Leidos (NYSE:LDOS) Releases FY 2026 Earnings Guidance

Leidos (NYSE:LDOS) issued an update on its FY 2026 earnings guidance on Tuesday. The company provided earnings per share guidance of 12.200-12.500 for the period, compared to the consensus estimate of 12.310. The company issued revenue guidance of $18.2 billion-$18.4 billion, compared to the consensus revenue estimate of $18.2 billion.

Leidos Trading Up 8.3%

LDOS traded up $9.86 during midday trading on Tuesday, reaching $128.58. 1,338,186 shares of the company’s stock traded hands, compared to its average volume of 1,305,159. The firm has a fifty day moving average of $113.23 and a two-hundred day moving average of $145.90. The stock has a market capitalization of $16.17 billion, a price-to-earnings ratio of 11.80, a P/E/G ratio of 1.69 and a beta of 0.54. The company has a debt-to-equity ratio of 1.19, a current ratio of 1.40 and a quick ratio of 1.29. Leidos has a 52 week low of $98.86 and a 52 week high of $205.77.

Leidos (NYSE:LDOS) last issued its quarterly earnings data on Monday, August 3rd. The aerospace company reported $3.26 earnings per share for the quarter, topping analysts’ consensus estimates of $2.91 by $0.35. Leidos had a return on equity of 31.92% and a net margin of 8.15%.The firm had revenue of $4.56 billion for the quarter, compared to analyst estimates of $4.44 billion. During the same period last year, the company earned $3.21 EPS. The business’s quarterly revenue was up 7.2% compared to the same quarter last year. On average, equities analysts anticipate that Leidos will post 12.3 earnings per share for the current fiscal year.

Leidos Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 30th. Shareholders of record on Tuesday, September 15th will be given a dividend of $0.43 per share. This represents a $1.72 dividend on an annualized basis and a yield of 1.3%. The ex-dividend date of this dividend is Tuesday, September 15th. Leidos’s payout ratio is presently 15.75%.

Leidos declared that its Board of Directors has approved a stock buyback program on Friday, July 31st that authorizes the company to repurchase 20,000,000 shares. This repurchase authorization authorizes the aerospace company to purchase shares of its stock through open market purchases. Stock repurchase programs are often a sign that the company’s management believes its shares are undervalued.

Analyst Upgrades and Downgrades

A number of research firms recently issued reports on LDOS. BNP Paribas Exane began coverage on shares of Leidos in a research note on Wednesday, May 27th. They issued an “outperform” rating and a $165.00 price target for the company. The Goldman Sachs Group cut their price objective on Leidos from $171.00 to $152.00 and set a “neutral” rating on the stock in a research report on Tuesday, July 14th. Wall Street Zen raised Leidos from a “hold” rating to a “buy” rating in a research report on Thursday, July 16th. JPMorgan Chase & Co. lowered their target price on Leidos from $210.00 to $160.00 and set an “overweight” rating for the company in a research note on Monday, July 13th. Finally, Weiss Ratings lowered Leidos from a “hold (c+)” rating to a “hold (c)” rating in a research report on Monday, June 8th. One analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating and ten have given a Hold rating to the company. Based on data from MarketBeat, Leidos presently has an average rating of “Hold” and an average price target of $163.80.

Insider Transactions at Leidos

In related news, Director Gary Stephen May sold 1,484 shares of the stock in a transaction dated Thursday, May 7th. The shares were sold at an average price of $132.75, for a total transaction of $197,001.00. Following the sale, the director directly owned 10,137 shares of the company’s stock, valued at approximately $1,345,686.75. This represents a 12.77% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. 0.77% of the stock is currently owned by insiders.

Trending Headlines about Leidos

Here are the key news stories impacting Leidos this week:

• Positive Sentiment: Leidos reported second-quarter adjusted EPS of $3.26, above the approximately $2.90–$2.91 analyst consensus and up from $3.21 a year earlier. Revenue rose 7.2% year over year to $4.56 billion, exceeding the $4.44 billion estimate. Leidos Delivers Strong Second Quarter and Enhances Full-Year Guidance
• Positive Sentiment: Management raised fiscal 2026 revenue guidance to $18.2 billion–$18.4 billion from $18.0 billion–$18.4 billion, reflecting continued demand across defense, homeland security and intelligence markets. Full-year EPS guidance of $12.20–$12.50 remains broadly consistent with analyst expectations. Leidos’ Q2 Earnings Surpass Estimates, Revenues Improve Year over Year
• Positive Sentiment: Operating indicators were healthy: quarterly net bookings reached $4.9 billion, the book-to-bill ratio was 1.1, backlog totaled $48.7 billion, and operating and free cash flow were $793 million and $761 million, respectively.
• Positive Sentiment: Recent contract activity supports the growth outlook, including a contract worth up to $64.8 million to modernize U.S. Navy secure intelligence systems and a selection to provide infrared sensors and mission support for Sierra Space missile-defense satellites. Leidos U.S. Navy Contract
• Neutral Sentiment: Leidos declared a quarterly dividend of $0.43 per share, payable September 30 to shareholders of record September 15, providing continued income support but little immediate earnings impact.
• Negative Sentiment: GAAP net income declined to $356 million, or $2.81 per diluted share, from $393 million, or $3.01, in the prior-year quarter. Acquisition and joint-venture costs contributed to the decline, while net margin fell to 7.8% from 9.2%.

Institutional Investors Weigh In On Leidos

Institutional investors and hedge funds have recently made changes to their positions in the company. Focus Partners Wealth increased its holdings in shares of Leidos by 46.5% in the 1st quarter. Focus Partners Wealth now owns 3,073 shares of the aerospace company’s stock worth $415,000 after purchasing an additional 976 shares in the last quarter. Marshall Wace LLP boosted its position in shares of Leidos by 86.3% during the second quarter. Marshall Wace LLP now owns 14,250 shares of the aerospace company’s stock valued at $2,248,000 after buying an additional 6,600 shares during the last quarter. Cresset Asset Management LLC increased its holdings in Leidos by 2.7% in the 2nd quarter. Cresset Asset Management LLC now owns 3,399 shares of the aerospace company’s stock worth $536,000 after buying an additional 90 shares in the last quarter. Cerity Partners LLC raised its position in Leidos by 20.2% in the 2nd quarter. Cerity Partners LLC now owns 41,405 shares of the aerospace company’s stock worth $6,532,000 after buying an additional 6,962 shares during the last quarter. Finally, Natixis grew its stake in shares of Leidos by 222.3% in the second quarter. Natixis now owns 8,155 shares of the aerospace company’s stock worth $1,287,000 after acquiring an additional 5,625 shares during the period. Institutional investors own 76.12% of the company’s stock.

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.