Leidos (NYSE:LDOS) Posts Earnings Results, Beats Estimates By $0.25 EPS

Key Points

• Leidos beat Q1 estimates with $3.13 EPS vs. $2.88 consensus, revenue rose ~3.7% year‑over‑year, and management raised FY‑2026 guidance to $12.10–$12.50 EPS (also increasing revenue and cash‑flow targets).
• The recent ENTRUST acquisition is already accretive and helped refresh an energy order pipeline to roughly $10B, while defense wins (ALPS, Seahawk MUSV, AGM‑190A) leave a visible ~$8B next‑12‑month defense pipeline.
• Management warned Q2 could be a near‑term low point for revenue and margins due to a delayed fixed‑price program, the loss of a one‑time $15M insurance benefit, and elevated growth investments, and shares fell following the release.

Leidos (NYSE:LDOS - Get Free Report) posted its quarterly earnings results on Tuesday. The aerospace company reported $3.13 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.88 by $0.25, Zacks reports. Leidos had a net margin of 8.43% and a return on equity of 32.95%. The firm's quarterly revenue was up 3.7% on a year-over-year basis. During the same quarter in the previous year, the company earned $2.97 earnings per share. Leidos updated its FY 2026 guidance to 12.100-12.500 EPS.

Here are the key takeaways from Leidos' conference call:

• Leidos reported a strong Q1 with $4.4B revenue (up 4%) and a 14% adjusted EBITDA margin, and management raised 2026 guidance by $500M of revenue, $0.05 of non‑GAAP EPS, and $50M of operating cash flow.
• The ENTRUST acquisition closed quickly, integration is ahead of schedule and already accretive in 2026, and management expects a refreshed energy order pipeline of roughly $10B (230% growth post‑close).
• Defense tech is a major growth driver — serial production of ALPS under a $2.2B contract, operational deployment of the Seahawk MUSV, momentum on the AGM‑190A missile, $9B of awards in the last 15 months, and a visible ~$8B next‑12‑month defense pipeline.
• The managed health pillar showed durable demand with a $456M Military OneSource award, an AI‑driven My Service Treatment Record pilot to automate DoD→VA transfers, and continued high veterans‑exam volumes and satisfaction.
• Management expects Q2 to be the likely low point for revenue and margins due to a scheduled delay on a fixed‑price development program, the absence of the one‑time $15M insurance benefit that aided Q1, and elevated near‑term growth investments.

Leidos Price Performance

Shares of NYSE:LDOS traded down $4.73 during trading on Tuesday, hitting $144.08. 343,354 shares of the stock were exchanged, compared to its average volume of 1,059,444. The company has a market cap of $18.17 billion, a PE ratio of 12.94, a P/E/G ratio of 1.90 and a beta of 0.56. The company has a current ratio of 1.70, a quick ratio of 1.58 and a debt-to-equity ratio of 0.93. The company has a fifty day moving average price of $162.47 and a two-hundred day moving average price of $179.28. Leidos has a 12-month low of $139.69 and a 12-month high of $205.77.

Leidos Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Tuesday, June 30th. Stockholders of record on Monday, June 15th will be paid a dividend of $0.43 per share. The ex-dividend date of this dividend is Monday, June 15th. This represents a $1.72 annualized dividend and a dividend yield of 1.2%. Leidos's payout ratio is 15.45%.

Analyst Ratings Changes

LDOS has been the topic of several recent analyst reports. Wall Street Zen upgraded Leidos from a "hold" rating to a "buy" rating in a research report on Saturday, April 18th. Argus raised Leidos to a "strong-buy" rating in a report on Tuesday, March 31st. Stifel Nicolaus dropped their price objective on Leidos from $220.00 to $205.00 and set a "hold" rating on the stock in a report on Wednesday, February 18th. Bank of America cut their price objective on Leidos from $235.00 to $200.00 and set a "buy" rating for the company in a research report on Tuesday, April 21st. Finally, Truist Financial reduced their target price on Leidos from $220.00 to $195.00 and set a "buy" rating for the company in a report on Monday, April 20th. One equities research analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating and five have given a Hold rating to the company's stock. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average price target of $202.82.

Insiders Place Their Bets

In related news, insider Elizabeth A. Porter sold 2,000 shares of Leidos stock in a transaction on Tuesday, April 7th. The stock was sold at an average price of $158.78, for a total transaction of $317,560.00. Following the completion of the transaction, the insider directly owned 49,476 shares of the company's stock, valued at approximately $7,855,799.28. The trade was a 3.89% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.77% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the company. State Street Corp raised its stake in shares of Leidos by 3.7% during the 4th quarter. State Street Corp now owns 6,022,359 shares of the aerospace company's stock worth $1,086,434,000 after buying an additional 217,141 shares during the last quarter. AQR Capital Management LLC grew its stake in Leidos by 8.2% in the 3rd quarter. AQR Capital Management LLC now owns 1,551,547 shares of the aerospace company's stock valued at $290,403,000 after acquiring an additional 117,835 shares during the last quarter. Alliancebernstein L.P. increased its holdings in Leidos by 64.4% during the 2nd quarter. Alliancebernstein L.P. now owns 1,529,261 shares of the aerospace company's stock valued at $241,256,000 after acquiring an additional 598,974 shares in the last quarter. Bank of America Corp DE raised its position in Leidos by 9.3% during the third quarter. Bank of America Corp DE now owns 1,094,811 shares of the aerospace company's stock worth $206,875,000 after acquiring an additional 93,553 shares during the last quarter. Finally, Charles Schwab Investment Management Inc. raised its position in Leidos by 1.6% during the fourth quarter. Charles Schwab Investment Management Inc. now owns 843,263 shares of the aerospace company's stock worth $152,125,000 after acquiring an additional 13,030 shares during the last quarter. Hedge funds and other institutional investors own 76.12% of the company's stock.

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.

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