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what it is
Leidos sells tech, engineering, and support services to the U.S. government and a few adjacent markets.
how it gets paid
Last year Leidos made $17.1B in revenue. Defense & Intelligence was the main engine at $7.2B, or 42% of sales.
why it's growing
Revenue grew 3.2% last year. That was an 8.0% miss. Revenue still sat at $12.9B in the latest quarter.
what just happened
Leidos posted $2.76 in EPS, below the $3.00 estimate.
At a glance
A balance sheet — strong enough to weather a downturn
95/100 earnings predictability — you can trust these numbers
15.4x trailing p/e — the market's not buying it — or you found a deal
1.0% dividend yield — cash in your pocket every quarter
14.0% return on capital — nothing to write home about
xvary composite: 76/100 — average
What they do
Leidos sells tech, engineering, and support services to the U.S. government and a few adjacent markets.
Your customer base is huge and sticky. Leidos has 47,000 employees and 95 earnings predictability, so the numbers usually arrive on time. Operating margin means profit before interest and taxes. Leidos ran at 14.5%, so 14.5 cents of every sales dollar survived operating costs.
How they make money
$17.1B
annual revenue · their business grew +3.2% last year
Defense & Intelligence
$7.2B
+4.0%
Civil & Infrastructure
$4.7B
+2.0%
Health
$2.5B
+5.0%
Commercial & International
$2.7B
+1.0%
The products that matter
government systems integration and services
Defense & Scientific Services
$17.1B revenue
It supports the company’s full $17.1B revenue base, and the latest growth figure on the page is 4.2%. That makes contract quality and renewal momentum more important than product mix.
core revenue engine
cloud modernization programs
Cloud One work
$454.9M contract
The recently announced $454.9M Air Force Cloud One award is not the whole story, but it is a clean proof beat. New work is still landing, and it is landing in digital infrastructure tied to federal missions.
recent win
aviation operations software
Terminal Flight Data Manager
airport rollout underway
This is one of the few visible non-defense operating stories on the page. You care less about novelty than whether deployments turn into durable program revenue. The scale data is missing, so this stays a watch item.
execution watch
Key numbers
$17.1B
ttm revenue
You are buying a company that can push $17.1B through the top line without looking flashy.
15.4x
trailing p/e
You pay 15.4 times earnings for a business with a 14.0% return on capital.
14.5%
operating margin
That means 14.5 cents of every sales dollar stayed after operating costs.
$224
vl target
sees 19% upside from $188.04, so the stock is priced for steady, not fast, growth.
Financial health
A
strength
- balance sheet grade A — very strong financial position
- risk rank 3 — safer than 50% of stocks
- price stability 75 / 100
- long-term debt $4.6B (16% of capital)
- net profit margin 9.1% — keeps 9 cents of every dollar in revenue
- return on equity 20% — $0.20 profit for every $1 investors have put in
A — among the top-rated companies for balance sheet quality.
Total return vs. market
You invested $10,000 in LDOS 3 years ago → it's now worth $19,910.
The index would have given you $13,880.
source: institutional data · total return
What just happened
missed estimates
Leidos posted $2.76 in EPS, below the $3.00 estimate.
That was an 8.0% miss. Revenue still sat at $12.9B in the latest quarter, but profit came in lighter than expected.
$12.9B
revenue
$2.76
eps
8.0%
surprise
the number that mattered
The $2.76 EPS print mattered because it missed $3.00 by 8.0% and reminded you this is not a spotless operator.
source: company earnings report, 2026
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What could go wrong
Leidos is tied to federal budgets, federal timing, and federal procurement discipline. That makes the risk list unusually concentrated. If one part slips, the whole $17.1B revenue base feels it.
med
federal budget and award timing
Leidos sells into agencies and programs that move on Washington’s calendar, not yours. If appropriations slip or awards get pushed, reported growth can flatten even when the underlying work pipeline is still there.
The business produced $17.1B of revenue, and this page gives you no big commercial offset. Timing risk here is company-wide.
med
the slowdown stops looking temporary
Last year’s revenue growth was 32.5%. The more recent figure is 4.2%. If that deceleration sticks, the stock stops being a reacceleration story and starts reading like a quality contractor priced about right.
The $19B revenue estimate gets harder to defend if growth keeps hugging low single digits.
med
margin pressure in competitive bids
A 9.2% net margin is healthy for government contracting, but it is not wide enough to make pricing mistakes disappear. Labor costs, fixed-price work, or more aggressive bidding can eat into profitability fast.
At 15.4x trailing earnings, the stock has room to absorb ordinary noise. It has less room if margins and growth soften at the same time.
Here’s the thing: you are exposed to a business the market treats as dependable. If the 4.2% growth pace persists and award timing gets choppier, dependable starts to look merely average.
source: institutional data · regulatory filings · risk analysis
Pay attention to
earnings
next earnings (may 05, 2026)
Listen for whether management describes 4.2% growth as temporary timing noise or the pace you should start underwriting.
trend
growth reacceleration
The key contrast is already on the page: 32.5% last year versus 4.2% now. The stock needs evidence that the gap narrows in the right direction.
risk
federal budget and award flow
Track appropriations, program timing, and whether large awards keep landing like the recent $454.9M Cloud One contract.
metric
eps path toward $13.00–$13.70
That estimate range is what keeps the current valuation feeling reasonable. If the earnings path slips, the multiple stops looking conservative.
Analyst rankings
short-term outlook
top 20%
Momentum score 2 — in human-speak, analysts think LDOS should do better than most stocks over the next year.
risk profile
average
Stability score 3 — safer than a typical cyclical name, but not a bunker stock.
chart momentum
average
Technical score 3 — the chart is not sending a dramatic signal either way.
earnings predictability
95 / 100
Management’s numbers have been highly reliable. That matters when the stock is priced on steady execution, not a dream.
source: institutional data
Institutional activity
institutions have been net buying for 2 consecutive quarters — 476 buyers vs. 339 sellers in 3q2025. total institutional holdings: 97.5M shares. net buying for 2 quarters.
source: institutional data
Price targets
3-5 year target range
$149
$298
$188
current price
$224
target midpoint · +19% from current · 3-5yr high: $320 (+70% · 15% ann'l return)
Want the deeper analysis?
The full deep dive: dcf model, scenario analysis, competitive moat breakdown, and quarterly tracking — everything on this page, taken further.
see plans from $5/moThe deep dive