Leidos (NYSE:LDOS) Releases Quarterly Earnings Results, Beats Estimates By $0.19 EPS

Leidos (NYSE:LDOS) announced its quarterly earnings results on Tuesday. The aerospace company reported $2.76 EPS for the quarter, beating analysts’ consensus estimates of $2.57 by $0.19, FiscalAI reports. Leidos had a return on equity of 33.02% and a net margin of 8.11%.The company had revenue of $4.21 billion during the quarter, compared to analysts’ expectations of $4.31 billion. During the same period in the prior year, the business posted $2.37 EPS. Leidos’s revenue was down 3.6% on a year-over-year basis. Leidos updated its FY 2026 guidance to 12.050-12.450 EPS.

Here are the key takeaways from Leidos’ conference call:

• 2025 outperformed guidance — revenue came in toward the top of guidance, adjusted EBITDA margin expanded to 14.1% (+120 bps YoY), non‑GAAP EPS grew 17%, and free cash flow rose 26%.
• Strong bookings and backlog — Q4 net bookings were $5.6 billion (book‑to‑bill 1.3x), funded backlog is up 15%, and Leidos won major awards including a $2.2 billion Air Force passive‑radar contract and a $455 million Cloud One program.
• Material capital deployment and M&A — Leidos agreed to acquire Entrust for $2.4 billion (planned financing: $500M cash, $500M commercial paper, $1.4B bonds) with pro forma gross leverage ~2.6x and will triple 2026 CapEx to $350 million to expand production capacity and classified facilities.
• 2026 guidance and momentum — management expects revenues of $17.5–$17.9 billion (up to ~4%), mid‑13s adjusted EBITDA margin, non‑GAAP EPS $12.05–$12.45, and a back‑half acceleration that could drive exit‑rate growth approaching double digits (guidance excludes Entrust).

Leidos Stock Performance

LDOS opened at $162.18 on Wednesday. The company has a market capitalization of $20.74 billion, a price-to-earnings ratio of 15.13, a P/E/G ratio of 1.23 and a beta of 0.59. The business’s 50-day moving average price is $187.52 and its two-hundred day moving average price is $186.68. Leidos has a 1 year low of $123.62 and a 1 year high of $205.77. The company has a debt-to-equity ratio of 0.94, a current ratio of 1.62 and a quick ratio of 1.50.

Leidos Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Tuesday, March 31st. Shareholders of record on Monday, March 16th will be issued a dividend of $0.43 per share. This represents a $1.72 dividend on an annualized basis and a yield of 1.1%. The ex-dividend date is Monday, March 16th. Leidos’s dividend payout ratio is 16.04%.

Trending Headlines about Leidos

Here are the key news stories impacting Leidos this week:

• Positive Sentiment: Quarterly beat and strong cash flow — Leidos reported non‑GAAP Q4 EPS of $2.76 (above estimates) and highlighted record cash flow and profitable results for FY‑2025, underpinning margin strength. Leidos Posts Strong Fourth Quarter and Fiscal Year 2025 Results
• Positive Sentiment: FY‑2026 guidance raised — Management set EPS guidance of $12.05–$12.45 and revenue guidance above consensus ($17.5–$17.9B), signaling confidence in medium‑term profit growth despite the near‑term revenue hit. Earnings Press Release / Slide Deck
• Positive Sentiment: Strategic M&A to boost energy business — Leidos announced a ~$2.4B acquisition of Entrust to expand its energy footprint as part of the NorthStar 2030 plan, which could drive future revenue diversification. Defense Giant Leidos Delivers Record Cash Flow, Secures $2.4B Acquisition
• Positive Sentiment: Liquidity and capital structure moves — Leidos expanded and extended its revolving credit facility, improving financing flexibility to support the Entrust deal and operations. Leidos Expands and Extends Revolving Credit Facility Agreement
• Positive Sentiment: Dividend maintained/increased shareholder return — Company declared a quarterly dividend, supporting yield and signaling cash return to shareholders. Leidos Reports Strong 2025 Results and Dividend Declaration
• Neutral Sentiment: Co‑investment talks with DoD — Leidos is negotiating co‑investment structures with the Department of Defense on key programs, which could unlock program funding but remains early and uncertain. Leidos Negotiating Co-Investment Deals With DoD For Key Programs
• Neutral Sentiment: Earnings call / detail available — The full Q4 earnings call transcript and slide deck are available for investors who want line‑by‑line color on bookings, backlog and segment trends. Leidos (LDOS) Q4 2025 Earnings Call Transcript
• Negative Sentiment: Revenue miss tied to government shutdown — Q4 revenue of ~$4.21B came in below consensus; management cited the six‑week federal shutdown last year as the primary cause of delayed orders and weaker near‑term revenue. Leidos misses quarterly revenue estimates on government shutdown impact
• Negative Sentiment: Market reaction and investor concern — Coverage notes shares slid after the print as investors focused on the revenue shortfall and what some called a weak near‑term outlook despite record profits. Leidos Stock Slides As Government Shutdown, Weak Outlook Overshadow Record Profits
• Negative Sentiment: Analyst estimates being reworked — Several Wall Street forecasters revised models and price targets ahead of/after the quarter, reflecting uncertainty on timing of government demand recovery. Top Wall Street Forecasters Revamp Leidos Expectations Ahead Of Q4 Earnings

Wall Street Analyst Weigh In

Several research firms have weighed in on LDOS. Stifel Nicolaus reiterated a “hold” rating and issued a $220.00 target price on shares of Leidos in a report on Wednesday, January 7th. UBS Group set a $204.00 price target on shares of Leidos in a report on Thursday, January 15th. Truist Financial reaffirmed a “buy” rating and set a $220.00 price objective (up previously from $200.00) on shares of Leidos in a research note on Tuesday, November 4th. Citigroup lifted their target price on Leidos from $218.00 to $232.00 and gave the stock a “buy” rating in a report on Tuesday, January 13th. Finally, Royal Bank Of Canada restated an “outperform” rating and issued a $230.00 price target on shares of Leidos in a report on Wednesday, November 5th. Nine investment analysts have rated the stock with a Buy rating and five have issued a Hold rating to the stock. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $213.09.

Insider Activity

In other Leidos news, insider Elizabeth A. Porter sold 3,000 shares of the business’s stock in a transaction that occurred on Tuesday, January 20th. The stock was sold at an average price of $192.21, for a total value of $576,630.00. Following the sale, the insider owned 38,575 shares in the company, valued at approximately $7,414,500.75. The trade was a 7.22% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Insiders own 0.69% of the company’s stock.

Hedge Funds Weigh In On Leidos

Hedge funds have recently made changes to their positions in the business. Schonfeld Strategic Advisors LLC lifted its position in shares of Leidos by 130.2% in the fourth quarter. Schonfeld Strategic Advisors LLC now owns 5,539 shares of the aerospace company’s stock worth $999,000 after purchasing an additional 3,133 shares in the last quarter. DV Equities LLC acquired a new stake in Leidos in the 4th quarter valued at $33,000. EFG International AG bought a new stake in Leidos during the 4th quarter worth about $237,000. Defiance ETFs LLC acquired a new position in shares of Leidos during the 4th quarter worth about $1,571,000. Finally, Laird Norton Wetherby Trust Company LLC bought a new position in shares of Leidos in the 4th quarter valued at about $1,231,000. 76.12% of the stock is owned by institutional investors.

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.