NYSE: LDOS · Diversified Support Services
Leidos
Leidos, founded in 1969 and based in Reston, Virginia, provides technology, engineering and science services and products, with about 47,000 employees. About 87% of its revenue comes from the U.S. government (about 49% from defense and the intelligence community). It reports four segments: National Security & Digital ($7,563 million of fiscal 2025 revenue), Health & Civil ($5,053 million), Commercial & International ($2,312 million) and Defense Systems ($2,179 million). Fiscal 2025 revenue (year ended January 2, 2026) rose 3% to $17,174 million and net income to $1,448 million, after a 2023 dip caused by a $596 million goodwill impairment in its security detection business. Backlog was $49.0 billion. Leidos bought Kudu Dynamics in 2025, and it is cooperating with a DOJ Antitrust Division grand jury investigation into three intelligence procurements from 2021–2022.
Last updated
Analysis last edited: October 28, 2026 · Financial data fetched: October 27, 2026 15:47 (SEC EDGAR) · Source 10-K filed: February 17, 2026
Built on10-K FY2025 · filed 2026-02-1710-Q (quarter ended 2026-10-02) · filed 2026-11-03Proxy statement (2026)
Next update expectedAfter FY2027’s 10-K is filed (roughly 60–90 days after fiscal year end (sooner for larger filers)), financials and analysis will be refreshed.
01
At a glanceFrom SEC data
Eight headline measures, each placed among the companies covered on this site.
- Revenue growthCAGRSmooths out year-to-year swings into "grew X% a year on average." Makes growth pace comparable across companies of very different sizes.
- 6.9%
- Operating marginOperating marginHow many cents of operating profit are left per dollar of revenue. Reflects pricing power and cost structure.
- 12.3%
- ROIC minus WACCROIC − WACC spreadThe difference between ROIC and WACC. Consistently positive implies value creation; consistently negative implies value destruction.
- +8.0 pts
- Net debt ÷ EBITDAEBITDAOperating income with D&A added back. A rough proxy for cash-generating power that’s less distorted by capital intensity, depreciation method, or financing/tax differences than net income.
- 1.5x
- Cash conversionOperating CF ÷ net income (cash conversion)How much of reported profit shows up as actual cash. 1x or higher means profit is backed by cash.
- 1.21x
- Dividend raisesDividend per shareTotal annual dividend paid per share (sum of all declared payments for the year).
- 5 of 5
- P/E todayP/EShare price ÷ EPS — how many years of current earnings the stock price represents. This site uses the period-end figure as reported in the filing.
- 11.9x
- Betaβ (beta)How much a stock moves, on average, for a 1% move in the overall market. Above 1 means more volatile than the market, which raises the return shareholders require. This site computes it from about 2.5 years (roughly 130 weeks) of weekly returns, built from Yahoo Finance daily prices, regressed against an S&P 500 ETF (SPY) as the market proxy, then applies the well-known long-run mean-reversion adjustment (0.67 × β + 0.33) as the WACC default.
- 0.86
Higher than 40% of 372 non-financial companies
Average yearly growth over the years shown
Higher than 31% of 311 non-financial companies
Latest fiscal year (FY2025)
Higher than 67% of 311 non-financial companies
Return on capital above (or below) its estimated cost
Higher than 45% of 304 non-financial companies
Below 0 means more cash than debt
Higher than 23% of 349 non-financial companies
Operating cash flow ÷ net income
Years the dividend per share rose, of the last 5
Latest close 2026-11-04; trailing 12 months to 2026-10-02
Above 1 = moves more than the market
Each marker shows where this company sits among the non-financial companies covered on this site, not all listed companies (left = lowest, right = highest). A high position is not automatically good — for net debt ÷ EBITDA, higher means more debt. Details and formulas are in the sections below and in How to read this.
02
Valuation todayFrom SEC data
Price-based measures at the latest close, next to the same measures at the last fiscal year-end.
Share price$133.83close on 2026-11-04
Market cap$16.91B
- P/EP/EShare price ÷ EPS — how many years of current earnings the stock price represents. This site uses the period-end figure as reported in the filing. today
- 11.9x
- P/BP/BShare price ÷ book value per share. Below 1x means the market values the company below its accounting net worth. This site uses the closing price nearest the fiscal year-end and highlights sub-1x readings. today
- 3.4x
- EV/EBITDAEV/EBITDAEnterprise value (≈ market cap + interest-bearing debt − cash) as a multiple of EBITDA — roughly, "how many years of EBITDA to buy the whole company." Lower is generally viewed as cheaper, and it’s more comparable than P/E across companies with different debt loads or depreciation policies. This site excludes noncontrolling interests from the EV calculation. today
- 8.5x
- FCF yieldFree cash flow (FCF)Operating CF minus capital expenditures — cash generated by the business after funding its own investment, available for dividends, buybacks, acquisitions, or debt paydown. Acquisitions and securities purchases (also in investing CF) are not subtracted, so FCF can be positive in a year when total investing CF exceeds operating CF. today
- 9.6%
- Dividend yieldDividend per shareTotal annual dividend paid per share (sum of all declared payments for the year). today
- 1.2%
At FY2025 year-end: 16.5x
Earnings: trailing 12 months to 2026-10-02
At FY2025 year-end: 4.7x
Book value at FY2025 year-end
At FY2025 year-end: 11.1x
EBITDA for FY2025
At FY2025 year-end: 7.0%
Free cash flow for FY2025
Dividends per share for FY2025
“Today” uses the latest closing price (2026-11-04, Yahoo Finance daily closing prices) and shares outstanding at the last fiscal year-end. The rest of this page — including the financial table and ROIC vs. WACC — uses fiscal year-end prices. These are reference figures, not a judgment of whether the stock is cheap or expensive.
03
What changed since last earningsFrom SEC data
The latest reported quarter against the same quarter a year earlier, the balance sheet against the previous quarter-end, and what management said in its latest earnings release.
Quarter ended Oct 2, 2026.
- Revenue$4.47B → $4.63B (vs. a year earlier)↑ +3.6%$4.47B → $4.63B (vs. a year earlier)
- Operating margin12.0% → 11.9% (vs. a year earlier)→ −0.0 pts12.0% → 11.9% (vs. a year earlier)
- Net income$367M → $410M (vs. a year earlier)↑ +11.7%$367M → $410M (vs. a year earlier)
- Diluted EPS$2.82 → $3.28 (vs. a year earlier)↑ +16.3%$2.82 → $3.28 (vs. a year earlier)
- Cash$748M → $630M (vs. previous quarter-end)↓ −15.8%$748M → $630M (vs. previous quarter-end)
Source: Form 10-Q ↗ (SEC XBRL). Long-term debt is the tagged long-term debt figure and leaves out short-term borrowings.
From the earnings release of Nov 3, 2026.
Management outlook ↑ Raised
Enhanced full-year guidance. Source sentence
Leidos Delivers Strong Third Quarter and Enhances Full-Year Guidance
Key changes
Q3 revenues $4.63B, up 4%. Source sentence
Revenues for the quarter were $4.63 billion, up 4% compared to the third quarter of 2025.
Adjusted EBITDA $644M, up 5%. Source sentence
In addition, adjusted EBITDA was $644 million for the third quarter, up 5% year-over-year.
Written by AI. A line appears only if its figures and direction match the quoted sentence, which an automatic check confirms. Companies' outlooks are their own and may not be met. Read the release ↗
04
Company profileFrom SEC dataShow
- Legal name
- Leidos Holdings, Inc.
- Headquarters
- RESTON, VA
- Fiscal year end
- 01/01
- Exchange & ticker
- NYSE: LDOS
- Industry
- Diversified Support Services
- CIK
- 1336920
- Website
- https://www.leidos.com/ ↗
Workforce (as of FY2025 year-end)
Employees
47,000
Source: Form 10-K (FY2025) cover page and business description
05
Earnings calendarFrom SEC dataShow
When the company reports each quarter: the quarter-end date, the day results were released, and when the 10-Q or 10-K was filed.
Next report
Q4 FY2026
Quarter end: January 2027. In past years, Q4 results were released 39–46 days after quarter end (Feb 17, 2026; Feb 11, 2025; Feb 13, 2024). No date has been announced in the sources this site uses.
Reporting pattern
- Fiscal year ends around January 1.
- Reports four times a year: three quarterly reports (10-Q) and an annual report (10-K) for Q4.
- Earnings releases came 32–46 days after quarter end over the last 12 quarters.
| Quarter | Quarter ended | Earnings release (8-K) | Report filed (10-Q / 10-K) |
|---|---|---|---|
| Q3 FY2026 | Oct 2, 2026 | Nov 3, 2026 (+32 days) | Nov 3, 2026 10-Q (+32 days) |
| Q2 FY2026 | Jul 3, 2026 | Aug 4, 2026 (+32 days) | Aug 4, 2026 10-Q (+32 days) |
| Q1 FY2026 | Apr 3, 2026 | May 5, 2026 (+32 days) | May 5, 2026 10-Q (+32 days) |
| Q4 FY2025 | Jan 2, 2026 | Feb 17, 2026 (+46 days) | Feb 17, 2026 10-K (+46 days) |
| Q3 FY2025 | Oct 3, 2025 | Nov 4, 2025 (+32 days) | Nov 4, 2025 10-Q (+32 days) |
| Q2 FY2025 | Jul 4, 2025 | Aug 5, 2025 (+32 days) | Aug 5, 2025 10-Q (+32 days) |
| Q1 FY2025 | Apr 4, 2025 | May 6, 2025 (+32 days) | May 6, 2025 10-Q (+32 days) |
| Q4 FY2024 | Jan 3, 2025 | Feb 11, 2025 (+39 days) | Feb 11, 2025 10-K (+39 days) |
| Q3 FY2024 | Sep 27, 2024 | Oct 29, 2024 (+32 days) | Oct 29, 2024 10-Q (+32 days) |
| Q2 FY2024 | Jun 28, 2024 | Jul 30, 2024 (+32 days) | Jul 30, 2024 10-Q (+32 days) |
| Q1 FY2024 | Mar 29, 2024 | Apr 30, 2024 (+32 days) | Apr 30, 2024 10-Q (+32 days) |
| Q4 FY2023 | Dec 29, 2023 | Feb 13, 2024 (+46 days) | Feb 13, 2024 10-K (+46 days) |
Source: SEC EDGAR filing history. Release dates are the dates the earnings release was furnished to the SEC on Form 8-K (Item 2.02), which is normally the day results are announced. For a quarter whose 10-Q or 10-K isn’t filed yet, the date is the latest Item 2.02 8-K since the previous report, which may be a preliminary or other results-related update. Fiscal years are labeled by the calendar year in which they end.
06
Flagship products & servicesSite analysis
National Security & Digital
Defense and intelligence IT
Digital modernization, cyber and mission software for defense and intelligence agencies.
Health & Civil
Health and civil services
Public health, care coordination and managed health services for federal agencies.
Commercial & International
Security detection and energy
Security screening products, energy infrastructure and international programs.
Defense Systems
Defense systems
Space, maritime and weapons-related systems.
From the Form 10-K, FY2025, year ended 2026-01-02.
U.S. and worldwide share of flagship products/services
The 10-K gives no market-share figures.
Reviewed: Form 10-K (FY2025, year ended 2026-01-02) · Form 10-Q (quarter ended 2026-07-03)
07
Recent strategic focusSite analysis
Recent developments.
Kudu Dynamics
Acquired Kudu Dynamics (Savanna Industries) in fiscal 2025 for about $293M net, adding $149M of backlog to National Security & Digital.
Source: Form 10-K (FY2025, year ended 2026-01-02)
Growth pillars
Strategy focuses on space and maritime, energy infrastructure, digital modernization and cyber, mission software and managed health services.
Source: Form 10-K (FY2025, year ended 2026-01-02)
First half 2026
Net income attributable to Leidos $682M versus $754M; diluted EPS lower year over year.
Source: Form 10-Q (quarter ended 2026-07-03)
Capex ÷ D&A (FY2025)
0.43x
Below depreciation — investment is being pared back
formulacapital expenditures ÷ depreciation & amortization
e.g.$125M ÷ $290M = 0.43x
termsCapital expenditures (capex) · Depreciation & amortization (D&A)
R&D-to-revenue ratio (FY2025)
1.1%
formularesearch & development expense ÷ revenue × 100
e.g.$187M ÷ $17,174M × 100 = 1.1%
M&A spend (6-year total)
$3.77B
Latest year: $293M
Cash-flow-statement spending on acquisitions, net of cash acquired
Where the money goes, over time
Unit: $M. Capex went from $183M in FY2020 to $125M in FY2025
- Capex
- R&D
- M&A spend
formulacapital expenditures ÷ depreciation & amortization
termsCapital expenditures (capex) · Depreciation & amortization (D&A)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-17
08
Key figures at a glanceFrom SEC data
FY2020–FY2025, 6 years.
Revenue (FY2025)
$17.17B
As reported in the 10-K
Revenue CAGR (5 years)
+6.9%▲favorable
formula(last-period revenue ÷ first-period revenue) ^ (1 ÷ years) − 1
e.g.($17,174M ÷ $12,297M) ^ (1÷5) − 1 = 6.9%
termsCAGR · ^ (exponent) · Revenue (net sales)
Operating margin (FY2025)
12.3%▲favorable
+4.2pt vs. 5 years ago
formulaoperating income ÷ revenue × 100
e.g.$2,109M ÷ $17,174M × 100 = 12.3%
ROE (FY2025)
31.0%▲favorable
6-year average: 19.3%
As reported in the 10-K
P/B (FY2025 end)
4.72x
formulafiscal year-end closing price ÷ book value per share
e.g.$183.47 ÷ $38.90 = 4.72x
Period-end (fiscal year-end) value, not today's P/B
EV/EBITDA (FY2025 end)
11.1x
formula(market cap + interest-bearing debt − cash and equivalents) ÷ (operating income + depreciation & amortization)
e.g.($23,187M + $4,648M − $1,108M) ÷ ($2,109M + $290M) = 11.1x
termsEV/EBITDA · Market capitalization · Interest-bearing debt · EBITDA · Depreciation & amortization (D&A)
Period-end (fiscal year-end) value, not today's multiple
- ▲
Revenue grew +6.9% a year over 5 years (strong growth)
From $12.3B in FY2020 to $17.17B in FY2025. The annualized rate (CAGR) makes it possible to compare growth pace across companies of different sizes.
- ▲
Operating margin improved: 8.1% → 12.3%
How much operating profit is left per $100 of revenue. It moved +4.2 points over 5 years — pricing power, cost control, and product mix all show up here.
- ―
Equity ratio is 36.4% (a middling level)
The share of total assets funded by equity rather than debt. 50%+ is often read as low bankruptcy risk, though the right level varies by industry (real estate and leasing run lower, for instance).
- ▲
Free cash flow was positive in 6 of 6 years
Operating cash flow minus capital expenditures: the cash left over after funding the business’s own investment, available for dividends, buybacks, acquisitions, or debt paydown. A negative year can mean heavy investment, or weak core earnings — worth distinguishing.
- ▲
ROE averaged 19.3% over 6 years (latest: 31.0%)
How much profit was generated on shareholders’ equity. Roughly 10%+ is often cited as solid for a U.S. company, though this varies a lot by industry and capital intensity.
09
Business modelSite analysis
Business Model Canvas
The whole company in nine blocks. Left side: how it delivers (partners, activities, resources, costs). Right side: who it serves and how it earns. Every entry comes from the company’s filings shown on this page.
08 · who helps
Key partners
No partners or suppliers named in the filings.
07 · what it does
Key activities
- National Security & Digital: defense and intelligence IT and cyber
- Health & Civil: public health, care coordination, civil agencies
- Commercial & International: security detection, energy infrastructure, international
- Defense Systems: weapons, space and maritime systems
06 · what it draws on
Key resources
- About 47,000 employees (41,900 in the U.S.)
- Security clearances and scientific/engineering expertise
- $49.0B backlog (end of fiscal 2025)
02 · why customers buy
Value propositions
- IT modernization, engineering, health and national security solutions for government missions.
04 · how it keeps them
Customer relationships
- Multi-year government contracts with recompetes and follow-on work.
03 · how it reaches them
Channels
- Direct bids for U.S. government contracts, including multiple-award IDIQ and government-wide vehicles.
01 · who it serves
Customer segments
- U.S. government (≈87% of revenue; DoW and intelligence ≈49%)
- Commercial and international customers
09 · where money goes
Cost structure
FY2025, share of revenue ($17.17B)
- Cost of revenue82.0%
- Research & development1.1%
- Selling, general & administrative5.8%
Operating profit left: 12.3% of revenue. Depreciation & amortization (inside the costs above): $290M. Capital spending: $125M.
Source: Form 10-K income statement and cash-flow statement (SEC XBRL).
05 · how money comes in
Revenue streams
- National Security & Digital $7,563M (FY2025)
- Health & Civil $5,053M
- Commercial & International $2,312M
- Defense Systems $2,179M
Value propositions, channels and customer relationships: Form 10-K (FY2025)
Wins mostly multi-year U.S. government contracts (cost-reimbursable, fixed-price and time-and-materials) to provide IT modernization, cyber, mission software, health services, engineering and defense systems, plus commercial security and energy work.
01 what it draws on
Inputs & resources
- About 47,000 employees (41,900 in the U.S.)
- Security clearances and scientific/engineering expertise
- $49.0B backlog (end of fiscal 2025)
02 what it does
Activities
- National Security & Digital: defense and intelligence IT and cyber
- Health & Civil: public health, care coordination, civil agencies
- Commercial & International: security detection, energy infrastructure, international
- Defense Systems: weapons, space and maritime systems
03 who it serves
Customers
- U.S. government (≈87% of revenue; DoW and intelligence ≈49%)
- Commercial and international customers
04 how money comes in
How it earns
- National Security & Digital $7,563M (FY2025)
- Health & Civil $5,053M
- Commercial & International $2,312M
- Defense Systems $2,179M
How the business makes money
- International revenue was about $1,404M in fiscal 2025, mostly in Commercial & International.
- Funded backlog $9.7B of the $49.0B total.
- Growth pillars: space and maritime, energy infrastructure, digital modernization and cyber, mission software, managed health services.
Government & regulation around the business
Non-market factors from the company’s filings: what governments and regulators fund, buy, set, approve or restrict, and which part of the flow above each one touches.
Leidos is a U.S. government contractor bound by federal cost and compliance rules.
Government as customer
Government contracts
Most revenue comes from U.S. government contracts, as prime or subcontractor.
Supports and constrainsTouches: Customers · How it earnsSource: Form 10-K (FY2025)
Environmental rules
Clean Air and Water Acts
Violations could bar facilities from government contracts.
Constrains the businessTouches: ActivitiesSource: Form 10-K (FY2025)
Revenue by segment (FY2025)
Unit: $M — bar length = revenue, (%) = share of total company revenue
National Security & Digital
7,563 (44%)Health & Civil
5,053 (30%)Commercial & International
2,312 (14%)Defense Systems
2,179 (13%)
Source: Form 10-K (FY2025, year ended 2026-01-02) Segment revenues total $17,107M; consolidated revenue $17,174M.
10
Where it earnsSite analysis
Many U.S.-listed companies earn most of their revenue outside the U.S. — this breaks down revenue by country/region so it's clear where the business actually makes its money.
Largest market (FY2025)
United States — 92% of revenue
Revenue by country / region (FY2025)
Unit: $M — bar length = revenue, (%) = share of total company revenue
United States
15,703 (92%)International
1,404 (8%)
Source: Form 10-K (FY2025, year ended 2026-01-02) Segment revenue by customer location.
11
Contract structureSite analysisShow
Short-term or spot sales carry different earnings quality than long-term or auto-renewing contracts — this shows how the company actually contracts with its customers.
12
Customers & suppliersSite analysis
Who the company sells to and buys from. Companies rarely name either, so named counterparties come only from the company's own filings and press releases; otherwise this lists the concentration figures the 10-K discloses.
Customers
U.S. government agencies and commercial/international customers.
Named by the company
- U.S. government — About 87% of total revenue in fiscal 2023–2025.Form 10-K (FY2025, year ended 2026-01-02)
Suppliers
Subcontractors and suppliers.
Named by the company
No material supplier is named.
13
Competitors & peersSite analysis
Competitors the 10-K names, and the peer group the company itself chose in its proxy statement. Nothing here is this site's own pick.
The 10-K describes competition from larger and smaller contractors and the government’s own capabilities without naming them.
Competitors named in the 10-K
Peer group the company chose
Compensation peer group, from the proxy statement. Peers are companies the board considers comparable — for example when setting executive pay — not necessarily direct competitors.
2025 compensation peer group from the 2026 proxy statement.
- AECOMsite ↗
- Booz Allen Hamiltonsite ↗
- CACI Internationalsite ↗
- CGIsite ↗
- Cognizantsite ↗
- Fluorsite ↗
- Huntington Ingalls Industriessite ↗
- Jacobs Solutionssite ↗
- KBRsite ↗
- Kyndrylsite ↗
- L3Harrissite ↗
- Northrop Grummansite ↗
- SAICsite ↗
- Textronsite ↗
Company names link to this site’s analysis where one exists; “site ↗” opens the company’s own website.
14
Six years of financialsFrom SEC data
Each chart's axis holds a single unit (never mixing dollars, %, and $/share). The table's per-period header links to the filing the numbers came from.
Revenue over time
Unit: $M
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-17
Profit over time (operating → net)
Unit: $M
- Operating income
- Pretax income
- Net income
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-17
Margins over time
Unit: %
- Operating margin
- Net margin
formulaoperating income ÷ revenue × 100
formulanet income attributable to the company ÷ revenue × 100
Cash flow over time
Unit: $M (below zero = cash went out)
- Operating CF
- Investing CF
- Free CF
formulacash flow from operations − capital expenditures
termsFree cash flow (FCF) · Cash flow from operations (operating CF) · Capital expenditures (capex)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-17
Financial stability & capital efficiency
Unit: %
- Equity ratio
- ROE
formulatotal equity ÷ total assets × 100 (as reported in the 10-K)
termsStockholders’ equity · Total assets
formulanet income ÷ average equity (beginning + ending, ÷2) × 100 (as reported in the 10-K)
termsNet income (attributable to the company) · Stockholders’ equity
Earnings per share (EPS) and dividend per share
Unit: $
- EPS
- Dividend per share
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-17
| Line item | FY202010-K on EDGAR ↗ | FY202110-K on EDGAR ↗ | FY202210-K on EDGAR ↗ | FY202310-K on EDGAR ↗ | FY202410-K on EDGAR ↗ | FY202510-K on EDGAR ↗ |
|---|---|---|---|---|---|---|
| Income statement ($M) | ||||||
| Revenue | 12,297 | 13,737 | 14,396 | 15,438 | 16,662 | 17,174 |
| Operating income | 998 | 1,152 | 1,088 | 621 | 1,827 | 2,109 |
| Pretax income | 781 | 967 | 886 | 403 | 1,639 | 1,909 |
| Net income (attributable) | 628 | 753 | 685 | 199 | 1,254 | 1,448 |
| Revenue growthcalc(this year’s revenue − last year’s revenue) ÷ last year’s revenue × 100 | — | 11.7% | 4.8% | 7.2% | 7.9% | 3.1% |
| Operating margincalcoperating income ÷ revenue × 100 | 8.1% | 8.4% | 7.6% | 4.0% | 11.0% | 12.3% |
| Net margincalcnet income attributable to the company ÷ revenue × 100 | 5.1% | 5.5% | 4.8% | 1.3% | 7.5% | 8.4% |
| Balance sheet ($M) | ||||||
| Total assets | 12,511 | 13,261 | 13,071 | 12,695 | 13,010 | 13,493 |
| Total equity | 3,871 | 4,344 | 4,353 | 4,258 | 4,460 | 4,962 |
| Interest-bearing debtSum of short- and long-term borrowings, notes/bonds payable | 4,744 | 5,076 | 4,920 | 4,682 | 4,670 | 4,648 |
| Equity ratio | 30.9% | 32.4% | 32.9% | 33.1% | 33.9% | 36.4% |
| ROE | 16.3% | 18.5% | 15.9% | 4.7% | 29.1% | 31.0% |
| Cash flow ($M) | ||||||
| Operating CF | 1,334 | 1,033 | 992 | 1,187 | 1,435 | 1,750 |
| Investing CF | -2,815 | -730 | -313 | -211 | -142 | -405 |
| Financing CF | 1,451 | -113 | -865 | -715 | -1,084 | -1,145 |
| Free cash flowcalccash flow from operations − capital expenditures | 1,151 | 929 | 863 | 980 | 1,286 | 1,625 |
| Cash and equivalents | 524 | 727 | 516 | 641 | 849 | 1,108 |
| Per share & other | ||||||
| EPS ($) | 4.36 | 5.27 | 4.96 | 1.44 | 9.22 | 11.14 |
| BVPS ($) | 27.20 | 30.65 | 31.40 | 30.94 | 33.64 | 38.90 |
| Dividend per share ($) | 1.36 | 1.40 | 1.44 | 1.46 | 1.54 | 1.63 |
| Payout ratiocalcdividend per share ÷ diluted EPS × 100 | 31.2% | 26.6% | 29.0% | 101.4% | 16.7% | 14.6% |
| P/E (x) | 24.1 | 16.9 | 21.2 | 75.2 | 16.0 | 16.5 |
| EV/EBITDA (x)calc(market cap + interest-bearing debt − cash and equivalents) ÷ (operating income + depreciation & amortization) | 15.0 | 11.4 | 13.2 | 19.7 | 10.9 | 11.1 |
| P/B (x)calcfiscal year-end closing price ÷ book value per share | 3.87 | 2.90 | 3.35 | 3.50 | 4.37 | 4.72 |
P/B and EV/EBITDA use each period’s period-end (fiscal year-end) figures, not the current share price. Figures without a "calc" tag are as reported in the Form 10-K (the consolidated financial statements and, for older years, earlier 10-Ks), pulled automatically from SEC EDGAR. Where a later filing restated a prior period, the restated figure is used.
Last 8 quarters
Three-month figures from 10-Q filings. Change is versus the same quarter a year earlier. Newest quarter on top.
| Quarter ended | Revenue | Operating income | Net income | Diluted EPS |
|---|---|---|---|---|
| 2026-10-02 | $4.63B+3.6% | $553M+3.4% | $410M+11.7% | $3.28 |
| 2026-07-03 | $4.56B+7.2% | $514M-10.0% | $354M-9.5% | $2.81 |
| 2026-04-03 | $4.4B+3.7% | $508M-4.2% | $328M-9.6% | $2.56 |
| 2026-01-02 † | $4.21B-3.6% | $473M+12.4% | $327M+15.1% | — |
| 2025-10-03 | $4.47B | $535M | $367M | $2.82 |
| 2025-07-04 | $4.25B | $571M | $391M | $3.01 |
| 2025-04-04 | $4.25B | $530M | $363M | $2.77 |
| 2025-01-03 † | $4.37B | $421M | $284M | — |
† Fourth quarter = the 10-K’s annual figure minus the first three quarters; quarterly EPS isn’t derived this way because share counts change during the year.
15
Is ROIC above WACC?From SEC data
ROIC (the return on money invested in the business) above WACC (the cost of raising that money) means the company is creating value. WACC is an estimate, so its assumptions can be adjusted below.
ROIC (FY2025)
16.7%
formulaoperating income × (1 − tax rate) ÷ invested capital × 100 *invested capital = interest-bearing debt + total equity (average of beginning/ending)
e.g.$2,109M × (1 − 26%) ÷ $9,370M × 100 = 16.7%
termsOperating income · Effective tax rate · Invested capital · Interest-bearing debt · Total equity
WACC (this site’s estimate)
8.68%
formulacost of equity × equity weight + cost of debt × (1 − tax rate) × debt weight
e.g.Equity weight: $23.19B ÷ ($23.19B + $4.65B) = 83.3%
e.g.Debt weight: $4.65B ÷ ($23.19B + $4.65B) = 16.7%
e.g.WACC: 9.7% × 83.3% + 5.0% × (1 − 26%) × 16.7% = 8.68%
termsCost of equity · Equity weight (E/(D+E)) · Cost of debt · (1 − tax rate) · Debt weight (D/(D+E)) · Market capitalization
How firm is this? With the equity risk premium ±1 point and beta ±0.2, WACC runs 7.2%–10.5% and ROIC − WACC runs +6.2 to +9.4 points. The sign holds across this range. This describes the latest year and does not predict future value creation.
WACC 8.68% is this site’s estimate under the assumptions below (not a figure the company has published)
- Risk-free rate
- 4.95% (10-year Treasury, 2026-11-03)
- β
- 0.86 (price-derived adjusted beta)
- Equity risk premium
- 5.5%
- Cost of equity
- 9.68%
- Cost of debt
- 4.95% (no debt on record, using the risk-free rate)
- Tax rate
- 26% (effective rate, FY2023–FY2025)
- Capital structure (equity : debt)
- 83% : 17%
ROIC over time, vs. WACC
Unit: % — bars = each period's ROIC, horizontal line = latest WACC. Bars above the line are green, below are red
- ROIC (above WACC)
- ROIC (below WACC)
- WACC 8.68%
formulaoperating income × (1 − tax rate) ÷ invested capital × 100 *invested capital = interest-bearing debt + total equity (average of beginning/ending)
termsOperating income · Effective tax rate · Invested capital · Interest-bearing debt · Total equity
formulacost of equity × equity weight + cost of debt × (1 − tax rate) × debt weight
termsCost of equity · Equity weight (E/(D+E)) · Cost of debt · (1 − tax rate) · Debt weight (D/(D+E)) · Market capitalization
Try different WACC assumptions
β and the equity risk premium are estimates with a real range of plausible values — move the sliders to check whether ROIC > WACC still holds. The risk-free rate starts at the 10-year Treasury yield on 2026-11-03 (U.S. Treasury).
Initial β: 0.86 (price-derived adjusted beta. Raw β 0.79, R² 0.12, 130 weeks)
formula0.67 × β + 0.33 (β = the slope of weekly stock returns regressed on weekly market returns)
e.g.0.67 × 0.786 + 0.33 = 0.856
termsβ (beta)
Period 2024-05-10–2026-11-04, using S&P 500 ETF (SPY) as the market proxy. Source: Yahoo Finance price history.
formularisk-free rate + β × equity risk premium
e.g.5.0% + 0.86 × 5.5% = 9.7%
termsCAPM · Risk-free rate · β (beta) · Equity risk premium (market risk premium)
formulafiscal year-end closing price × shares outstanding (= market cap)
formulainterest expense ÷ interest-bearing debt × 100 (clamped to 0–10%; falls back to the risk-free rate if there’s no debt)
16
What the price implies (DCF)From SEC data
A company's value can be written as its free cash flow divided by (cost of capital − perpetual growth). Working that backwards from the market's valuation shows how much growth the share price assumed — compared here with the company's actual past growth.
Growth the price implies (price on 2026-11-04)
0.7%
Perpetual FCF growth: g = r − FCF ÷ EV = 8.7% − 7.9%
Past FCF growth (FY2020–FY2025)
+7.1%
Compound annual rate, 5 years
Past revenue growth (FY2020–FY2025)
+6.9%
Compound annual rate, 5 years
Inputs (FY2025): free cash flow $1.63B (operating CF − capex); enterprise value $20.45B = market cap $16.91B (latest close, 2026-11-04) + debt $4.65B − cash and short-term investments $1.11B; r = WACC of 8.7% using this page’s default assumptions (β 0.86, risk-free 5.0%, market premium 5.5%).
Three WACC scenarios
The same calculation under cautious, base and optimistic cost-of-capital assumptions (risk-free rate fixed at the 10-year Treasury yield). Pick one to load it into the sliders below.
Try your own assumptions
V = FCF ÷ (r − g). It starts at the implied growth rate, where the theoretical value equals today’s enterprise value.
Theoretical enterprise value
$20.31B
FCF $1.63B ÷ (8.7% − 0.7%)
Theoretical ÷ actual enterprise value
0.99x
Below 1x: these assumptions value the business below the market did
How sensitive the answer is
Theoretical ÷ actual enterprise value for each combination of r and g.
| g \ r | 6.7% | 7.7% | 8.7% | 9.7% | 10.7% |
|---|---|---|---|---|---|
| 0% | 1.19x | 1.03x | 0.91x | 0.82x | 0.74x |
| 2% | 1.69x | 1.39x | 1.19x | 1.03x | 0.91x |
| 4% | 2.94x | 2.15x | 1.69x | 1.39x | 1.19x |
| 6% | 11.35x | 4.67x | 2.94x | 2.15x | 1.69x |
| 8% | — | — | 11.35x | 4.67x | 2.94x |
A simplified model for seeing what the market price assumes, not a forecast or a target price. It treats free cash flow as growing at one constant rate forever; the result swings widely with small changes in r and g, and is undefined when g reaches r. Free cash flow here is operating cash flow minus capex, which is after interest — a full DCF of enterprise value would use cash flow before interest. Market cap uses the latest close (2026-11-04) × shares at fiscal year-end; free cash flow and WACC inputs are from the latest fiscal year.
17
Earnings qualityFrom SEC dataShow
The same reported profit can mean different things depending on whether it's backed by cash, driven by the core business, or the result of a one-off item. Four checks below.
- ✓
Operating CF ÷ net income: averages 2.21x
Profit is backed by cash coming in.
- ✓
Accrual ratio (latest): -2.3%
A small share of profit rests on accounting estimates.
- ✓
Core-earnings share (operating income ÷ pretax income): 110%
Most profit comes from core operations.
- ✓
Days sales outstanding: 63 → 57 days
No major slowdown in collecting on sales.
Operating CF vs. net income
Unit: $M — operating CF above net income means profit is backed by cash
- Operating CF
- Net income
formulacash flow from operations ÷ net income attributable to the company
termsCash flow from operations (operating CF) · Net income (attributable to the company)
formula(net income − operating CF) ÷ average total assets × 100
termsNet income (attributable to the company) · Cash flow from operations (operating CF) · Total assets
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-17
Profit bridge (FY2025)
Unit: $M — what moved profit from operating income to net income
- Profit (each stage)
- Pushed profit up
- Pushed profit down
formulaoperating income ÷ income before income taxes × 100
termsOperating income · Income before income taxes (pretax income)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-17
Receivables & inventory days
Unit: days — days grow when receivables or inventory build up faster than sales
- Days sales outstanding
- Days inventory outstanding
formulaaverage receivables (opening + closing ÷ 2) ÷ revenue × 365
formulaaverage inventory (opening + closing ÷ 2) ÷ cost of revenue × 365
termsInventory · Cost of revenue (COGS)
Worked examples (latest period)
formulacash flow from operations ÷ net income attributable to the company
e.g.$1,750M ÷ $1,448M = 1.21x
termsCash flow from operations (operating CF) · Net income (attributable to the company)
formulaoperating income ÷ income before income taxes × 100
e.g.$2,109M ÷ $1,909M × 100 = 110%
termsOperating income · Income before income taxes (pretax income)
formulaaverage receivables (opening + closing ÷ 2) ÷ revenue × 365
e.g.($2,645M + $2,708M) ÷ 2 ÷ $17,174M × 365 = 57 days
formulaaverage inventory (opening + closing ÷ 2) ÷ cost of revenue × 365
e.g.($315M + $342M) ÷ 2 ÷ $14,075M × 365 = 9 days
termsInventory · Cost of revenue (COGS)
18
Who holds the sharesFrom SEC dataShow
How much of the stock large institutional investors report owning on SEC Form 13F, how much the directors and executive officers hold (and how much of the vote they control), and roughly how much is left for individual investors. Shown next to beta so the holder mix can be read alongside how much the stock swings.
Institutions, insiders and everyone else, 13F holdings as of 2026-06-30
“Everyone else” is what remains after shares reported on Form 13F and shares held by directors and executive officers: mostly individual investors, plus non-insider families or foundations and smaller or foreign institutions. The figures have different dates and 13F reports count some shares twice — read it as an approximate split.
- Held by 13F filers
- 79.6%
- Directors & officers (shares)
- <1%
- Everyone else (est.)
- 20.4%
- Directors & officers (voting power)
- <1%
- Institutional-ownership rank
- 313 of 416
- Beta (adjusted)
- 0.86
individuals and other non-13F holders
no separate voting figure; shown as shares
1 = most institutional; 75% of covered companies have more
above 1 = swings more than the market
- 99.9M shares reported by 769 13F filers ÷ 125.5M shares outstanding on 2026-07-28. Option positions are excluded.
- Directors and executive officers as a group, from the proxy statement’s beneficial-ownership table (percentage computed from the group’s share count ÷ shares outstanding); includes shares they can acquire within 60 days.
- A large “everyone else” share can still reflect a family, trust or foundation stake held outside the board; check the proxy statement’s 5% holders.
Sources: SEC Form 13F data set (holdings as of 2026-06-30) · Form DEF 14A filed 2026-03-19 (beneficial ownership table) · Form 10-Q cover page (shares outstanding as of 2026-07-28)
19
Strengths & weaknessesSite analysis
Strengths
1. Large backlog
Total backlog of $49.0B ($9.7B funded) at the end of fiscal 2025.
Evidence: Form 10-K (FY2025, year ended 2026-01-02)
2. Rising profitability
Operating income rose from $621M (2023) to $2,109M (2025).
Evidence: Form 10-K (FY2025, year ended 2026-01-02)
3. Buybacks and dividends
Share count fell from 142M (2020) to 126M (2025); dividend rose to $1.63.
Evidence: Form 10-K (FY2025, year ended 2026-01-02)
Weaknesses
1. Government dependence
About 87% of revenue comes from U.S. government contracts.
Evidence: Form 10-K (FY2025, year ended 2026-01-02)
2. Past impairment
$596M goodwill impairment of the SES reporting unit in fiscal 2023.
Evidence: Form 10-K (FY2025, year ended 2026-01-02)
3. First half 2026 dip
Net income attributable to Leidos was $682M versus $754M a year earlier.
Evidence: Form 10-Q (quarter ended 2026-07-03)
20
What draws investors to itSite analysis
Why the stock can look attractive to investors — each point paired with what has to hold for it to stay true, and the opposing view. This is this site's analysis, not a recommendation to buy or sell.
P/E (FY2025)
16.5x
Price at fiscal year-end ÷ diluted EPS
Dividend yield (FY2025)
0.89%
Dividends per share ÷ fiscal year-end price
Payout ratio (FY2025)
15%
Dividends per share ÷ diluted EPS
FCF yield (FY2025)
7.0%
(Operating CF − capex) ÷ market cap
1. Long-term contracts
$49.0B backlog gives revenue visibility.
- What has to hold
- Government funding stays steady.
- The other side
- Budget and policy risk.
Evidence: Form 10-K (FY2025, year ended 2026-01-02)
2. Margin improvement
Operating margin about 12.3% in fiscal 2025 versus 4.0% in 2023.
- What has to hold
- Execution stays strong.
- The other side
- Program completions and recompetes.
Evidence: Form 10-K (FY2025, year ended 2026-01-02)
Fiscal years end on the Friday nearest December 31 (FY2025 ended January 2, 2026).
21
ResilienceSite analysisShow
How well the company could absorb a bad year: its financial buffer, how its revenue and profit held up in the worst year on record, and what the 10-K says about the business's exposure to shocks. Figures and filing statements only — no overall rating.
1. Financial buffer (FY2025)
Cash & short-term investments ÷ debt due within a year
55.4x
$1.11B vs. $20M
Interest coverage (operating income ÷ interest expense)
Not disclosed
Interest expense isn’t reported as a separate line.
Free cash flow ÷ dividends paid
7.7x
$1.63B vs. $211M (FCF = operating CF − capex)
2. Worst year in the record, and the recovery
| Figure | Worst year-over-year change | Back to the prior level? |
|---|---|---|
| Revenue | No decline in the record | — |
| Operating income | -42.9% in FY2023 ($1.09B → $621M) | Yes, by FY2024 |
Covers only the 6 fiscal years on record (FY2020–FY2025), which may not include a full recession — the worst year here isn’t necessarily how the company would fare in a severe downturn.
3. Business resilience (from the 10-K)
Steady growth
Revenue grew every year from $12,297M (2020) to $17,174M (2025).
Source: Form 10-K (FY2025, year ended 2026-01-02)
22
Legal & regulatory mattersSite analysisShow
Lawsuits, government investigations, enforcement actions and settlements the company discloses — where each stands, what is at stake, and what comes next. From the 10-K's Legal Proceedings and contingencies note, the latest 10-Q, and 8-Ks.
Leidos is cooperating with a DOJ Antitrust Division grand jury investigation into three intelligence procurements from 2021–2022; it cannot estimate any penalties. Other matters are ordinary government contract audits and reviews.
1 open matter
DOJ Antitrust Division grand jury investigation
PendingGovernment investigationU.S. DOJ Antitrust Division
In August 2022 Leidos received a federal grand jury subpoena for documents on three U.S. government procurements associated with its Intelligence Group in 2021 and 2022; it is cooperating and conducting an internal investigation.
Source: Form 10-K (FY2025, year ended 2026-01-02) — Note 21, Commitments and Contingencies
Company statement: Other proceedings are described as ordinary-course and not expected to be material.
Based on Form 10-K (FY2025, year ended 2026-01-02) — Note 21, Commitments and Contingencies, reviewed 2026-10-28. Routine ordinary-course claims are not listed. “Major” is this site’s judgment of which matters could materially affect results.
23
Risks (including geopolitical)Site analysis
Starting from the 10-K's Risk Factors section, organized by category — geopolitical, currency, raw materials, regulatory, disaster, and more — with impact and likelihood assessed by this site.
Risk map
Vertical = impact on results, horizontal = likelihood. Upper right = most severe. Numbers match the list below (placement is this site’s own assessment).
Likelihood →
"Company disclosure" vs. "this site’s assessment"
The description and mitigation for each risk are this site’s summary of the 10-K’s "Risk Factors" section. Impact and likelihood are this site’s own assessment, not the company’s — where the company discloses its own likelihood assessment, that is noted in the summary.
Impact is judged from how large the affected business is relative to total revenue/profit, and from the risk’s track record of moving results in the past. Likelihood is judged from the filing’s wording and the current business environment (already occurring, or recurring). See the rating criteria.
- 1Demand & macro
U.S. government budgets
- Company disclosure (summarized from the 10-K)
- Spending priorities, shutdowns or contract terminations would reduce revenue.
- Company’s stated mitigation
- Not stated in the filings.
- This site’s assessment
- Impact High / Likelihood Med
- 2Competition & technology shift
Competitive bidding
- Company disclosure (summarized from the 10-K)
- Competes with larger and smaller contractors and the government’s own capabilities.
- Company’s stated mitigation
- Not stated in the filings.
- This site’s assessment
- Impact Med / Likelihood High
- 3Law & regulation
DOJ antitrust investigation
- Company disclosure (summarized from the 10-K)
- Grand jury subpoena (2022) on three intelligence procurements; outcome cannot be estimated.
- Company’s stated mitigation
- Not stated in the filings.
- This site’s assessment
- Impact Med / Likelihood Med
- 4Law & regulation
Government contracting compliance
- Company disclosure (summarized from the 10-K)
- Audits and investigations can lead to penalties or suspension.
- Company’s stated mitigation
- Not stated in the filings.
- This site’s assessment
- Impact Med / Likelihood Med
- 5M&A & integration
Acquisitions
- Company disclosure (summarized from the 10-K)
- Integration of Kudu Dynamics and future deals.
- Company’s stated mitigation
- Not stated in the filings.
- This site’s assessment
- Impact Low / Likelihood Med
24
What changed in the risk factorsFrom SEC data
Paragraphs in the latest 10-K's Risk Factors that have little overlap with the year before, and paragraphs that were dropped.
New or substantially reworded (8)
u Joint ventures, other strategic alliances, and strategic business transactions may not achieve intended results. Read more
We may experience operational challenges in integrating or segregating assets for such a venture or transaction.
In particular, the federal budget and debt ceiling are expected to continue to be the subject of considerable debate, which could have a significant impact on defense spending broadly and our programs in particular. Read more
The budget environment, including budget caps mandated by the Budget Control Act of 2011 (the “BCA”) for fiscal years 2022 and 2023, which were reinstituted with established budget caps for 2024 and 2025 under The Fiscal Responsibility Act of 2023, and uncertainty surrounding the debt ceiling and the appropriations process, remain significant short and long-term risks for the Company. Considerable uncertainty exists regarding how future budget and program decisions will unfold, including the defense spending priorities of the current administration and Congress, what challenges budget reductions (required by the BCA and otherwise) will present for the defense industry and…
To the extent the U.S. Congress is unable to approve the annual federal budget before the expiration of a continuing resolution, funding for new projects may not be available and funding on contracts we are already performing may be delayed. Read more
If Congressional efforts to approve such funding fail, and Congress is unable to craft a long-term agreement on the U.S. government’s ability to incur indebtedness in excess of its current limits, the U.S. government may not be able to fulfill its current funding obligations and there could be significant disruption to all discretionary programs, which would have corresponding impacts on us and our industry. The use of a continuing resolution at prior-year funding levels may limit new contract starts, cancellation of planned new initiatives, constrain production rate increases, delay awards or extensions, and introduce funding uncertainty that could…
In addition, proposed comprehensive reforms to the Federal Acquisition Regulations, including those contemplated under Executive Order 14275, “Restoring Common Sense to Federal Procurement,” issued on April 15, 2025, could create uncertainty in our contracting environment and impact our business. These reforms may result in changes to procurement processes, evaluation criteria, cost allowability, compliance obligations, or reporting requirements that could increase our administrative burden and operating costs. Transition period or inconsistencies in the implementation of new rules may delay contract awards, complicate bid strategies, or require modifications to existing contracting practices. In addition, to the extent the proposed reforms ultimately expand the ability of commercial firms to compete for defense and other federal contracts, we may face heightened competition from new…
Additionally, if any of our employees, contractors, consultants, vendors or service providers use any third-party AI-powered software in connection with our business or the services they provide to us, it may lead to the inadvertent disclosure or incorporation of our confidential information into publicly available training sets, which may impact our ability to realize the benefit of, or adequately maintain, protect and enforce our intellectual property or confidential information, harming our
As the utilization of AI becomes more prevalent, we anticipate that it will continue to present new or unanticipated ethical, reputational, technical, operational, legal, competitive and regulatory issues, among others. Read more
We expect that our incorporation of AI in our business will require additional resources, including the incurrence of additional costs, to develop and maintain our products and solutions and features to minimize potentially harmful or unintended consequences, to comply with applicable and emerging laws and regulations, to maintain or extend our competitive position, and to address any ethical, reputational, technical, operational, legal, competitive or regulatory issues which may arise as a result of any of the foregoing. As a result, the challenges presented with our use of AI could adversely affect our business, financial condition and results of operations.
Joint ventures, other strategic alliances, and strategic business transactions may not achieve intended results. Read more
We may experience operational challenges in integrating or segregating assets for such a venture or transaction.
We participate in joint ventures, including some instances where we are a minority owner and do not operate the assets, and may enter into other similar arrangements in the future. Read more
Although we have sought to protect our interests, joint ventures and strategic alliances inherently involve special risks and may not achieve the intended results. Whether or not we hold majority interests or maintain operational control in such arrangements, our joint venture and other business partners may take certain actions and positions, or experience difficulties, that may negatively impact us and/or our reputation, such as:
5 more paragraphs differ; the filings below have the full text.
Matched automatically, quoted as filed, and may include rewording of an existing risk. Compares Item 1A of the 10-K filed Feb 17, 2026 ↗ with the 10-K filed Feb 11, 2025 ↗.
25
What to watch going forwardSite analysis
- Contract awards and backlog conversion.
- U.S. defense and civil budgets.
- DOJ antitrust investigation outcome.
26
Source documentsShow
This page's financial figures come from the Form 10-Ks listed below. Check the original filings for full detail.
Other sources referenced in the analysis
Last updated
Analysis last edited: October 28, 2026 · Financial data fetched: October 27, 2026 15:47 (SEC EDGAR) · Source 10-K filed: February 17, 2026
Built on10-K FY2025 · filed 2026-02-17Proxy statement (2026)
Next update expectedAfter FY2027’s 10-K is filed (roughly 60–90 days after fiscal year end (sooner for larger filers)), financials and analysis will be refreshed.
This page is this site’s own analysis based on public information, and does not represent Leidos’s views. It is not a recommendation to buy or sell any security, and this site does not guarantee the accuracy of any figure or statement here. Always verify against the original source documents before making an investment decision.