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.)