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Leidos Holdings Inc LDOS

Leidos Holdings Inc scores average on business quality (4.7 of 10). Here is why, in plain words, and what our sealed record shows.

Last price$121.68Oct 10, 2026
Business qualityAverage
Next earningsNov 3, 2026
Insiders, 90 daysSelling

Why it matters

  1. What Leidos Holdings Inc does

    Leidos Holdings delivers defense, intelligence, and civil technology solutions, earning revenue primarily through government contracts. The firm provides mission-critical IT, engineering, and science services to public sector agencies.

  2. What it does best

    Leidos excels at large-scale government IT integration, backed by an ROE of 27.4%. This performance outpaces peer J with an ROE of 9.9%. High switching costs and complex security clearances create durable barriers against new entrants.

  3. The main risk

    Reliance on government contract funding leaves Leidos exposed to federal budget delays and shifting defense priorities. If a major budget impasse occurs, contract awards stall and top-line expansion slows.

Quality, check by check

Scored against its own industry, from company filings.

ProfitabilityFair

Operating margin stands at 11.8% and FCF margin at 12.0%, showing stable profitability. The company operates in a low-margin government services model where scale helps drive steady cash generation.

MoatFair

Leidos relies on customer switching costs and federal accreditation as its moat, locking in government agencies. Its gross margin ranks in the 11th percentile of its sector at 17.8%, reflecting low-margin contracting work.

GrowthSlow

Revenue growth sits at 3.1%, landing in the sector's middle of the pack at the 41st percentile. Historical figures show steady top-line gains from $12.3B in 2021 to $17.6B.

Financial healthFair

Leidos carries $4.6B of total debt against $1.1B in cash, leaving net debt at $3.5B. Free cash flow reached $2.1B, showing solid conversion. The balance sheet remains manageable but leveraged.

Insiders

Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.

2 sold $1.5M outside pre-planned sales.

Our sealed record on LDOS

Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.

The first sealed verdicts appear here on Oct 11, 2026.

Questions

Is LDOS a good business?

Leidos Holdings Inc scores average on the Cluenex quality check (4.7 of 10), measured against its own industry. Profitability is fair, moat fair, growth slow and financial health fair.

Are insiders buying LDOS?

In the last 90 days of SEC Form 4 filings: 2 sold $1.5M outside pre-planned sales.

When does LDOS report earnings?

Nov 3, 2026.

For members

See LDOS today

  • Today's verdict on LDOS, and why
  • Fair value with cautious, base and optimistic cases
  • The exact price that would change the verdict
  • Which stocks each signal names, the night it fires
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Cite this page: Cluenex, “Leidos Holdings Inc (LDOS)”, https://cluenex.com/stocks/ldos/, data as of Oct 10, 2026.