Leidos Holdings, IncNYSE: LDOS
Industrials · Diversified Support Services
$118.30
-3.85%
Vol: 171K
Research Digest
Monday, June 15, 2026
No significant overnight updates
No material news in the last 48 hours.
Previous Market Intelligence
13 daysJun 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.
May 11Citi cut LDOS price target to $178 from $232 on May 7 despite Q1 beat and raised 2026 guidance, citing valuation concerns.Mixed▶
Leidos posted Q1 2026 adjusted EPS of $3.13 (vs $2.97 prior year) and raised full-year EPS guidance to $12.10-$12.50 and revenue to $18.0-$18.4B on strong demand for IT and military intelligence services. The company also won an $869M MACRO II task order from the U.S. Army for AI-enabled secure systems and completed the Entrust acquisition. Despite the strong print, Citi slashed its price target to $178 from $232 on May 7, questioning valuation. Shareholders also approved 2026 incentive/ESPP plans and the board declared a $0.43 dividend. Risk: valuation pushback could cap upside even with continued execution on NorthStar 2030 strategy.
May 8Q1 revenue $4.4B up 4%, EPS $3.13 beat, full-year guidance raised $500M to $18.0-$18.4BPositive▶
Leidos Holdings reported strong Q1 2026 results with revenue of $4.4 billion, up 4% YoY (3% organic), and non-GAAP EPS of $3.13. Company raised full-year revenue guidance by $500 million to $18.0-$18.4 billion range. $100M venture investment in marquee PE firm focused on federal tech; surging demand in defense tech including AGM-190A cruise missile and operational deployment of Seahawk MUSV with U.S. Navy. Stock down 26.5% YTD. Stifel lowered PT to $193 from $205.
May 7Q1 revenue $4.4B up 4% YoY; adjusted EPS $3.13 beat; raised FY2026 revenue guidance to $18.0-18.4BPositive▶
Leidos reported Q1 2026 revenue of $4.4B, up 4% YoY (+3% organic), with non-GAAP EPS of $3.13, beating estimates by 7.6%. Adjusted EPS raised FY2026 guidance to $12.10-$12.50 (from $12.05-$12.45) and revenue to $18.0-18.4B (from $17.5-17.9B), 2.8% increase. Intelligence and Digital segment standout with 7% YoY growth including 6% organic, driven by expanded intelligence community support and $22M from Kudu Dynamics acquisition. Recent major contracts: $869M MACRO II Army (Apr 30), $456M Military OneSource (Apr 29), ~$1.2B IFPC Inc 2 air-defense (Apr 23). Shareholders approved 2026 stock plans.
May 6Leidos raises 2026 outlook to $18B revenue on strong defense demand; lands $869M Army contractPositive▶
Leidos Holdings raised 2026 revenue forecast to $18-$18.4B from $17.5-$17.9B and adjusted profit guidance to $12.10-$12.50 EPS from $12.05-$12.45, betting on strong IT and military intelligence services demand. Q1 adjusted EPS of $3.13 topped forecast, up from $2.97 year-ago, with Intelligence and Digital business sales rising 7% to $1.51B. Company won $869M Army contract for AI-enabled decision-support systems and completed Entrust acquisition integration. Pentagon replenishment efforts driven by Iran-related operations and Russia-Ukraine conflict support demand. However, stock has fallen 14.6% in past month and 23% over six months, recently hitting 52-week low at $139.66, presenting potential buying opportunity near $142.84 current price.
Sector Peers
| Company | Price | Day | 1M | Fwd P/E | Beta | Mkt Cap |
|---|---|---|---|---|---|---|
| CTASCINTAS | $176.42 | +2.36% | -1.2% | 31.8x | 0.96 | $69.0B |
| CPRTCOPART | $30.90 | -10.17% | +2.9% | 20.5x | 1.02 | $33.1B |
| LDOSLEIDOS | $118.30 | -3.85% | -1.4% | 9.3x | 0.57 | $15.5B |
| CATCATERPILLAR | $933.44 | +7.79% | +0.2% | 29.1x | 1.63 | $398.8B |
| GEGENERAL | $346.55 | +14.84% | +5.5% | 34.8x | 1.35 | $315.3B |
| GEVGE | $960.63 | -7.97% | +3.1% | 42.6x | 1.31 | $280.5B |
Key Fundamentals
RSI (14-Day)
52-Week Range
Moving Averages
Price below 200d MA — bearish structure.