Leidos (NYSE:LDOS) Issues Quarterly Earnings Results

Leidos (NYSE:LDOS) issued its earnings results on Tuesday. The aerospace company reported $2.76 EPS for the quarter, topping the consensus estimate of $2.57 by $0.19, FiscalAI reports. Leidos had a return on equity of 33.02% and a net margin of 8.11%.The firm had revenue of $4.21 billion during the quarter, compared to analysts’ expectations of $4.31 billion. During the same period last year, the business earned $2.37 earnings per share. Leidos’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 Trading Down 8.0%

Leidos stock traded down $14.12 during mid-day trading on Tuesday, hitting $162.18. 2,027,455 shares of the stock were exchanged, compared to its average volume of 969,970. The company has a quick ratio of 1.50, a current ratio of 1.62 and a debt-to-equity ratio of 0.94. The stock has a market capitalization of $20.74 billion, a price-to-earnings ratio of 15.13, a PEG ratio of 1.23 and a beta of 0.59. The firm’s fifty day simple moving average is $187.97 and its two-hundred day simple moving average is $186.66. Leidos has a 12 month low of $123.62 and a 12 month high of $205.77.

Leidos Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, March 31st. Stockholders of record on Monday, March 16th will be given a dividend of $0.43 per share. This represents a $1.72 dividend on an annualized basis and a dividend yield of 1.1%. The ex-dividend date is Monday, March 16th. Leidos’s dividend payout ratio (DPR) is 16.04%.

Insider Activity at Leidos

In other Leidos news, insider Elizabeth A. Porter sold 3,000 shares of the company’s stock in a transaction on Tuesday, January 20th. The shares were sold at an average price of $192.21, for a total transaction of $576,630.00. Following the transaction, the insider owned 38,575 shares in the company, valued at approximately $7,414,500.75. This represents a 7.22% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. 0.96% of the stock is currently owned by corporate insiders.

Institutional Trading of Leidos

Several hedge funds have recently made changes to their positions in LDOS. Alliancebernstein L.P. increased its holdings in shares of Leidos by 64.4% in the 2nd quarter. Alliancebernstein L.P. now owns 1,529,261 shares of the aerospace company’s stock worth $241,256,000 after buying an additional 598,974 shares during the last quarter. AQR Capital Management LLC lifted its stake in Leidos by 21.2% in the second quarter. AQR Capital Management LLC now owns 1,433,712 shares of the aerospace company’s stock worth $223,731,000 after acquiring an additional 250,555 shares during the period. State Street Corp grew its holdings in shares of Leidos by 3.7% during the 4th quarter. State Street Corp now owns 6,022,359 shares of the aerospace company’s stock worth $1,086,434,000 after acquiring an additional 217,141 shares during the period. Balyasny Asset Management L.P. increased its stake in shares of Leidos by 753.0% in the 2nd quarter. Balyasny Asset Management L.P. now owns 215,939 shares of the aerospace company’s stock worth $34,067,000 after acquiring an additional 190,625 shares in the last quarter. Finally, Adage Capital Partners GP L.L.C. purchased a new position in Leidos during the second quarter valued at $29,860,000. 76.12% of the stock is currently owned by institutional investors.

Analyst Upgrades and Downgrades

A number of equities analysts have issued reports on LDOS shares. UBS Group set a $204.00 target price on Leidos in a report on Thursday, January 15th. Cantor Fitzgerald upped their price objective on Leidos from $185.00 to $225.00 and gave the stock an “overweight” rating in a research report on Friday, October 31st. Royal Bank Of Canada reiterated an “outperform” rating and issued a $230.00 price target on shares of Leidos in a research note on Wednesday, November 5th. Weiss Ratings reissued a “buy (b)” rating on shares of Leidos in a report on Monday, December 29th. Finally, Stifel Nicolaus restated a “hold” rating and issued a $220.00 price objective on shares of Leidos in a research note on Wednesday, January 7th. Nine 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 a consensus rating of “Moderate Buy” and a consensus price target of $213.09.

Leidos News Summary

Here are the key news stories impacting Leidos this week:

• Positive Sentiment: Q4 earnings beat — Leidos reported non?GAAP EPS of $2.76, above consensus, demonstrating margin strength and double?digit earnings growth year-over-year. Read More.
• Positive Sentiment: Strong cash flow and bookings — FY?2025 operating cash flow and net bookings remained robust (book-to-bill ~1.0 for the year and 1.3 in Q4), supporting liquidity and deal pipeline. Read More.
• Positive Sentiment: Strategic M&A — Leidos announced a ~ $2.4 billion agreement to acquire Entrust to expand its energy business and fuel its NorthStar 2030 growth plan, which could accelerate diversification and revenue mix over time. Read More.
• Neutral Sentiment: FY?2026 guidance raised — Management set FY?2026 EPS guidance at $12.05–$12.45 and revenue guidance above Street estimates, which is constructive but will be judged against execution during a lumpy government spending backdrop. Read More.
• Neutral Sentiment: Dividend declared — Leidos declared a quarterly dividend ($0.43 per share), signaling shareholder-return discipline but modest yield relative to peers. Read More.
• Negative Sentiment: Revenue miss and shutdown impact — Q4 revenue was $4.21B, below consensus; management cited a six?week government shutdown that delayed orders and pressured quarterly sales. That shortfall is the immediate catalyst for the selloff. Read More.
• Negative Sentiment: Market reaction and near?term uncertainty — Despite the acquisition and guidance, investors appear focused on suppressed near?term revenue and potential integration/financing risk for Entrust, driving negative sentiment intraday. Read More.

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.