Leidos (NYSE:LDOS) Updates FY 2026 Earnings Guidance

Leidos (NYSE:LDOS) issued an update on its FY 2026 earnings guidance on Tuesday morning. The company provided earnings per share (EPS) guidance of 12.200-12.500 for the period, compared to the consensus EPS 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.

Wall Street Analyst Weigh In

Several research firms have issued reports on LDOS. The Goldman Sachs Group decreased their price target on shares of Leidos from $171.00 to $152.00 and set a “neutral” rating on the stock in a research note on Tuesday, July 14th. Bank of America reissued a “neutral” rating and issued a $125.00 price objective (down from $200.00) on shares of Leidos in a research report on Wednesday, June 17th. BNP Paribas Exane assumed coverage on shares of Leidos in a research report on Wednesday, May 27th. They set an “outperform” rating and a $165.00 target price on the stock. Wall Street Zen raised shares of Leidos from a “hold” rating to a “buy” rating in a research note on Thursday, July 16th. Finally, TD Cowen reduced their price target on Leidos from $160.00 to $115.00 and set a “hold” rating on the stock in a research note on Tuesday, July 7th. One analyst has rated the stock with a Strong Buy rating, six have given a Buy rating and ten have given a Hold rating to the company. According to MarketBeat, the stock has a consensus rating of “Hold” and a consensus price target of $163.80.

Leidos Trading Up 9.0%

Leidos stock traded up $10.63 during trading on Tuesday, reaching $129.35. The company had a trading volume of 747,410 shares, compared to its average volume of 1,301,232. Leidos has a 12-month low of $98.86 and a 12-month high of $205.77. The company has a debt-to-equity ratio of 1.19, a quick ratio of 1.29 and a current ratio of 1.40. The stock’s 50 day moving average price is $113.23 and its two-hundred day moving average price is $145.90. The firm has a market capitalization of $16.27 billion, a price-to-earnings ratio of 11.86, a PEG ratio of 1.69 and a beta of 0.54.

Leidos (NYSE:LDOS) last posted its quarterly earnings results on Tuesday, August 4th. 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 net margin of 8.15% and a return on equity of 31.92%. The business’s revenue was up 7.2% on a year-over-year basis. During the same quarter in the prior year, the company earned $3.21 EPS. Leidos has set its FY 2026 guidance at 12.200-12.500 EPS. As a group, equities analysts expect that Leidos will post 12.3 earnings per share for the current fiscal year.

Leidos Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Wednesday, September 30th. Investors of record on Tuesday, September 15th will be given a $0.43 dividend. This represents a $1.72 annualized dividend and a dividend yield of 1.3%. The ex-dividend date of this dividend is Tuesday, September 15th. Leidos’s dividend payout ratio (DPR) is 15.75%.

Leidos declared that its Board of Directors has authorized a share buyback plan on Friday, July 31st that permits the company to repurchase 20,000,000 outstanding shares. This repurchase authorization permits the aerospace company to reacquire shares of its stock through open market purchases. Stock repurchase plans are typically a sign that the company’s management believes its shares are undervalued.

Insiders Place Their Bets

In other Leidos news, Director Gary Stephen May sold 1,484 shares of the business’s stock in a transaction dated Thursday, May 7th. The stock was sold at an average price of $132.75, for a total transaction of $197,001.00. Following the completion of the sale, the director owned 10,137 shares of the company’s stock, valued at approximately $1,345,686.75. The trade was a 12.77% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Insiders own 0.77% of the company’s stock.

Trending Headlines about Leidos

Here are the key news stories impacting Leidos this week:

• Positive Sentiment: Q2 earnings beat expectations: Non-GAAP EPS was $3.26, above the $2.91 consensus estimate and up from $3.21 a year earlier. Revenue rose 7% year over year to approximately $4.6 billion, also exceeding expectations. Leidos Q2 Earnings and Revenues Top Estimates
• Positive Sentiment: Full-year revenue guidance improved: Leidos raised its fiscal 2026 revenue outlook to $18.2 billion-$18.4 billion from $18.0 billion-$18.4 billion. The EPS outlook remains $12.20-$12.50, with the midpoint slightly above the approximately $12.31 analyst consensus. Leidos Delivers Strong Second Quarter and Enhances Full-Year Guidance
• Positive Sentiment: Strong cash generation and backlog support visibility: Operating cash flow was $793 million, free cash flow was $761 million, and quarterly net bookings totaled $4.9 billion. Backlog reached $48.7 billion, including $10.2 billion funded, while the 1.1 book-to-bill ratio indicates bookings exceeded revenue. Leidos Q2 Revenue Rises 7 Percent
• Positive Sentiment: Additional defense-related contract momentum: Leidos was selected to supply infrared sensors and mission support for Sierra Space’s missile-defense satellites and received a U.S. Navy intelligence modernization contract worth up to $64.8 million. Leidos Selected for Missile Defense Satellites
• Neutral Sentiment: Dividend maintained: Leidos declared a quarterly dividend of $0.43 per share, payable September 30 to shareholders of record September 15.
• Negative Sentiment: GAAP profitability declined: Reported net income fell to $356 million from $393 million a year earlier, while net margin decreased to 7.8% from 9.2%. This contrasts with the adjusted EPS growth and may keep investors focused on cost pressures and earnings quality.

Institutional Trading of Leidos

Institutional investors have recently modified their holdings of the company. Pin Oak Investment Advisors Inc. increased its holdings in Leidos by 125.0% during the 4th quarter. Pin Oak Investment Advisors Inc. now owns 720 shares of the aerospace company’s stock worth $139,000 after purchasing an additional 400 shares during the last quarter. Colonial Trust Advisors grew its position in shares of Leidos by 41.5% during the fourth quarter. Colonial Trust Advisors now owns 716 shares of the aerospace company’s stock worth $129,000 after buying an additional 210 shares in the last quarter. Zions Bancorporation National Association UT increased its stake in shares of Leidos by 34.9% in the fourth quarter. Zions Bancorporation National Association UT now owns 348 shares of the aerospace company’s stock worth $63,000 after buying an additional 90 shares during the last quarter. WealthCollab LLC acquired a new stake in Leidos in the third quarter valued at $67,000. Finally, MUFG Securities EMEA plc acquired a new position in Leidos during the 2nd quarter worth $61,000. Hedge funds and other 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.