General Mills Lowers 2026 Outlook, Shares Drop
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6 hours ago
0mins
Should l Buy LDOS?
Source: CNBC
- General Mills Outlook Downgrade: General Mills has lowered its 2026 organic net sales forecast to a decline of 1.5% to 2%, with operating profit and adjusted EPS expected to fall by 16% to 20%, resulting in a 7% drop in shares, indicating market concerns about future growth.
- Southwest Airlines Stock Surge: Shares of Southwest Airlines rose over 6% after UBS upgraded its rating to buy, with analysts highlighting new initiatives like extra legroom and assigned seating that could attract more travelers, showcasing the company's proactive transformation in a competitive airline market.
- ZIM Integrated Shipping Services Surge: ZIM's shares surged 30% following the announcement that German-based Hapag-Lloyd will acquire ZIM for $4.2 billion, financed through cash and external funding, marking a significant consolidation in the shipping industry.
- Labcorp's Mixed Results: Labcorp reported a fourth-quarter EPS of $4.07, exceeding the $3.94 expected by analysts, yet shares fell over 3% due to concerns regarding the pace of organic revenue growth despite a positive earnings forecast.
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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: 176.300
Low
178.00
Averages
219.70
High
235.00
Current: 176.300
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 to Release Q4 Earnings with Positive Expectations
- Earnings Release Announcement: Leidos Holdings is set to release its fourth-quarter earnings on February 17, with analysts projecting earnings per share of $2.61, an increase from $2.37 in the same period last year, indicating sustained improvement in profitability.
- Revenue Expectations: Analysts estimate that Leidos will report quarterly revenue of $4.31 billion, slightly down from $4.37 billion last year, yet still reflecting the company's stable performance in the market.
- Dividend Declaration: On February 13, Leidos announced a quarterly cash dividend of $0.43 per share, demonstrating the company's commitment to shareholder returns and bolstering investor confidence.
- Stock Performance: Leidos shares gained 2.8% to close at $176.30 last Friday, reflecting market optimism regarding the upcoming earnings report and the company's growth potential.
See More
Leidos Reports Q4 Results Below Expectations, Stock Drops
- Revenue Decline: Leidos reported Q4 revenue of $4.21 billion, a 4% year-over-year decline that missed analyst expectations of $4.31 billion, primarily due to an extra work week in FY2024 and a six-week government shutdown in FY2025.
- Earnings Growth: Despite the revenue drop, Leidos achieved an adjusted EPS of $2.76, up 16% year-over-year, surpassing the analyst consensus estimate of $2.61, indicating resilience in profitability.
- Strong Cash Flow: The company generated $495 million in net cash from operating activities in Q4, marking its highest performance in history, driven by strong EBITDA, collections, and working capital management, which bolstered financial stability.
- Acquisition Plans: Leidos announced a $2.4 billion acquisition of power design firm Entrust, expected to close in the first half of FY2026, which will further enhance its market position in key growth areas.
See More
Leidos Holdings Reports Strong Q4 2025 Earnings and Strategic Growth Plans
- Strong Financial Performance: Leidos reported revenues of $17.2 billion for 2025, reflecting a 3.1% year-over-year increase, although Q4 revenues were $4.2 billion, down 3.6% year-over-year; however, normalizing for calendar effects, Q4 revenue would have grown approximately 4%, demonstrating the company's resilience and adaptability in the market.
- Improved Profitability: The adjusted EBITDA margin for 2025 was 14.1%, a 120 basis point increase from the previous year, with non-GAAP diluted earnings per share growing by 17% and free cash flow increasing by 26%, indicating ongoing improvements in profitability and cash flow management.
- Increased Strategic Investment: Management announced that capital expenditures will triple to $350 million in 2026, focusing on high-return projects aimed at accelerating growth in defense, health, and digital modernization sectors.
- Order and Market Outlook: The company achieved net bookings of $5.6 billion in Q4, with a book-to-bill ratio of 1.3, indicating strong market demand, and expects revenues for 2026 to range between $17.5 billion and $17.9 billion, reflecting growth of up to 4%, laying a solid foundation for future sustained growth.
See More
General Mills Lowers 2026 Outlook, Shares Drop
- General Mills Outlook Downgrade: General Mills has lowered its 2026 organic net sales forecast to a decline of 1.5% to 2%, with operating profit and adjusted EPS expected to fall by 16% to 20%, resulting in a 7% drop in shares, indicating market concerns about future growth.
- Southwest Airlines Stock Surge: Shares of Southwest Airlines rose over 6% after UBS upgraded its rating to buy, with analysts highlighting new initiatives like extra legroom and assigned seating that could attract more travelers, showcasing the company's proactive transformation in a competitive airline market.
- ZIM Integrated Shipping Services Surge: ZIM's shares surged 30% following the announcement that German-based Hapag-Lloyd will acquire ZIM for $4.2 billion, financed through cash and external funding, marking a significant consolidation in the shipping industry.
- Labcorp's Mixed Results: Labcorp reported a fourth-quarter EPS of $4.07, exceeding the $3.94 expected by analysts, yet shares fell over 3% due to concerns regarding the pace of organic revenue growth despite a positive earnings forecast.
See More
Leidos Reports 2025 Financial Results: Revenue Growth and Profitability Improvement
- 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.
See More
Leidos Q4 Earnings Beat Expectations Despite Revenue Decline
- Earnings Beat: Leidos reported a Q4 non-GAAP EPS of $2.76, exceeding expectations by $0.15, indicating strong profitability despite a revenue decline, which reflects effective cost management.
- Revenue Decline Factors: Q4 revenue was $4.2 billion, down 4% year-over-year, primarily due to an extra work week in FY2024 and a six-week government shutdown in FY2025, highlighting external challenges impacting performance.
- Strong Order Growth: The company achieved net bookings of $5.6 billion in Q4 with a book-to-bill ratio of 1.3, and $17.5 billion for the year with a ratio of 1.0, demonstrating robust demand across customer segments, particularly in integrated air defense and cybersecurity.
- FY26 Guidance: Leidos has set FY2026 revenue guidance between $17.5 billion and $17.9 billion, with non-GAAP diluted EPS projected between $12.05 and $12.45, reflecting confidence in sustained growth driven by strong market demand.
See More
Leidos to Release Q4 Earnings with Positive Expectations
- Earnings Release Announcement: Leidos Holdings is set to release its fourth-quarter earnings on February 17, with analysts projecting earnings per share of $2.61, an increase from $2.37 in the same period last year, indicating sustained improvement in profitability.
- Revenue Expectations: Analysts estimate that Leidos will report quarterly revenue of $4.31 billion, slightly down from $4.37 billion last year, yet still reflecting the company's stable performance in the market.
- Dividend Declaration: On February 13, Leidos announced a quarterly cash dividend of $0.43 per share, demonstrating the company's commitment to shareholder returns and bolstering investor confidence.
- Stock Performance: Leidos shares gained 2.8% to close at $176.30 last Friday, reflecting market optimism regarding the upcoming earnings report and the company's growth potential.
See More
Leidos Reports Q4 Results Below Expectations, Stock Drops
- Revenue Decline: Leidos reported Q4 revenue of $4.21 billion, a 4% year-over-year decline that missed analyst expectations of $4.31 billion, primarily due to an extra work week in FY2024 and a six-week government shutdown in FY2025.
- Earnings Growth: Despite the revenue drop, Leidos achieved an adjusted EPS of $2.76, up 16% year-over-year, surpassing the analyst consensus estimate of $2.61, indicating resilience in profitability.
- Strong Cash Flow: The company generated $495 million in net cash from operating activities in Q4, marking its highest performance in history, driven by strong EBITDA, collections, and working capital management, which bolstered financial stability.
- Acquisition Plans: Leidos announced a $2.4 billion acquisition of power design firm Entrust, expected to close in the first half of FY2026, which will further enhance its market position in key growth areas.
See More
Leidos Holdings Reports Strong Q4 2025 Earnings and Strategic Growth Plans
- Strong Financial Performance: Leidos reported revenues of $17.2 billion for 2025, reflecting a 3.1% year-over-year increase, although Q4 revenues were $4.2 billion, down 3.6% year-over-year; however, normalizing for calendar effects, Q4 revenue would have grown approximately 4%, demonstrating the company's resilience and adaptability in the market.
- Improved Profitability: The adjusted EBITDA margin for 2025 was 14.1%, a 120 basis point increase from the previous year, with non-GAAP diluted earnings per share growing by 17% and free cash flow increasing by 26%, indicating ongoing improvements in profitability and cash flow management.
- Increased Strategic Investment: Management announced that capital expenditures will triple to $350 million in 2026, focusing on high-return projects aimed at accelerating growth in defense, health, and digital modernization sectors.
- Order and Market Outlook: The company achieved net bookings of $5.6 billion in Q4, with a book-to-bill ratio of 1.3, indicating strong market demand, and expects revenues for 2026 to range between $17.5 billion and $17.9 billion, reflecting growth of up to 4%, laying a solid foundation for future sustained growth.
See More
General Mills Lowers 2026 Outlook, Shares Drop
- General Mills Outlook Downgrade: General Mills has lowered its 2026 organic net sales forecast to a decline of 1.5% to 2%, with operating profit and adjusted EPS expected to fall by 16% to 20%, resulting in a 7% drop in shares, indicating market concerns about future growth.
- Southwest Airlines Stock Surge: Shares of Southwest Airlines rose over 6% after UBS upgraded its rating to buy, with analysts highlighting new initiatives like extra legroom and assigned seating that could attract more travelers, showcasing the company's proactive transformation in a competitive airline market.
- ZIM Integrated Shipping Services Surge: ZIM's shares surged 30% following the announcement that German-based Hapag-Lloyd will acquire ZIM for $4.2 billion, financed through cash and external funding, marking a significant consolidation in the shipping industry.
- Labcorp's Mixed Results: Labcorp reported a fourth-quarter EPS of $4.07, exceeding the $3.94 expected by analysts, yet shares fell over 3% due to concerns regarding the pace of organic revenue growth despite a positive earnings forecast.
See More
Leidos Reports 2025 Financial Results: Revenue Growth and Profitability Improvement
- 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.
See More
Leidos Q4 Earnings Beat Expectations Despite Revenue Decline
- Earnings Beat: Leidos reported a Q4 non-GAAP EPS of $2.76, exceeding expectations by $0.15, indicating strong profitability despite a revenue decline, which reflects effective cost management.
- Revenue Decline Factors: Q4 revenue was $4.2 billion, down 4% year-over-year, primarily due to an extra work week in FY2024 and a six-week government shutdown in FY2025, highlighting external challenges impacting performance.
- Strong Order Growth: The company achieved net bookings of $5.6 billion in Q4 with a book-to-bill ratio of 1.3, and $17.5 billion for the year with a ratio of 1.0, demonstrating robust demand across customer segments, particularly in integrated air defense and cybersecurity.
- FY26 Guidance: Leidos has set FY2026 revenue guidance between $17.5 billion and $17.9 billion, with non-GAAP diluted EPS projected between $12.05 and $12.45, reflecting confidence in sustained growth driven by strong market demand.
See More
