Leidos Q3 profit beats estimates on increased demand for defense solutions

Leidos Holdings

04/11/2025 11:08

Overview

Leidos Q3 revenue grows 7% yr/yr, beating analyst expectations

Adjusted EPS for Q3 beats consensus, rising 4% yr/yr

Company raises full-year earnings and margin guidance despite government shutdown

Outlook

Leidos raises FY25 non-GAAP EPS guidance to $11.45-$11.75

Company maintains FY25 revenue guidance at $17.00-$17.25 bln

Leidos expects FY25 adjusted EBITDA margin in high 13% range

Result Drivers

CUSTOMER DEMAND - Revenue growth driven by increased demand for national security and defense solutions

HEALTH SERVICES - Increased profitability in Health & Civil segment due to high volumes and timing of incentive awards

COST MANAGEMENT - High profitability maintained through cost management and award performance despite increased legal reserves

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
$4.47 bln
$4.28 bln (13 Analysts)
Q3 Adjusted EPS
Beat
$3.05
$2.71 (12 Analysts)
Q3 EPS
$2.82
Q3 Net Income
$369 mln
Q3 NET BOOKINGS
$5.90 bln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 7 "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 $200.00, about 3.5% above its November 3 closing price of $193.05

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

Press Release: ID:nPnb0d4fra

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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.)