Leidos Holdings, IncNYSE: LDOS
Industrials · Diversified Support Services
$107.02
-1.52%
Vol: 1.7M
Research Digest
Friday, June 19, 2026
Jefferies and BofA downgrade Leidos to Hold after DHA signals reduced reliance on the company as lead EHR integrator, sending shares down 5.6%.
Leidos (LDOS) shares fell 5.6% on June 15 after Jefferies downgraded the stock to Hold from Buy and cut its price target to $140 from $185, citing margin sustainability concerns amid uncertainty in U.S. defense spending. Bank of America also downgraded the stock following news that the Defense Health Agency plans to reduce its reliance on Leidos as lead integrator for its electronic health record program. The DHA development represents a meaningful contract risk for LDOS, which has been a key revenue driver. On the positive side, Leidos' cloud-based Joint Management Tool was deployed by DISA and U.S. Space Command in early June, and the company declared a quarterly dividend of $0.43 per share payable June 30. The stock had previously reported strong Q1 results and raised full-year guidance but these analyst downgrades represent a significant shift in near-term sentiment.
Previous Market Intelligence
13 daysJun 18BofA downgraded Leidos to Neutral and slashed its price target to $125 from $200 after the Defense Health Agency signaled it will replace Leidos as lead systems integrator on the Military Health System EHR program.Negative▶
On June 17, 2026 Bank of America Securities downgraded Leidos Holdings to Neutral from Buy and cut its price target to $125 from $200, citing mounting pressure across the company's healthcare portfolio and uncertainty over its portfolio-transformation strategy. The central driver is the Defense Health Agency's plan to replace Leidos as lead systems integrator for the Military Health System electronic health record (MHS GENESIS) program, a multi-year rollout across U.S. military treatment facilities that has been a key revenue source. BofA still acknowledged the value in the defense business, including recent wins such as a $2.7 billion Army hypersonic weapons production contract and State Department Evolve IT awards, but flagged that healthcare recompetes and program shifts cloud the upside. The downgrade pushed the stock lower; shares had already hit a roughly two-year low, down about 32% year-to-date and 32% over the past 90 days. The main risk is that loss of the MHS EHR role materially erodes the high-margin health segment and weakens earnings visibility just as the company attempts to reposition its portfolio. Sentiment is negative given the rating cut, sharp target reduction, and the contract threat.
Jun 17Leidos shares hit a fresh 52-week low near $113-$121 on June 16 as defense-spending concerns and weak organic growth weigh on the stock.Negative▶
Leidos Holdings stock hit a 52-week low around $113-$121 on June 16, 2026, now down roughly 32% year-to-date and about 34% over six months. The slide reflects ongoing pressure from defense-budget uncertainty and a recent Jefferies downgrade to Hold (PT cut to $140 from $185) flagging limited organic growth and concerns over the health business. The company declared a $0.43 quarterly cash dividend (ex-date June 15, 2026) and continues to win large awards, including a $2.7B U.S. Army hypersonic weapons contract and a $617M IFPC Inc 2 launcher award. The bear case: persistent multiple compression and the slide to multi-year lows suggest the market doubts near-term growth despite contract wins, with the health segment a specific overhang.
Jun 16Leidos shares fell about 5.6% after Jefferies downgraded the stock to Hold and slashed its price target, deepening a steep 2026 decline.Negative▶
On June 15, 2026, Jefferies downgraded Leidos Holdings to 'Hold' from 'Buy' and cut its price target to $140 from $185, sending shares down roughly 5.6% to around $115. The stock is now down about 37% year-to-date and trades roughly 42% below its November 2025 52-week high of $199.55. The downgrade comes despite recent positives, including a $2.7 billion U.S. Army contract to advance hypersonic weapons from prototyping to production and a $617 million Army award for additional IFPC Inc 2 launchers. Leidos also declared a quarterly cash dividend of $0.43 with an ex-date of June 15, 2026. The bear case centers on eroding defense-IT sentiment, contract margin pressure and sharp downward revisions to price targets, even as the consensus 12-month target near $183 implies large upside if execution holds.
Jun 15No significant overnight updatesNeutral▶
No material news in the last 48 hours.
Jun 14No significant overnight updatesNeutral▶
No material news in the last 48 hours.
May 21Leidos won a $2.7B U.S. Army hypersonic weapons production contract on May 12 and raised its 2026 revenue guidance to $18.0-$18.4B after a Q1 beat.Mixed▶
On May 12, 2026, Leidos was awarded a $2.7 billion U.S. Army contract to transition hypersonic weapons from prototyping to full-scale production for the Army and Navy, materially expanding its defense backlog. On May 5, the company reported Q1 FY2026 results with revenue of $4.40B (+4% YoY, +3% organic) beating consensus of $4.29B, and raised full-year 2026 revenue guidance to $18.0-$18.4B (from $17.5-$17.9B) and adjusted EPS guidance to $12.10-$12.50 (from $12.05-$12.45). Despite the beat and raise, shares fell about 7.8% after Q1 on valuation concerns and acquisition-related cost questions, and LDOS is down roughly 30% YTD. At the May 1 annual meeting shareholders approved 2026 incentive and ESPP plans, board nominees, executive pay and Deloitte as auditor. Consensus among 17 analysts is Moderate Buy with a mean price target of $193. Risk: margin sustainability post-acquisitions and continued pressure on government IT services pricing.
May 20Leidos won a $2.7B U.S. Army contract on May 12 to transition hypersonic weapons from prototype to production.Mixed▶
On May 12, 2026, Leidos was awarded a $2.7 billion U.S. Army contract to advance hypersonic weapons from prototyping to full-scale production for the Army and Navy. Despite the major contract win, shares fell 3.3% on May 13 to close at $124.17 amid broader defense sector weakness. On May 1, shareholders approved 2026 incentive and employee stock purchase plans and re-ratified Deloitte as auditor. Q1 2026 results posted $4.4B in revenue beating estimates, with management raising full-year revenue, earnings, and cash guidance. Analysts maintain a Buy consensus with an average 12-month PT of $187.79. Risk: stock has declined 27.8% over three months despite strong fundamentals, signaling investor concerns about defense spending pacing.
May 19Leidos awarded $2.7B U.S. Army hypersonic weapons contract on May 12, unifying TPS and Common Hypersonic Glide Body production programsPositive▶
On May 12, 2026, Leidos was awarded a $2.7 billion U.S. Army contract to advance hypersonic weapons from prototyping to production, unifying the Thermal Protection Shield (TPS) and Common Hypersonic Glide Body (CHGB) programs. The company will also deliver an initial 3,000 Low-Cost Containerized Munitions (LCCM) under a framework agreement with the Department of War. Q1 2026 results (reported May 5) showed revenue growth of 4% to $4.4 billion with raised full-year revenue, earnings, and cash guidance. At its May 1 annual meeting, stockholders approved the 2026 Omnibus Incentive Plan and 2026 ESPP, re-elected directors, backed executive pay, and ratified Deloitte. Despite the contract wins and guidance raise, shares closed at $124.17 on May 13 (down 3.3%), with 30-day return of -21.21% and YTD of -32.32%. Consensus rating is Buy with a $187.79 average 12-month PT (implying ~49.9% upside).
May 18No significant overnight updatesNeutral▶
No material news in the last 48 hours.
May 15Leidos wins $2.7B U.S. Army hypersonics contract May 12 but Q1 outlook lift undercut by analyst PT cutsMixed▶
Leidos Holdings announced a $2.7B U.S. Army hypersonics contract on May 12 focused on accelerating hypersonic weapons programs toward production. The company raised full-year 2026 guidance on May 5 to adjusted EPS of $12.10-$12.50 (from $12.05-$12.45) and revenue of $18.0-$18.4B (from $17.5-$17.9B) after Q1 adjusted EPS of $3.13 (up from $2.97) and revenue of $4.4B beating $4.29B consensus. May 1 annual meeting approved 2026 incentive plans, ratified Deloitte. Despite the wins, the stock fell ~21% over 30 days to $128.39 on May 12 as analysts cut PTs: Citi to $178 from $232, Stifel to $193 from $205, RBC to $180 from $215. Risk: federal contract spending uncertainty and DOGE-related headwinds.
May 14Leidos secures $2.7B U.S. Army hypersonic weapons contract on May 12, reinforcing recent Q1 beat and raised 2026 guidanceMixed▶
On May 12, 2026, Leidos announced a $2.7 billion contract from the U.S. Army to scale production of Army and Navy hypersonic weapons, an important strategic win for its defense business. This follows the company's May 5 Q1 2026 report where it beat estimates and raised full-year guidance to $12.10-$12.50 EPS on revenue of $18.0-$18.4 billion (up from $12.05-$12.45 and $17.5-$17.9B). Shares fell 2.83% after the contract news as investors digested margin implications. Analysts trimmed targets but kept constructive ratings: Citi cut PT to $178 (Buy), RBC to $180 (Outperform), Stifel to $193 (Hold). Risks include execution on hypersonic scaling and broader defense budget uncertainty. Consensus rating remains Buy.
May 13Leidos raised full-year 2026 EPS guidance to $12.10-$12.50 and revenue to $18.0-$18.4B on May 5; multiple analysts cut PTs after sector volatility (RBC to $180 from $215).Mixed▶
On May 5, 2026, Leidos posted Q1 2026 adjusted EPS of $3.13 (vs. $2.97 prior year) and revenue of $4.40B (up 4% YoY, 3% organic), led by 7% YoY growth in the Intelligence and Digital segment. The company raised 2026 adjusted EPS guidance to $12.10-$12.50 (from $12.05-$12.45) and revenue to $18.0-$18.4B (from $17.5-$17.9B) on strong demand for IT and military intelligence services, including a $2.7B Army hypersonic weapons contract. On May 1, shareholders approved the 2026 Omnibus Incentive Plan and 2026 ESPP at the annual meeting. Despite the beat-and-raise, LDOS shares are down 12.81% over the past month to $130.11, with Citi cutting PT to $178 from $232, Stifel to $193 from $205, and RBC Capital to $180 from $215. Risk: federal budget uncertainty and reduced contract scope assumptions weighing on multiples.
May 12No significant overnight updatesNeutral▶
No material news in the last 48 hours.
Sector Peers
| Company | Price | Day | 1M | Fwd P/E | Beta | Mkt Cap |
|---|---|---|---|---|---|---|
| CTASCINTAS | $170.87 | +0.73% | +6.1% | 33.4x | 0.93 | $72.6B |
| CPRTCOPART | $30.28 | +2.57% | -1.3% | 17.8x | 1.02 | $27.8B |
| LDOSLEIDOS | $107.02 | -1.52% | +4.3% | 8.3x | 0.55 | $13.7B |
| CATCATERPILLAR | $991.23 | +3.69% | -3.1% | 32.0x | 1.56 | $443.8B |
| GEGENERAL | $359.14 | +0.59% | +3.2% | 43.4x | 1.35 | $394.4B |
| GEVGE | $1,111.86 | +6.01% | +5.2% | 45.4x | 0.94 | $299.1B |
Key Fundamentals
RSI (14-Day)
52-Week Range
Moving Averages
Price below 200d MA — bearish structure.