# Leidos Holdings (LDOS.US)

Canonical: https://gigainvestors.com/s/LDOS

Analysis as of: 2026-10-16T07:29:46.851Z. Financial observations: FY2002–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

A wonderful business at a fair price

Quality tests for Buy: pass (profit record: pass; earnings resilience is evidence only). Published buy qualification: yes.

Share price: $124.00 per share; close as of 2026-10-15.

Estimated value: low $134.08 per share, central $183.77 per share, high $214.97 per share. Buy at or below the central value $183.77 per share. Valuation as of 2026-10-16T07:29:46.851Z; scenarios are not confidence intervals.

Expected annual return: 13.3% at the stated quote. About 13.3% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: pass

- 0 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 0

- Years with a net loss: 0

- Operating margin variation: 0.30×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.05×

- FY2018: 0.07×

- FY2019: 0.08×

- FY2020: 0.08×

- FY2021: 0.08×

- FY2022: 0.08×

- FY2023: 0.04×

- FY2024: 0.11×

- FY2025: 0.12×

- LTM to Jun 2026: 0.11×

### moat: pass

- ROIC, median of available years: 40.7%

- ROIC, second-lowest year: 22.1%

- Typical minus recent gross margin: -2.3 pp

- Typical gross margin (annual median): 14.5%

- Recent gross margin (lower of latest and 3-year median): 16.8%

- Years with nonpositive capital: 0

- Capital spending / revenue: 0.8%

- ROIC including acquisitions, ten-year median: 10.0%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 45.0%

- FY2018: 57.4%

- FY2019: 61.6%

- FY2020: 34.5%

- FY2021: 36.4%

- FY2022: 33.0%

- FY2023: 16.1%

- FY2024: 52.1%

- FY2025: 49.1%

- LTM to Jun 2026: 51.9%

### economics: pass

- Owner earnings / net income, 5-yr: 1.20×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $5.2B

- Net income, five-year total: $4.3B

- Working capital / revenue, annual change: -0.1 pp

- Working capital / revenue, change between three-year averages: -1.1 pp

- Working capital / revenue, final three-year average: 13.5%

- Return on incremental invested capital: 359.9%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.29×

- FY2022: 1.30×

- FY2023: 1.62×

- FY2024: 1.11×

- FY2025: 1.12×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 45.0% vs 49.1%

- Per-share earnings: 2.38 to 9.22 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 5-year annual growth: -2.0%

- Market cap gain: $15B

- Cumulative retained earnings: $4.8B

- Diluted shares, 5-year annual growth: -2.0%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 18.5%

- Per-share value change: $6.84

- Per-share value, starting three-year median: $2.38

- Per-share value, ending three-year median: $9.22

- Buybacks concentrated in cheaper years (correlation): 0.88

- Average buyback yield: 2.7%

- Buyback history: 10 years

- Debt-funded buybacks: Yes

- Acquisition spending: $3.9B

- Cumulative net income, 10 years: $6.8B

- ROIC, first three-year median: 45.0%

- ROIC, last three-year median: 49.1%

- Ordinary dilution, 10-year annual growth: 6.0%

- Diluted shares, 10-year annual growth: 6.0%

Chart: Earnings per share; fiscal year observations.

- FY2016: $2.35

- FY2017: $2.38

- FY2018: $3.80

- FY2019: $4.60

- FY2020: $4.36

- FY2021: $5.27

- FY2022: $4.96

- FY2023: $1.44

- FY2024: $9.22

- FY2025: $11.20

### accounting: pass

- Sloan accruals: -2.2%

- Receivables to sales index (DSRI): 0.99×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 5.4%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.20×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 1.38×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -2.2%

- FY2017: -1.8%

- FY2018: -2.1%

- FY2019: -3.5%

- FY2020: -5.6%

- FY2021: -2.1%

- FY2022: -2.3%

- FY2023: -7.6%

- FY2024: -1.1%

- FY2025: -2.2%

## Holders

- [Richard Pzena](https://gigainvestors.com/PIM): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 35% since Nov 2025 · "Leidos (LDOS) Faces DHA Move To Replace It On Military Health Records" (finance.yahoo.com, Jun 2026) · sales +3.1%

Story as of 2026-10-16T09:59:03.431Z; price observation 2026-10-15.

Price needs cash profits to grow 0.6% a year for ten years

- 2025-06-26: Leidos awarded $22.9 million Navy contract for combat systems ([investing.com](https://www.investing.com/news/stock-market-news/leidos-awarded-229-million-navy-contract-for-combat-systems-93CH-4113778))

- 2025-07-29: Leidos Holdings (LDOS) Secures US$128 Million FBI Task Order for NGI System Modernization ([finance.yahoo.com](https://finance.yahoo.com/news/leidos-holdings-ldos-secures-us-172623713.html))

- 2025-08-05: Leidos Posts Strong Second Quarter Results and Raises Full-Year Guidance ([finance.yahoo.com](https://finance.yahoo.com/news/leidos-posts-strong-second-quarter-100000304.html))

- 2026-02-17: Leidos misses quarterly revenue estimates on government shutdown impact ([finance.yahoo.com](https://finance.yahoo.com/news/leidos-misses-quarterly-revenue-estimates-123117754.html))

- 2026-06-17: Leidos (LDOS) Faces DHA Move To Replace It On Military Health Records ([finance.yahoo.com](https://finance.yahoo.com/healthcare/articles/leidos-ldos-faces-dha-move-191019800.html))

- 2026-08-04: Leidos lifts annual forecasts on strong defense demand ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/leidos-lifts-annual-forecasts-strong-153315803.html))

### Sales · FY2024–2025

sales +3.1%; source https://www.sec.gov/Archives/edgar/data/1336920/000133692026000030/ldos-20260102.htm; observed 2026-02-17.

- FY2016: $7.0B 

- FY2017: $10B 

- FY2018: $10B 

- FY2019: $11B 

- FY2020: $12B 

- FY2021: $14B 

- FY2022: $14B 

- FY2023: $15B 

- FY2024: $17B 

- FY2025: $17B 

### Gross margin · FY2025

gross margin 17.7%; source https://www.sec.gov/Archives/edgar/data/1336920/000133692026000030/ldos-20260102.htm; observed 2026-02-17.

- FY2016: 12.1% 

- FY2017: 12.3% 

- FY2018: 14.8% 

- FY2019: 14.0% 

- FY2020: 14.1% 

- FY2021: 14.7% 

- FY2022: 14.5% 

- FY2023: 14.5% 

- FY2024: 16.8% 

- FY2025: 17.7% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in information technology services; annual sales are USD 17.2 billion.

- Source: https://eodhd.com/api/fundamentals/LDOS.US.json#2025-12-31 (filed 2026-02-17); FY2025: revenue 17174000000; grossProfit 3033120000; margin = grossProfit / revenue.

### Why customers stay

Margins ranged from 14.5% to 17.7% during 2023–25; it earns 40.7% on its capital.

- Source: https://eodhd.com/api/fundamentals/LDOS.US.json#2023-12-31 (filed 2026-02-17); FY2023: grossProfit / revenue = 14.5%.

- Source: https://eodhd.com/api/fundamentals/LDOS.US.json#2024-12-31 (filed 2026-02-17); FY2024: grossProfit / revenue = 16.8%.

- Source: https://eodhd.com/api/fundamentals/LDOS.US.json#2025-12-31 (filed 2026-02-17); FY2025: grossProfit / revenue = 17.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); 10-year return on capital observations [[2016,0.2207973344697997],[2017,0.4502179444628831],[2018,0.5739917045230101],[2019,0.6162348598686931],[2020,0.34452077386581104],[2021,0.363865925646953],[2022,0.33022807243448077],[2023,0.1608167330677291],[2024,0.5211116643912262],[2025,0.49066687437993056]]; median 0.40704193505491804. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 14% gross margin through 2022 cost inflation.

- Source: https://www.sec.gov/Archives/edgar/data/1336920/000133692026000030/ldos-20260102.htm (filed 2026-02-17); Gross margin observations: [[2021,0.14661134163208853],[2022,0.14476243400944708],[2023,0.14535561601243685]]; range within 2 percentage points.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back USD 944 million of shares.

- Source: https://eodhd.com/api/fundamentals/LDOS.US.json#2016-12-31 (filed 2026-02-17); FY2016: growth capex 0; upkeep 29000000; cash acquisitions 25000000; owner earnings 337000000. Growth capex plus acquisitions / owner earnings = 0.07418397626112759.

- Source: https://eodhd.com/api/fundamentals/LDOS.US.json#2017-12-31 (filed 2026-02-17); FY2017: growth capex 0; upkeep 81000000; cash acquisitions 0; owner earnings 621000000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/LDOS.US.json#2018-12-31 (filed 2026-02-17); FY2018: growth capex 0; upkeep 73000000; cash acquisitions 81000000; owner earnings 765000000. Growth capex plus acquisitions / owner earnings = 0.10588235294117647.

- Source: https://eodhd.com/api/fundamentals/LDOS.US.json#2019-12-31 (filed 2026-02-17); FY2019: growth capex 0; upkeep 121000000; cash acquisitions 94000000; owner earnings 780000000. Growth capex plus acquisitions / owner earnings = 0.12051282051282051.

- Source: https://eodhd.com/api/fundamentals/LDOS.US.json#2020-12-31 (filed 2026-02-17); FY2020: growth capex 0; upkeep 183000000; cash acquisitions 2655000000; owner earnings 727000000. Growth capex plus acquisitions / owner earnings = 3.6519944979367263.

- Source: https://eodhd.com/api/fundamentals/LDOS.US.json#2021-12-31 (filed 2026-02-17); FY2021: growth capex 0; upkeep 104000000; cash acquisitions 622000000; owner earnings 974000000. Growth capex plus acquisitions / owner earnings = 0.6386036960985626.

- Source: https://eodhd.com/api/fundamentals/LDOS.US.json#2022-12-31 (filed 2026-02-17); FY2022: growth capex 0; upkeep 129000000; cash acquisitions 192000000; owner earnings 889000000. Growth capex plus acquisitions / owner earnings = 0.21597300337457817.

- Source: https://eodhd.com/api/fundamentals/LDOS.US.json#2023-12-31 (filed 2026-02-17); FY2023: growth capex 0; upkeep 207000000; cash acquisitions 6000000; owner earnings 323000000. Growth capex plus acquisitions / owner earnings = 0.018575851393188854.

- Source: https://eodhd.com/api/fundamentals/LDOS.US.json#2024-12-31 (filed 2026-02-17); FY2024: growth capex 0; upkeep 149000000; cash acquisitions 0; owner earnings 1395000000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/LDOS.US.json#2025-12-31 (filed 2026-02-17); FY2025: growth capex 0; upkeep 125000000; owner earnings 1630816000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); Dividend observations: [[2016,1135000000],[2017,198000000],[2018,198000000],[2019,198000000],[2020,196000000],[2021,199000000],[2022,199000000],[2023,201000000],[2024,208000000],[2025,211000000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/api/fundamentals/LDOS.US.json#2025-12-31 (filed 2026-02-17); FY2025: cash repurchases 944000000 USD.

### Are managers owners

Insiders own 0.6% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); LDOS.US SharesStats.PercentInsiders = 0.5539999999999999 percentage points; cache date 2026-10-16.

### What could break it

"We may not realize the full amounts reflected in our backlog as revenues" (SEC filing, Feb 2026)

- Source: https://www.sec.gov/Archives/edgar/data/1336920/000133692026000030/ldos-20260102.htm (filed 2026-02-17); We may not realize the full amounts reflected in our backlog as revenues

### What the price says

The price assumes cash profits grow 0.6% yearly over ten years; actual growth was 13.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-17); Ten-year compound average after fade. Initial solved rate -0.004456067745109371. Price 124; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 3.6621621621621623 → FY2025 12.544738461538461. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $41.57 per share

- 2016-11: $51.20 per share

- 2016-12: $51.14 per share

- 2017-01: $48.32 per share

- 2017-02: $53.30 per share

- 2017-03: $51.14 per share

- 2017-04: $52.66 per share

- 2017-05: $55.56 per share

- 2017-06: $51.69 per share

- 2017-07: $53.44 per share

- 2017-08: $58.32 per share

- 2017-09: $59.22 per share

- 2017-10: $62.52 per share

- 2017-11: $63.57 per share

- 2017-12: $64.57 per share

- 2018-01: $66.60 per share

- 2018-02: $63.31 per share

- 2018-03: $65.40 per share

- 2018-04: $64.23 per share

- 2018-05: $60.06 per share

- 2018-06: $59.00 per share

- 2018-07: $68.42 per share

- 2018-08: $70.77 per share

- 2018-09: $69.16 per share

- 2018-10: $64.78 per share

- 2018-11: $63.00 per share

- 2018-12: $52.72 per share

- 2019-01: $58.00 per share

- 2019-02: $64.59 per share

- 2019-03: $64.09 per share

- 2019-04: $73.48 per share

- 2019-05: $75.33 per share

- 2019-06: $79.85 per share

- 2019-07: $82.10 per share

- 2019-08: $87.36 per share

- 2019-09: $85.88 per share

- 2019-10: $86.23 per share

- 2019-11: $90.84 per share

- 2019-12: $97.89 per share

- 2020-01: $100.47 per share

- 2020-02: $102.65 per share

- 2020-03: $91.65 per share

- 2020-04: $98.81 per share

- 2020-05: $105.29 per share

- 2020-06: $93.67 per share

- 2020-07: $95.16 per share

- 2020-08: $90.49 per share

- 2020-09: $89.15 per share

- 2020-10: $83.00 per share

- 2020-11: $100.70 per share

- 2020-12: $105.12 per share

- 2021-01: $106.06 per share

- 2021-02: $88.45 per share

- 2021-03: $96.28 per share

- 2021-04: $101.28 per share

- 2021-05: $102.75 per share

- 2021-06: $101.10 per share

- 2021-07: $106.42 per share

- 2021-08: $98.11 per share

- 2021-09: $96.13 per share

- 2021-10: $99.98 per share

- 2021-11: $87.91 per share

- 2021-12: $88.90 per share

- 2022-01: $89.45 per share

- 2022-02: $101.84 per share

- 2022-03: $108.02 per share

- 2022-04: $103.51 per share

- 2022-05: $104.50 per share

- 2022-06: $100.71 per share

- 2022-07: $107.00 per share

- 2022-08: $95.05 per share

- 2022-09: $87.47 per share

- 2022-10: $101.59 per share

- 2022-11: $109.33 per share

- 2022-12: $105.19 per share

- 2023-01: $98.84 per share

- 2023-02: $97.07 per share

- 2023-03: $92.06 per share

- 2023-04: $93.26 per share

- 2023-05: $78.06 per share

- 2023-06: $88.48 per share

- 2023-07: $93.53 per share

- 2023-08: $97.51 per share

- 2023-09: $92.16 per share

- 2023-10: $99.12 per share

- 2023-11: $107.32 per share

- 2023-12: $108.24 per share

- 2024-01: $110.47 per share

- 2024-02: $127.86 per share

- 2024-03: $131.09 per share

- 2024-04: $140.22 per share

- 2024-05: $147.05 per share

- 2024-06: $145.88 per share

- 2024-07: $144.40 per share

- 2024-08: $158.51 per share

- 2024-09: $163.00 per share

- 2024-10: $183.16 per share

- 2024-11: $165.40 per share

- 2024-12: $144.06 per share

- 2025-01: $142.03 per share

- 2025-02: $129.97 per share

- 2025-03: $134.94 per share

- 2025-04: $147.18 per share

- 2025-05: $148.52 per share

- 2025-06: $157.76 per share

- 2025-07: $159.65 per share

- 2025-08: $180.92 per share

- 2025-09: $188.96 per share

- 2025-10: $190.47 per share

- 2025-11: $191.10 per share

- 2025-12: $180.40 per share

- 2026-01: $188.28 per share

- 2026-02: $175.10 per share

- 2026-03: $155.52 per share

- 2026-04: $149.22 per share

- 2026-05: $127.80 per share

- 2026-06: $102.97 per share

- 2026-07: $115.60 per share

- 2026-08: $140.21 per share

- 2026-09: $121.83 per share

- 2026-10: $124.00 per share

## Annual estimated value (USD per share)

- FY2020: low $58.93 per share, central $66.78 per share, high $77.25 per share

- FY2021: low $76.99 per share, central $87.16 per share, high $100.71 per share

- FY2022: low $81.82 per share, central $92.87 per share, high $107.59 per share

- FY2023: low $78.90 per share, central $89.31 per share, high $103.17 per share

- FY2024: low $87.18 per share, central $98.58 per share, high $113.76 per share

- FY2025: low $129.71 per share, central $176.42 per share, high $205.76 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:35:31.467Z where newer inputs omit a numeric field or fiscal period.

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1336920/000133692026000030/ldos-20260102.htm); period 2026-01-02, filed 2026-02-17.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.