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The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
#1 (Strong Buy) stocks have produced an unmatched +23.94% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Leidos (LDOS - Free Report) Founded in 1969, Delaware-based Leidos Holdings, Inc. is a global science and technology leader that serves the defense, intelligence, civil and health markets. Its core capabilities include providing solutions in the fields of cybersecurity; data analytics; enterprise IT modernization; operations and logistics; sensors, collection and phenomenology; software development; and systems engineering.
LDOS is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
Momentum investors should take note of this Computer and Technology stock. LDOS has a Momentum Style Score of B, and shares are up 10.3% over the past four weeks.
For fiscal 2026, three analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.05 to $12.30 per share. LDOS boasts an average earnings surprise of +13.8%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, LDOS should be on investors' short list.
In the latest trading session, Leidos (LDOS - Free Report) closed at $104.92, marking a -1.96% move from the previous day. The stock fell short of the S&P 500, which registered a gain of 0.89% for the day. Elsewhere, the Dow saw an upswing of 0.74%, while the tech-heavy Nasdaq appreciated by 1.29%.
Coming into today, shares of the security and engineering company had gained 2.08% in the past month. In that same time, the Computer and Technology sector lost 6.6%, while the S&P 500 lost 0.63%.
Market participants will be closely following the financial results of Leidos in its upcoming release. The company plans to announce its earnings on August 4, 2026. The company is expected to report EPS of $2.9, down 9.66% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.36 billion, up 2.55% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $12.3 per share and revenue of $18.12 billion. These totals would mark changes of +2.59% and +5.53%, respectively, from last year.
Any recent changes to analyst estimates for Leidos should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.41% higher. Leidos presently features a Zacks Rank of #3 (Hold).
Looking at its valuation, Leidos is holding a Forward P/E ratio of 8.7. This indicates a discount in contrast to its industry's Forward P/E of 12.98.
Investors should also note that LDOS has a PEG ratio of 1.57 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Computers - IT Services stocks are, on average, holding a PEG ratio of 0.99 based on yesterday's closing prices.
The Computers - IT Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 68, putting it in the top 28% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Leidos (LDOS - Free Report) Founded in 1969, Delaware-based Leidos Holdings, Inc. is a global science and technology leader that serves the defense, intelligence, civil and health markets. Its core capabilities include providing solutions in the fields of cybersecurity; data analytics; enterprise IT modernization; operations and logistics; sensors, collection and phenomenology; software development; and systems engineering.
LDOS is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
Additionally, the company could be a top pick for growth investors. LDOS has a Growth Style Score of A, forecasting year-over-year earnings growth of 2.6% for the current fiscal year.
Three analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.05 to $12.30 per share. LDOS also boasts an average earnings surprise of +13.8%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, LDOS should be on investors' short list.
California Public Employees Retirement System trimmed its holdings in Leidos Holdings, Inc. (NYSE:LDOS – Free Report) by 2.6% in the 1st quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 374,509 shares of the aerospace company’s stock after selling 9,816 shares during the quarter. California Public Employees Retirement System owned approximately 0.30% of Leidos worth $58,244,000 as of its most recent SEC filing.
Other institutional investors have also added to or reduced their stakes in the company. Longview Financial Advisors Inc. bought a new position in shares of Leidos during the 1st quarter valued at about $26,000. JFS Wealth Advisors LLC grew its position in shares of Leidos by 77.6% during the fourth quarter. JFS Wealth Advisors LLC now owns 151 shares of the aerospace company’s stock valued at $27,000 after purchasing an additional 66 shares in the last quarter. Hantz Financial Services Inc. increased its holdings in shares of Leidos by 94.7% in the fourth quarter. Hantz Financial Services Inc. now owns 148 shares of the aerospace company’s stock worth $27,000 after purchasing an additional 72 shares during the last quarter. Hilton Head Capital Partners LLC bought a new stake in Leidos in the 4th quarter worth approximately $28,000. Finally, Rakuten Securities Inc. raised its holdings in shares of Leidos by 110.5% during the 4th quarter. Rakuten Securities Inc. now owns 160 shares of the aerospace company’s stock worth $29,000 after acquiring an additional 84 shares in the last quarter. 76.12% of the stock is owned by hedge funds and other institutional investors.
Analyst Upgrades and Downgrades Several equities analysts have commented on the stock. Argus upgraded shares of Leidos to a “strong-buy” rating in a research report on Tuesday, March 31st. TD Cowen lowered their price objective on Leidos from $160.00 to $115.00 and set a “hold” rating for the company in a research note on Tuesday, July 7th. Truist Financial dropped their target price on Leidos from $195.00 to $160.00 and set a “buy” rating for the company in a report on Friday, July 10th. Stifel Nicolaus cut their price objective on shares of Leidos from $205.00 to $193.00 and set a “hold” rating on the stock in a research report on Wednesday, May 6th. Finally, Citigroup reduced their target price on shares of Leidos from $178.00 to $138.00 and set a “buy” rating on the stock in a research note on Wednesday, July 1st. One equities research analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating and ten have given a Hold rating to the stock. According to data from MarketBeat, the company presently has an average rating of “Hold” and an average price target of $163.80.
Check Out Our Latest Stock Analysis on Leidos
Leidos Price Performance Shares of LDOS stock opened at $106.51 on Monday. The company has a market capitalization of $13.40 billion, a P/E ratio of 9.75, a P/E/G ratio of 1.56 and a beta of 0.54. The company’s 50-day simple moving average is $116.09 and its two-hundred day simple moving average is $152.00. Leidos Holdings, Inc. has a one year low of $98.86 and a one year high of $205.77. The company has a debt-to-equity ratio of 1.19, a current ratio of 1.40 and a quick ratio of 1.29.
Leidos (NYSE:LDOS – Get Free Report) last announced its quarterly earnings results on Tuesday, May 5th. The aerospace company reported $3.13 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.88 by $0.25. Leidos had a return on equity of 31.92% and a net margin of 8.15%.The firm had revenue of $4.40 billion during the quarter, compared to analyst estimates of $4.28 billion. During the same quarter in the previous year, the business earned $2.97 earnings per share. Leidos’s quarterly revenue was up 3.7% on a year-over-year basis. Leidos has set its FY 2026 guidance at 12.100-12.500 EPS. As a group, equities analysts anticipate that Leidos Holdings, Inc. will post 12.3 EPS for the current year.
Leidos Dividend Announcement The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, June 30th. Stockholders of record on Monday, June 15th were paid a dividend of $0.43 per share. The ex-dividend date was Monday, June 15th. This represents a $1.72 dividend on an annualized basis and a dividend yield of 1.6%. Leidos’s dividend payout ratio (DPR) is currently 15.75%.
Insider Transactions at Leidos In related news, Director Gary Stephen May sold 1,484 shares of Leidos stock in a transaction that occurred on Thursday, May 7th. The shares were sold at an average price of $132.75, for a total transaction of $197,001.00. Following the transaction, the director directly owned 10,137 shares of the company’s stock, valued at $1,345,686.75. This trade represents a 12.77% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. 0.77% of the stock is currently owned by insiders.
Leidos Company Profile (Free Report)
Leidos is an American technology and engineering company that provides services and solutions to government and commercial customers, with a strong focus on national security, defense, intelligence, and civil government markets. The company delivers systems integration, engineering, cybersecurity, software development, data analytics, cloud migration and managed IT services, as well as mission support for complex programs. Leidos’ work spans areas such as C4ISR (command, control, communications, computers, intelligence, surveillance and reconnaissance), secure communications, sensors and systems engineering, and health IT solutions for public-sector healthcare programs.
Leidos traces its corporate roots to Science Applications International Corporation (SAIC) and emerged as an independent, publicly traded company following a corporate separation in 2013.
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, /PRNewswire/ -- Leidos (NYSE: LDOS) and DHL Supply Chain have formed a strategic alliance to bring integrated, resilient and scalable logistics capabilities aligned to the UK Ministry of Defence's (MOD) Future Defence Support Services (FDSS) programme.
Operating as the Logistics & Mission Support Alliance as part of a competitive contract bidding process, the partnership brings together Leidos' Defence integration expertise and DHL's global logistics scale and operational capability in support of the MOD's future Defence logistics requirements. If successful, the alliance would help modernise Defence logistics, strengthen readiness, improve resilience and provide more agile support to the UK's Armed Forces.
Purpose built for complex and contested environments, the alliance will operate as a single, integrated team, drawing on global networks, proven infrastructure and surge capacity to keep Defence operations moving through disruption. By maintaining continuity of supply and enabling rapid recovery, the alliance will help ensure the Armed Forces have the support they need, when and where they need it.
The alliance will also draw on advanced technologies, including artificial intelligence, data analytics and automation to help optimise logistics operations and enhance visibility across demand, inventory and assets. This approach is intended to support more informed decision-making and strengthen operational effectiveness.
Adam Clarke, Chief Executive Officer, Leidos UK & Europe, said:
"Leidos and DHL bring together proven delivery expertise and complementary strengths to transform how Defence logistics is delivered. Through this alliance, we are aligning capability, data and decision-making to enable faster, more resilient and more precise support to the UK's Armed Forces.
By combining advanced technologies with deep operational experience, we will strengthen readiness, improve visibility and deliver the agility Defence needs to respond with confidence in an increasingly complex and contested environment."
Martin Willmor, Chief Executive Officer, DHL Supply Chain UK&I, said:
"The FDSS programme presents an opportunity to modernise support of UK Defence at a time of increasing operational complexity.
DHL brings global logistics scale, advanced digital capabilities and proven operational leadership, and by working in partnership with Leidos, we aim to enable a more integrated, resilient and responsive supply chain that helps the MOD maximise its strategic advantage."
About Leidos
Leidos is an industry and technology leader serving government and commercial customers with smarter, more efficient digital and mission innovations. Leidos UK & Europe is a leading partner to the UK and Scottish governments supporting national security, defence and logistics programmes, as well as serving key clients in transportation and energy. Headquartered in Reston, Virginia, with 50,000 global employees, Leidos reported annual revenues of approximately $17.2 billion for the fiscal year ended January 2, 2026. For more information, visit www.leidos.com.
About DHL
DHL is the leading global brand in the logistics industry. Our DHL divisions offer an unrivalled portfolio of logistics services ranging from national and international parcel delivery, e-commerce shipping and fulfilment solutions, international express, road, air and ocean transport to industrial supply chain management. With approximately 389,000 employees in more than 220 countries and territories worldwide, DHL connects people and businesses securely and reliably, enabling global sustainable trade flows. With specialized solutions for growth markets and industries including technology, life sciences and healthcare, engineering, manufacturing & energy, auto-mobility and retail, DHL is decisively positioned as "The logistics company for the world".
Certain statements in this announcement constitute "forward-looking statements" within the meaning of the rules and regulations of the U.S. Securities and Exchange Commission (SEC). These statements are based on management's current beliefs and expectations and are subject to significant risks and uncertainties. These statements are not guarantees of future results or occurrences. A number of factors could cause our actual results, performance, achievements, or industry results to be different from the results, performance, or achievements expressed or implied by such forward-looking statements. These factors include, but are not limited to, the "Risk Factors" set forth in Leidos' Annual Report on Form 10-K for the fiscal year ended January 2, 2026, and other such filings that Leidos makes with the SEC from time to time. Readers are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date hereof. Leidos does not undertake to update forward-looking statements to reflect the impact of circumstances or events that arise after the date the forward-looking statements were made.
Media Contact:
Victor Melara
Senior Media Relations Manager
703.431.4612
[email protected]
Leidos (LDOS - Free Report) closed at $108.21 in the latest trading session, marking a +1.55% move from the prior day. This change outpaced the S&P 500's 0.38% gain on the day. Meanwhile, the Dow experienced a rise of 0.29%, and the technology-dominated Nasdaq saw an increase of 0.62%.
Shares of the security and engineering company witnessed a loss of 6.18% over the previous month, trailing the performance of the Computer and Technology sector with its loss of 0.53%, and the S&P 500's gain of 1.61%.
Market participants will be closely following the financial results of Leidos in its upcoming release. The company plans to announce its earnings on August 4, 2026. The company is predicted to post an EPS of $2.9, indicating a 9.66% decline compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $4.39 billion, indicating a 3.21% growth compared to the corresponding quarter of the prior year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $12.3 per share and a revenue of $18.1 billion, indicating changes of +2.59% and +5.42%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for Leidos. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.41% upward. Leidos is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Leidos has a Forward P/E ratio of 8.66 right now. This denotes a discount relative to the industry average Forward P/E of 12.97.
It is also worth noting that LDOS currently has a PEG ratio of 1.56. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As of the close of trade yesterday, the Computers - IT Services industry held an average PEG ratio of 0.99.
The Computers - IT Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 79, this industry ranks in the top 33% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Leidos (LDOS - Free Report) Founded in 1969, Delaware-based Leidos Holdings, Inc. is a global science and technology leader that serves the defense, intelligence, civil and health markets. Its core capabilities include providing solutions in the fields of cybersecurity; data analytics; enterprise IT modernization; operations and logistics; sensors, collection and phenomenology; software development; and systems engineering.
LDOS is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 8.66; value investors should take notice.
Three analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.05 to $12.30 per share. LDOS boasts an average earnings surprise of +13.8%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, LDOS should be on investors' short list.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
, /PRNewswire/ -- Leidos (NYSE: LDOS) and Rune Technologies Inc. are partnering to help military organizations anticipate logistics requirements, improve resource availability, and strengthen mission readiness through AI-enabled predictive sustainment capabilities designed for contested and distributed operational environments.
The partnership combines Rune's AI-enabled predictive logistics and sustainment mission command software with Leidos' AI-enabled decision advantage and course-of-action generation capabilities to provide commanders with greater sustainment insight and decision support across contested environments, including the unique distance, time, scale and maritime challenges of the Indo-Pacific region.
"Sustaining forces across the vast distances of the Indo-Pacific requires the ability to understand logistics demand before it affects mission execution," said Jason McCarthy, Leidos senior vice president, Airborne & Mission Solutions. "Together with Rune, we're giving commanders the insight and decision support they need to improve logistics visibility and increase readiness in complex and dispersed operating areas, today, not years from now."
The partnership brings together complementary capabilities designed to help military organizations sustain operations where speed, distance and uncertainty can challenge readiness.
"Technology alone doesn't solve logistics challenges in the Indo-Pacific," said David Tuttle, Co-Founder & CEO of Rune Technologies. "Winning in this environment requires using technology to connect data across planning, decision-making, and execution in complex operational environments to enable sustainment at speed. By combining Rune's AI-enabled predictive logistics capabilities with Leidos' enterprise data integration expertise, we're helping commanders do exactly that."
The Leidos and Rune partnership reflects Leidos' NorthStar 2030 strategy and its focus on AI-enabled decision advantage, mission software and operational readiness, helping commanders anticipate sustainment requirements before they become mission challenges.
About Leidos
Leidos is an industry and technology leader serving government and commercial customers with smarter, more efficient digital and mission innovations. Headquartered in Reston, Virginia, with more than 50,000 global employees, Leidos reported annual revenues of approximately $17.2 billion for the fiscal year ended January 2, 2026. For more information, visit www.Leidos.com.
About Rune Technologies
Rune Technologies is revolutionizing military logistics through AI-enabled predictive software that operates in contested environments where communications are denied or degraded. Rune's TyrOS platform transforms manual logistics processes into intelligent supply webs that anticipate needs, optimize resources, and enable distributed operations at machine speed—even when supply lines are targeted by near-peer adversaries. Founded by veterans with deep operational experience and Silicon Valley engineering talent, Rune is ensuring military effectiveness through precise execution of critical logistics operations. For more information, visit runetech.co.
Certain statements in this announcement constitute "forward-looking statements" within the meaning of the rules and regulations of the U.S. Securities and Exchange Commission (SEC). These statements are based on management's current beliefs and expectations and are subject to significant risks and uncertainties. These statements are not guarantees of future results or occurrences. A number of factors could cause our actual results, performance, achievements, or industry results to be different from the results, performance, or achievements expressed or implied by such forward-looking statements. These factors include, but are not limited to, the "Risk Factors" set forth in Leidos' Annual Report on Form 10-K for the fiscal year ended January 2, 2026, and other such filings that Leidos makes with the SEC from time to time. Readers are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date hereof. Leidos does not undertake to update forward-looking statements to reflect the impact of circumstances or events that arise after the date the forward-looking statements were made.
Media Contacts:
Leidos
Brandon Ver Velde
(571) 526-6257
[email protected]
Leidos (LDOS - Free Report) closed the most recent trading day at $107.18, moving -1.28% from the previous trading session. This change lagged the S&P 500's daily loss of 0.28%. On the other hand, the Dow registered a loss of 1.09%, and the technology-centric Nasdaq increased by 0.2%.
Shares of the security and engineering company have depreciated by 12.1% over the course of the past month, underperforming the Computer and Technology sector's loss of 1.22%, and the S&P 500's gain of 1.64%.
Investors will be eagerly watching for the performance of Leidos in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on August 4, 2026. It is anticipated that the company will report an EPS of $2.91, marking a 9.35% fall compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $4.39 billion, indicating a 3.21% upward movement from the same quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $12.26 per share and a revenue of $18.08 billion, indicating changes of +2.25% and +5.28%, respectively, from the former year.
Investors might also notice recent changes to analyst estimates for Leidos. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.05% higher within the past month. At present, Leidos boasts a Zacks Rank of #3 (Hold).
Digging into valuation, Leidos currently has a Forward P/E ratio of 8.86. This expresses a discount compared to the average Forward P/E of 12.96 of its industry.
We can additionally observe that LDOS currently boasts a PEG ratio of 1.6. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. LDOS's industry had an average PEG ratio of 1.04 as of yesterday's close.
The Computers - IT Services industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 103, positioning it in the top 42% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
, /PRNewswire/ -- Leidos (NYSE: LDOS) today announced it has scheduled a conference call for Tuesday, August 4, 2026, at 8 a.m. (ET) to announce its second quarter 2026 financial results for the period ending July 3, 2026, with the company planning to issue its quarterly earnings press release before the call.
The details for the earnings conference call follow:
Date: August 4, 2026
Time: 8 a.m. (ET)
The company offers a live and replay audio broadcast of the conference call with corresponding press release, presentation materials, and supplemental information at http://ir.leidos.com. To listen via telephone, please follow this link.
An archived version of the webcast will be available on the Leidos Investor Relations website at http://ir.leidos.com until August 4, 2027.
About Leidos:
Leidos is an industry and technology leader serving government and commercial customers with smarter, more efficient digital and mission innovations. Headquartered in Reston, Virginia, with approximately 50,000 global employees, Leidos reported annual revenues of approximately $17.2 billion for the fiscal year ended January 2, 2026. For more information, visit www.leidos.com.
Media contact:
Brandon Ver Velde
571.526.6257
[email protected]
Investor Relations:
Stuart Davis
571.526.6124
[email protected]
Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering Leidos (LDOS - Free Report) , which belongs to the Zacks Computers - IT Services industry.
This security and engineering company has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was 8.04%.
For the most recent quarter, Leidos was expected to post earnings of $2.88 per share, but it reported $3.13 per share instead, representing a surprise of 8.68%. For the previous quarter, the consensus estimate was $2.57 per share, while it actually produced $2.76 per share, a surprise of 7.39%.
Price and EPS Surprise
Thanks in part to this history, there has been a favorable change in earnings estimates for Leidos lately. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the stock is positive, which is a great indicator of an earnings beat, particularly when combined with its solid Zacks Rank.
Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Leidos currently has an Earnings ESP of +4.81%, which suggests that analysts have recently become bullish on the company's earnings prospects. This positive Earnings ESP when combined with the stock's Zacks Rank #3 (Hold) indicates that another beat is possibly around the corner.
Investors should note, however, that a negative Earnings ESP reading is not indicative of an earnings miss, but a negative value does reduce the predictive power of this metric.
Many companies end up beating the consensus EPS estimate, though this is not the only reason why their shares gain. Additionally, some stocks may remain stable even if they end up missing the consensus estimate.
Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
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What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
#1 (Strong Buy) stocks have produced an unmatched +23.94% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Leidos (LDOS - Free Report) Founded in 1969, Delaware-based Leidos Holdings, Inc. is a global science and technology leader that serves the defense, intelligence, civil and health markets. Its core capabilities include providing solutions in the fields of cybersecurity; data analytics; enterprise IT modernization; operations and logistics; sensors, collection and phenomenology; software development; and systems engineering.
LDOS is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
Additionally, the company could be a top pick for growth investors. LDOS has a Growth Style Score of A, forecasting year-over-year earnings growth of 2.3% for the current fiscal year.
Two analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.00 to $12.26 per share. LDOS also boasts an average earnings surprise of +13.8%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, LDOS should be on investors' short list.
Key Takeaways Leidos combines stronger earnings visibility, AI-driven contract wins and a discounted valuation.BigBear.ai's backlog rose to $281.9M, but losses and uneven revenue keep its outlook speculative.Leidos raised guidance after Q1 revenues hit $4.4B and won major defense, cyber and AI contracts. Artificial intelligence is becoming increasingly important in defense, intelligence and homeland security, driving demand for companies that can deliver mission-critical software and advanced technologies. BigBear.ai Holdings, Inc. (BBAI - Free Report) and Leidos Holdings (LDOS - Free Report) are two companies benefiting from this trend, though they operate at very different scales.
BigBear.ai is a specialized defense AI company focused on national security applications, while Leidos is a diversified government technology leader with expanding AI capabilities across defense, cyber and digital modernization. Let's dive deep and closely compare the fundamentals of the two stocks to determine which one is a better investment now.
The Case for BigBear.ai StockBigBear.ai continues to evolve into a pure-play defense and security AI company focused on high-value government missions. Although first-quarter 2026 revenues declined 1% year over year to $34.4 million, the quality of revenue improved substantially. Gross margin expanded 1,278 basis points to 34% as higher-margin generative AI offerings from the Ask Sage acquisition became a larger contributor to sales. The company reaffirmed its 2026 revenue guidance of $135-$165 million, signaling confidence despite an uncertain federal spending environment.
Management is increasingly executing on its strategy of becoming a mission-ready AI provider. During the quarter, BigBear.ai secured approximately $75 million of notable contract wins, including a classified $53 million intelligence award, new Ask Sage deployments with NASA, the Army Intelligence and Security Command and the Naval Research Laboratory, as well as airport security contracts at Chicago O'Hare and Dallas-Fort Worth. These wins helped backlog increase 14% sequentially to $281.9 million while supporting a gradual shift from lower-margin services toward recurring software revenue.
The balance sheet has also strengthened considerably. Following the conversion of most of its convertible notes, BigBear.ai ended the quarter with $431.5 million in cash and investments while significantly lowering future interest expense. This provides financial flexibility to invest in product development and pursue strategic growth initiatives.
Nevertheless, the investment case still carries meaningful risk. Revenue growth remains inconsistent, adjusted EBITDA remains negative and profitability is likely to take time. The company also remains highly dependent on the timing of government contract awards and the successful commercialization of Ask Sage. While BigBear.ai possesses considerable long-term AI potential, investors still need evidence that improving margins can translate into sustainable earnings growth.
The Case for LDOS StockLeidos offers investors a much more diversified and financially proven defense technology platform. First-quarter 2026 revenues increased 4% year over year to $4.4 billion, while non-GAAP earnings per share (EPS) rose 5% to $3.13. Strong execution prompted management to raise its full-year revenues, earnings and operating cash flow guidance, reflecting confidence across its defense, intelligence, cyber and digital modernization businesses.
Artificial intelligence is becoming an increasingly important growth driver for Leidos. Under its NorthStar 2030 strategy, management continues investing across defense technology, mission software, cyber, managed health and digital infrastructure. During the quarter, Leidos secured an $869 million MACRO II contract for AI-enabled battlefield decision systems, more than $461 million of DISA cyber modernization awards, a $335 million NSA modernization contract and a $284 million SEC infrastructure modernization contract. These wins reinforce the company's leadership across mission-critical government technology programs.
Leidos is also strengthening its long-term growth profile through acquisitions and product expansion. The recently completed Entrust acquisition broadens its infrastructure capabilities, while management highlighted more than $9 billion of defense technology awards secured during the past 15 months, with another robust pipeline ahead. Combined with consistent profitability and healthy free cash flow generation, these initiatives position Leidos for steady long-term expansion.
The primary limitation is that Leidos' mature business model naturally delivers slower growth than emerging AI companies. Integration of acquisitions and dependence on government budget priorities also remain ongoing risks. However, these risks are considerably lower than those faced by smaller, less profitable AI companies.
Relative Market PerformanceNeither stock has rewarded investors this year despite growing defense AI spending. BigBear.ai shares have lost 33.3% year to date, while Leidos has plunged 44.4%. Both have underperformed the Zacks Computers - IT Services industry's 26.8% decline, as well as the broader Zacks Computer and Technology sector's 12.8% gain and the S&P 500's 7.3% advance.
BBAI vs LDOS Price Performance (YTD)
Image Source: Zacks Investment Research
Among peers, Palantir Technologies (PLTR - Free Report) stock has lost 34.9% YTD. Meanwhile, CACI International (CACI - Free Report) stock has delivered comparatively stronger performance, diping 14.3% YTD, supported by resilient defense spending and consistent execution across intelligence and national security contracts. Relative to these peers, BigBear.ai remains a higher-risk turnaround story, while Leidos' recent weakness appears disconnected from its underlying operational strength.
Valuation Favors LeidosThe two companies also trade at vastly different valuations. BigBear.ai currently trades at 11.19X forward 12-month sales, roughly in line with the Zacks Computers - IT Services industry average of 11.3X. Investors continue assigning a premium multiple based on expectations for future AI-driven growth despite the company's ongoing losses.
Leidos trades at only 0.69X forward sales despite generating consistent profits, strong cash flows and industry-leading government relationships. The valuation reflects its mature profile rather than deteriorating business fundamentals.
BBAI vs LDOS Valuation (P/S F12M)
Image Source: Zacks Investment Research
Among peers, Palantir continues to command one of the richest valuation multiples at 29.87X in the software sector because of its rapid AI-driven expansion and premium growth outlook. CACI trades at 0.96X amid its stable defense business and predictable profitability. Compared with both peers, Leidos appears attractively valued, whereas BigBear.ai already reflects significant optimism regarding future execution.
Earnings Outlook Continues to ImproveAnalysts have become more constructive on both companies, although the quality of revisions differs. Over the past 60 days, the Zacks Consensus Estimate for BigBear.ai's 2026 loss has improved to 25 cents per share from a loss of 35 cents. Analysts expect revenues to grow 13% this year, followed by another 13.7% increase in 2027. Losses are expected to narrow further to 19 cents per share in 2027, reflecting continued benefits from higher-margin AI software revenue.
BBAI Estimate
Image Source: Zacks Investment Research
Leidos has seen modest but positive estimate revisions. Over the past 30 days, the Zacks Consensus Estimate for 2026 EPS increased to $12.26 from $12.25. Earnings are expected to grow 2.3% this year and another 5.4% in 2027, while revenues are projected to increase 4.7% in 2026 and 4.8% in 2027. Although Leidos is unlikely to deliver explosive growth, its earnings trajectory remains significantly more predictable.
LDOS Estimate
Image Source: Zacks Investment Research
Which Stock Has Better Upside Potential?BigBear.ai offers investors exposure to one of the fastest-growing areas of defense spending. The company's expanding generative AI portfolio, improving backlog, strengthening balance sheet and transition toward higher-margin software create an attractive long-term growth story. However, persistent operating losses, uneven revenue growth and execution risks make the investment speculative at current levels. BBAI presently carries a Zacks Rank #4 (Sell).
Leidos presents a more balanced investment opportunity. The company combines consistent earnings growth, expanding AI capabilities, rising guidance, strong contract momentum and one of the most attractive valuations among major government technology contractors. While its growth rate is more moderate than BigBear.ai's, its diversified business model, superior profitability and stronger earnings visibility make it the more compelling investment today.
Overall, Leidos appears to offer better upside potential. Its combination of improving fundamentals, discounted valuation, expanding AI-driven defense opportunities and substantially lower execution risk outweighs BigBear.ai's higher-growth but more uncertain outlook. The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.
The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Leidos (LDOS - Free Report) Founded in 1969, Delaware-based Leidos Holdings, Inc. is a global science and technology leader that serves the defense, intelligence, civil and health markets. Its core capabilities include providing solutions in the fields of cybersecurity; data analytics; enterprise IT modernization; operations and logistics; sensors, collection and phenomenology; software development; and systems engineering.
LDOS is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 8.3; value investors should take notice.
Two analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.00 to $12.26 per share. LDOS boasts an average earnings surprise of +13.8%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, LDOS should be on investors' short list.
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Leidos (LDOS - Free Report) ended the recent trading session at $101.76, demonstrating a +1.76% change from the preceding day's closing price. This change outpaced the S&P 500's 0.05% loss on the day. Meanwhile, the Dow experienced a drop of 0.09%, and the technology-dominated Nasdaq saw a decrease of 0.24%.
Shares of the security and engineering company witnessed a loss of 24.01% over the previous month, trailing the performance of the Computer and Technology sector with its loss of 2.81%, and the S&P 500's loss of 1.42%.
Market participants will be closely following the financial results of Leidos in its upcoming release. The company's earnings per share (EPS) are projected to be $2.94, reflecting a 8.41% decrease from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $4.36 billion, up 2.62% from the prior-year quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $12.25 per share and a revenue of $17.98 billion, signifying shifts of +2.17% and +4.7%, respectively, from the last year.
Any recent changes to analyst estimates for Leidos should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Currently, Leidos is carrying a Zacks Rank of #3 (Hold).
From a valuation perspective, Leidos is currently exchanging hands at a Forward P/E ratio of 8.16. This denotes a discount relative to the industry average Forward P/E of 12.19.
We can additionally observe that LDOS currently boasts a PEG ratio of 1.47. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Computers - IT Services stocks are, on average, holding a PEG ratio of 1.09 based on yesterday's closing prices.
The Computers - IT Services industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 162, positioning it in the bottom 34% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
Partnership helps agencies improve access to trusted data without rebuilding systems
, /PRNewswire/ -- Federal agencies are under pressure to deliver faster insights, stronger governance, and capabilities to support AI and analytics, but critical data often remains trapped across disconnected systems. Leidos (NYSE: LDOS) and The Modern Data Company are partnering to help agencies connect, organize and apply that data without major system overhauls.
The collaboration brings DataOS®, Modern Data's AI-native data operating system, into Leidos' HeadWay Mission OS™ — a modular AI platform built to enable agencies to unify data, generate insights and automate complex missions. Rather than replacing existing platforms, DataOS adds a secure layer that links data between cloud and on-premise systems, giving customers a consistent way to access and use it.
Leidos uses the integrated solution to help agencies turn fragmented data from disconnected environments into secure, reusable data products that teams can quickly put to work for AI and analysis. Built on open standards, the approach helps agencies create a more unified view of data while shortening implementation timelines. It also applies consistent rules, tracking and controls so data stays secure, compliant and reliable.
"Our customers need results now," said Rob Linger, vice president, Information Advantage Practice at Leidos. "This partnership gives agencies a practical path to becoming AI-ready without waiting years for migration projects to be completed. We're helping them unlock data that's been difficult to access and use while protecting the systems that already work."
Leidos will embed DataOS at the core of HeadWay Mission OS™ to power repeatable mission solutions and shorten development cycles.
"Government agencies and enterprises don't need to replace their infrastructure to apply AI at scale," said Saurabh Gupta, president and CEO of The Modern Data Company. "This partnership with Leidos brings DataOS into mission-critical environments where it can activate data across legacy systems, accelerating AI deployment while reducing risk and cost."
Recent research highlights the urgency. The Modern Data Report 2026 found that 68% of data practitioners say their data isn't reliable enough for AI use cases, and 89% say finding the right data is among their most time-consuming tasks. The partnership addresses these challenges by simplifying access, strengthening governance and creating a trusted foundation for AI.
This partnership advances Leidos' NorthStar 2030 strategy to deliver secure, scalable digital modernization for government and commercial customers.
About Leidos
Leidos is an industry and technology leader serving government and commercial customers with smarter, more efficient digital and mission innovations. Headquartered in Reston, Virginia, with 50,000 global employees, Leidos reported annual revenues of approximately $17.2 billion for the fiscal year ended January 2, 2026. For more information, visit www.Leidos.com.
About The Modern Data Company
The Modern Data Company is redefining data management for the AI era. The company's flagship platform, DataOS, serves as the foundational analytics and AI-ready data layer for any data stack. This unified platform gives enterprises the ability to build and deploy data products, simplify data management, and optimize data costs. DataOS frees teams to focus on driving real value from data, accelerating the journey to becoming a truly data-driven and AI-enabled organization. For more information, visit www.themoderndatacompany.com.
Certain statements in this announcement constitute "forward-looking statements" within the meaning of the rules and regulations of the U.S. Securities and Exchange Commission (SEC). These statements are based on management's current beliefs and expectations and are subject to significant risks and uncertainties. These statements are not guarantees of future results or occurrences. A number of factors could cause our actual results, performance, achievements, or industry results to be different from the results, performance, or achievements expressed or implied by such forward-looking statements. These factors include, but are not limited to, the "Risk Factors" set forth in Leidos' Annual Report on Form 10-K for the fiscal year ended January 2, 2026, and other such filings that Leidos makes with the SEC from time to time. Readers are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date hereof. Leidos does not undertake to update forward-looking statements to reflect the impact of circumstances or events that arise after the date the forward-looking statements were made.
Media Contacts
Leidos
Brandon Ver Velde
(571) 926-1627
[email protected]
The Modern Data Company
Ryan Quintana
(925) 207-2369
[email protected]
Leidos (LDOS - Free Report) ended the recent trading session at $104.84, demonstrating a -2.13% change from the preceding day's closing price. This move lagged the S&P 500's daily loss of 0.37%. Elsewhere, the Dow saw an upswing of 0.29%, while the tech-heavy Nasdaq depreciated by 1.33%.
Prior to today's trading, shares of the security and engineering company had lost 14.99% lagged the Computer and Technology sector's gain of 4.52% and the S&P 500's gain of 2.02%.
The investment community will be closely monitoring the performance of Leidos in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $2.94, reflecting a 8.41% decrease from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $4.36 billion, up 2.62% from the prior-year quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $12.25 per share and a revenue of $17.98 billion, indicating changes of +2.17% and +4.7%, respectively, from the former year.
Investors should also take note of any recent adjustments to analyst estimates for Leidos. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Leidos is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, Leidos is holding a Forward P/E ratio of 8.74. Its industry sports an average Forward P/E of 12.73, so one might conclude that Leidos is trading at a discount comparatively.
One should further note that LDOS currently holds a PEG ratio of 1.58. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. LDOS's industry had an average PEG ratio of 1.11 as of yesterday's close.
The Computers - IT Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 165, this industry ranks in the bottom 33% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
The Leidos Holdings Analyst: Analyst Mariana Perez Mora downgraded the rating from Buy to Neutral, while cutting the price target from $200 to $125.
The Leidos Holdings Thesis: Leidos is an American defense, aviation, information technology and biomedical research company.
The company booked awards worth $8 billion over the past 15 months, and management projected awards of $9 billion more in the next 12 months, but growth continues to "get deferred," Mora said in the downgrade note.
Check out other analyst stock ratings.
Headwinds from certain programs winding down could offset Leidos Holdings' overall growth for the next couple of years, the analyst stated. So, while the company's defense portfolio does present opportunities, investors are unlikely to price in their full value until results begin to materialize, she added.
Leidos Holdings' managed health care business had been a "standout performer," the analyst noted. She added, however, that there is downward pressure in the near term from:
DHMSM (Defense Healthcare Management System Modernization) is winding down and DHA (Defense Health Agency) is still trying to work directly with suppliers MDE (Medical Disability Exams) is up for recompete, weighing on the company's market share and pricing power "While we anticipate LDOS will be able to leverage its existing capabilities and network to win business in managed health (like recent Military OneSource), increasing competition in the health care sector limits future upside," Mora further wrote.
LDOS Price Action: Shares of Leidos Holdings had declined by 2.94% to $110.24 at the time of publication on Wednesday.
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After trading flat last week, Leidos (LDOS 1.43%) moved notably lower this week. With a firm downwardly revising its price target on the software stock, investors felt compelled to click the sell button.
According to data provided by S&P Global Market Intelligence, shares of Leidos fell 11% from the end of trading last Friday through the close of today's market session.
Image source: Getty Images.
This company's healthcare business isn't as healthy as previously thought Downgrading it to neutral from buy, Bank of America cut the price target on Leidos stock to $125 from $200 on Wednesday. According to Thefly.com, Bank of America based its decision to lower expectations on Leidos stock on the belief that pressure is building on its "once blooming" healthcare portfolio.
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While Bank of America recognizes that the company's managed healthcare business has been a strong suit, the firm believes the Defense Health Agency, a combat support agency of the U.S. Department of Defense that integrates healthcare services for several military branches, is now focused on working directly with suppliers in the Defense Healthcare Management System Modernization program. As a result, Leidos's healthcare portfolio will now see increased pressure.
Based on Leidos shares closing at $113.58 on Tuesday, the Bank of America price target implies upside of 10%.
Is Leidos stock a buying opportunity after its recent drop? Highly profitable and debt-free, Leidos is in impressive financial health. While Bank of America's concerns are notable, the market's reaction this week seems excessive. With shares of Leidos trading at 10 times trailing earnings, a discount to their five-year average P/E of 20.6, now seems like a great time to consider a position in the tech stock.
Bank of America is an advertising partner of Motley Fool Money. Scott Levine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Leidos. The Motley Fool has a disclosure policy.
The blockbuster initial public offering (IPO) for Space Exploration Technologies (a.k.a. SpaceX) has sent shockwaves through the market, turning it into a multitrillion-dollar giant. That historic debut triggered a temporary liquidity vacuum, with some investors selling off smaller aerospace positions to fund their SpaceX orders, but it ultimately validated the huge scale of the modern space economy.
With SpaceX having a premium valuation that leaves almost zero room for error, the smarter risk-reward plays often lie in the crucial infrastructure and defense partners supporting this boom. Here are three compelling reasons to buy Rocket Lab (RKLB 0.53%) and Leidos (LDOS 1.43%) in a post-SpaceX IPO world:
Image source: Getty Images.
The valuation arbitrage: Buying growth at a discount SpaceX has captured the world's attention, but at an astronomical multitrillion-dollar valuation, it has to execute flawlessly just to justify its share price. Doubling your money requires it to reach more than $5 trillion in market value, an incredibly high bar.
Rocket Lab is a space stock with huge potential at a fraction of its market capitalization. It's pulling in record revenue, with $200 million in the first quarter alone, up more than 63% year over year, and has a backlog of $2.2 billion.
The stock gives you an entry into an established, rapidly growing player where operational execution can still yield asymmetric, exponential returns.
Leidos is an even better value, trading at less than 11 times trailing earnings. It is growing revenue more slowly, though, with $4.4 billion in the first quarter, up 4% over the same period last year, but it has a huge backlog of $48.4 billion.
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Rocket Lab's Neutron rocket will lift the stock Until now, SpaceX has dominated the medium-to-heavy commercial launch market with the Falcon 9. But commercial operators, constellation builders, and government agencies desperately want a reliable backup to break that monopoly.
Rocket Lab's highly anticipated medium-lift reusable rocket, the Neutron, is slated for its debut late this year. It will immediately scale up Rocket Lab's payload capacity to 13,000 kilograms (just under 28,700 pounds or 14.3 tons), allowing it to compete directly for the high-margin national security and deep-space missions currently monopolized by SpaceX. The company has already locked in a five-launch deal for the Neutron before it even leaves the pad.
Leidos' single largest financial footprint in space operations is the contract for Advanced Enterprise Global Information Technology Solutions (AEGIS), a 10-year deal that it landed in 2021 with NASA. With the contract valued at up to $2.5 billion, Leidos manages the entire telecommunications, cloud, data center, and cybersecurity infrastructure that connects all NASA centers, enabling the data transmission necessary for deep-space exploration and tracking.
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Both space companies are crucial pick-and-shovel plays Launches grab the headlines, but the real recurring money in the trillion-dollar space economy comes from satellite manufacturing, software, payload integration, and cybersecurity.
More than half of Rocket Lab's revenue actually comes from its thriving Space Systems segment. It builds the solar arrays, flight software, and components that power other companies' satellites. It is also building 18 whole satellites for the U.S. Space Development Agency.
As a premier defense tech contractor, Leidos handles complex data processing, ground control software, and cybersecurity networks that enable space assets to operate for the Pentagon and civil agencies.
As SpaceX dramatically lowers the cost of reaching orbit, the volume of satellites in space will explode. Investors should buy Rocket Lab and Leidos because they provide the essential infrastructure and data systems required to support that huge influx of hardware.
Don't chase the herd into a crowded, expensive megacap IPO. The secondary market sell-off has created a fantastic entry point to accumulate the nimble operators and defense staples that keep the space economy running.
Leidos (LDOS - Free Report) closed at $114.60 in the latest trading session, marking a -6.19% move from the prior day. The stock fell short of the S&P 500, which registered a gain of 1.65% for the day. Elsewhere, the Dow gained 0.92%, while the tech-heavy Nasdaq added 3.07%.
The stock of security and engineering company has fallen by 1.24% in the past month, lagging the Computer and Technology sector's gain of 0.33% and the S&P 500's gain of 0.48%.
Analysts and investors alike will be keeping a close eye on the performance of Leidos in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $2.94, reflecting a 8.41% decrease from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.36 billion, up 2.62% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $12.25 per share and revenue of $17.98 billion, indicating changes of +2.17% and +4.7%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Leidos. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. As of now, Leidos holds a Zacks Rank of #3 (Hold).
From a valuation perspective, Leidos is currently exchanging hands at a Forward P/E ratio of 9.97. This valuation marks a discount compared to its industry average Forward P/E of 14.15.
We can additionally observe that LDOS currently boasts a PEG ratio of 1.55. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Computers - IT Services industry had an average PEG ratio of 1.16.
The Computers - IT Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 180, placing it within the bottom 27% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
Key Takeaways LDOS posted Q1 non-GAAP EPS of $3.13 and revenues of $4.40B, beating consensus estimates.Backlog ended at $48.4B, led by Intelligence & Digital at $19.34B and Defense at $12.59B.LDOS raised 2026 guidance to $18.0-$18.4B revenues and $12.10-$12.50 non-GAAP EPS. Leidos Holdings, Inc. (LDOS - Free Report) reported first-quarter 2026 non-GAAP earnings of $3.13 per share, beating the Zacks Consensus Estimate of $2.88 by 8.68%. The metric increased 5.4% from $2.97 in the year-ago quarter.
On a GAAP basis, earnings per share were $2.56, down from $2.77 a year ago. Management attributed the year-over-year decline in GAAP results to discrete costs tied to the Entrust acquisition and the pending joint venture involving security-related businesses.
LDOS' Total RevenuesTotal revenues came in at $4.40 billion, up 3.7% year over year and above the Zacks Consensus Estimate of $4.27 billion by 3.1%. The company said revenues increased on higher customer demand, particularly across Intelligence programs, commercial energy infrastructure work and domestic and international air traffic management systems.
Demand signals were mixed in the quarter. Net bookings totaled $3.3 billion, translating into a book-to-bill ratio of 0.8, even as management highlighted a trailing-12-month book-to-bill of 1.1 that supported year-over-year growth in contracted activity.
LDOS’ BacklogBacklog at quarter-end was $48.4 billion, including $9.6 billion funded and $38.8 billion unfunded. The company noted that the funded portion reflects contract value supported by appropriated funding (net of revenues previously recognized), while unfunded backlog includes remaining task-order value and options expected to be executed.
By segment, Intelligence & Digital backlog totaled $19.34 billion, Health was $6.56 billion, Homeland was $9.88 billion and Defense was $12.59 billion. Backlog as of April 3, 2026, also included $371 million acquired through the Entrust acquisition within the Homeland segment.
Operational Statistics of LDOSCost of revenues totaled $3.64 billion compared with $3.49 billion in the prior-year quarter. Selling, general and administrative expenses were $223 million compared with $230 million a year ago, while acquisition, integration and restructuring costs increased to $35 million from $4 million.
Operating income was $508 million, down from $530 million in the year-ago period. Interest expense rose to $55 million from $49 million.
Leidos’ Segmental PerformanceIntelligence & Digital revenues rose to $1.51 billion from $1.41 billion, supported by recent contract awards and higher volumes for Intelligence Community mission support, along with $22 million of acquisition revenues tied to Kudu Dynamics. Non-GAAP operating margin increased to 10.2% from 9.7%.
Health revenues were $1.19 billion, unchanged year over year. Non-GAAP operating margin was 24.2% compared with 24.7% a year ago.
Homeland revenues increased to $816 million from $770 million, driven primarily by continued demand for Energy Infrastructure engineering services and domestic and international air traffic control systems. Non-GAAP operating margin decreased to 8.5% from 9.4% amid changing customer requirements on a fixed-price program.
Defense revenues were $883 million compared with $879 million a year ago, as strong growth in integrated air defense systems offset the wind-down of certain airborne surveillance programs. Non-GAAP operating margin decreased to 8.3% from 9.8%, primarily due to schedule delays on a fixed-price development program.
LDOS’ FinancialsCash and cash equivalents were $457 million at quarter-end, down from $1.11 billion as of Jan. 2, 2026. Long-term debt, net of the current portion, increased to $6.01 billion from $4.63 billion over the same period, reflecting acquisition financing activity.
Net cash provided by operating activities totaled $301 million for the quarter, up from $58 million in the prior-year period. The company also returned capital to shareholders during the quarter, including $243 million in share repurchases and $55 million in dividend payments.
LDOS’ 2026 GuidanceLeidos raised its fiscal 2026 outlook, with revenues now expected in the range of $18.00-$18.40 billion compared with the prior view of $17.50-$17.90 billion. The Zacks Consensus Estimate for revenues is pegged at $17.91 billion, which is below the company’s guided range.
Non-GAAP earnings are now projected at $12.10-$12.50 per share compared with the prior range of $12.05-$12.45. The Zacks Consensus Estimate for earnings is pegged at $12.26 per share, which lies below the midpoint of the company’s guided range.
The company also raised its cash flows provided by operating activities outlook to approximately $1.80 billion from approximately $1.75 billion.
LDOS’ Zacks RankLeidos Holdings currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Defense ReleasesRTX Corporation’s (RTX - Free Report) first-quarter 2026 adjusted earnings per share of $1.78 beat the Zacks Consensus Estimate of $1.52 by 17%. The bottom line improved 21.1% from the year-ago quarter’s level of $1.47.
Quarterly revenues came in at $22.08 billion, up 8.7% from $20.31 billion in the year-ago period. Sales also beat the consensus mark of $21.56 billion by 2.43%.
Northrop Grumman Corporation (NOC - Free Report) reported first-quarter 2026 adjusted earnings of $6.14 per share, which beat the Zacks Consensus Estimate of $6.08 by 1%. The bottom line also improved 1.3% from the year-ago quarter’s level of $6.06.
NOC’s total sales of $9.88 billion in the first quarter beat the Zacks Consensus Estimate of $9.79 billion by 1%. The top line also improved 4.4% from $9.47 billion reported in the year-ago quarter.
The Boeing Company (BA - Free Report) incurred an adjusted loss of 20 cents per share in the first quarter of 2026, narrower than the Zacks Consensus Estimate of a loss of 95 cents. The bottom line improved from the year-ago quarter’s reported loss of 49 cents.
Revenues amounted to $22.22 billion, which outpaced the Zacks Consensus Estimate of $21.87 billion by 3.5%. The top line also surged 14% from the year-ago quarter’s reported figure of $19.5 billion.
After two days of falling share prices post-earnings, defense technology giant Palantir (PLTR 2.04%) stock is getting back on the horse Thursday, and as of 11:40 a.m. ET its stock is up 4.2%.
You can thank the U.S. Army for that -- and hackers.
Image source: Getty Images.
Palantir's Hackathon Palantir announced this morning that it will participate in an upcoming "hackathon sprint" hosted by the U.S. Army. It won't be the only defense company participating; according to an Army press release, everyone from Anduril to Boeing (BA 0.17%), General Dynamics (GD +0.34%), L3Harris (LHX 1.20%), Leidos (LDOS +1.23%), Lockheed Martin (LMT 1.25%), Northrop Grumman (RTX 0.02%), and RTX Corp (RTX 0.02%) have also been invited.
But Palantir has a special reason to want to participate and show off its technical chops.
Last quarter, Palantir hit its highest-ever year-over-year growth rate of 85%, but two factors may still be worrying investors. First, Palantir warned that new contracts grew more slowly than sales (yielding a book-to-bill ratio under 1.0), and full-year sales may grow only 71% this year.
And second, government sales in particular grew more slowly than commercial sales -- only 76% for government, versus 95% for commercial, according to data from S&P Global Market Intelligence.
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Why Palantir wants to enlist in the Army A big win with the U.S. Army could help shift this dynamic and reaccelerate government sales growth. And here's the best news:
According to the Army, the aim of its "Right to Integrate" hackathon is to "ensure offensive and defensive weapon systems, and business systems across the Army, can collectively integrate, share data and communicate with each other." This objective plays right to Palantir's strengths.
If Palantir's looking for a place to grow faster, I think they just found it.
Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Boeing, L3Harris Technologies, Leidos, Palantir Technologies, and RTX. The Motley Fool recommends Lockheed Martin. The Motley Fool has a disclosure policy.
Leidos Holdings is rated Buy, with a 10.4% upside target based on strong fundamentals and a widening gap between earnings and share price. LDOS's high return on equity (30.49%) and management's NorthStar 2030 strategy underpin expectations for continued growth and compounding returns. Recent price declines are attributed to macro factors like the U.S. government shutdown, not deterioration in LDOS's earnings or operational performance.
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, /PRNewswire/ -- Leidos (NYSE: LDOS) has been awarded a $2.7 billion U.S. Army contract to advance hypersonic weapons from prototyping to production. This contract unifies the Thermal Protection Shield (TPS) and Common Hypersonic Glide Body (CHGB) programs, with the goal of streamlining development and accelerating delivery of this critical capability in alignment with Army acquisition reform initiatives.
By integrating these programs, Leidos will work to help the warfighter achieve greater efficiency, reduce production timelines and support a reliable supply of components to meet operational demands. Leidos brings proven expertise in guidance systems, sensor technologies, and precision munitions integration to this effort, helping to advance the nation's hypersonic capabilities and strengthen its integrated air and missile defense.
"This contract is a major step forward in delivering hypersonic capabilities to the warfighter at speed," said Leidos Defense President Cindy Gruensfelder. "Our team is committed to supporting the Army and Navy in producing this critical operational capability."
The combined contract is intended to transition the programs into a production-ready phase to support the Department of War's initiatives. Leidos has been the prime contractor on the TPS program since 2021 and CHGB program since 2019.
This contract aligns with Leidos' NorthStar 2030 strategy, emphasizing commitment to innovation and technological leadership in defense and national security. By focusing on advanced hypersonic and precision strike technologies, Leidos is not only working to meet current defense needs but also positioning the company for future military capabilities, a key pillar of its long-term corporate vision.
About Leidos
Leidos is an industry and technology leader serving government and commercial customers with smarter, more efficient digital and mission innovations. Headquartered in Reston, Virginia, with 50,000 global employees, Leidos reported annual revenues of approximately $17.2 billion for the fiscal year ended January 2, 2026. For more information, visit www.Leidos.com.
Certain statements in this announcement constitute "forward-looking statements" within the meaning of the rules and regulations of the U.S. Securities and Exchange Commission (SEC). These statements are based on management's current beliefs and expectations and are subject to significant risks and uncertainties. These statements are not guarantees of future results or occurrences. A number of factors could cause our actual results, performance, achievements, or industry results to be different from the results, performance, or achievements expressed or implied by such forward-looking statements. These factors include, but are not limited to, the "Risk Factors" set forth in Leidos' Annual Report on Form 10-K for the fiscal year ended January 2, 2026, and other such filings that Leidos makes with the SEC from time to time. Readers are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date hereof. Leidos does not undertake to update forward-looking statements to reflect the impact of circumstances or events that arise after the date the forward-looking statements were made.
Media Contact:
Brandon Ver Velde
(571) 526-6257
[email protected]
Leidos logo is seen in this illustration taken July 26, 2025. REUTERS/Dado Ruvic/Illustration Purchase Licensing Rights, opens new tab
May 12 (Reuters) - Leidos Holdings (LDOS.N), opens new tab said on Tuesday the U.S. Army has awarded a $2.7 billion contract to the defense contractor to move its hypersonic weapons from prototype development into production.
Hypersonic weapons, which are at the center of an arms race between the U.S. and China, can travel at more than five times the speed of sound and evade traditional defenses.
The Reuters Inside Track newsletter is your essential guide during the World Cup. Sign up here.
The deal combines Leidos' Thermal Protection Shield program, which provides the technology to protect hypersonic weapons from extreme heat and pressure during flight, with its Common Hypersonic Glide Body (CHGB) program.
The CHGB program makes the body for a long-range hypersonic missile called "Dark Eagle", which the U.S. Army and Navy successfully tested, opens new tab in March.
Integrating these programs will help reduce production timelines and ensure a reliable supply of components to meet operational demands, Leidos said.
Reporting by Aishwarya Jain in Bengaluru; Editing by Shilpi Majumdar
Our Standards: The Thomson Reuters Trust Principles., opens new tab
, /PRNewswire/ -- America's warfighters will receive an initial 3,000 Leidos (NYSE: LDOS) Low-Cost Containerized Munitions (LCCM) through a framework agreement with the Department of War that advances President Donald J. Trump and Secretary of War Pete Hegseth's "Arsenal of Freedom" initiative.
The new cruise missile is expected to significantly enhance the country's ground-launched combat capability, demonstrating Leidos' ability to rapidly scale defense production and deliver decisive capabilities to the U.S. military.
Leidos' new Low-Cost Containerized Munitions (LCCM) is expected to significantly enhance the country's ground-launched combat capability. Leidos will expand its workforce and enhance its facilities in Huntsville, Alabama, and McEwen, Tennessee, to produce the LCCM. Consistent with the DoW's desire to utilize commercial products, development of Leidos' LCCM is company-funded, leveraging the technologies in its AGM-190A Small Cruise Missile (SCM) program.
"We're answering the Department of War's call to revolutionize the procurement of critical capabilities at scale, with a focus on speed to operational capability," said Leidos Chief Executive Officer Tom Bell. "This agreement reflects the department's appreciation of Leidos' defense tech prowess and their trust in our proven history in delivering advanced missile technologies."
Leidos started LCCM work in December, reaching a conceptual design with the Pentagon that is capable of achieving all mission objectives. Full system design, development and test will result in production beginning in 2027.
At approximately twice the size of the AGM-190A, the LCCM offers increased mission effectiveness and fuel capacity to maximize range. Building on the Leidos Small Cruise Missile's heritage, the LCCM leverages key design features including a modular airframe and a common Weapon Open Systems Architecture (WOSA) to enable rapid integration, upgrades and mission adaptability. The design also utilizes Leidos' established supply chain and scalable production approach.
While initially ground-launched, LCCM's modular design could also support maritime platform integration and air-launched variants.
Leidos' decision to fund development and expand its production capabilities reflects its commitment to advancing operational capabilities through its NorthStar 2030 strategy.
Leidos is a proven leader in the design, development and integration of advanced missile systems, launchers and precision strike technologies for the U.S. military. In addition to the AGM-190A, Leidos is the prime contractor for the U.S. Army's Enduring Shield (Indirect Fire Protection Capability) launcher and supports next-generation hypersonic strike capabilities through its work on the Common Hypersonic Glide Body. The company also delivers precision munitions integration and advanced guidance and sensor technologies that strengthen integrated air and missile defense architectures.
About Leidos
Leidos is an industry and technology leader serving government and commercial customers with smarter, more efficient digital and mission innovations. Headquartered in Reston, Virginia, with 50,000 global employees, Leidos reported annual revenues of approximately $17.2 billion for the fiscal year ended January 2, 2026. For more information, visit www.leidos.com.
Certain statements in this announcement constitute "forward-looking statements" within the meaning of the rules and regulations of the U.S. Securities and Exchange Commission (SEC). These statements are based on management's current beliefs and expectations and are subject to significant risks and uncertainties. These statements are not guarantees of future results or occurrences. A number of factors could cause our actual results, performance, achievements, or industry results to be different from the results, performance, or achievements expressed or implied by such forward-looking statements. These factors include, but are not limited to, the "Risk Factors" set forth in Leidos' Annual Report on Form 10-K for the fiscal year ended January 2, 2026, and other such filings that Leidos makes with the SEC from time to time. Readers are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date hereof. Leidos does not undertake to update forward-looking statements to reflect the impact of circumstances or events that arise after the date the forward-looking statements were made.
Key Takeaways LDOS signed a $2.7B U.S. Army contract to accelerate full-scale hypersonic weapons production. Leidos will combine TPS and CHGB programs to simplify production and speed hypersonic deployment.LDOS shares fell nearly 2.8% after the deal and are down 28% over the past three months. Leidos (LDOS - Free Report) recently announced that it has signed a $2.7 billion contract with the U.S. Army to accelerate hypersonic weapons full-scale production. The contract combines the Thermal Protection Shield (“TPS”) and Common Hypersonic Glide Body (“CHGB”) programs, simplifying production and speeding deployment of this key capability in line with the Army’s acquisition reform efforts.
The company has been the leading contractor of the TPS program since 2021 and the CHGB program since 2019, and the project is part of the company’s NorthStar 2030 strategy. By leveraging its expertise in guidance systems, sensor technologies and precision munitions integration, the company is well-positioned to efficiently scale up production.
LDOS is committed to assisting the Army and Navy in delivering this vital operational capability. This large, long-term defense contract is expected to support the company’s future revenue growth.
Even though the company received a sizeable contract from the U.S. Army, the market reaction was docile and LDOS shares have lost nearly 2.8% since the date of announcement of the deal, closing at $124.84 per share on May 18, 2026.
Role of Hypersonic WeaponsAccording to SpaceNews, Hypersonic weapons play an important role in battlefield dominance, and countries like China, Russia, North Korea and Iran are also developing similar technology. Hypersonic weapons are strategically important for the U.S. military as they are difficult to detect and intercept. Escalating geopolitical tensions across the globe are prompting U.S. defense authorities to strengthen their defense capabilities through increased investments in advanced military systems like hypersonic weapons.
Other Defense Operators Having Hypersonic ProgramsApart from Leidos, some other defense contractors are well-positioned to capitalize on growth opportunities in the defense systems market.
Lockheed Martin Corporation (LMT - Free Report) is one of the world’s largest aerospace and defense contractors, operating through four major segments. The company is engaged in developing highly advanced hypersonic technology and sustaining advanced missile and rocket systems.
LMT has a long-term (three to five years) earnings growth rate of 18.48%. The Zacks Consensus Estimate for 2026 earnings is pinned at $29.88 per share, which implies a year-over-year increase of 29.24%
RTX Corporation (RTX - Free Report) , operating through three segments, provides systems and services to commercial, military and government customers across the world. It’s a prominent player in the aerospace and defense industry, leveraging its weapons expertise to develop air-breathing hypersonic scramjet systems that utilize high-speed airflow for propulsion and operate with a single solid rocket booster without moving parts.
RTX has a long-term earnings growth rate of 10.21%. The Zacks Consensus Estimate for 2026 earnings is pinned at $6.91 per share, which implies a year-over-year increase of 9.86%
Northrop Grumman Corporation (NOC - Free Report) operates through four segments and is engaged in developing advanced hypersonic engines and propulsion technologies, including scramjet systems. The company also develops and produces essential missile components like warheads and fuses.
NOC has a long-term earnings growth rate of 5.25%. The Zacks Consensus Estimate for 2026 earnings is pinned at $28.01 per share, which implies a year-over-year increase of 6.34%.
Price Movement of LDOSOver the past three months, shares of the company have plunged 27.8% compared with the industry’s 3% decline.
Image Source: Zacks Investment Research
Leidos’s Zacks RankLDOS currently carries a Zacks Rank #3(Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Company selected in four categories to deliver secure, reliable IT supporting U.S. diplomacy globally
, /PRNewswire/ -- Leidos (NYSE:LDOS) is set to help modernize IT systems U.S. diplomats rely on worldwide through four awards under the U.S. Department of State's Evolve contract.
Through Evolve, Leidos is ready to support secure access to critical systems and data across the State Department's global network. This includes strengthening cybersecurity, modernizing applications and infrastructure and improving the reliability of IT services across a network of embassies and consulates.
"The Department of State runs one of the most globally dispersed IT environments in the federal government," said Leidos Digital Modernization President Steve Hull. "Diplomats and embassy staff depend on secure, resilient systems that perform in any environment. These awards position us to deliver technology that supports their mission every day."
Leidos received awards in four functional categories: cloud and data center services; application development services; network and telecommunications services; and customer and end user support.
Evolve is a multiple award, indefinite delivery indefinite quantity contract that includes a one-year base period and six option years, with a total ceiling of $10 billion.
Leidos brings extensive experience in cloud migration, zero trust security, AI-driven operations and global network modernization. By using automation and continuous monitoring, the company helps agencies advance cyber defenses, improve information sharing and maintain reliable operations worldwide.
This award supports Leidos' NorthStar 2030 strategic focus on digital modernization, cyber and customer-centric innovation leveraging AI and IT transformation.
About Leidos
Leidos is an industry and technology leader serving government and commercial customers with smarter, more efficient digital and mission innovations. Headquartered in Reston, Virginia, with 50,000 global employees, Leidos reported annual revenues of approximately $17.2 billion for the fiscal year ended January 2, 2026. For more information, visit www.Leidos.com.
Certain statements in this announcement constitute "forward-looking statements" within the meaning of the rules and regulations of the U.S. Securities and Exchange Commission (SEC). These statements are based on management's current beliefs and expectations and are subject to significant risks and uncertainties. These statements are not guarantees of future results or occurrences. A number of factors could cause our actual results, performance, achievements, or industry results to be different from the results, performance, or achievements expressed or implied by such forward-looking statements. These factors include, but are not limited to, the "Risk Factors" set forth in Leidos' Annual Report on Form 10-K for the fiscal year ended January 2, 2026, and other such filings that Leidos makes with the SEC from time to time. Readers are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date hereof. Leidos does not undertake to update forward-looking statements to reflect the impact of circumstances or events that arise after the date the forward-looking statements were made.
Media Contact:
Brandon Ver Velde
(571) 926-1627
[email protected]
Conflict is intensfying around the world, from Latin America to the Middle East to potentially the Pacific. In preparation for a less peaceful future, the U.S. is substantially increasing its defense budget, boosting it by 44% to $1.5 trillion in 2027 alone. Full budgets are not out yet, but it is clear there will be a huge rise in spending on new military technologies and in stockpiles of key products, such as missile defense systems.
Many stocks can benefit as suppliers to this new arsenal of democracy. Here are two defense stocks worth looking at.
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A play on autonomous warfare Anyone following the war in Ukraine knows that drones are the future of warfare. In land-based conflict, this means drones in the air. But for sea-based conflict, the U.S. Navy is increasing its defense and attack capabilities with underwater drones. The contractors making these drones can overlap with air drones such as start-up Anduril, but it is in a much earlier growth phase, with research and procurement only beginning now.
One stock at the center of the subsea drone supply chain is Kraken Robotics (KRKNF 0.08%), a maker of batteries, sensors, and other systems for these unmanned underwater vehicles. Given the difficulty of building batteries that can operate in the high-pressure environments deep in the ocean, Kraken has minimal competition across many of its products.
This lack of competition should place the company on a significant growth trajectory during the next few years as the U. S. defense budget for underwater drones increases. In just the first few months of 2026, Kraken has announced $87 million in new orders across its product segments, with a key focus on subsea batteries for these drone makers.
Kraken's total revenue was $74 million in 2025. Along with its recent acquisition of the Covelya Group, Kraken has a long growth runway during the next decade that can turn it into a huge winner in any stock portfolio.
Image source: Getty Images.
The new hypersonic leader? A more established player in the defense industry that will benefit from the growing defense budget is Leidos (LDOS +1.36%). It has many different divisions, including healthcare software for the Defense Department, mission software for the battlefield, cybersecurity systems, and defense technology.
It should see steady growth from existing contracts. Revenue hit $17 billion during the past 12 months, up 31% in the past five years. This is not hypergrowth by any means, but a steady piece of infrastructure within the federal government.
Where Leidos may see a growth surge is within its new hypersonic product, which is a key priority for the U.S. at the moment. It was recently awarded a $2.7 billion contract from the U.S. Army to bring its hypersonic products from prototype to production. The company has been developing these capabilities for many years, and it now appears to have the lead in winning the prime contract to supply hypersonic missiles to the Army, which could generate steady cash flows.
Right now, the stock market is not a fan of Leidos and other defense stocks. It trades at a price-to-earnings ratio (P/E) of just 11.5, which is very cheap given its steady growth potential. Management is steadily repurchasing stock as well, with shares outstanding down more than 11% during the past five years.
Combine these capital returns, the steady software business, and the potential growth from defense technology like hypersonics, and Leidos looks like a hidden gem investors can buy today. Along with Kraken Robotics, these are two defense stocks flying under the radar that investors can add to their portfolios.
Leidos (LDOS - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Over the past month, shares of this security and engineering company have returned -11.8%, compared to the Zacks S&P 500 composite's +6% change. During this period, the Zacks Computers - IT Services industry, which Leidos falls in, has gained 4.7%. The key question now is: What could be the stock's future direction?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Revisions to Earnings EstimatesHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current quarter, Leidos is expected to post earnings of $2.94 per share, indicating a change of -8.4% from the year-ago quarter. The Zacks Consensus Estimate has changed -2.5% over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $12.25 points to a change of +2.2% from the prior year. Over the last 30 days, this estimate has remained unchanged.
For the next fiscal year, the consensus earnings estimate of $12.97 indicates a change of +5.8% from what Leidos is expected to report a year ago. Over the past month, the estimate has changed +0.5%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Leidos is rated Zacks Rank #3 (Hold).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
In the case of Leidos, the consensus sales estimate of $4.36 billion for the current quarter points to a year-over-year change of +2.6%. The $17.98 billion and $18.84 billion estimates for the current and next fiscal years indicate changes of +4.7% and +4.8%, respectively.
Last Reported Results and Surprise HistoryLeidos reported revenues of $4.4 billion in the last reported quarter, representing a year-over-year change of +3.7%. EPS of $3.13 for the same period compares with $2.97 a year ago.
Compared to the Zacks Consensus Estimate of $4.27 billion, the reported revenues represent a surprise of +3.12%. The EPS surprise was +8.68%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates three times over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Leidos is graded A on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Leidos. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
, /PRNewswire/ -- Combatants across the Department of War are gaining better access to satellite communications services through the Joint Management Tool (JMT) that Leidos (NYSE: LDOS) developed with the Defense Information Systems Agency (DISA) and U.S. Space Command.
The JMT gives operators real-time visibility into global SATCOM resources. The cloud-based platform enhances real-time situational awareness, provides reliable connectivity for forces worldwide and allows operators to focus on executing their missions. The JMT's automated dashboard is expected to reduce command-level reporting and analysis time by up to 85%, potentially saving hundreds of hours each year and allowing operators to focus on mission execution.
"The JMT brings clarity to complex satellite communications, giving operators faster, more reliable access to the data they need to make decisions," said Paul Welch, senior vice president of digital modernization at Leidos. "This work underscores our role in operating, sustaining and defending the most critical networks supporting U.S. defense missions globally."
The tool consolidates service requests and operational oversight in an enterprise environment across combatant commands, military services and defense agencies. It replaces the legacy system DISA first fielded in 2004 and was developed and deployed in one year.
Built using telecommunications commercial-off-the-shelf modules, the JMT advances the Pentagon's adoption of commercial software solutions. Its modular architecture enables rapid updates, improved scalability and greater flexibility to adapt to evolving operational requirements.
Leidos' commitment to innovation, resilience and customer success aligns with its NorthStar 2030 strategy, driving mission-focused modernization for its customers.
About Leidos
Leidos is an industry and technology leader serving government and commercial customers with smarter, more efficient digital and mission innovations. Headquartered in Reston, Virginia, with 50,000 global employees, Leidos reported annual revenues of approximately $17.2 billion for the fiscal year ended January 2, 2026. For more information, visit www.leidos.com.
Certain statements in this announcement constitute "forward-looking statements" within the meaning of the rules and regulations of the U.S. Securities and Exchange Commission (SEC). These statements are based on management's current beliefs and expectations and are subject to significant risks and uncertainties. These statements are not guarantees of future results or occurrences. A number of factors could cause our actual results, performance, achievements, or industry results to be different from the results, performance, or achievements expressed or implied by such forward-looking statements. These factors include, but are not limited to, the "Risk Factors" set forth in Leidos' Annual Report on Form 10-K for the fiscal year ended January 2, 2026, and other such filings that Leidos makes with the SEC from time to time. Readers are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date hereof. Leidos does not undertake to update forward-looking statements to reflect the impact of circumstances or events that arise after the date the forward-looking statements were made.
Media Contact
Brandon Ver Velde
(571) 526-6257
[email protected]
A month has gone by since the last earnings report for Leidos (LDOS - Free Report) . Shares have lost about 7.8% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Leidos due for a breakout? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent catalysts for Leidos Holdings, Inc. before we dive into how investors and analysts have reacted as of late.
LDOS Q1 Earnings Beat on Backlog Scale and Key Contract Wins
Leidos Holdings, Inc. reported first-quarter 2026 non-GAAP earnings of $3.13 per share, beating the Zacks Consensus Estimate of $2.88 by 8.68%. The metric increased 5.4% from $2.97 in the year-ago quarter.
On a GAAP basis, earnings per share were $2.56, down from $2.77 a year ago. Management attributed the year-over-year decline in GAAP results to discrete costs tied to the Entrust acquisition and the pending joint venture involving security-related businesses.
LDOS' Total RevenuesTotal revenues came in at $4.40 billion, up 3.7% year over year and above the Zacks Consensus Estimate of $4.27 billion by 3.1%. The company said revenues increased on higher customer demand, particularly across Intelligence programs, commercial energy infrastructure work and domestic and international air traffic management systems.
Demand signals were mixed in the quarter. Net bookings totaled $3.3 billion, translating into a book-to-bill ratio of 0.8, even as management highlighted a trailing-12-month book-to-bill of 1.1 that supported year-over-year growth in contracted activity.
LDOS’ BacklogBacklog at quarter-end was $48.4 billion, including $9.6 billion funded and $38.8 billion unfunded. The company noted that the funded portion reflects contract value supported by appropriated funding (net of revenues previously recognized), while unfunded backlog includes remaining task-order value and options expected to be executed.
By segment, Intelligence & Digital backlog totaled $19.34 billion, Health was $6.56 billion, Homeland was $9.88 billion and Defense was $12.59 billion. Backlog as of April 3, 2026, also included $371 million acquired through the Entrust acquisition within the Homeland segment.
Operational Statistics of LDOSCost of revenues totaled $3.64 billion compared with $3.49 billion in the prior-year quarter. Selling, general and administrative expenses were $223 million compared with $230 million a year ago, while acquisition, integration and restructuring costs increased to $35 million from $4 million.
Operating income was $508 million, down from $530 million in the year-ago period. Interest expense rose to $55 million from $49 million.
Leidos’ Segmental PerformanceIntelligence & Digital revenues rose to $1.51 billion from $1.41 billion, supported by recent contract awards and higher volumes for Intelligence Community mission support, along with $22 million of acquisition revenues tied to Kudu
Dynamics. Non-GAAP operating margin increased to 10.2% from 9.7%.
Health revenues were $1.19 billion, unchanged year over year. Non-GAAP operating margin was 24.2% compared with 24.7% a year ago.
Homeland revenues increased to $816 million from $770 million, driven primarily by continued demand for Energy Infrastructure engineering services and domestic and international air traffic control systems. Non-GAAP operating margin decreased to 8.5% from 9.4% amid changing customer requirements on a fixed-price program.
Defense revenues were $883 million compared with $879 million a year ago, as strong growth in integrated air defense systems offset the wind-down of certain airborne surveillance programs. Non-GAAP operating margin decreased to 8.3% from 9.8%, primarily due to schedule delays on a fixed-price development program.
LDOS’ FinancialsCash and cash equivalents were $457 million at quarter-end, down from $1.11 billion as of Jan. 2, 2026. Long-term debt, net of the current portion, increased to $6.01 billion from $4.63 billion over the same period, reflecting acquisition financing activity.
Net cash provided by operating activities totaled $301 million for the quarter, up from $58 million in the prior-year period. The company also returned capital to shareholders during the quarter, including $243 million in share repurchases and $55 million in dividend payments.
LDOS’ 2026 GuidanceLeidos raised its fiscal 2026 outlook, with revenues now expected in the range of $18.00-$18.40 billion compared with the prior view of $17.50-$17.90 billion. The Zacks Consensus Estimate for revenues is pegged at $17.91 billion, which is below the company’s guided range.
Non-GAAP earnings are now projected at $12.10-$12.50 per share compared with the prior range of $12.05-$12.45. The Zacks Consensus Estimate for earnings is pegged at $12.26 per share, which lies below the midpoint of the company’s guided range.
The company also raised its cash flows provided by operating activities outlook to approximately $1.80 billion from approximately $1.75 billion.
How Have Estimates Been Moving Since Then?It turns out, fresh estimates have trended downward during the past month.
VGM ScoresAt this time, Leidos has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. However, the stock was allocated a score of A on the value side, putting it in the top 20% for value investors.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Leidos has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry PlayerLeidos belongs to the Zacks Computers - IT Services industry. Another stock from the same industry, Cognizant (CTSH - Free Report) , has gained 4.3% over the past month. More than a month has passed since the company reported results for the quarter ended March 2026.
Cognizant reported revenues of $5.41 billion in the last reported quarter, representing a year-over-year change of +5.8%. EPS of $1.40 for the same period compares with $1.23 a year ago.
For the current quarter, Cognizant is expected to post earnings of $1.38 per share, indicating a change of +5.3% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
Cognizant has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of A.
