📊 LDOS Key Takeaways
Is LDOS a Good Investment? Thesis Analysis
Leidos demonstrates exceptional profitability with 12.3% operating margin, 29.5% ROE, and strong free cash flow generation ($1.6B annually), indicating efficient capital deployment and operational excellence. However, revenue growth is negligible at 0.4% YoY with net income declining 1.0%, suggesting a mature business facing market headwinds or saturation. The robust balance sheet (11.4x interest coverage, 1.70x current ratio) provides financial stability, but EPS growth is driven by share buybacks rather than organic business improvement.
Why Buy LDOS? Key Strengths
- Exceptional ROE of 29.5% and solid ROA of 10.7% among the highest in the industry
- Robust free cash flow generation at $1.6B (9.5% FCF margin) with capital-light model requiring only $125M CapEx
- Strong liquidity and fortress balance sheet with 11.4x interest coverage and 1.70x current ratio
- Stable operating margin of 12.3% despite revenue stagnation demonstrates pricing power and operational discipline
LDOS Investment Risks to Consider
- Revenue growth of 0.4% YoY indicates market saturation or competitive pressures in government services sector
- Net income declined 1.0% YoY despite margin stability, signaling underlying business deterioration
- EPS growth of 20.8% is artificially boosted by share buybacks rather than organic improvement
- Moderate leverage at 0.94x debt-to-equity constrains financial flexibility for strategic investments or M&A
Key Metrics to Watch
- Quarterly revenue growth acceleration and government contract order backlog trends
- Operating margin trajectory and net income stability to assess fundamental business health
- Free cash flow sustainability and shareholder return policy effectiveness relative to capital needs
LDOS Financial Metrics
💡 AI Analyst Insight
Leidos Holdings, Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
LDOS Profitability Ratios
LDOS vs Technology Sector
How Leidos Holdings, Inc. compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is LDOS Overvalued or Undervalued?
Based on fundamental analysis, Leidos Holdings, Inc. has mixed fundamental signals relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
LDOS Balance Sheet & Liquidity
LDOS 5-Year Financial Trend & Growth Analysis
5-Year Trend Summary: Leidos Holdings, Inc.'s revenue has grown significantly by 26% over the 5-year period, indicating strong business expansion. The most recent EPS of $1.44 reflects profitable operations.
LDOS Growth Metrics (YoY)
LDOS Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $4.2B | $364.0M | $2.68 |
| Q2 2025 | $4.1B | $322.0M | $2.37 |
| Q1 2025 | $4.0B | $284.0M | $2.07 |
| Q3 2024 | $3.9B | -$30.0M | $-0.22 |
| Q2 2024 | $3.8B | $207.0M | $1.50 |
| Q1 2024 | $3.7B | $162.0M | $1.17 |
| Q3 2023 | $3.6B | -$30.0M | $-0.22 |
| Q2 2023 | $3.6B | $171.0M | $1.24 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
LDOS Capital Allocation
LDOS SEC 10-K & 10-Q Filing Analysis
Access official SEC EDGAR filings for Leidos Holdings, Inc. (CIK: 0001336920)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| Apr 8, 2026 | 4 | xslF345X06/wk-form4_1775681096.xml | View → |
| Apr 2, 2026 | 4 | xslF345X06/wk-form4_1775163631.xml | View → |
| Apr 2, 2026 | 4 | xslF345X06/wk-form4_1775163428.xml | View → |
| Apr 2, 2026 | 4 | xslF345X06/wk-form4_1775163059.xml | View → |
| Apr 2, 2026 | 4 | xslF345X06/wk-form4_1775162951.xml | View → |
❓ Frequently Asked Questions about LDOS
What is the AI rating for LDOS?
Leidos Holdings, Inc. (LDOS) has an AI rating of HOLD with 78% confidence, based on fundamental analysis of SEC EDGAR filings.
What are LDOS's key strengths?
Claude: Exceptional ROE of 29.5% and solid ROA of 10.7% among the highest in the industry. Robust free cash flow generation at $1.6B (9.5% FCF margin) with capital-light model requiring only $125M CapEx.
What are the risks of investing in LDOS?
Claude: Revenue growth of 0.4% YoY indicates market saturation or competitive pressures in government services sector. Net income declined 1.0% YoY despite margin stability, signaling underlying business deterioration.
What is LDOS's revenue and growth?
Leidos Holdings, Inc. reported revenue of $17.2B.
Does LDOS pay dividends?
Leidos Holdings, Inc. does not currently pay dividends.
Where can I find LDOS SEC filings?
Official SEC filings for Leidos Holdings, Inc. (CIK: 0001336920) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is LDOS's EPS?
Leidos Holdings, Inc. has a diluted EPS of $11.14.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is LDOS a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Leidos Holdings, Inc. has a HOLD rating with 78% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is LDOS stock overvalued or undervalued?
Valuation metrics for LDOS: ROE of 29.5% (sector avg: 22%), net margin of 8.4% (sector avg: 18%). Higher ROE suggests strong returns relative to peers.
Should I buy LDOS stock in 2026?
Our dual AI analysis gives Leidos Holdings, Inc. a combined HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is LDOS's free cash flow?
Leidos Holdings, Inc.'s operating cash flow is $1.8B, with capital expenditures of $125.0M. FCF margin is 9.5%.
How does LDOS compare to other Technology stocks?
Vs Technology sector averages: Net margin 8.4% (avg: 18%), ROE 29.5% (avg: 22%), current ratio 1.70 (avg: 2.5).