Leidos Reports Q4 Earnings Beat Expectations Amid Revenue Decline
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 13 2026
0mins
Should l Buy LDOS?
Source: seekingalpha
Leidos Holdings Inc. shares fell 4.04% as the stock hit a 20-day low amid broader market weakness, with the Nasdaq-100 down 0.90% and the S&P 500 down 0.53%.
The company reported a Q4 non-GAAP EPS of $2.76, exceeding expectations by $0.15, despite a revenue decline of 4% year-over-year to $4.2 billion, primarily due to external challenges such as a government shutdown. Leidos achieved strong order growth with net bookings of $5.6 billion in Q4, indicating robust demand across various sectors. The company also provided FY26 guidance, projecting revenues between $17.5 billion and $17.9 billion, reflecting confidence in sustained growth.
Despite the revenue decline, the earnings beat showcases effective cost management and strong market demand, positioning Leidos favorably for future growth as it continues to navigate challenges in the defense sector.
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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: 156.470
Low
178.00
Averages
219.70
High
235.00
Current: 156.470
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.
Impact of US-Iran Conflict on Defense Stocks
- Surge in Defense Spending: The U.S. is spending $2 billion daily in and around Iran, totaling $88 billion after 44 days of conflict, which exceeds the annual revenues of RTX, GD, and Lockheed, indicating significant growth opportunities in the defense sector.
- Weak Defense Stock Performance: Despite ongoing conflict, major defense contractors like General Dynamics, Lockheed Martin, and RTX have not seen significant stock price increases, reflecting market expectations for a short-term peace that may dampen investor interest in defense stocks in the near term.
- Textron Investment Opportunity: Textron's stock is trading close to 1x sales, and as a manufacturer of various military and civilian products, its V-22 Osprey tiltrotor aircraft may see increased usage in the conflict, highlighting its potential in the defense sector.
- Naval Shipbuilding Expansion: Leidos and Huntington Ingalls, as key military contractors, have competitive advantages in unmanned vessels and nuclear submarines, respectively, and are expected to benefit from the U.S. Navy's fleet expansion, showcasing significant long-term growth potential.
See More
Defense Stocks Decline Amid Iran Conflict
- Defense Stock Performance: Major defense stocks like General Dynamics (GD), Lockheed Martin (LMT), and RTX have seen declines over the past six weeks despite ongoing U.S.-Iran conflict, indicating weakened investor confidence amid expectations of a short-lived war and imminent peace.
- Massive Spending Impact: Economists from Harvard Kennedy School report that the U.S. is spending $2 billion daily in and around Iran, totaling $88 billion over 44 days, which exceeds RTX's annual revenue, highlighting the potential long-term implications of the conflict on the defense sector.
- Investment Opportunities: Despite the overall poor performance of defense stocks, investors are advised to consider buying during this downturn, with Textron (TXT) trading at 1.06 times sales, indicating its potential in meeting future military demands, especially as tensions in the Gulf escalate.
- Optimistic Industry Outlook: Companies like Leidos (LDOS) and Huntington Ingalls (HII) show promising growth potential, with Leidos averaging 20% annual earnings growth over the past five years and Huntington expected to achieve a 15% long-term growth rate, suggesting a potential recovery for the defense industry ahead.
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- Leadership Stability: Following the merger, Analogic's current CEO Tom Ripp will continue to lead the new company, ensuring business continuity and strategic alignment, which will enhance customer trust and market recognition.
- Strengthened Market Positioning: With a focus on advanced imaging, power, and motion control technologies for aviation security, medical, and industrial markets, the merger will further solidify Analogic's leadership in the global security imaging and detection sector, driving business growth.
- Future Growth Potential: This merger will not only integrate resources but also provide Analogic with broader market access and opportunities for technological innovation, expected to drive sustainable growth in the coming years.
See More
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- Technological Integration Benefits: The new joint venture will combine Leidos' Security Enterprise Solutions with Analogic's detection technologies, which is anticipated to enhance efficiencies in research, development, and operations, thereby accelerating the market application of next-generation security screening technologies.
- Market Growth Potential: Leidos will contribute approximately 1,500 employees and $625 million in projected 2026 revenue to the joint venture, which will focus on growth in the global detection and imaging market, further solidifying Leidos' leadership position in security technology.
- Strategic Investment Direction: The establishment of this joint venture aligns with Leidos' NorthStar 2030 strategy, indicating the company's commitment to continue investing in core growth areas to meet the increasing security demands arising from the growth of global travel and trade.
See More
Analogic and Leidos Announce Merger Agreement to Form Global Security Imaging Company
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- Leadership Stability: The combined entity will operate under the Analogic brand, led by current CEO Tom Ripp, ensuring business continuity and strategic direction during the transition, which is crucial for maintaining customer trust and confidence.
- Expanded Product Portfolio: This transaction will broaden Analogic's product offerings and sales channels, enabling better fulfillment of global customer needs throughout the security screening lifecycle, thereby enhancing customer experience and market adaptability.
- Global Market Impact: With Leidos' Security Enterprise Solutions deployed in 129 countries, the merger will leverage its successful track record in critical facilities and transportation security systems to drive Analogic's further growth in aviation security and industrial markets.
See More
Leidos and Altaris Form Joint Venture for Enhanced Security Solutions
- Joint Venture Formation: Leidos and investment firm Altaris have entered into a joint venture agreement aimed at enhancing global security for airports, borders, and critical infrastructure by integrating advanced security detection systems and imaging technology, which is expected to significantly improve security screening efficiency.
- Technological Integration Benefits: The new joint venture will combine Leidos' Security Enterprise Solutions with Altaris-owned Analogic, merging complementary detection technologies and manufacturing capabilities to drive innovation and operational efficiencies in next-generation screening technologies.
- Market Growth Potential: The joint venture will focus on growth in the global detection and imaging market, with Leidos expected to further invest in core growth areas identified in its NorthStar 2030 strategy, thereby enhancing its competitive position in the market.
- Employee and Financial Contribution: Leidos will contribute approximately 1,500 employees and a projected $625 million in revenue for 2026 to the joint venture, which will operate under the Analogic brand while Leidos retains significant minority ownership.
See More
Impact of US-Iran Conflict on Defense Stocks
- Surge in Defense Spending: The U.S. is spending $2 billion daily in and around Iran, totaling $88 billion after 44 days of conflict, which exceeds the annual revenues of RTX, GD, and Lockheed, indicating significant growth opportunities in the defense sector.
- Weak Defense Stock Performance: Despite ongoing conflict, major defense contractors like General Dynamics, Lockheed Martin, and RTX have not seen significant stock price increases, reflecting market expectations for a short-term peace that may dampen investor interest in defense stocks in the near term.
- Textron Investment Opportunity: Textron's stock is trading close to 1x sales, and as a manufacturer of various military and civilian products, its V-22 Osprey tiltrotor aircraft may see increased usage in the conflict, highlighting its potential in the defense sector.
- Naval Shipbuilding Expansion: Leidos and Huntington Ingalls, as key military contractors, have competitive advantages in unmanned vessels and nuclear submarines, respectively, and are expected to benefit from the U.S. Navy's fleet expansion, showcasing significant long-term growth potential.
See More
Defense Stocks Decline Amid Iran Conflict
- Defense Stock Performance: Major defense stocks like General Dynamics (GD), Lockheed Martin (LMT), and RTX have seen declines over the past six weeks despite ongoing U.S.-Iran conflict, indicating weakened investor confidence amid expectations of a short-lived war and imminent peace.
- Massive Spending Impact: Economists from Harvard Kennedy School report that the U.S. is spending $2 billion daily in and around Iran, totaling $88 billion over 44 days, which exceeds RTX's annual revenue, highlighting the potential long-term implications of the conflict on the defense sector.
- Investment Opportunities: Despite the overall poor performance of defense stocks, investors are advised to consider buying during this downturn, with Textron (TXT) trading at 1.06 times sales, indicating its potential in meeting future military demands, especially as tensions in the Gulf escalate.
- Optimistic Industry Outlook: Companies like Leidos (LDOS) and Huntington Ingalls (HII) show promising growth potential, with Leidos averaging 20% annual earnings growth over the past five years and Huntington expected to achieve a 15% long-term growth rate, suggesting a potential recovery for the defense industry ahead.
See More
Analogic and Leidos to Merge Key Units for Global Security Imaging
- Merger Agreement: Analogic and Leidos have agreed to merge key business units, with the transaction expected to close in the second half of 2026, enhancing market competitiveness under the Analogic brand.
- Leadership Stability: Following the merger, Analogic's current CEO Tom Ripp will continue to lead the new company, ensuring business continuity and strategic alignment, which will enhance customer trust and market recognition.
- Strengthened Market Positioning: With a focus on advanced imaging, power, and motion control technologies for aviation security, medical, and industrial markets, the merger will further solidify Analogic's leadership in the global security imaging and detection sector, driving business growth.
- Future Growth Potential: This merger will not only integrate resources but also provide Analogic with broader market access and opportunities for technological innovation, expected to drive sustainable growth in the coming years.
See More
Leidos and Altaris Form Joint Venture for Security Solutions
- Joint Venture Formation: Leidos and investment firm Altaris have entered into a joint venture agreement aimed at enhancing global airport, border, and critical infrastructure security by integrating advanced security detection systems and imaging technologies, which is expected to drive innovation and improve efficiency.
- Technological Integration Benefits: The new joint venture will combine Leidos' Security Enterprise Solutions with Analogic's detection technologies, which is anticipated to enhance efficiencies in research, development, and operations, thereby accelerating the market application of next-generation security screening technologies.
- Market Growth Potential: Leidos will contribute approximately 1,500 employees and $625 million in projected 2026 revenue to the joint venture, which will focus on growth in the global detection and imaging market, further solidifying Leidos' leadership position in security technology.
- Strategic Investment Direction: The establishment of this joint venture aligns with Leidos' NorthStar 2030 strategy, indicating the company's commitment to continue investing in core growth areas to meet the increasing security demands arising from the growth of global travel and trade.
See More
Analogic and Leidos Announce Merger Agreement to Form Global Security Imaging Company
- Merger Agreement: Analogic and Leidos have announced a definitive agreement to merge, expected to close in the second half of 2026, aiming to create a global security imaging and detection company that enhances market competitiveness through the integration of their security enterprise solutions.
- Leadership Stability: The combined entity will operate under the Analogic brand, led by current CEO Tom Ripp, ensuring business continuity and strategic direction during the transition, which is crucial for maintaining customer trust and confidence.
- Expanded Product Portfolio: This transaction will broaden Analogic's product offerings and sales channels, enabling better fulfillment of global customer needs throughout the security screening lifecycle, thereby enhancing customer experience and market adaptability.
- Global Market Impact: With Leidos' Security Enterprise Solutions deployed in 129 countries, the merger will leverage its successful track record in critical facilities and transportation security systems to drive Analogic's further growth in aviation security and industrial markets.
See More
Leidos and Altaris Form Joint Venture for Enhanced Security Solutions
- Joint Venture Formation: Leidos and investment firm Altaris have entered into a joint venture agreement aimed at enhancing global security for airports, borders, and critical infrastructure by integrating advanced security detection systems and imaging technology, which is expected to significantly improve security screening efficiency.
- Technological Integration Benefits: The new joint venture will combine Leidos' Security Enterprise Solutions with Altaris-owned Analogic, merging complementary detection technologies and manufacturing capabilities to drive innovation and operational efficiencies in next-generation screening technologies.
- Market Growth Potential: The joint venture will focus on growth in the global detection and imaging market, with Leidos expected to further invest in core growth areas identified in its NorthStar 2030 strategy, thereby enhancing its competitive position in the market.
- Employee and Financial Contribution: Leidos will contribute approximately 1,500 employees and a projected $625 million in revenue for 2026 to the joint venture, which will operate under the Analogic brand while Leidos retains significant minority ownership.
See More
