Zacks Research Has Optimistic Outlook of Leidos Q1 Earnings

Leidos Holdings, Inc. (NYSE:LDOS) – Zacks Research boosted their Q1 2026 EPS estimates for shares of Leidos in a research report issued to clients and investors on Wednesday, January 7th. Zacks Research analyst Team now anticipates that the aerospace company will post earnings per share of $2.93 for the quarter, up from their previous estimate of $2.92. Zacks Research currently has a “Hold” rating on the stock. The consensus estimate for Leidos’ current full-year earnings is $10.62 per share. Zacks Research also issued estimates for Leidos’ Q2 2026 earnings at $3.04 EPS, Q3 2026 earnings at $3.11 EPS, FY2026 earnings at $12.20 EPS, Q3 2027 earnings at $3.19 EPS, Q4 2027 earnings at $3.41 EPS and FY2027 earnings at $12.80 EPS.

Leidos (NYSE:LDOS) last announced its earnings results on Tuesday, November 4th. The aerospace company reported $3.05 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.61 by $0.44. The company had revenue of $4.47 billion during the quarter, compared to analyst estimates of $4.28 billion. Leidos had a net margin of 8.11% and a return on equity of 33.02%. Leidos has set its FY 2025 guidance at 11.450-11.75 EPS.

LDOS has been the subject of a number of other research reports. Argus boosted their target price on Leidos from $185.00 to $210.00 and gave the stock a “buy” rating in a research report on Wednesday, September 24th. Royal Bank Of Canada reissued an “outperform” rating and set a $230.00 price target on shares of Leidos in a research note on Wednesday, November 5th. UBS Group upped their price objective on shares of Leidos from $209.00 to $216.00 and gave the company a “neutral” rating in a research note on Wednesday, November 5th. Weiss Ratings reaffirmed a “buy (b)” rating on shares of Leidos in a report on Monday, December 29th. Finally, Citigroup assumed coverage on Leidos in a research note on Thursday, December 11th. They set a “buy” rating and a $218.00 price objective on the stock. Nine analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company’s stock. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $212.91.

Leidos Price Performance

LDOS opened at $195.16 on Friday. The stock has a 50-day moving average price of $189.17 and a 200-day moving average price of $181.01. Leidos has a 12-month low of $123.62 and a 12-month high of $205.77. The company has a current ratio of 1.62, a quick ratio of 1.50 and a debt-to-equity ratio of 0.94. The stock has a market capitalization of $24.95 billion, a P/E ratio of 18.21, a PEG ratio of 1.38 and a beta of 0.58.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. First Pacific Financial bought a new stake in shares of Leidos in the 2nd quarter worth approximately $27,000. Mather Group LLC. purchased a new stake in Leidos in the third quarter worth $28,000. Raleigh Capital Management Inc. bought a new stake in Leidos in the second quarter valued at $29,000. Cape Investment Advisory Inc. purchased a new position in Leidos during the 3rd quarter valued at $31,000. Finally, True Wealth Design LLC raised its holdings in Leidos by 471.4% in the 2nd quarter. True Wealth Design LLC now owns 200 shares of the aerospace company’s stock worth $32,000 after purchasing an additional 165 shares in the last quarter. Institutional investors own 76.12% of the company’s stock.

Insider Activity at Leidos

In other news, insider Elizabeth A. Porter sold 3,000 shares of the stock in a transaction dated Friday, December 19th. The shares were sold at an average price of $181.04, for a total transaction of $543,120.00. Following the completion of the sale, the insider directly owned 41,575 shares in the company, valued at approximately $7,526,738. This represents a 6.73% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Company insiders own 0.96% of the company’s stock.

Leidos Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, December 31st. Shareholders of record on Monday, December 15th were given a $0.43 dividend. The ex-dividend date was Monday, December 15th. This is a positive change from Leidos’s previous quarterly dividend of $0.40. This represents a $1.72 dividend on an annualized basis and a dividend yield of 0.9%. Leidos’s dividend payout ratio is presently 16.04%.

Leidos News Roundup

Here are the key news stories impacting Leidos this week:

• Positive Sentiment: Zacks Research nudged up multiple near‑term EPS estimates (Q1–Q3 2026, Q2 2026) and raised FY2026/FY2027 forecasts slightly, reflecting incremental confidence in Leidos’ earnings trajectory even though the firm keeps a “Hold” rating. Wall Street Bulls Look Optimistic About Leidos (LDOS): Should You Buy?
• Neutral Sentiment: Analyst commentary and comparisons (e.g., Leidos vs. ServiceNow) are circulating — useful for relative valuation debate but not a clear catalyst; Zacks’ coverage remains broadly cautious (“Hold”). LDOS or NOW: Which Is the Better Value Stock Right Now?
• Negative Sentiment: MarketWatch flags a potential near‑term headwind from slowing Veterans Affairs revenue — a meaningful concern because VA is a sizable customer and revenue weakness there could pressure growth and margins. Leidos to Face Headwind From Slowing Veterans-Affairs Revenue — Market Talk
• Negative Sentiment: A Yahoo Finance piece questions whether routine insider stock credits are masking a strategic shift in Leidos’ defense IT positioning, which could raise governance or strategy concerns for some investors. Are Leidos Holdings’ (LDOS) Routine Insider Stock Credits Masking a Shift in Its Defense IT Positioning?

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.