| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 88 | 12.0x | 17.8x | Top tier | |
Growth | 56 | 3.3% | 7.1% | Around median | |
Quality | 76 | 14.6% | 4.5% | Top tier | |
Safety | 63 | 2.5x | 2.6x | Around median | |
Capital Return | 38 | 1.31% | 2.12% | Bottom tier | |
Momentum | 12 | -24.6% | 2.9% | Bottom tier | |
Sentiment | 41 | 10 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Leidos Holdings operates in defense technology, national security, health, space, energy, cybersecurity, digital modernization, and air traffic management, generating revenue from developing systems and products and executing contracts and technical services for government and commercial customers. Its One Leidos strategy combines hardware, software, systems integration, and operational expertise, while its business is divided across the Defense, Health, Homeland, and Intel and Digital segments; in Q2 FY2026, Homeland led growth with increases of 32% overall and 15% organically, while Defense grew 6% organically and Health revenue contracted after the fourth vendor was fully onboarded under the VBA medical disability examinations contract.
In Q2 FY2026, revenue according to EDGAR was approximately $4.6 billion, up a reported 7% year over year and 4% organically, while gross profit was $817 million, representing a calculated margin of approximately 17.8%. Net income reached $354 million, equivalent to a calculated net margin of approximately 7.7%, and earnings per share according to EDGAR were approximately $2.81, while adjusted earnings per share were $3.26. The company also recorded adjusted EBITDA of $631 million and a margin of 13.8%, along with operating cash flow of $793 million and free cash flow of $761 million.
On a trailing-twelve-month basis in FY2026, Leidos recorded revenue of $17.7 billion, gross profit of $3.2 billion, net income of $1.4 billion, and earnings per share of approximately $10.92. These results compare with revenue of $17.2 billion and net income of $1.4 billion in FY2025, showing that the latest increase was driven mainly by revenue growth while annual net income remained at approximately the same level. Net bookings in Q2 FY2026 were approximately $5 billion, bringing the book-to-bill ratio to 1.1x companywide and 2.2x in Defense.
The analyst consensus is Buy, with an average price target of $155.29 and a range between $132 and $170. The average target is approximately 57.1% above the 52-week range low of $98.86, but approximately 24.5% below its high of $205.77, and even the highest target is approximately 17.4% below that high. This divergence points to a reassessment tied to the strength of Defense and cash flows on one hand, and pressure from VBA and the trend among some customers toward performing systems integration internally on the other.
Figures in the text are as of 2026-08-29; the live price is shown at the top of the page.
Leidos generated approximately $4.6 billion in revenue, up 7% year over year and 4% organically, while net income reached $354 million. The company recorded earnings per share according to EDGAR of $2.81 and adjusted earnings per share of $3.26. Homeland led growth with increases of 32% overall and 15% organically, while Defense grew 6% organically, supported by increased production of Integrated Air Defense and counter-unmanned aircraft programs.
The book-to-bill ratio in Defense was approximately 2.2x in Q2 FY2026 and 1.9x over the trailing twelve months. Opportunities include an agreement worth more than $1 billion to deliver 3,000 low-cost munitions by 2030 and sensor payloads for an additional 18 satellites under Golden Dome. On 2026-08-04, management estimated the segment's opportunity pipeline over the following twelve months at approximately $12 billion, with high-single-digit growth expected in FY2026.
Health revenue contracted in Q2 FY2026 after the fourth vendor was fully onboarded under the VBA Medical Disability Examination Regions contract. The VA also decided to suspend incentive payments to all vendors for the remainder of FY2026, and Leidos expects Health revenue to remain around that quarter's level, with a non-GAAP operating income margin of approximately 20%. As of 2026-08-04, the draft request for proposals for the next competition had not been issued, so the terms of the new contract remained undefined despite management's expectation that some current contracts would be extended into 2027.
Automated analysis for informational purposes only — not investment advice.
Leidos developed and deployed the MHS GENESIS electronic health record system globally under the original ten-year contract, and management said the implementation was completed on time and within budget. The Defense Health Agency is considering purchasing the core software directly and performing some systems integration internally, while Leidos continues to support and enhance the system under a sole-source bridge contract. The company is also working on My Service Treatment Record across the Department of War and the VA, but it did not provide a specific financial estimate for this program on 2026-08-04.
In Q2 FY2026, Leidos generated operating cash flow of $793 million and free cash flow of $761 million. The company repaid $300 million of commercial paper associated with the Entrust acquisition and ended the quarter with $6 billion in debt, $748 million in cash and cash equivalents, and gross leverage of 2.5x. On 2026-07-31, the board of directors approved a quarterly dividend of $0.43 per share and a new authorization to repurchase up to 20 million shares.
The analyst consensus rates LDOS as Buy, with an average target of $155.29 and targets ranging from $132 to $170. The average target is approximately 24.5% below the 52-week range high of $205.77, while the highest target is approximately 17.4% below that high. The wide range highlights differing assessments between the strength of Defense bookings and cash flow on one hand, and uncertainty surrounding VBA and MHS GENESIS on the other.
