Leidos (LDOS)
NYSEIndustrialsInformation Technology ServicesSnapshot 2026-07-07
$108.59-0.12%
Close 2026-07-07 · 1-day change
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Track LDOS free→Warn: Management is running behind on a stated commitment.
Leidos is growing revenue with a target of about $18.2 billion in 2026. Profit margins are expected to stay near 20%. The company is forming a strategic joint venture projected to add $625 million in revenue. Cash flow from operations is a focus to support investments and shareholder returns.
Revenue growth is below the double-digit target, with recent growth around 4%. Cash flow from operations declined from $495 million to $301 million in the latest quarter. Risks include losing key contracts like military health records, which could hurt revenue.
The market prices in about 7% revenue growth and a valuation below peers. Our fair value is above the Street median, reflecting some optimism. The recent selloff and guidance cut suggest investors are cautious about growth and cash flow execution.
Breaks if: Cash flow from operations remains below $1.5 billion in FY26
Leidos aims to increase cash flow from operations to support strategic investments and shareholder returns.
Stated in 4 of last 4 quarters. Cash from operations was $301M in 2026-Q1, down from $495M in 2025-Q4, indicating a decline. Despite raising guidance to $1.80B for FY26, the current trajectory shows limited progress towards increasing cash flow.
Standing thesis, reviewed periodically — not a price target or advice.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
“Leidos is raising its fiscal year 2026 guidance for cash flows provided by operating activities to approximately $1.80 billion.”
“Cash flows from operations were $495 million.”
“Cash flows from operations were $711 million.”
“Cash flows from operations were $486 million.”
Breaks if: Gross margin falls below 18% in FY26
Breaks if: Revenue falls below $17 billion in FY26
Leidos aims to achieve double-digit revenue growth through strategic initiatives and acquisitions.
Stated in 4 of last 4 quarters. Revenue grew from $4.25B in 2025-Q1 to $4.4B in 2026-Q1, indicating progress towards the double-digit growth target. However, the growth rate remains below double digits, showing limited progress towards the stated goal.
“CEO: 'We're actively executing our NorthStar 2030 strategy...'”
“CEO: 'We continue to see the second half of 2026 as the launchpad for multiyear growth acceleration.'”
“CEO: 'Our growth strategy is focused on expanding our market presence.'”
“CEO: 'We are committed to achieving double-digit revenue growth.'”
Breaks if: Joint venture revenue falls below $500 million in 2026
Leidos is forming a strategic joint venture to enhance its market position and capabilities.
Stated in 2 of last 2 quarters. The strategic joint venture is projected to contribute $625M in 2026 revenue. The quick close of the Entrust acquisition and the joint venture signing indicate progress in executing the NorthStar 2030 strategy, aligning with the stated priority.
“CEO: 'With the quick close of the Entrust acquisition and the signing of our security products joint venture...'”
“Leidos will contribute approximately 1,500 employees representing $625 million in projected 2026 revenue to the new joint venture.”