Fundamental analysis · SEC EDGAR · TTM through 03/07/2026

Fundamental analysis of Leidos Holdings, Inc.

LDOS · NYSE · Technology

Fundamental quality

REASONABLE

73

out of 100

Leidos Holdings, Inc. earns a fundamental-quality score of 73 out of 100, profiling it as a company of reasonable quality. Its score rests mainly on its profitability (net margin 7.8%). Whether it's cheap or expensive depends on the current price, which you can compute in the tool.

What the company does

Leidos is the American government's largest technology-services contractor: Pentagon IT systems, airport scanners, veterans' healthcare and cyberdefense. It doesn't build missiles: it builds the software and engineering the state can't do alone.

What will shape its future

  • The federal and defense budget, its almost sole revenue source.
  • Multi-year contract bids and renewals, its periodic elections.
  • Public-spending efficiency: tech cuts can be threat or opportunity.

Breakdown by area

I.Growth
67

EPS growth: 17.7% · Revenue growth: 6.8%

II.Profitability
75

Net margin: 7.8% · ROE: 26% · ROIC: 14.9%

III.Financial health
73

Net debt/EBITDA: 2.27x · FCF: 12.3%

Source: SEC EDGAR · TTM through 03/07/2026

The score includes +1 for dividend strength: 7 consecutive years of increases. Keeping that streak demands growing cash generation and balance-sheet discipline.

The score combines growth, profitability and financial strength, and here its pillars hold up evenly.

Versus its sector

Percentile against the other 100 Technology companies in our coverage: how far it beats them on each metric (100 = best in sector).

Net marginbeats 31%
ROEbeats 62%
Growthbeats 24%
Cash generationbeats 27%
Less debtbeats 23%

Computed from the daily dataset scores. A high percentile places the company among the best in its sector on that metric; it is not a buy recommendation.

Key concepts

What do these metrics mean? Fundamental analysis · What is the P/E · What is EPS · What is ROE · Net & gross margin · Free cash flow

Leidos Holdings, Inc. strengths

  • Outstanding return on equity (ROE of 26%): it puts shareholder capital to good use.
  • Strong free-cash-flow generation (FCF margin of 12.3%): profit turns into real cash.
  • Growing earnings per share (17.7% annualized).
  • Revenue rising without interruption since 2021.

Leidos Holdings, Inc. risks and weaknesses

  • No clear weaknesses in the recent fundamentals, though the system doesn't assess qualitative factors (competition, regulation, management).

Leidos Holdings, Inc. historical evolution

YearRevenueNet incomeFree cash flowNet debt
202112,2976281,1514,220
202113,7377539294,349
202214,3966858634,404
202315,4381999804,041
202516,6621,2541,2863,821
202617,1741,4481,6253,540

Between 2021 and 2026, revenue went from $12,297M to $17,174M (+40%) and net income went from $628M to $1,448M (+131%). Meanwhile, its margins have widened (from 5% to 8%).

Annual figures in millions of U.S. dollars ($M) per SEC filings. Net debt is total debt minus cash.

Latest results

Versus the same period a year earlier

Figures for the half-year ended July 3, 2026, versus the half-year ended July 4, 2025 (SEC filings):

  • Revenue+5.4%
  • Net income-9.5%

What changed with the July 3, 2026 results

Compared with the previous close (April 3, 2026), this is what moved in its accounts:

  • Quality score7273
  • ROE28.2%26%
  • FCF margin10.7%12.3%
  • Net debt/EBITDA2.47×2.27×

Automatic comparison between the two most recent periods filed with the SEC. One quarter doesn't make a trend: read it alongside the historical evolution above.

Dividend

$1.63

per share, yearly

7 straight years raising it

Growth

The dividend yield depends on today's price. Compute it in the analyzer → · See all dividend-paying stocks →

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Is Leidos Holdings, Inc. cheap or expensive?

That depends on the current price. Look it up, enter it in the tool and get the full valuation verdict (P/E against its sector).

Compute the valuation →

Frequently asked questions

Is Leidos Holdings, Inc. a good company to invest in?

In terms of business quality, Leidos Holdings, Inc. scores 73 out of 100 in our analysis, placing it as a company of reasonable quality. That said, this isn't a recommendation: whether it's a good investment also depends on its current price and your goals.

Is Leidos Holdings, Inc. a profitable company?

Leidos Holdings, Inc. is profitable, with a net margin of 7.8%, though a thin one.

Does Leidos Holdings, Inc. have a lot of debt?

A moderate level: its net debt is 2.27 times its EBITDA.

Is Leidos Holdings, Inc. growing?

Its revenue has grown 6.8% annualized in recent years and its earnings per share 17.7%, and without interruption since 2021.

Does Leidos Holdings, Inc. generate cash?

Yes. It converts about 12.3% of its revenue into free cash flow, and has done so positively year after year.

The thresholds are general and the system doesn't judge qualitative factors. See the full methodology and use this analysis as a first filter, never as a final decision.

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