📊 LDOS Key Takeaways
Is Leidos Holdings, Inc. (LDOS) a Good Investment?
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.
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
- 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
- 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 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
- 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
- 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
- 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. 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.
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 |
|---|---|---|---|
| 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.
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
❓ Frequently Asked Questions about LDOS
What is the AI rating for LDOS?
Leidos Holdings, Inc. (LDOS) has a Combined AI Rating of BUY from Claude (HOLD) and ChatGPT (BUY) with 76% combined 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. 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 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. 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 $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 BUY rating with 76% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. 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 BUY 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).
Why is LDOS's return on equity (ROE) so high?
Leidos Holdings, Inc. has a return on equity of 29.5%, significantly above the Technology sector average of 22%. A high ROE indicates the company is efficient at generating profits from shareholder equity. This is supported by a 8.4% net margin.