Leidos Reports 2025 Financial Results: Revenue Growth and Profitability Improvement
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 17 2026
0mins
Should l Buy LDOS?
Source: PRnewswire
- Revenue and Profit Growth: Leidos reported fiscal year 2025 revenues of $17.17 billion, a 3% increase year-over-year, with Q4 revenues at $4.21 billion, down 4% due to government shutdown impacts, yet net income rose to $1.46 billion, reflecting a 17% increase, showcasing enhanced profitability.
- Strong Cash Flow Performance: The company generated $495 million in net cash from operating activities in Q4, the highest in its history, while free cash flow for the year grew by 26% to $1.63 billion, achieving a cash flow conversion rate of 104%, providing robust funding for future investments.
- Strategic Acquisition Plans: Leidos is set to acquire power design firm Entrust for $2.4 billion, which will broaden its utility client base and enhance innovation capabilities in power delivery, with the transaction expected to close in the first half of fiscal 2026.
- Positive Future Outlook: For fiscal year 2026, Leidos projects revenues between $17.5 billion and $17.9 billion, with non-GAAP diluted EPS expected to range from $12.05 to $12.45, indicating strong growth potential in national security and digital modernization sectors.
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Analyst Views on LDOS
Wall Street analysts forecast LDOS stock price to rise
11 Analyst Rating
7 Buy
4 Hold
0 Sell
Moderate Buy
Current: 147.600
Low
178.00
Averages
219.70
High
235.00
Current: 147.600
Low
178.00
Averages
219.70
High
235.00
About LDOS
Leidos Holdings, Inc. is a holding company, which operates through its wholly owned subsidiary, Leidos, Inc. (Leidos). The Company's segments include National Security & Digital, Health & Civil, Commercial & International and Defense Systems. Its National Security & Digital business provides technologically advanced services, solutions and products, as well as mission software capabilities for defense and intelligence customers in the areas of cyber, logistics, security operations and decision analytics. Its Health & Civil business provides services and solutions to federal and commercial customers in the areas of public health, care coordination, life and environmental sciences and transportation. Its Commercial & International business delivers a portfolio of products, services, and solutions aimed at securing national assets, modernizing energy and critical infrastructure, and enhancing mission outcomes. The Company serves government and commercial customers.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Leidos Secures $617M Army Contract for Air Defense System
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- Total Contract Value Approaching $1.2B: With the awards received in July and September 2025, Leidos now holds nearly $1.2 billion in production contracts tied to this program, demonstrating the company's sustained growth potential in defense projects.
- Robust System Capabilities: The IFPC Inc 2 system is a mobile, ground-based air defense platform designed to defend against cruise missiles and unmanned aerial threats, enhancing the U.S. military's defensive capabilities in alignment with national security strategy needs.
- Future Order Potential: The funding from this contract also supports ongoing research, development, and testing, with potential future orders through 2029, indicating Leidos' long-term strategic planning and execution capabilities in the defense sector.
See More
Leidos Secures $617 Million Army Contract for Air Defense System
- Significant Contract Value: Leidos has secured a $617 million contract from the U.S. Army to provide additional launchers for its Indirect Fire Protection Capability Increment 2 (IFPC Increment 2) ground-based air defense system, which will significantly enhance the company's revenue and market position.
- Demand for System Upgrades: The signing of this contract reflects the U.S. military's ongoing demand for advanced ground-based air defense systems, indicating that Leidos's technological capabilities and market competitiveness in the defense sector are continuously improving.
- Strategic Partnership Opportunities: By collaborating with the U.S. Army, Leidos not only solidifies its position among defense contractors but may also pave the way for future similar projects, thereby further expanding its market share.
- Enhanced Industry Influence: The acquisition of this contract will bolster Leidos's influence in the defense industry, likely attracting more investor attention to its future growth potential and driving continued innovation in defense technologies.
See More
Leidos Secures $617 Million Army Contract for Air Defense System
- Significant Contract Value: Leidos Holdings, Inc. announced it has secured a $617 million contract from the U.S. Army to build and deliver additional launchers for the Indirect Fire Protection Capability Increment 2 (IFPC Inc 2) system, further solidifying its market position in defense.
- Total Contract Value Approaching $1.2 Billion: Combined with the $356 million awarded in July and September 2025, Leidos now has nearly $1.2 billion in production contracts with the U.S. Army, indicating strong demand and growth potential in the defense contracting market.
- Commitment to Deliver Over 100 Launchers: Leidos has committed to delivering more than 100 launchers, with the contracts supporting production as well as ongoing research, development, and testing, ensuring a continuous revenue stream for the company in the coming years.
- Future Order Potential: These contracts pave the way for potential future orders through 2029, reflecting Leidos' long-term strategic planning and intent to expand its footprint in the defense sector.
See More
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- Monthly Returns: Over the past month, Leidos shares have fallen by 4.75%, significantly lagging behind the Computer and Technology sector's gain of 13.17% and the S&P 500's gain of 9.33%, highlighting investor concerns about future growth.
- Earnings Expectations: Leidos is set to release its earnings on May 5, 2026, with projected earnings of $2.89 per share, representing a year-over-year decline of 2.69%, while revenue is expected to be $4.27 billion, up 0.51% from the prior year, indicating profitability challenges.
- Valuation Metrics: The company's current forward P/E ratio stands at 12.64, below the industry average of 13.12, and a PEG ratio of 1.09 suggests lower market expectations for future growth, prompting investors to carefully assess its investment value.
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- Production Capacity Expansion: The company plans to increase its Louisiana facility's Corsair production from 1,000 to 2,000 units annually while constructing a new shipyard, Port Alpha, to support its goal of producing 20 large Marauder vessels per year, further solidifying its competitive edge in Navy contracts.
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- Vision for Industry Transformation: Saronic aims to accelerate production and scale through new funding, intending to reshape the entire shipbuilding industry, highlighting its crucial role in future military technology developments and potentially prompting strategic shifts among competitors.
See More
Leidos Secures $617M Army Contract for Air Defense System
- Significant Contract Value: Leidos has secured a $617 million contract from the U.S. Army to manufacture and deliver additional launchers for the Indirect Fire Protection Capability Increment 2 (IFPC Inc 2) air defense system, further solidifying its market position in the defense sector.
- Total Contract Value Approaching $1.2B: With the awards received in July and September 2025, Leidos now holds nearly $1.2 billion in production contracts tied to this program, demonstrating the company's sustained growth potential in defense projects.
- Robust System Capabilities: The IFPC Inc 2 system is a mobile, ground-based air defense platform designed to defend against cruise missiles and unmanned aerial threats, enhancing the U.S. military's defensive capabilities in alignment with national security strategy needs.
- Future Order Potential: The funding from this contract also supports ongoing research, development, and testing, with potential future orders through 2029, indicating Leidos' long-term strategic planning and execution capabilities in the defense sector.
See More
Leidos Secures $617 Million Army Contract for Air Defense System
- Significant Contract Value: Leidos has secured a $617 million contract from the U.S. Army to provide additional launchers for its Indirect Fire Protection Capability Increment 2 (IFPC Increment 2) ground-based air defense system, which will significantly enhance the company's revenue and market position.
- Demand for System Upgrades: The signing of this contract reflects the U.S. military's ongoing demand for advanced ground-based air defense systems, indicating that Leidos's technological capabilities and market competitiveness in the defense sector are continuously improving.
- Strategic Partnership Opportunities: By collaborating with the U.S. Army, Leidos not only solidifies its position among defense contractors but may also pave the way for future similar projects, thereby further expanding its market share.
- Enhanced Industry Influence: The acquisition of this contract will bolster Leidos's influence in the defense industry, likely attracting more investor attention to its future growth potential and driving continued innovation in defense technologies.
See More
Leidos Secures $617 Million Army Contract for Air Defense System
- Significant Contract Value: Leidos Holdings, Inc. announced it has secured a $617 million contract from the U.S. Army to build and deliver additional launchers for the Indirect Fire Protection Capability Increment 2 (IFPC Inc 2) system, further solidifying its market position in defense.
- Total Contract Value Approaching $1.2 Billion: Combined with the $356 million awarded in July and September 2025, Leidos now has nearly $1.2 billion in production contracts with the U.S. Army, indicating strong demand and growth potential in the defense contracting market.
- Commitment to Deliver Over 100 Launchers: Leidos has committed to delivering more than 100 launchers, with the contracts supporting production as well as ongoing research, development, and testing, ensuring a continuous revenue stream for the company in the coming years.
- Future Order Potential: These contracts pave the way for potential future orders through 2029, reflecting Leidos' long-term strategic planning and intent to expand its footprint in the defense sector.
See More
Leidos Stock Declines, Earnings Outlook Draws Attention
- Stock Performance: Leidos (LDOS) closed at $153.20, reflecting a 1.05% decline from the previous day, underperforming the S&P 500's loss of 0.64%, indicating relative weakness in the market.
- Monthly Returns: Over the past month, Leidos shares have fallen by 4.75%, significantly lagging behind the Computer and Technology sector's gain of 13.17% and the S&P 500's gain of 9.33%, highlighting investor concerns about future growth.
- Earnings Expectations: Leidos is set to release its earnings on May 5, 2026, with projected earnings of $2.89 per share, representing a year-over-year decline of 2.69%, while revenue is expected to be $4.27 billion, up 0.51% from the prior year, indicating profitability challenges.
- Valuation Metrics: The company's current forward P/E ratio stands at 12.64, below the industry average of 13.12, and a PEG ratio of 1.09 suggests lower market expectations for future growth, prompting investors to carefully assess its investment value.
See More
Overview of Building a New Robot Navy for the U.S.
- Production Capacity Expansion: Saronic secured a $392 million Navy contract, planning to invest $300 million to expand its Louisiana shipyard's capacity to produce 2,000 Corsair unmanned boats annually, significantly enhancing its market competitiveness.
- Funding Milestone: The company recently raised $1.75 billion in financing, valuing Saronic at $9.25 billion, with the funds primarily allocated for constructing larger, more advanced robotic warships, which is expected to reshape the entire shipbuilding industry.
- New Shipyard Development: Saronic is building a new shipyard named Port Alpha to support its goal of producing 20 Marauders annually, further strengthening its production capabilities and market share in the unmanned naval sector.
- Strong Market Demand: Although no IPO plans have been announced, Saronic's market valuation has reached $9 billion, indicating strong demand for its shares, with potential trading opportunities on Forge Global or the Nasdaq Private Market in the future.
See More
Saronic Secures $392 Million Navy Contract
- Innovative Funding: Saronic raised $1.75 billion in private funding last month from notable venture capital firms like Advent International and Andreessen Horowitz, boosting its valuation to $9.25 billion and significantly enhancing its market position in the unmanned warship sector.
- Production Capacity Expansion: The company plans to increase its Louisiana facility's Corsair production from 1,000 to 2,000 units annually while constructing a new shipyard, Port Alpha, to support its goal of producing 20 large Marauder vessels per year, further solidifying its competitive edge in Navy contracts.
- Navy Contract Approval: Saronic secured a $392 million contract for Corsair unmanned vessels, with plans to invest most of the funds into expanding production capacity, indicating strong demand and growth potential in the unmanned warship market.
- Vision for Industry Transformation: Saronic aims to accelerate production and scale through new funding, intending to reshape the entire shipbuilding industry, highlighting its crucial role in future military technology developments and potentially prompting strategic shifts among competitors.
See More
