olivLaw · US equity research
Leidos Holdings, Inc. LDOS
Services-Computer Integrated Systems Design · SIC 7373 · Vertical: Services-Computer Integrated Systems Design (SIC 7373)
Leidos Holdings, Inc. is a technology and services provider to the U.S. government, with revenues of 17.2 bn USD in fiscal 2025, of which 87% came from U.S. government contracts. In the second quarter of fiscal 2026 revenues rose 7% to 4.6 bn USD, and the fiscal 2026 revenue guidance was raised in August 2026.
The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).
At the close of 03 Nov 2026, Leidos Holdings, Inc. (LDOS) stock was 134.72 USD (−6.55% on the day), with market capitalisation 16.4 bn USD, P/E 12.1 on diluted EPS of 11.17 USD over the last 12 months, dividend yield 1.28%, beta 0.46, 52-week range 100.00–199.55 USD. Latest reported quarter (Q3 2027): revenue of 4.6 bn USD (+3.6% YoY), net income of 410.0 m USD (+11.7% YoY), diluted EPS 3.28 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
Loading chart…
Technical reading
- RSI (14)
- 54.8
- neutral
- Bollinger (20, 2)
- 111.83 – 148.27
- in the upper half of the band · %B 0.63 · band width 28.0%
- SMA 50 / 200
- 129.28 / 140.62
- mixed trend
- MACD (12, 26, 9)
- 4.26 / 3.01
- MACD above signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | +14.4% | −2.0% | +16.4 pp | — |
| 3 months | +3.2% | −2.2% | +5.3 pp | — |
| 6 months | −1.8% | +4.3% | −6.1 pp | — |
| Year to date | −25.3% | +10.6% | −35.9 pp | — |
| 1 year | −30.2% | +10.5% | −40.7 pp | −34.8% |
| 3 years | +29.6% | +73.7% | −44.1 pp | −27.7% |
| 5 years | +42.2% | +61.7% | −19.6 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q3 2027 · 02 Oct 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 | Q4 '26 | Q1 '27 | Q2 '27 | Q3 '27 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 4.4 bn | 4.2 bn | 4.3 bn | 4.5 bn | 4.2 bn | 4.4 bn | 4.6 bn | 4.6 bn |
| Cost of revenue | 3.7 bn | 3.5 bn | 3.5 bn | 3.6 bn | 3.5 bn | 3.6 bn | 3.7 bn | 3.8 bn |
| SG&A | 279.0 m | 230.0 m | 217.0 m | 290.0 m | 262.0 m | 223.0 m | 283.0 m | 262.0 m |
| Operating income | 421.0 m | 530.0 m | 571.0 m | 535.0 m | 473.0 m | 508.0 m | 514.0 m | 553.0 m |
| Depreciation & amortisation | 79.0 m | 69.0 m | 72.0 m ≈ | 74.0 m ≈ | 75.0 m | 72.0 m | 81.0 m ≈ | 76.0 m ≈ |
| Pre-tax income | 375.0 m | 478.0 m | 518.0 m | 484.0 m | 429.0 m | 429.0 m | 451.0 m | 482.0 m |
| Income tax | 93.0 m | 113.0 m | 125.0 m | 115.0 m | 94.0 m | 94.0 m | 95.0 m | 69.0 m |
| Net income | 284.0 m | 363.0 m | 391.0 m | 367.0 m | 327.0 m | 328.0 m | 354.0 m | 410.0 m |
| Diluted EPS | 2.09 ≈ | 2.77 | 3.01 | 2.82 | 2.52 ≈ | 2.56 | 2.81 | 3.28 |
| Operating cash flow | 294.0 m | 58.0 m | 486.0 m ≈ | 711.0 m ≈ | 495.0 m | 301.0 m | 793.0 m ≈ | 523.0 m ≈ |
| Capex | 86.0 m | 22.0 m | 29.0 m ≈ | 31.0 m ≈ | 43.0 m | 31.0 m | 32.0 m ≈ | 47.0 m ≈ |
| Dividends paid | 53.0 m | 53.0 m | 52.0 m ≈ | 51.0 m ≈ | 55.0 m | 55.0 m | 55.0 m ≈ | 52.0 m ≈ |
| Share repurchases | 400.0 m | 0 | 0 | 100.0 m | 300.0 m | 200.0 m | 66.0 m | 500.0 m |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 6 percentile of its own 32-quarter history (min 10.2, median 20.2, max 88.4; quarters with earnings only).
Fiscal years
| Fiscal year | 2017 | 2018 | 2020 | 2021 | 2022 | 2023 | 2025 | 2026 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 10.2 bn | 10.2 bn | 11.1 bn | 13.7 bn | 14.4 bn | 15.4 bn | 16.7 bn | 17.2 bn |
| Revenue YoY | +44.4% | +0.2% | unavailable | +23.8% | +4.8% | +7.2% | unavailable | +3.1% |
| Net income | 366.0 m | 581.0 m | 667.0 m | 753.0 m | 685.0 m | 199.0 m | 1.3 bn | 1.4 bn |
| Net income YoY | +50.0% | +58.7% | unavailable | +12.9% | −9.0% | −70.9% | unavailable | +15.5% |
| Diluted EPS | 2.38 | 3.80 | 4.60 | 5.27 | 4.96 | 1.44 | 9.22 | 11.14 |
| Diluted EPS YoY | +1.3% | +59.7% | unavailable | +14.6% | −5.9% | −71.0% | unavailable | +20.8% |
| net % | 3.6% | 5.7% | 6.0% | 5.5% | 4.8% | 1.3% | 7.5% | 8.4% |
| Free cash flow | 445.0 m | 695.0 m | 871.0 m | 929.0 m | 863.0 m | 980.0 m | 1.3 bn | 1.6 bn |
Reported results vs expectations
Loading…
Balance sheet & financial health
Fiscal year 2026 · 02 Jan 2026
- Cash
- 1.1 bn USD
- Financial debt
- 20.0 m USD
- Net debt
- -1.1 bn USD
- Equity
- 5.0 bn USD
- Total assets
- 13.5 bn USD
- Debt / equity
- 0.00x
- Current ratio
- 1.70x
- ROE
- 30.7%
- ROA
- 10.9%
- FCF margin
- 9.5%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 11.1 bn | 13.7 bn | 14.4 bn | 15.4 bn | 16.7 bn | 17.2 bn | SEC (XBRL)· 17 Feb 2026verified |
| Cost of revenue | 9.5 bn | 11.7 bn | 12.3 bn | 13.2 bn | 13.9 bn | 14.1 bn | SEC (XBRL)· 17 Feb 2026verified |
| Gross profit | 1.5 bn ≈ | 2.0 bn ≈ | 2.1 bn ≈ | 2.2 bn ≈ | 2.8 bn ≈ | 3.1 bn ≈ | SEC (XBRL)· 17 Feb 2026derived |
| Research & development | 49.0 m | 109.0 m | 116.0 m | 128.0 m | 150.0 m | 187.0 m | SEC (XBRL)· 17 Feb 2026verified |
| SG&A | 689.0 m | 851.0 m | 951.0 m | 942.0 m | 983.0 m | 999.0 m | SEC (XBRL)· 17 Feb 2026verified |
| Operating income | 912.0 m | 1.2 bn | 1.1 bn | 621.0 m | 1.8 bn | 2.1 bn | SEC (XBRL)· 17 Feb 2026verified |
| Depreciation & amortisation | 234.0 m | 325.0 m | 333.0 m | 331.0 m | 290.0 m | 290.0 m | SEC (XBRL)· 17 Feb 2026verified |
| EBITDA | 1.1 bn ≈ | 1.5 bn ≈ | 1.4 bn ≈ | 952.0 m ≈ | 2.1 bn ≈ | 2.4 bn ≈ | SEC (XBRL)· 17 Feb 2026derived |
| Interest expense | 147.0 m | 185.0 m | — | — | — | — | SEC (XBRL)· 15 Feb 2022verified |
| Pre-tax income | 866.0 m | 967.0 m | 886.0 m | 403.0 m | 1.6 bn | 1.9 bn | SEC (XBRL)· 17 Feb 2026verified |
| Income tax | 196.0 m | 208.0 m | 193.0 m | 195.0 m | 388.0 m | 447.0 m | SEC (XBRL)· 17 Feb 2026verified |
| Net income | 667.0 m | 753.0 m | 685.0 m | 199.0 m | 1.3 bn | 1.4 bn | SEC (XBRL)· 17 Feb 2026verified |
| Diluted EPS | 4.60 | 5.27 | 4.96 | 1.44 | 9.22 | 11.14 | SEC (XBRL)· 17 Feb 2026verified |
| Weighted average diluted shares | 145.0 m | 143.0 m | 138.0 m | 138.0 m | 136.0 m | 130.0 m | SEC (XBRL)· 17 Feb 2026verified |
| Dividend per share | 1.32 | 1.40 | 1.44 | 1.46 | 1.54 | 1.63 | SEC (XBRL)· 17 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Revenue − Cost of revenue; Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 668.0 m | 727.0 m | 516.0 m | 641.0 m | 849.0 m | 1.1 bn | SEC (XBRL)· 17 Feb 2026verified |
| Receivables | 1.7 bn | 2.2 bn | 2.4 bn | 2.4 bn | 2.6 bn | 2.7 bn | SEC (XBRL)· 17 Feb 2026verified |
| Inventories | 72.0 m | 274.0 m | 287.0 m | 310.0 m | 315.0 m | 342.0 m | SEC (XBRL)· 17 Feb 2026verified |
| Current assets | 2.8 bn | 3.6 bn | 3.6 bn | 4.0 bn | 4.3 bn | 4.8 bn | SEC (XBRL)· 17 Feb 2026verified |
| Property, plant & equipment, net | 287.0 m | 670.0 m | — | — | — | — | SEC (XBRL)· 03 May 2022verified |
| Goodwill | 4.9 bn | 6.7 bn | 6.7 bn | 6.1 bn | 6.1 bn | 6.3 bn | SEC (XBRL)· 17 Feb 2026verified |
| Intangibles (excl. goodwill) | 530.0 m | 1.2 bn | 952.0 m | 667.0 m | 517.0 m | 458.0 m | SEC (XBRL)· 17 Feb 2026verified |
| Total assets | 9.4 bn | 13.3 bn | 13.1 bn | 12.7 bn | 13.0 bn | 13.5 bn | SEC (XBRL)· 17 Feb 2026verified |
| Accounts payable | 592.0 m | 692.0 m | 733.0 m | 736.0 m | 611.0 m | 627.0 m | SEC (XBRL)· 17 Feb 2026verified |
| Short-term debt | 61.0 m | 483.0 m | 992.0 m | 18.0 m | 618.0 m | 20.0 m | SEC (XBRL)· 17 Feb 2026verified |
| Current liabilities | 2.3 bn | 3.2 bn | 3.9 bn | 3.0 bn | 3.6 bn | 2.8 bn | SEC (XBRL)· 17 Feb 2026verified |
| Total liabilities | — | 8.9 bn | 8.7 bn | 8.4 bn | 8.6 bn | 8.5 bn | SEC (XBRL)· 17 Feb 2026verified |
| Equity | 3.4 bn | 4.3 bn | 4.4 bn | 4.3 bn | 4.5 bn | 5.0 bn | SEC (XBRL)· 17 Feb 2026verified |
Cash flow · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 992.0 m | 1.0 bn | 992.0 m | 1.2 bn | 1.4 bn | 1.8 bn | SEC (XBRL)· 17 Feb 2026verified |
| Capex | 121.0 m | 104.0 m | 129.0 m | 207.0 m | 149.0 m | 125.0 m | SEC (XBRL)· 17 Feb 2026verified |
| Free cash flow | 871.0 m ≈ | 929.0 m ≈ | 863.0 m ≈ | 980.0 m ≈ | 1.3 bn ≈ | 1.6 bn ≈ | SEC (XBRL)· 17 Feb 2026derived |
| Investing cash flow | 65.0 m | -730.0 m | -313.0 m | -211.0 m | -142.0 m | -405.0 m | SEC (XBRL)· 17 Feb 2026verified |
| Financing cash flow | -709.0 m | -113.0 m | -865.0 m | -715.0 m | -1.1 bn | -1.1 bn | SEC (XBRL)· 17 Feb 2026verified |
| Dividends paid | 198.0 m | 199.0 m | 199.0 m | 201.0 m | 208.0 m | 211.0 m | SEC (XBRL)· 17 Feb 2026verified |
| Share repurchases | 25.0 m | 237.0 m | 0 | 225.0 m | 850.0 m | 400.0 m | SEC (XBRL)· 17 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
4 indicators that do not apply to the sector.
Valuation
olivLaw classification
Score: 56 / 100
A scoring methodology on indicators and valuation, not investment advice.
Closing price
03 Nov 2026Source: olivLaw, closing series
Market cap: 16.4 bn USD
Key indicators
Coverage and freshness
Score by group
- Valuation89
- Returns100
- Quality36
- Balance sheet73
- Growth22
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 129.23 – 484.10 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)unavailable · the reported interest expense is far older than the latest period (the filer changed its XBRL tag): a stale figure is not used
- Peers: EV/Sales129.23 – 484.10 (Mid 257.31)12 companies used · median multiple 1.7x · quartiles 0.9x – 3.3xCACI, CREX, DAIC, FUSE, GDDY, HCTI, JKHY, KD, OTEX, RBBN, SAIC, WAY
- Peers: EV/EBITDA237.56 – 316.94 (Mid 270.11)5 companies used · median multiple 13.7x · quartiles 12.1x – 16.2xASUR, CACI, GDDY, SAIC, WAY
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Neutral profile · Score 56/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| Gross margin · Quality | 17.6% | 0 (on a fixed band) | 11% |
| EBIT margin · Quality | 11.5% | 74 (vs peers) | 9% |
| FCF margin · Quality | 11.0% | 44 (on a fixed band) | 9% |
| Revenue CAGR 3Y · Growth | 3.6% | 14 (on a fixed band) | 17% |
| Revenue growth (YoY) · Growth | 3.1% | 38 (vs peers) | 9% |
| Net debt / EBITDA · Balance sheet | -0.3x | 100 (vs peers) | 6% |
| Current ratio · Balance sheet | 1.6x | 47 (on a fixed band) | 6% |
| EV/Sales · Valuation | 0.9x | 80 (vs peers) | 17% |
| FCF yield · Valuation | 11.9% | 100 (on a fixed band) | 13% |
| Shareholder yield (distributions) · Returns | 7.8% | 100 (on a fixed band) | 4% |
Score groups
- Balance sheet73/100 · 2/2 factors with a value
- Growth22/100 · 2/2 factors with a value
- Quality36/100 · 3/3 factors with a value
- Returns100/100 · 1/1 factors with a value
- Valuation89/100 · 2/2 factors with a value
Memo
Leidos Holdings, Inc. (LDOS). Latest full fiscal year: 2026; data up to 2026-10-02.
Figures computed from the financial statements: revenue 17.2 bn USD in 2026; YoY growth 3.1%; net margin 8.0%; ROE 28.2%; net debt/EBITDA -0.3x.
The estimated value range is 183.40–400.52 USD per share (median of 2 methods, agreement: same basis (multiples on one peer group, not independent confirmations)); assumptions are illustrative. Against the central value of 263.71 USD, the price of 134.72 USD leaves a potential of 95.7% (value / price − 1) and a margin of safety of 48.9% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 56/100, methodological classification: neutral profile (score, margin of safety and method agreement together; not a judgement of the right price). Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- EBIT margin: 11.5%
- Net debt / EBITDA: -0.3x
- EV/Sales: 0.9x
- FCF yield: 11.9%
- Shareholder yield (distributions): 7.8%
- The price is below the estimated value range
What contradicts it
- Gross margin: 17.6%
- Revenue CAGR 3Y: 3.6%
Versus the vertical median
Services-Computer Integrated Systems Design (SIC 7373) · same industry (4-digit SIC) · compared with 39 companies
The size band was not applied: too few companies would have remained; the vertical includes much smaller or larger companies.
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| LDOSLeidos Holdings, Inc. | 16.4 bn | 12.1 | 28.2% | 8.0% | +3.1% | −30% / +30% |
| GDDYGoDaddy Inc. | 14.3 bn | 16.2 | — | 18.6% | +8.3% | −7% / +18% |
| CACICACI International Inc | 14.0 bn | 25.9 | 12.5% | 5.5% | +10.9% | +2% / +97% |
| JKHYJack Henry & Associates, Inc. | 12.6 bn | 25.7 | 24.0% | 19.8% | +7.1% | +3% / +13% |
| IONQIonQ, Inc. | 11.3 bn | — | -60.8% | -553.3% | +201.9% | −40% / +142% |
| OTEXOpen Text Corp | 6.4 bn | 10.3 | 16.2% | 12.3% | +1.5% | −21% / −34% |
| SAICScience Applications International Corporation | 6.3 bn | 17.6 | 25.7% | 5.1% | −2.9% | +75% / +28% |
| WAYWaystar Holding Corp. | 5.7 bn | 42.9 | 3.7% | 10.7% | +16.5% | −20% / unavailable |
| KDKyndryl Holdings, Inc. | 3.7 bn | 46.2 | 7.6% | 0.6% | +0.2% | −35% / −7% |
| AGYSAgilysys, Inc. | 3.5 bn | 78.5 | 13.6% | 12.9% | +15.9% | −0% / +42% |
| NTCTNetscout Systems Inc | 2.8 bn | 23.3 | 7.5% | 13.7% | +4.5% | +42% / +90% |
| AURAurora Innovation, Inc. | 2.6 bn | — | -45.7% | -13,328.6% | unavailable | −3% / +86% |
| PONYPony AI Inc. | 2.1 bn | — | -10.3% | -148.9% | +20.0% | −65% / unavailable |
| OSPNOneSpan Inc. | 872.9 m | 13.2 | 26.8% | 27.5% | +0.0% | +94% / +136% |
| TLSTelos Corporation | 378.2 m | — | -14.9% | -8.1% | +52.2% | −12% / +23% |
| SLPSimulations Plus, Inc. | 374.2 m | 46.7 | 6.2% | 9.9% | +13.1% | unavailable / unavailable |
| SMRTSmartrent, Inc. | 310.4 m | — | -8.4% | -13.0% | −12.9% | −6% / −48% |
| ASURAsure Software, Inc. | 293.6 m | — | -1.9% | — | +24.3% | +22% / +22% |
| VEEAVeea Inc. | 281.2 m | — | — | -2,491.9% | +56.6% | −55% / −98% |
| RBBNRibbon Communications Inc. | 275.9 m | 22.5 | 5.0% | 2.3% | +1.3% | −46% / −28% |
| KDKKodiak AI, Inc. | 220.7 m | — | — | -4,259.6% | −74.6% | −82% / unavailable |
| AIOSAIOS Tech Inc. | 138.9 m | — | -208.9% | -4,359.1% | −98.5% | −87% / −86% |
| MRLNMerlin, Inc. | 91.5 m | — | — | — | unavailable | −92% / unavailable |
| CSPICSP Inc | 75.4 m | — | -1.5% | -1.2% | +6.4% | −35% / −40% |
| HCTIHealthcare Triangle, Inc. | 69.2 m | — | -57.4% | -66.3% | +18.8% | −97% / −100% |
1- and 3-year price returns: for LDOS from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 82.22 Total return -38% · Per year -38% | 145.42 Total return 9% · Per year 9% | 219.13 Total return 64% · Per year 64% |
| 3 years | 78.38 Total return -39% · Per year -15% | 156.13 Total return 20% · Per year 6% | 258.52 Total return 97% · Per year 25% |
| 5 years | 74.73 Total return -40% · Per year -10% | 167.62 Total return 32% · Per year 6% | 304.98 Total return 136% · Per year 19% |
- Exit P/E± 39.03
- Net margin± 27.32
- Annual revenue growth± 22.62
- Annual dilution± 2.30
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 04 Aug 2026; since then the company filed 10-Q (03 Nov 2026), 8-K (03 Nov 2026 · results).
In brief
Leidos Holdings, Inc. is a technology and services provider to the U.S. government, with revenues of 17.2 bn USD in fiscal 2025 3, of which 87% came from U.S. government contracts 1. In the second quarter of fiscal 2026 revenues rose 7% to 4.6 bn USD 3, and the fiscal 2026 revenue guidance was raised in August 2026 3.
SWOT
Strengths
- Reliance on stable government contracts and a broad base of federal customers gives a solid position in defense and intelligence markets 1.
- A diversified portfolio across several segments allows weakness in one business line to be offset by others 13.
- Strong cash generation and raised guidance in the second quarter support investment capacity 3.
Weaknesses
- A high concentration of revenue from U.S. government customers exposes the company to budget delays and political decisions 1.
- Operating margins declined in some segments, particularly Health, due to lower volumes 2.
- Debt levels and interest costs increased, which reduces net income compared with earlier periods 2.
Opportunities
- Demand for defense technology, energy and cyber security could lead to new long-term contracts 3.
- If the joint venture with Analogic Corporation is completed, the company could expand security screening solutions for airports and borders 3.
- New military health programs could strengthen the Health segment over the longer term 3.
Threats
Risks
- Dependence on the U.S. governmenthigh
Most revenue comes from federal contracts, so a change in relationships or reputation could significantly affect growth 1.
- Budget delayshigh
Funding deadlocks could postpone contracts and payments, as noted in the quarterly report 2.
- Competition for contractsmedium
The bidding process and bid protests could prevent the company from winning new contracts, affecting future revenues 1.
- Integration of acquisitionsmedium
Integrating acquired businesses and joint ventures could create operational difficulties and unforeseen costs 13.
- Tariff and cost riskslow
Higher import tariffs could increase the cost of equipment used in contracts 2.
Investment thesis
What would need to be true (bull case)
- If demand for defense and security stays high, the diversified portfolio and large backlog could support revenue growth in the coming years 3.
- Solid cash generation and strong guidance could give the company flexibility to reduce debt and invest 3.
- A stronger position in health and managed services could improve revenue stability over the longer term 3.
What would break the thesis
- If budget deadlocks persist, government purchasing could slow and pressure revenues in the following quarters 2.
- Rising competition and pricing pressure could reduce margins, especially in segments where volumes are falling 12.
- Higher interest costs and debt could reduce net income even when revenues grow 2.
What to watch
- Evolution of government funding and any temporary funding resolutionQ1 2027
- Completion of the Analogic Corporation joint venture and integration of Entrust2027
- Margin trend in the Health segment after lower volumesQ1 2027
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 04 Aug 2026; since then the company filed 10-Q (03 Nov 2026), 8-K (03 Nov 2026 · results).
The business
Leidos Holdings, Inc., headquartered in Reston, Virginia, operates mainly through its subsidiary Leidos, Inc., and had about 47,000 employees at the end of fiscal 2025 1. The company focuses on five growth pillars: space and maritime, energy infrastructure, digital modernization and cyber, mission software and managed health services 1. About 8% of revenues come from entities outside the United States 1.
Segments
National Security & Digital
The segment represented 44% of total revenues in fiscal 2025 1 and includes digital modernization, mission software, cyber operations and intelligence services 1.
Health & Civil
The segment represented 30% of revenues in fiscal 2025 1, with an operating margin of 23.7% 1, and covers managed health services, air traffic control systems and research laboratory support 1.
Defense Systems
The segment delivers hardware, software and integrated systems to the Department of War and intelligence agencies, focusing on maritime, aerospace, land and airborne systems 1.
Market context
Demand from the U.S. government, particularly for defense, intelligence and homeland security, largely drives the company's performance 2. In the latest quarter the share of revenues from U.S. government contracts fell to 83% 2, while international markets accounted for 9% of revenues 2.
The government procurement process has shifted toward multiple-award contracts, which has increased competition and pricing pressure 1. The budget outlook remains uncertain, as a possible funding lapse could delay contracts 2.
Trends
- Defense budget and funding timingheadwind
Uncertainty about the federal budget and a possible use of temporary funding resolutions could delay customer purchases and payments 12.
- Demand for defense technologytailwind
Demand for advanced defense products and intelligence systems contributed to revenue growth in the second quarter 3.
- Acquisitions and integrationmixed
The Kudu Dynamics and Entrust acquisitions added revenue, but integration and amortization costs pressured margins in some segments 123.
- Tariff and cost pressureheadwind
Higher tariffs on imported goods could raise the cost of some equipment, although the company expects to recover part of it through contractual measures 2.
Competitive position
The company operates in a competitive environment where winning contracts depends on the bidding process and possible bid protests 1. Competition intensifies as the government increasingly uses multiple-award contract vehicles 1.
The analysed sources do not detail every direct competitor, but they point to rivals among IT services and defense contractors that bid for the same government contracts 1.
- Government IT services providers
Firms competing for digital modernization and cyber contracts, referred to generically in the competition risks of the source.
- Defense contractors
Companies active in aerospace, maritime and land systems that take part in the same defense programs.
- Security screening and inspection suppliers
Companies competing in baggage scanning and border inspection, relevant to the Commercial & International segment.
- Government healthcare service providers
Firms offering health services to federal agencies that compete in the Health & Civil segment.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
Loading the links…
News & filings
In the press
No news in our archive over the last 180 days.
SEC filings
- Quarterly report03 Nov 2026
- Current report03 Nov 2026Results of operations · Financial statements and exhibits
- Current report05 Oct 2026Material agreement · Regulation FD disclosure · Financial statements and exhibits
- Current report01 Oct 2026Departure or appointment of officers · Financial statements and exhibits
- Quarterly report04 Aug 2026
- Current report04 Aug 2026Results of operations · Financial statements and exhibits
- Current report06 May 2026Departure or appointment of officers · Shareholder vote · Financial statements and exhibits
- Quarterly report05 May 2026
- Current report05 May 2026Results of operations · Financial statements and exhibits
- Current report15 Apr 2026Material agreement · Regulation FD disclosure · Financial statements and exhibits
Sources
- [1] Form 10-K, fiscal year ended 2026-01-02 · SEC / Leidos Holdings, Inc. · 17 Feb 2026
- [2] Form 10-Q, quarter ended 2026-07-03 · SEC / Leidos Holdings, Inc. · 04 Aug 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / Leidos Holdings, Inc. · 04 Aug 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.