Reston, Virginia-based Leidos Holdings, Inc. (LDOS) provides services and solutions in the defense, intelligence, engineering, civil, and health markets. With a market cap of $21.9 billion, the company provides scientific, engineering, systems integration, and technical services and solutions.
Shares of this global science and technology leader have outperformed the broader market over the past year. LDOS has gained 25.3% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 12.9%. However, in 2026, LDOS stock is down 5%, compared to the SPX’s marginal fall on a YTD basis.
Narrowing the focus, LDOS’ underperformance is apparent compared to the Global X Defense Tech ETF (SHLD). The exchange-traded fund has gained about 74.3% over the past year. Moreover, the ETF’s 9.7% gains on a YTD basis outshine the stock’s losses over the same time frame.
Leidos Holdings' stock is rising due to strong earnings and revenue growth, driven by federal contracts and focus on cybersecurity and digital modernization. The company recently secured a $127 million contract to manage Hawai'i's Energy and EV Charging Station Rebate programs, boosting its clean energy credentials.
For fiscal 2025, ended in December 2025, analysts expect LDOS’ EPS to grow 15.2% to $11.76 on a diluted basis. The company’s earnings surprise history is impressive. It beat the consensus estimate in each of the last four quarters.
Among the 16 analysts covering LDOS stock, the consensus is a “Moderate Buy.” That’s based on eight “Strong Buy” ratings, one “Moderate Buy,” and seven “Holds.”
This configuration is more bullish than two months ago, with nine analysts suggesting a “Strong Buy.”
On Jan. 27, Jonathan Siegmann CFA from Stifel Financial Corp. (SF) maintained a “Hold” rating on LDOS with a price target of $220, implying a potential upside of 28.3% from current levels.
The mean price target of $217.86 represents a 27.1% premium to LDOS’ current price levels. The Street-high price target of $235 suggests an ambitious upside potential of 37.1%.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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