Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
Leidos (LDOS) delivered strong FY2025 results with revenue growing 3.1% to $17.2B, while operating income surged 15.4% to $2.1B and net income rose 15.5% to $1.4B, reflecting meaningful margin expansion and robust cash generation.
Revenue
$17.17B
+3.07% YoY
EPS (Diluted)
$11.14
+20.82% YoY
Operating Income
$2.11B
+15.44% YoY
Source: SEC XBRL
Leidos Holdings (LDOS) reported FY2025 revenue of $17.17B, up 3.1% year over year. Operating margin was 12.3%, up 1.3 points from 11.0% a year earlier. Operating cash flow was $1.75B, up 22.0% year over year.
Last 4 quarters: 4 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 3.26 | 2.97 | Beat +9.9% |
| Mar 2026 | 3.13 | 2.96 | Beat +5.9% |
| Dec 2025This filing | 2.76 | 2.66 | Beat +3.8% |
| Sep 2025 | 3.05 | 2.77 | Beat +10.3% |
Reported EPS of $2.76 versus the $2.66 analyst consensus — a +3.8% beat for Dec 2025.
Compiled by AI from this SEC filing
Leidos grew total revenue by 3.1% year-over-year to $17.17B in FY2025, up from $16.66B in FY2024, indicating steady demand for its defense, intelligence, and civil government services despite a competitive federal contracting environment.
Source: 10-K Income Statement
Operating margin expanded approximately 130 basis points to 12.28% in FY2025 from 10.97% in FY2024, driven by disciplined cost management as cost of revenue grew only 1.5% against a 3.1% revenue increase, demonstrating improved operational efficiency.
Source: 10-K Income Statement / Key Ratios
Operating cash flow increased 22.0% year-over-year to $1.75B in FY2025, significantly outpacing net income growth of 15.5%, reflecting high earnings quality and effective working capital management including a $259M increase in cash and equivalents to $1.11B.
Source: 10-K Cash Flow Statement
Current liabilities declined sharply by 20.6% to $2.83B while current assets grew 11.1% to $4.81B, pushing the current ratio to a healthy 1.70, indicating a materially stronger short-term liquidity position compared to the prior year.
Source: 10-K Balance Sheet
R&D expenditure rose 24.7% year-over-year to $187M in FY2025 from $150M in FY2024, suggesting Leidos is accelerating investment in technology capabilities, likely in areas such as AI, cybersecurity, and advanced defense systems to maintain competitive differentiation.
Source: 10-K Income Statement
Compiled by AI from this SEC filing · 3 high, 2 medium, 0 low
As a government services contractor, Leidos derives the vast majority of its revenue from U.S. federal agencies. Prolonged continuing resolutions, sequestration, or budget cuts could delay contract awards, reduce funding on existing programs, or cause contract cancellations, directly impacting revenue and backlog.
Source: 10-K Risk Factors (inferred from business model)
Leidos must regularly recompete for existing contracts upon expiration, and failure to win recompetitions could result in significant revenue loss. The federal contracting market is highly competitive, with large defense primes and specialized firms vying for the same programs.
Source: 10-K Risk Factors (inferred from business model)
Given Leidos's work on sensitive national security and intelligence programs, the company faces elevated risk of cyberattacks targeting classified or sensitive data. A breach could result in contract termination, reputational damage, regulatory penalties, and loss of security clearances critical to its business.
Source: 10-K Risk Factors (inferred from business model)
Leidos carries a debt-to-equity ratio of approximately 1.74x, indicating meaningful financial leverage. Rising interest rates or refinancing at higher rates could increase interest expense and pressure free cash flow, particularly if operating performance were to soften.
Source: 10-K Balance Sheet / Key Ratios
Leidos's ability to perform on government contracts depends on maintaining a large pool of employees with active security clearances. Delays in clearance processing, attrition of cleared personnel, or labor market tightness in specialized technical fields could constrain the company's ability to staff and execute contracts.
Source: 10-K Risk Factors (inferred from business model)
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 17.17 $B | 16.66 $B | +3.07% |
Cost of Revenue $B | 14.08 $B | 13.86 $B | +1.52% |
Operating Income $B | 2.11 $B | 1.83 $B | +15.44% |
Net Income $B | 1.45 $B | 1.25 $B | +15.47% |
EPS (Basic) $ | 11.31 $ | 9.36 $ | +20.83% |
EPS (Diluted) $ | 11.14 $ | 9.22 $ | +20.82% |
R&D Expense $M | 187.00 $M | 150.00 $M | +24.67% |
SG&A Expense $M | 999.00 $M | 983.00 $M | +1.63% |
Answers draw on this SEC filing and the data on this page
Leidos reported Q2 FY2026 revenue growth of 7.2% driven by the Entrust acquisition and homeland strength, but operating income fell 10% as higher costs and integration expenses weighed on profitability, while backlog and cash flow trends remained robust.
Leidos (LDOS) reported Q2 2026 revenue of $4.4B (+3.7% YoY), but net income fell 9.6% to $328M as higher costs and a significant acquisition-driven balance sheet expansion weighed on margins and cash balances.
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