Analyst Consensus ?
ConsensusBuy27 ratings
Bullish1659.3%
Neutral1140.7%
Bearish00.0%
Leidos Holdings, Inc. · LDOS · FY2026 Q1 · Calendar Q2 2026
Leidos Q1 Beat and Raise Overshadowed by Q2 Dip and Fixed-Price Margin Concerns
Leidos reported Q1 FY2026 revenue of $4.4B (up 4% YoY) and adjusted EBITDA margin of 14%, beating consensus on both lines. EPS of $3.13 exceeded the $2.90 estimate by 7.9%, and revenue of $4.4B topped the $4.28B estimate by 2.8%. Management raised full-year 2026 guidance for revenue, non-GAAP EPS, and operating cash flow, driven by the rapid two-month close of the Entrust acquisition and major contract wins including the AGM-190A missile and Seahawk MUSV programs. Despite the beat-and-raise, shares fell 8.6% on the report session with 2.5x normal volume and drifted an additional 9.4% lower subsequently. Investors focused on management's flagged Q2 revenue and margin trough, profitability pressure from fixed-price defense programs, and uncertainty around the $350M capex ramp. The stock now trades at $112.41, near the low end of analyst targets.
Reported Before market openNYSETechnology
$14.14B market cap
100quality score
Company context
Snapshot as of publicationLeidos Holdings, Inc., along with its various subsidiaries, delivers a broad spectrum of services and innovative solutions across key markets: defense, intelligence, civil government, and health. The company operates both domestically within the United States and on an international scale. Its operations are organized into three principal divisions: Defense Solutions, Civil, and Health. The Defense Solutions segment is dedicated to providing national security systems and specialized support spanning air, land, sea, space, and cyberspace domains. Its extensive client base includes the U.S. Intelligence Community, the Department of Defense, NASA, various military branches, allied foreign governments, and other federal and commercial entities within the national security sector.…
Earnings scorecard
Reported versus consensus
Reported EPS
$3.13
Consensus $3
EPS surprise
+7.9%
Reported versus consensus
Reported revenue
$4.40B
Consensus $4.28B
Revenue surprise
+2.8%
Reported versus consensus
Earnings History
Estimate
Beat
Miss
Match
Analyst 52W Price Targets
$112.41Previous close
$105Low
$171.6Average
$230High
Latest persisted target per named analyst; persisted previous close from FN2's market snapshot as of Jul 31, 2026. Not an FN2 forecast.
Firm-level rating actions
FMP grade actions identify the grading firm, not a named analyst.
| Firm | Rating | Prior rating | Action | Date |
|---|---|---|---|---|
| Goldman Sachs | Neutral | Neutral | Maintain | Jul 14, 2026 |
| JP Morgan | Overweight | Overweight | Maintain | Jul 13, 2026 |
| Truist Securities | Buy | Buy | Maintain | Jul 10, 2026 |
| TD Cowen | Hold | Hold | Maintain | Jul 7, 2026 |
| Jefferies | Hold | Hold | Maintain | Jul 1, 2026 |
| Citigroup | Buy | Buy | Maintain | Jul 1, 2026 |
| B of A Securities | Neutral | Buy | Downgrade | Jun 17, 2026 |
| Stifel | Hold | Hold | Maintain | May 6, 2026 |
| RBC Capital | Outperform | Outperform | Maintain | May 6, 2026 |
| Baird | Neutral | Neutral | Maintain | Feb 18, 2026 |
| UBS | Neutral | Neutral | Maintain | Jan 15, 2026 |
| Cantor Fitzgerald | Overweight | Overweight | Maintain | Oct 31, 2025 |
| Argus Research | Buy | Buy | Maintain | Sep 24, 2025 |
| Wells Fargo | Overweight | Overweight | Maintain | May 8, 2025 |
| William Blair | Market Perform | Outperform | Downgrade | Feb 21, 2025 |
| Barclays | Overweight | Overweight | Maintain | Nov 4, 2024 |
| Morgan Stanley | Equal Weight | Equal Weight | Maintain | Feb 15, 2023 |
| Credit Suisse | Outperform | Outperform | Maintain | Feb 24, 2021 |
| SunTrust Robinson Humphrey | Buy | Buy | Maintain | Apr 14, 2020 |
| Stifel Nicolaus | Buy | Hold | Upgrade | Mar 2, 2020 |
| Citi | Neutral | Buy | Downgrade | Jul 9, 2019 |
| Argus | Buy | Buy | Maintain | Oct 29, 2018 |
| Vertical Research | Buy | Buy | Maintain | Mar 17, 2017 |
| Oppenheimer | Outperform | Outperform | Maintain | Dec 6, 2016 |
| Deutsche Bank | Hold | Hold | Maintain | Feb 23, 2016 |
| Drexel Hamilton | Buy | Hold | Upgrade | Nov 2, 2015 |
| BB&T Capital | Buy | Hold | Upgrade | Oct 29, 2015 |
Named analyst price targets
Upside is calculated against the persisted previous close $112.41. FMP does not supply a rating on these named-analyst rows.
| Firm | Analyst | 52W target | Price when posted | Upside | Date |
|---|---|---|---|---|---|
| Goldman Sachs | Analyst unavailable | $152 | $106.58 | +35.2% | Jul 14, 2026 |
| Truist Financial | Tobey Sommer | $160 | $106.24 | +42.3% | Jul 10, 2026 |
| Jefferies | Analyst unavailable | $110 | $104.81 | -2.1% | Jul 1, 2026 |
| Wells Fargo | Analyst unavailable | $125 | $113.58 | +11.2% | Jun 17, 2026 |
| Jefferies | Sheila Kahyaoglu | $140 | $126.82 | +24.5% | Jun 3, 2026 |
| BNP Paribas | Analyst unavailable | $165 | $131.78 | +46.8% | May 27, 2026 |
| Jefferies | Analyst unavailable | $185 | $160.64 | +64.6% | Apr 8, 2026 |
| Jefferies | Sheila Kahyaoglu | $215 | $173.5 | +91.3% | Feb 23, 2026 |
| RBC Capital | Ken Herbert | $215 | $164.41 | +91.3% | Feb 18, 2026 |
| Robert W. Baird | Analyst unavailable | $195 | $166.2 | +73.5% | Feb 18, 2026 |
| Stifel Nicolaus | Analyst unavailable | $205 | $161.53 | +82.4% | Feb 18, 2026 |
| UBS | Analyst unavailable | $204 | $190.13 | +81.5% | Jan 15, 2026 |
| Stifel Nicolaus | Jonathan Siegmann | $220 | $196.61 | +95.7% | Jan 7, 2026 |
| RBC Capital | Analyst unavailable | $230 | $195.59 | +104.6% | Nov 5, 2025 |
| UBS | Gavin Parsons | $216 | $199.22 | +92.2% | Nov 5, 2025 |
| Truist Financial | Analyst unavailable | $220 | $201.57 | +95.7% | Nov 4, 2025 |
| Cantor Fitzgerald | Analyst unavailable | $225 | $192.09 | +100.2% | Oct 31, 2025 |
| Truist Financial | Tobey Sommer | $195 | $185.61 | +73.5% | Sep 30, 2025 |
| RBC Capital | Ken Herbert | $210 | $177.71 | +86.8% | Sep 3, 2025 |
| Stifel Nicolaus | Analyst unavailable | $178 | $150.67 | +58.3% | Jun 23, 2025 |
| UBS | Gavin Parsons | $168 | $154.75 | +49.5% | May 7, 2025 |
| UBS | Gavin Parsons | $182 | $165.4 | +61.9% | Dec 2, 2024 |
| Goldman Sachs | Noah Poponak | $228 | $185.86 | +102.8% | Oct 29, 2024 |
| Truist Financial | Tobey Sommer | $205 | $185.83 | +82.4% | Oct 29, 2024 |
| Citigroup | Jason Gursky | $194 | $167.67 | +72.6% | Oct 10, 2024 |
| RBC Capital | Ken Herbert | $145 | $144.28 | +29.0% | Jul 31, 2024 |
| Stifel Nicolaus | Bert Subin | $170 | $145.98 | +51.2% | Jul 30, 2024 |
| Stifel Nicolaus | Bert Subin | $165 | $146.57 | +46.8% | Jun 24, 2024 |
| RBC Capital | Ken Herbert | $140 | $144.58 | +24.5% | Jun 13, 2024 |
| Barclays | David Strauss | $160 | $141.67 | +42.3% | May 6, 2024 |
| Robert W. Baird | Peter Arment | $180 | $140.22 | +60.1% | May 1, 2024 |
| Barclays | David Strauss | $130 | $110.17 | +15.6% | Jan 8, 2024 |
| Morgan Stanley | Analyst unavailable | $111 | $104.71 | -1.3% | Jan 3, 2023 |
| Morgan Stanley | Analyst unavailable | $112 | $107.32 | -0.4% | Dec 14, 2022 |
| Citigroup | Analyst unavailable | $130 | $109.57 | +15.6% | Dec 8, 2022 |
| RBC Capital | Ken Herbert | $112 | $110.35 | -0.4% | Dec 2, 2022 |
| RBC Capital | Ken Herbert | $106 | $96.32 | -5.7% | Aug 30, 2022 |
| Morgan Stanley | Analyst unavailable | $110 | $99.57 | -2.1% | Aug 3, 2022 |
| Wells Fargo | Analyst unavailable | $105 | $100.48 | -6.6% | Aug 3, 2022 |
| Wells Fargo | Analyst unavailable | $109 | $103.43 | -3.0% | May 4, 2022 |
| Cowen & Co. | Cai von Rumohr | $105 | $88.72 | -6.6% | Feb 16, 2022 |
| Barclays | Colin Canfield | $110 | $89.07 | -2.1% | Feb 6, 2022 |
| Capital One Financial | Jonathan Raviv | $120 | $101.27 | +6.8% | May 20, 2021 |
Track every rating change on LDOS the moment it posts. Free to start.
Start freeMarket reaction
prior-close to event-session close
Stock move
-7.8%
Event window
SPY move
+0.8%
Same window
Abnormal move
-8.6%
Stock minus SPY
Volume
2.5×
Versus trailing sessions
Subsequent drift
-9.4%
Up to 20 sessions
LDOSSPY benchmark
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Try FN2 freeTranscript intelligence
What changed
Q1 results exceeded consensus on both revenue ($4.4B vs $4.28B est) and EPS ($3.13 vs $2.90 est), prompting an upward revision to 2026 guidance for revenue, non-GAAP EPS, and operating cash flow. The Entrust Solutions Group acquisition closed in just two months, faster than typical industry timelines, with management identifying a $10B order pipeline and 1-2 year turnover. New high-profile defense contract wins include the AGM-190A small cruise missile, Seahawk MUSV for the Navy, and a $456M Military OneSource award in Managed Health. Strategic moves expanded with a $100M venture investment in a private-equity firm targeting AI, cyber, and autonomy startups, plus a joint venture with Analogic for the SES business. Bullish score rose from 78 to 88 as management expressed greater confidence in the NorthStar 2030 strategy and AI integration across all five business pillars.
Guidance delta
Management raised 2026 guidance for revenue, non-GAAP EPS, and operating cash flow, building on the prior quarter's initial outlook of modest revenue growth (up to 4%), mid-13% EBITDA margin, and EPS of $12.05-$12.45. Q1's 14% EBITDA margin came in above the full-year target. However, management explicitly flagged Q2 as an expected low point for revenue and margin before a back-half recovery, driven by fixed-price defense program dynamics.
Key takeaways
- Q1 revenue and profitability exceeded expectations, prompting an upward revision to 2026 guidance
- Defense segment secured new high-profile contracts, including the AGM-190A missile and Navy MUSV programs
- Managed Health grew through the $456M Military OneSource award and AI-driven My Service Treatment Record pilot
- AI is positioned as a growth accelerator, not a disruptor, across all business pillars
- Strategic acquisitions (Entrust, Kudu) and a joint venture with Analogic are expected to unlock significant pipeline value
Management priorities
- Execute NorthStar 2030 strategy with accelerated AI tool deployment (Skywire)
- Scale Entrust and energy services to capture the $10B order pipeline
- Pursue additional defense framework and accelerated procurement agreements
- Expand managed health digital platforms and rural veteran services
- Develop and commercialize the Canadian battery storage facility design
Related earnings events
TechnologySources
- Earnings call transcript and parsed analysis · 2026-05-11T10:29:34.698584+00:00
- FN2 earnings calendar · 2026-07-26T00:37:12.209961+00:00
- Polygon adjusted daily market bars · 2026-07-31T10:12:50.069482+00:00
- Financial Modeling Prep analyst price-target consensus and quote snapshot · 2026-07-31T10:12:50.065501+00:00
Methodology
Reported and consensus figures come from FN2's earnings event records. Market reaction and volume are calculated from daily adjusted bars around the event; abnormal move subtracts the SPY move over the same window.
Analyst target low, average, and high values are derived at request time from each named analyst's latest persisted FMP target. The current-price marker comes from FN2's persisted market snapshot. They are sell-side estimates, not an FN2 valuation or recommendation.
Transcript intelligence is a structured synthesis of the current and prior earnings-call analyses. Missing values stay missing and are never estimated.
By FN2 Research · Updated . For educational purposes only; not investment advice.