Leidos Holdings, Inc. (LDOS) Monthly Stock Report - January 2026

Company Overview

Leidos Holdings, Inc. (NYSE: LDOS), headquartered in Reston, Virginia, is a prominent player in the Information Technology Services sector within the broader Technology industry. Founded in 1969, Leidos has established a strong reputation by offering a diverse range of services and solutions designed for both government and commercial clients across the globe. The company excels in areas such as national security software, cybersecurity solutions, health mission software, air traffic control systems, and grid engineering services.

In recent years, Leidos has prioritized the integration of advanced technologies such as artificial intelligence (AI) and machine learning (ML) to enhance operational efficiencies across its various domains, including defense, health, and civil infrastructure. With an impressive total revenue of approximately $17.33 billion, the Information Technology Services industry has shown robust growth, reflecting a burgeoning demand for technology solutions across multiple sectors.

52-Week Price Performance Analysis

52-Week Price Performance Chart

The 52-week performance chart of Leidos Holdings illustrates a bullish trend, characterized by a significant price increase from approximately $145 in March to a peak exceeding $200 in November. This impressive surge highlights a total price escalation of roughly 23.85% over the year. While the support level currently stands at $180.4, resistance has been consistently encountered at the $200 mark, signaling a critical juncture for potential bullish or bearish conditions.

Key technical analysis metrics reveal a fifty-day moving average of $189.0094, with the stock trading noticeably below this average as well as below its recent forty-week high. The momentum appears to be waning, suggesting a possible short-term consolidation period. If the stock fails to hold above the $180.4 support level, it may indicate a bearish trend, necessitating caution for current investors. Conversely, if the stock rebounds off this support, there is potential for the continuation of its broader uptrend.

Actionable Insights:

• Watch for Support: Monitor the $180.4 support level. A confirmation of a rebound could present an entry opportunity.
• Beware of Resistance: A decisive breakout beyond the $200 resistance may signal a new upward trend.
• Volume Analysis: Track intraday volume for indications of price momentum; as of the last trading day, it was 649,311 shares.

Financial Performance and Metrics

Leidos has showcased solid financial performance, underscoring its operational efficiencies and market strength. In the third quarter of 2025, the company reported record revenues totaling $4.5 billion, which reflects a 7% year-over-year increase. Most notably, its net income rose to $369 million, translating to $2.82 per diluted share.

This growth has allowed Leidos to raise its full-year earnings guidance, now projected between $11.45 to $11.75 per share, surpassing previous estimates ranging from $10.15 to $10.45. Coupled with an earnings before interest, taxes, depreciation, and amortization (EBITDA) of $2,335 million, these figures signify strong operational profitability. This robust financial structure supports a healthy ecosystem for future growth.

Regarding valuation metrics, Leidos has a total of 127,855,172 shares outstanding, with approximately 2,626,420 shares sold short, representing about 2.35% of the float. The current market price is $180.4, with a target high price set at $235.0, indicating material growth potential as analyzed benchmarks loom on the horizon.

Recent News and Developments

Throughout the recent weeks, Leidos has been active in announcing strategic initiatives and operational milestones. Highlights include:

• Strong Q3 Performance: Record revenues and net income boost investor confidence and raise earnings guidance.
• Dividend Increase: Leidos raised its quarterly cash dividend by $0.03 to $0.43 per share, payable December 31, 2025, rewarding shareholders amid promising financial performance.
• Strategic Divestiture: The company announced the intention to sell its wholly owned subsidiary, Varec, to sharpen its strategic focus, part of the NorthStar 2030 portfolio optimization strategy. This sale is expected to close in the fourth quarter of 2025, subject to closing conditions.

These developments reflect a proactive approach by Leidos to enhance shareholder value while maintaining a competitive posture in the rapidly evolving technology landscape.

Market Sentiment and Analyst Recommendations

Analyst sentiment surrounding Leidos remains cautiously optimistic, with a consensus rating of "Moderate Buy." The average price target estimates a significant potential upside, with figures averaging $216, against a current price of $180.4. Analysts have provided a price range with highs at $235.00 and lows around $178.00, indicating that while the stock has recorded fluctuations, there remains confidence in its fundamentals.

Key Analyst Insights:

• Positive Outlook: With the current consensus average price being robust, there is a definitive bullish sentiment across 13 analysts, despite a lack of a specific recommendation key.
• Risk Assessment: Investors should consider potential risks, especially in light of the stock's recent pullback from highs, whereby market dynamics could temporarily shift sentiment.

In summary, Leidos Holdings, Inc. stands at a critical juncture characterized by robust financial metrics, strategic announcements, and a positive yet cautious market outlook. Investors should weigh these factors alongside market dynamics to make informed investment decisions in this promising technology leader.