock is owned by company insiders.
Key Stories Impacting Leidos
Here are the key news stories impacting Leidos this week:
- Positive Sentiment: Leidos reported second-quarter revenue of $4.56 billion, up 7.2% year over year, while non-GAAP earnings per share of $3.26 exceeded the $2.91 analyst consensus. Growth was supported by Defense, Homeland and Intelligence programs. Leidos Delivers Strong Second Quarter and Enhances Full-Year Guidance
- Positive Sentiment: Management raised its 2026 outlook, increasing the revenue range to $18.2 billion-$18.4 billion and setting non-GAAP EPS guidance at $12.20-$12.50. The company also expects approximately $1.85 billion in operating cash flow and higher free cash flow, with planned capital spending of about $250 million. Leidos anticipates higher 2026 free cash flow
- Positive Sentiment: Cash generation was a major strength: operating cash flow reached $793 million and non-GAAP free cash flow was $761 million. Quarterly net bookings totaled $4.9 billion, producing a 1.1 book-to-bill ratio, while backlog stood at $48.7 billion, including $10.2 billion funded. Leidos Q2 revenue rises 7 percent
- Positive Sentiment: Leidos was selected to provide infrared sensors and signal-processing capabilities for Sierra Space missile-defense satellites supporting the Golden Dome initiative, reinforcing its defense-technology growth narrative. Leidos selected to provide infrared sensors
- Negative Sentiment: GAAP net income declined to $356 million from $393 million a year earlier, and net margin fell to 7.8% from 9.2%. Acquisition and joint-venture costs, along with ongoing weakness or a “reset” in Health, are tempering the otherwise strong operating performance. Acquisition and Joint Venture Costs Send Net Income Down
Institutional Investors Weigh In On Leidos
Large investors have recently modified their holdings of the business. VestGen Advisors LLC acquired a new position in Leidos in the 4th quarter worth about $228,000. Moneta Group Investment Advisors LLC acquired a new position in shares of Leidos in the 3rd quarter worth approximately $228,000. Dorsey & Whitney Trust CO LLC boosted its stake in shares of Leidos by 16.0% in the 4th quarter. Dorsey & Whitney Trust CO LLC now owns 1,239 shares of the aerospace company’s stock valued at $224,000 after buying an additional 171 shares during the period. Pin Oak Investment Advisors Inc. lifted its holdings in Leidos by 125.0% during the 4th quarter. Pin Oak Investment Advisors Inc. now owns 720 shares of the aerospace company’s stock worth $139,000 after buying an additional 400 shares during the last quarter. Finally, WFA of San Diego LLC purchased a new stake in shares of Leidos during the 2nd quarter worth approximately $138,000. Hedge funds and other institutional investors own 76.12% of the company’s stock.
Leidos Company Profile
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.
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