Leidos (NYSE:LDOS) Posts Earnings Results, Beats Estimates By $0.25 EPS

Leidos (NYSE:LDOS) posted its quarterly earnings results on Monday. The aerospace company reported $3.13 earnings per share for the quarter, beating analysts’ consensus estimates of $2.88 by $0.25, Zacks reports. The company had revenue of $4.40 billion for the quarter, compared to the consensus estimate of $4.28 billion. Leidos had a return on equity of 32.95% and a net margin of 8.43%.The firm’s quarterly revenue was up 3.7% on a year-over-year basis. During the same quarter in the prior year, the business posted $2.97 EPS.

Leidos Stock Down 5.6%

LDOS stock traded down $8.28 during mid-day trading on Tuesday, hitting $140.53. 1,074,190 shares of the company were exchanged, compared to its average volume of 1,069,015. The company has a debt-to-equity ratio of 0.93, a quick ratio of 1.58 and a current ratio of 1.70. The firm has a market cap of $17.72 billion, a P/E ratio of 12.62, a P/E/G ratio of 1.90 and a beta of 0.56. The firm’s 50 day simple moving average is $162.47 and its 200 day simple moving average is $179.28. Leidos has a 1-year low of $139.69 and a 1-year high of $205.77.

Leidos Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Tuesday, June 30th. Shareholders of record on Monday, June 15th will be issued a dividend of $0.43 per share. This represents a $1.72 annualized dividend and a yield of 1.2%. The ex-dividend date is Monday, June 15th. Leidos’s dividend payout ratio (DPR) is 15.45%.

Insider Buying and Selling

In other Leidos news, insider Elizabeth A. Porter sold 2,000 shares of the firm’s stock in a transaction that occurred on Tuesday, April 7th. The shares were sold at an average price of $158.78, for a total transaction of $317,560.00. Following the sale, the insider directly owned 49,476 shares in the company, valued at approximately $7,855,799.28. This trade represents a 3.89% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 0.77% of the company’s stock.

Institutional Trading of Leidos

Several hedge funds and other institutional investors have recently modified their holdings of the company. Compound Planning Inc. raised its stake in shares of Leidos by 4.7% in the 4th quarter. Compound Planning Inc. now owns 2,482 shares of the aerospace company’s stock valued at $448,000 after purchasing an additional 112 shares during the period. Corient Private Wealth LLC raised its stake in shares of Leidos by 426.7% in the 4th quarter. Corient Private Wealth LLC now owns 323,828 shares of the aerospace company’s stock valued at $58,419,000 after purchasing an additional 262,343 shares during the period. Mercer Global Advisors Inc. ADV raised its stake in shares of Leidos by 8.9% in the 4th quarter. Mercer Global Advisors Inc. ADV now owns 132,116 shares of the aerospace company’s stock valued at $23,834,000 after purchasing an additional 10,796 shares during the period. First Citizens Bank & Trust Co. raised its stake in shares of Leidos by 2.2% in the 4th quarter. First Citizens Bank & Trust Co. now owns 57,651 shares of the aerospace company’s stock valued at $10,400,000 after purchasing an additional 1,261 shares during the period. Finally, EP Wealth Advisors LLC acquired a new stake in shares of Leidos in the fourth quarter valued at approximately $3,341,000. Institutional investors and hedge funds own 76.12% of the company’s stock.

Wall Street Analyst Weigh In

A number of brokerages recently weighed in on LDOS. Truist Financial cut their price target on shares of Leidos from $220.00 to $195.00 and set a “buy” rating on the stock in a research report on Monday, April 20th. Citigroup increased their price target on shares of Leidos from $218.00 to $232.00 and gave the company a “buy” rating in a research report on Tuesday, January 13th. Argus upgraded shares of Leidos to a “strong-buy” rating in a research report on Tuesday, March 31st. Stifel Nicolaus cut their price target on shares of Leidos from $220.00 to $205.00 and set a “hold” rating on the stock in a research report on Wednesday, February 18th. Finally, Jefferies Financial Group set a $185.00 price target on shares of Leidos in a research report on Wednesday, April 8th. One analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating and five have given a Hold rating to the company. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus price target of $202.82.

Key Headlines Impacting Leidos

Here are the key news stories impacting Leidos this week:

• Positive Sentiment: Leidos beat Q1 estimates — adjusted EPS $3.13 vs. $2.88 expected, revenue $4.40B vs. $4.28B expected; revenue was up ~3.7% YoY. This showed underlying operational strength and margin improvement. Leidos (LDOS) Surpasses Q1 Earnings and Revenue Estimates
• Positive Sentiment: Backlog and contract wins — backlog expanded to $48.4B and management cited strong demand in intelligence, energy infrastructure and air-traffic control-related work, supporting multi-year revenue visibility. LDOS Q1 Earnings Beat on Backlog Scale and Key Contract Wins
• Positive Sentiment: Company raised FY-2026 guidance — Leidos raised its profit and revenue outlook, providing FY EPS guidance of $12.10–$12.50 and revenue guidance of $18.0B–$18.4B, signaling confidence in demand for its IT and intelligence services. Defense contractor Leidos raises 2026 forecast on strong demand
• Neutral Sentiment: Solid cash flow & profitability metrics — Q1 non-GAAP diluted EPS growth, adjusted EBITDA margin (~14.0%), and positive free cash flow were highlighted in the earnings release. Leidos Posts Strong First Quarter Results and Raises Full-Year Guidance
• Neutral Sentiment: Dividend declared — Leidos announced a quarterly dividend of $0.43 per share (record June 15, payable June 30), which supports income-focused shareholders but is modest relative to peers.
• Negative Sentiment: Guidance nuance may have disappointed — although guidance was raised, the EPS range’s lower end sits below some expectations and the midpoint roughly matches consensus, leaving room for investor disappointment if upside is already priced in. Defense contractor Leidos raises 2026 forecast on strong demand (Yahoo)
• Negative Sentiment: Share-price technicals & volume — the stock is trading below its 50-day and 200-day moving averages with lighter-than-average volume, which can amplify downside on otherwise mixed news (short-term technical selling).

About Leidos

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.