Leidos beats Q4 adjusted EPS expectations, helped by growth in priority markets

Leidos Holdings

17/02/2026 11:09

Overview

Defense contractor's Q4 revenue fell 4%, missing analyst expectations

Adjusted EPS for Q4 beat analyst expectations, rising 16% yr/yr

Company entered agreement to acquire Entrust for $2.4 bln

Outlook

Leidos forecasts FY26 revenue between $17.5 bln and $17.9 bln

Company expects FY26 non-GAAP diluted EPS of $12.05 to $12.45

Leidos anticipates FY26 cash flows from operations around $1.75 bln

Result Drivers

REVENUE DECLINE - Q4 revenue fell 4% due to an extra work week in the prior year and a six-week government shutdown

EARNINGS GROWTH - Increased efficiencies and cost control drove a 19% rise in diluted EPS for Q4

STRATEGIC FOCUS - Growth in priority markets like space, energy, and digital modernization supported results

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Miss
$4.20 bln
$4.31 bln (14 Analysts)
Q4 Adjusted EPS
Beat
$2.76
$2.61 (14 Analysts)
Q4 EPS
$2.53
Q4 Net Income
$335 mln
Q4 Net Bookings
$5.60 bln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 8 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the it services & consulting peer group is "buy"

Wall Street's median 12-month price target for Leidos Holdings Inc is $222.34, about 26.1% above its February 13 closing price of $176.30

The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 16 three months ago

Press Release: ID:nPn4MbJ7ha

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)