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LDOS · Analysis updated Nov 10, 2026, 6:00 PM ET
Why is Leidos Holdings, Inc. (LDOS) stock moving?
LDOS reported Q3 on Nov 3. Adjusted EPS of $3.62 beat the $3.03 estimate, but sales of $4.630B missed the $4.714B estimate. Management raised FY26 adjusted EPS guidance to $12.50-$12.70 and raised the operating cash flow forecast to about $1.90B. Revenue guidance was cut to $18.0B-$18.2B, which management attributed to the SES joint venture. Book-to-bill was 1.2, backlog reached $49.6B, the company repurchased $504M of stock in Q3, and the quarterly dividend rose 4.7% to $0.45. The stock closed at $144.16 on Nov 2, gapped down to $134.72 on Nov 3 on 2.39M shares (about 2.3x the prior session) with an intraday low of $124.50, and then stabilized between roughly $132 and $138. Volume has tapered to 612,867 shares on Nov 10, and the close of $137.24 is still about 5% below the pre-earnings level. Analyst views are mixed: BNP Paribas raised its target to $170 and Citigroup reiterated Buy with a $163 target, while Goldman Sachs cut its target to $122 and Jefferies moved to $135, close to the current price. The $672M TSA award on Nov 9 and the HeadWay Dispatch AI launch add to the operating story, though neither is a large financial change. Overall, the earnings and backlog data are constructive, but the revenue miss, lower revenue outlook, and wide range of price targets limit conviction.
News behind the analysis
- Citigroup Maintains Buy on Leidos Holdings, Raises Price Target to $163Citigroup kept its Buy rating on Leidos and raised its price target to $163. The target is well above the $137.24 close on Nov 10.
- Leidos Receives $672M Transportation Security Administration Contract To Upgrade Airport Checkpoint SecurityLeidos won a $672M TSA contract to upgrade airport checkpoint security. This is a sizable new award in its federal security business.
- Goldman Sachs Adjusts Price Target on Leidos to $122 From $127Goldman Sachs lowered its price target on Leidos to $122 from $127, the lowest target among recent updates.
- Jefferies Adjusts Price Target on Leidos to $135 From $130Jefferies raised its price target on Leidos to $135 from $130 after the quarterly results.
- BNP Paribas Adjusts Price Target on Leidos to $170 From $150BNP Paribas raised its price target on Leidos to $170 from $150, the highest target among the recent updates.
- Leidos Introduces HeadWay Dispatch for AI Agent OversightLeidos launched HeadWay Dispatch, a platform for monitoring, governing and managing AI agents from multiple vendors. It is a product launch with no disclosed financial impact.
- Leidos Reports Third Quarter 2026 Financial Results and Increases DividendQ3 revenue was $4.63B, with a raised quarterly dividend. The company raised its adjusted EPS guidance but lowered its revenue outlook.
- Leidos Holdings Q3 Adj. EPS $3.62 Beats $3.03 Estimate, Sales $4.630B Miss $4.714B EstimateAdjusted EPS of $3.62 beat the $3.03 estimate, while sales of $4.630B missed the $4.714B estimate. Book-to-bill was 1.2 and backlog was $49.6B.
- Leidos Raises FY26 Adj. EPS Guidance To $12.50-$12.70 From $12.20-$12.50Full-year adjusted EPS guidance was raised to $12.50-$12.70, above the $12.40 consensus. Revenue guidance was cut to $18.0B-$18.2B, reflecting the SES joint venture.
- Leidos Holdings, Inc. Declares Quarterly Cash Dividend IncreaseLeidos raised its quarterly cash dividend to $0.45 per share from $0.43, a 4.7% increase. The company also repurchased $504M of stock in Q3.
About Leidos Holdings, Inc.
Leidos is a large US government contractor, based in Reston, Virginia, that provides technology, engineering and science services. Most of its work is for the Defense Department, intelligence agencies and civilian agencies. It also has a big health business that handles medical disability exams for the Department of Veterans Affairs (VA), and it is pushing into defense tech, cyber and energy infrastructure.
How it makes money
Most of its revenue comes from US federal contracts: IT modernization, cyber operations, defense systems and prototypes, intelligence support, and managed health services such as disability exams for the VA. Revenue is roughly $18 billion a year (2026 guidance was about $18.2–18.4 billion). In 2026 it moved its security-screening business into a combination with Analogic.
What usually moves LDOS
- US defense and federal budgets, including continuing resolutions
- Contract wins, losses and recompetes, especially the VA disability-exam (VBA) contract
- Book-to-bill ratio and how many bids are awaiting decision
- Profit margins and cash flow
- Government efficiency drives and procurement delays