📊 LDOS Key Takeaways
Is Leidos Holdings, Inc. (LDOS) a Good Investment?
Leidos faces stagnant revenue growth (+0.4% YoY) with declining net income (-1.0% YoY), indicating a mature business experiencing margin compression. Elevated leverage (1.20x debt-to-equity) combined with weak interest coverage of 2.7x creates financial risk, particularly given the company's poor return on capital (ROE 6.5%, ROA 2.1%). While positive free cash flow provides near-term stability, the fundamental trajectory is unfavorable.
Leidos shows strong profitability (12.3% operating margin, 8.4% net margin) and robust free cash flow (9.5% FCF margin) with solid liquidity and interest coverage, indicating resilient earnings quality. Despite flat revenue and a slight net income decline, high ROE (29.5%) and cash generation exceeding earnings support balance sheet strength and capital flexibility.
Why Buy Leidos Holdings, Inc. Stock? LDOS Key Strengths
- Positive operating cash flow of $301M demonstrates core business functionality
- Stable operating margin of 11.5% indicates reasonable cost control in services delivery
- Adequate current ratio of 1.40x and quick ratio of 1.29x meet minimum liquidity thresholds
- Strong margins with disciplined cost control (12.3% operating, 8.4% net)
- Excellent free cash flow and conversion ($1.62B FCF; 9.5% margin)
- Healthy liquidity and coverage (1.70x current; 11.4x interest coverage) with moderate leverage
LDOS Stock Risks: Leidos Holdings, Inc. Investment Risks
- Revenue essentially flat at +0.4% YoY growth; business shows minimal expansion capacity
- Interest coverage of 2.7x is dangerously tight; limited cushion for rate increases or operational decline
- Poor return metrics (ROE 6.5%, ROA 2.1%) indicate inefficient capital deployment and weak management returns
- Elevated leverage with $6.0B debt vs $457M cash creates refinancing and financial flexibility constraints
- Declining profitability (-1.0% net income YoY) despite flat revenue signals operational headwinds
- Muted top-line growth (+0.4% YoY) and slight net income decline (-1% YoY)
- Contract and budget timing/recompete risk can drive revenue and cash flow volatility
- Potential margin pressure from inflation and fixed-price contract execution
Key Metrics to Watch
- Revenue growth trajectory and contract pipeline visibility
- Interest coverage ratio trend and debt refinancing schedule
- Operating margin sustainability amid margin compression signals
- Free cash flow conversion and cash balance adequacy relative to debt obligations
- YoY organic revenue growth
- Operating margin
Leidos Holdings, Inc. (LDOS) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Leidos Holdings, Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
LDOS Profit Margin, ROE & Profitability Analysis
LDOS vs Technology Sector: How Leidos Holdings, Inc. Compares
How Leidos Holdings, Inc. compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Leidos Holdings, Inc. Stock Overvalued? LDOS Valuation Analysis 2026
Based on fundamental analysis, Leidos Holdings, Inc. shows some fundamental concerns 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.
Leidos Holdings, Inc. Balance Sheet: LDOS Debt, Cash & Liquidity
LDOS Revenue & Earnings Growth: 5-Year Financial Trend
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 Revenue Growth, EPS Growth & YoY Performance
LDOS Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $4.2B | $328.0M | $2.56 |
| 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 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Leidos Holdings, Inc. Dividends, Buybacks & Capital Allocation
LDOS SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Leidos Holdings, Inc. (CIK: 0001336920)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| May 12, 2026 | 4 | xslF345X06/wk-form4_1778590716.xml | View → |
| May 12, 2026 | 4 | xslF345X06/wk-form4_1778590679.xml | View → |
| May 12, 2026 | 4 | xslF345X06/wk-form4_1778590652.xml | View → |
| May 12, 2026 | 4 | xslF345X06/wk-form4_1778590610.xml | View → |
| May 12, 2026 | 4 | xslF345X06/wk-form4_1778590577.xml | View → |
❓ Frequently Asked Questions about LDOS
What is the AI rating for LDOS?
Leidos Holdings, Inc. (LDOS) has a Combined AI Rating of HOLD from Claude (SELL) and ChatGPT (BUY) with 76% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are LDOS's key strengths?
Claude: Positive operating cash flow of $301M demonstrates core business functionality. Stable operating margin of 11.5% indicates reasonable cost control in services delivery. ChatGPT: Strong margins with disciplined cost control (12.3% operating, 8.4% net). Excellent free cash flow and conversion ($1.62B FCF; 9.5% margin).
What are the risks of investing in LDOS?
Claude: Revenue essentially flat at +0.4% YoY growth; business shows minimal expansion capacity. Interest coverage of 2.7x is dangerously tight; limited cushion for rate increases or operational decline. ChatGPT: Muted top-line growth (+0.4% YoY) and slight net income decline (-1% YoY). Contract and budget timing/recompete risk can drive revenue and cash flow volatility.
What is LDOS's revenue and growth?
Leidos Holdings, Inc. reported revenue of $4.4B.
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 $2.56.
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 May 2026, Leidos Holdings, Inc. has a HOLD rating with 76% 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 6.5% (sector avg: 22%), net margin of 7.5% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
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 $301.0M, with capital expenditures of $31.0M. FCF margin is 6.1%.
How does LDOS compare to other Technology stocks?
Vs Technology sector averages: Net margin 7.5% (avg: 18%), ROE 6.5% (avg: 22%), current ratio 1.40 (avg: 2.5).