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.

Leidos Stock Performance

NYSE:LDOS traded up $10.63 during trading hours on Tuesday, reaching $129.35. 747,410 shares of the stock were exchanged, compared to its average volume of 1,301,232. The stock has a market capitalization of $16.27 billion, a P/E ratio of 11.86, a P/E/G ratio of 1.69 and a beta of 0.54. The firm has a 50 day simple moving average of $113.23 and a 200-day simple moving average of $145.90. The company has a quick ratio of 1.29, a current ratio of 1.40 and a debt-to-equity ratio of 1.19. Leidos has a 52 week low of $98.86 and a 52 week high of $205.77.

Leidos (NYSE:LDOS) last posted its quarterly earnings results on Tuesday, August 4th. The aerospace company reported $3.26 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.91 by $0.35. Leidos had a return on equity of 31.92% and a net margin of 8.15%.During the same quarter last year, the company posted $3.21 EPS. The business’s quarterly revenue was up 7.2% on a year-over-year basis. Leidos has set its FY 2026 guidance at 12.200-12.500 EPS. As a group, sell-side analysts forecast that Leidos will post 12.3 earnings per share for the current fiscal year.

Leidos Dividend Announcement

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

Leidos announced that its Board of Directors has authorized a share buyback program on Friday, July 31st that allows the company to buyback 20,000,000 outstanding shares. This buyback authorization allows the aerospace company to repurchase shares of its stock through open market purchases. Shares buyback programs are usually a sign that the company’s board believes its shares are undervalued.

Analyst Ratings Changes

A number of research analysts have recently issued reports on LDOS shares. Jefferies Financial Group reduced their price target on shares of Leidos from $140.00 to $110.00 and set a “hold” rating on the stock in a research report on Wednesday, July 1st. JPMorgan Chase & Co. lowered their price objective on shares of Leidos from $210.00 to $160.00 and set an “overweight” rating for the company in a research report on Monday, July 13th. Truist Financial dropped their price objective on shares of Leidos from $195.00 to $160.00 and set a “buy” rating on the stock in a research note on Friday, July 10th. TD Cowen cut their target price on shares of Leidos from $160.00 to $115.00 and set a “hold” rating on the stock in a report on Tuesday, July 7th. Finally, Wall Street Zen raised Leidos from a “hold” rating to a “buy” rating in a report on Thursday, July 16th. One investment 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 data from MarketBeat.com, the company presently has an average rating of “Hold” and an average target price of $163.80.

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 shares were sold at an average price of $132.75, for a total transaction of $197,001.00. Following the completion of the transaction, the director directly owned 10,137 shares of the company’s stock, valued at $1,345,686.75. The trade was a 12.77% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. 0.77% of the stock is currently owned by corporate insiders.

Key Leidos News

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.

Hedge Funds Weigh In On Leidos

Hedge funds and other institutional investors have recently made changes to their positions in the business. Alliancebernstein L.P. grew its stake in shares of Leidos by 64.4% in the 2nd quarter. Alliancebernstein L.P. now owns 1,529,261 shares of the aerospace company’s stock worth $241,256,000 after purchasing an additional 598,974 shares during the last quarter. Corient Private Wealth LLC increased its holdings in shares of Leidos by 426.7% in the fourth quarter. Corient Private Wealth LLC now owns 323,828 shares of the aerospace company’s stock valued at $58,419,000 after buying an additional 262,343 shares in the last quarter. AQR Capital Management LLC grew its holdings in shares of Leidos by 21.2% in the 2nd quarter. AQR Capital Management LLC now owns 1,433,712 shares of the aerospace company’s stock worth $223,731,000 after acquiring an additional 250,555 shares during the last quarter. State Street Corp raised its position in shares of Leidos by 3.7% during the fourth quarter. State Street Corp now owns 6,022,359 shares of the aerospace company’s stock worth $1,086,434,000 after purchasing an additional 217,141 shares during the period. Finally, Balyasny Asset Management L.P. lifted its holdings in shares of Leidos by 753.0% during the second quarter. Balyasny Asset Management L.P. now owns 215,939 shares of the aerospace company’s stock valued at $34,067,000 after purchasing an additional 190,625 shares during the last quarter. 76.12% of the stock is currently owned by institutional investors and hedge funds.

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.