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Reston, Virginia-based Leidos Holdings, Inc. (LDOS) is a prominent technology, engineering, and science solutions company that delivers innovative services and systems that empower enterprises to tackle complex challenges. Valued at a market cap of $18.3 billion, Leidos leverages advanced technologies to drive progress across defense, healthcare, and civil operations.
The company is set to release its Q1 earnings before the market opens on Tuesday, May. 6. Ahead of the event, analysts expect LDOS to report a profit of $2.47 per share on a diluted basis, up 7.9% from $2.29 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in each of its last four quarterly reports. Driven by solid revenue growth, disciplined cost management, and favorable contract performance, the company reported an adjusted EPS of $2.37 in the most recent quarter, surpassing the consensus estimates by 8.7%.
For the current year, analysts expect LDOS to report an adjusted EPS of $10.51, up 2.9% from $10.21 in fiscal 2024. Its EPS is expected to rise 8.3% year over year to $11.38 in fiscal 2026.
Leidos Holdings’ shares have gained 13.2% over the past 52 weeks, outshining the broader S&P 500 Index's ($SPX) 6.6% gains and the Technology Select Sector SPDR Fund's (XLK) marginal fall over the same time frame.
Leidos Holdings has outpaced the broader market over the past year, driven by strong financial results, strategic contract wins, and favorable industry tailwinds. Additionally, rising global defense spending and increased demand for advanced technologies like cybersecurity and AI have benefited Leidos.
However, on Mar. 28, Leidos shares slipped over 1% after the U.S. Department of Defense announced it would discontinue plans to implement the company’s software for managing its civilian workforce. The decision, part of a broader Pentagon initiative to streamline costs, weighed on investor sentiment.
Analysts’ consensus opinion on LDOS stock is reasonably optimistic, with a “Moderate Buy” rating overall. Of the 15 analysts covering the stock, nine advise a “Strong Buy” rating, and six give a “Hold.” LDOS’ average analyst price target is $171.47, indicating a potential upside of 21.2% from the current levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
