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Leidos Holdings, Inc. (LDOS) Stock Analysis

By Nova Skye | AltStation.io | Updated February 07, 2026

Price

$192.97

Change

+3.70%

Market Cap

$24.76B

Avg Volume

837.5K

Company Overview

Leidos Holdings, Inc. (LDOS) is a technology company that provides a wide range of services and solutions primarily for government and commercial clients. Headquartered in Reston, Virginia, they operate across several segments, including National Security & Digital, Health & Civil, and Commercial & International. Their offerings include everything from cybersecurity and intelligence analysis to healthcare software and power grid engineering. They leverage advanced technologies such as artificial intelligence and machine learning to enhance their services and meet the complex needs of their customers.

In terms of market position, Leidos is a strong player in the IT services sector, particularly within government contracts. They enjoy leadership status in national security and health services, which gives them a competitive edge. However, the market is crowded, with competitors like Northrop Grumman and Raytheon Technologies posing significant challenges. Leidos also faces risks related to evolving government budgets and potential shifts in defense priorities, which could impact their revenue stability.

Currently, Leidos is in a growth phase, consistently expanding its portfolio through strategic acquisitions and partnerships. Recent milestones include a series of contract wins across various sectors, signifying robust demand for their services. The company is also focusing on digital transformation initiatives, enhancing their capabilities in areas like cybersecurity and health technology to maintain their competitive edge in a fast-changing market.

Key Financials

Market Cap

$24.76B

Revenue

$17.33B

EBITDA

$2.34B

Gross Margin

17.6%

Profit Margin

8.1%

Revenue Growth

6.7%

Total Cash

$974.00M

Total Debt

$5.23B

Free Cash Flow

$751.37M

52-Week Price Performance Analysis

Price Statistics

P/E Ratio

18.00

Forward P/E

15.71

Beta

0.62

52-Week High

$205.77

52-Week Low

$123.62

EPS

$10.72

50-Day Avg

$188.97

200-Day Avg

$175.44

Price/Book

5.03

Technical Analysis

Leidos Holdings, Inc. (LDOS) has exhibited a strong upward trend over the past 52 weeks, increasing by approximately 36.6% from a low of around $140 to its current price of $192.97. Key support is evident at the $140 level, which acted as a significant floor during pullbacks in late February and early March. Resistance appears to be forming just under $200, where the stock has failed to maintain momentum in recent attempts. Notably, the stock has created a series of higher lows and higher highs, reinforcing the bullish sentiment despite some consolidation observed in the last few weeks near the $193 level. Currently, at $192.97, the stock is trading just below its all-time high, indicating strong potential for further gains if it can break through resistance. Overall, this positioning suggests continued bullish momentum while maintaining a watchful eye on the resistance level near $200.

Recent News and Developments

Here’s a summary of the latest news and developments for Leidos Holdings, Inc

(LDOS) stock in the past week, focusing on key events:

1. Leidos Partners with RegScale to Enhance Federal Cybersecurity

Leidos announced on February 5, 2026, an integration of its UpHold Armor with RegScale’s Continuous Controls Monitoring platform. This collaboration aims to bolster cybersecurity for the Department of War, the U.S. Air Force, and other federal agencies by automating risk management, enabling continuous Authorization to Operate (ATO) readiness, and reducing manual audit work. The initiative is part of Leidos’ NorthStar 2030 digital modernization strategy.

2. Leidos and Trustible Launch AI Governance Partnership

On February 4, 2026, Leidos and Trustible announced a joint initiative to streamline AI governance through automation. The partnership has demonstrated the ability to compress initial AI governance intake processes from weeks to hours, and in some cases minutes, while maintaining robust oversight and control. This collaboration aims to support AI innovation and adoption across government missions by integrating Trustible’s automated governance platform into Leidos’ enterprise governance.

Market Sentiment and Analyst Recommendations

Bull Case

Leidos is firing on multiple cylinders right now. The ENTRUST acquisition for $2.4 billion expands the energy infrastructure business, a sector benefiting from grid modernization spending and renewable energy infrastructure buildout. The RegScale and Trustible partnerships address real federal pain points — cybersecurity and AI governance — which are high-margin service offerings with sticky contracts. Revenue growth of 6.7% is solid for a $17.3B company, and the P/E of 18x is reasonable for a defense contractor with government revenue stability. The stock has rallied 36.6% in 52 weeks and is trading near all-time highs, which reflects investor confidence in execution. Analyst consensus is overwhelmingly bullish at 13 buys with a $219.31 target, implying 13.5% upside from current levels. The company has $974M in cash and is managing debt responsibly while deploying capital into acquisitions that strengthen competitive positioning.

Bear Case

The Stifel downgrade in January flagged a real problem: the high-margin VA Compensation and Pension contract is moderating in 2026, and this was a significant growth driver. That slowdown will pressure margins and organic growth rates going forward. The ENTRUST deal requires $2.4B in cash, which will increase leverage and reduce financial flexibility — total debt already sits at $5.23B. At $192.97, the stock is priced for perfection near all-time highs with limited room for error. The $200 resistance level has proven tough to crack, suggesting institutional selling pressure at these levels. Integration risk on a $2.4B acquisition is real, and the company needs to execute flawlessly while managing the VA contract headwind. If the energy infrastructure business doesn’t deliver the expected returns, or if government spending priorities shift, this valuation becomes unjustifiable.

What to Watch

Earnings on February 17, 2026 will be the immediate catalyst. Watch for guidance on organic growth rates post-VA contract slowdown and EBITDA margins — if guidance drops materially, the stock will sell off hard. Track the ENTRUST integration timeline and early revenue synergy realization; any delays or missed targets will erode confidence. Monitor the $200 resistance level closely; a break above signals the bull case is intact, while a rejection suggests institutional profit-taking is beginning. Watch for contract wins in cybersecurity and AI governance services — these are the highest-margin replacement growth drivers. The energy infrastructure sector is critical; track utility spending announcements and grid modernization budgets. Finally, keep an eye on the debt-to-EBITDA ratio post-acquisition; if leverage exceeds 3x, that becomes a constraint on future M&A and shareholder returns.

Analyst Consensus

BUY

Based on 13 analyst opinions

Low Target

$185.00

Mean Target

$219.31

High Target

$235.00

Earnings and Financial Data

Sector

Technology

Industry

Information Technology Services

Employees

47,000

Earnings & Dividends

Next Earnings

Feb 17, 2026

EPS (Trailing)

$10.72

Dividend Yield

92.0%

Payout Ratio

14.9%

Frequently Asked Questions

Is LDOS a good stock to buy?

Yes, analysts recommend buying Leidos Holdings, Inc. with a target price of $219.31, suggesting an upside from the current price of $192.97. The P/E ratio of 18.00 indicates it’s reasonably valued compared to peers.

What is LDOS’s price target?

The analyst target for LDOS is $219.31. This represents about a 13.6% upside from its current trading price.

Does LDOS pay a dividend?

Yes, Leidos has a very high dividend yield of 92.0%. This makes it an attractive option for income-focused investors.

How has LDOS performed in the last year?

LDOS has traded between $123.62 and $205.77 over the past 52 weeks. The stock’s current price near $193 suggests strong performance relative to its lower end.

What sector does Leidos operate in?

Leidos operates in the Technology sector, specifically within the Information Technology Services industry. This positions it well for growth as tech continues to expand.

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Disclaimer: This report is for informational purposes only and does not constitute financial advice. The analysis and opinions expressed are those of AltStation.io and should not be relied upon as the sole basis for investment decisions. Always conduct your own research and consult with a qualified financial advisor before making investment decisions. Past performance does not guarantee future results. Updated February 07, 2026.