Leidos Holdings, Inc. (LDOS)

FairStock Score: 65/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Viewing Leidos as a Graham-style analyst, I see a large government-services franchise: fifty thousand employees, national-security and digital work, and a beta of 0.57. The reported record is mixed. In fiscal Q2 2026, the quarter ended 2026-07-03, revenue was $4.5B and net income $354.0M, or $2.81 diluted EPS. That compares with fiscal Q2 2025, the quarter ended 2025-07-04, when revenue was $4.2B, net income $391.0M, and EPS $3.01. So sales rose while profit and EPS fell. Full-year fiscal FY2025, ended 2026-01-02, showed $17.1B revenue, $1.4B net income, and $11.14 diluted EPS, up from fiscal FY2024, ended 2025-01-03, at $16.6B, $1.3B, and $9.22. The computed Lynch category is STALWART, with its given five-year profit growth of 18.2% a year and revenue growth of 7.0%, which fits a steady but not spectacular compounder. Cash generation is the strongest feature: $2.2B trailing free cash flow and a 12.3% free-cash-flow yield, both FairStock calculations. The Piotroski 9/9 is encouraging, but Altman 2.02 and D/E 1.23 mean the balance sheet deserves respect. At $139.86 on 2026-10-26, FairStock’s P/E is 13.06, P/B 3.32, EV/EBITDA 9.88, and the Graham Number is $100.73, implying a -35.09% margin of safety—i.e., price is above that conservative value marker. ROE 27.78% is high, though ROCE 8.91% and a 1.35% dividend yield temper the picture. I’d call this a fair business with real cash flow, not a bargain by Graham’s arithmetic, and the recent profit decline is the main item to monitor.

In plain English: Leidos provides technology services and solutions mostly to government and commercial customers in national security, cyber, and digital areas. Sales are growing and the company produces a lot of cash, but recent profit fell and debt is meaningful. At the latest price, the shares look fair-to-slightly-expensive compared with reported earnings and accounting value, though strong cash generation is a support.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-26 close · note generated 2026-10-28 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-07-03) · fiscal Q1 2026 10-Q (period ended 2026-04-03) · fiscal Q3 2025 10-Q (period ended 2025-10-03) · fiscal Q2 2025 10-Q (period ended 2025-07-04) · FY2025 10-K (period ended 2026-01-02) · FY2024 10-K (period ended 2025-01-03) · FY2023 10-K (period ended 2023-12-29)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer