A Look At Leidos Holdings (LDOS) Valuation After Earnings And New AI Security Contract Wins

Simply Wall St.

Feb 18

Leidos Holdings (LDOS) is back in focus after reporting fourth quarter and full year results that paired slightly lower quarterly revenue with higher net income and earnings per share, along with ...

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One of the best stock trading platforms in Singapore.","ogImage":"https://c1.itigergrowtha.com/portal5/static/media/og-logo.be62fbe1.png","ogUrl":"https://www.itiger.com/news/2612951124"},"companyName":"Tiger Brokers"},"pageData":{"isMobile":false,"isTiger":false,"isTTM":true,"region":"SGP","license":"TBSG","edition":"fundamental"},"isCrawlerRequest":true,"__swrFallback__":{"@#url:\"https://stock-news.skytigris.cn/v3/news\",params:#id:\"2612951124\",edition:\"fundamental\",auth_exemption:1,,,undefined,":{"share":"https://ttm.financial/m/news/2612951124?lang=en_US&edition=fundamental","thumbnail":"https://images.simplywall.st/asset/industry/8031000-choice2-main-header/1585186598236","is_english":true,"pubTime":"2026-02-18 05:23","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2612951124","market":"nz","top_or_hot":-1,"title":"A Look At Leidos Holdings (LDOS) Valuation After Earnings And New AI Security Contract Wins","media":"Simply Wall St.","content":"<div>\n<p>Leidos Holdings (LDOS) is back in focus after reporting fourth quarter and full year results that paired slightly lower quarterly revenue with higher net income and earnings per share, along with ...</p>\n\n<a href=\"https://simplywall.st/stocks/us/commercial-services/nyse-ldos/leidos-holdings/news/a-look-at-leidos-holdings-ldos-valuation-after-earnings-and\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; 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This contrasts with a 1 year total...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"LDOS":"Leidos Holdings Inc"},"translate_title":"Leidos Holdings(LDOS)在盈利和新人工智能安全合同获胜后的估值一览","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"LDOS":1.5},"content_text":"Leidos Holdings (LDOS) is back in focus after reporting fourth quarter and full year results that paired slightly lower quarterly revenue with higher net income and earnings per share, along with fresh guidance for 2026 revenue. See our latest analysis for Leidos Holdings. The latest earnings and 2026 revenue guidance arrived after a choppy spell for Leidos Holdings' shares, with a 7 day share price return of 9.46% and a 30 day share price return of 9.45%. This contrasts with a 1 year total shareholder return of 35.67% and a 5 year total shareholder return of 101.24%. Together, these figures point to longer term momentum that has recently cooled, despite ongoing contract wins, partnerships around AI governance and cybersecurity automation, and a reaffirmed quarterly dividend. The stock closed at US$176.30, with a 1 day share price return of 2.83% following the results. The 3 year total shareholder return of 82.80% shows how much of the value creation has come over a multi year period rather than just recent trading sessions. If this earnings update has you thinking about where else defense tech and AI related themes might lead, take a look at 34 AI infrastructure stocks as a starting point for other potential ideas. With earnings per share moving higher, fresh 2026 revenue guidance and the stock trading at a discount to the average analyst price target, the key question is whether Leidos is still undervalued or if the market is already pricing in future growth. AdvertisementMost Popular Narrative: 22.6% Undervalued With Leidos Holdings last closing at $176.30 and the most followed narrative pointing to a fair value of $227.73, the gap between price and narrative view is wide enough to make investors pause and ask what is driving that difference.  Leidos is entering its February 17, 2026, earnings call in a unique \"valuation gap.\" While the stock is trading near $176, our DCF analysis suggests an intrinsic floor of $227, representing a 29% upside. The current market hesitation stems from \"leverage shock\" following the $2.4 billion acquisition of ENTRUST Solutions Group. Investors are currently hyper-focused on the $1.4 billion in new debt required to close the deal. However, this focus overlooks the massive operational synergy: Leidos is doubling its energy infrastructure business exactly as the U.S. enters a $1 trillion grid modernization cycle driven by AI power demand. For the upcoming Q4 report, the narrative will likely shift from how much they paid to how fast they can integrate. Analysts are looking for a beat on the $2.54 EPS consensus and, more importantly, a revision of the 2026 FCF guidance to reflect the ENTRUST accretion. 4. The Story The story of Leidos in 2026 is the transformation of a \"stuffy\" government contractor into an AI-infrastructure powerhouse. For years, Leidos was the quiet engine behind the Pentagon’s IT, but under the \"NorthStar 2030\" strategy, they have weaponized their balance sheet to own the two most critical bottlenecks in the modern economy: Power and Sovereign Intelligence. The Sovereign AI Catalyst: Earlier this year, Leidos signed a landmark partnership with OpenAI to deploy secure, generative AI across federal agencies. This is not just a software resale; it is a high-margin integration play. As federal agencies scramble to automate legacy bureaucracy, Leidos sits at the gate as the trusted \"sovereign\" middleman. The Strategy for Earnings:  Read the complete narrative. Curious what sits behind that higher fair value for Leidos? The narrative leans heavily on future cash flow strength, margin resilience and a profit multiple usually associated with faster growing tech names. Want to see which revenue and earnings paths have been baked into that $227.73 figure, and how much of it leans on grid modernization and sovereign AI work with federal agencies? Result: Fair Value of $227.73 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, this story can change quickly if the ENTRUST integration drags on, or if those high margin VA medical exam contracts face renewal delays or pricing pressure. Find out about the key risks to this Leidos Holdings narrative. Next Steps Given this mix of optimism and caution, it makes sense to check the underlying data yourself and move quickly to form your own view using 5 key rewards and 1 important warning sign. Looking for more investment ideas? If you stop your research with a single company, you risk missing other opportunities that might suit your goals even better, so widen the net with focused screeners.  Target quality at a discount by checking companies our screener flags as 55 high quality undervalued stocks before the rest of the market pays attention. Build a portfolio with staying power by filtering for solid balance sheet and fundamentals stocks screener (44 results) that can better handle shocks and keep funding their operations. Get ahead of the crowd by scanning our screener containing 24 high quality undiscovered gems that combine strong fundamentals with relatively low investor attention.   This article by Simply Wall St is general in nature. We provide commentary based on historical data\n    and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your\n    financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n    Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n    Simply Wall St has no position in any stocks mentioned.New: AI Stock Screener & AlertsOur new AI Stock Screener scans the market every day to uncover opportunities.• Dividend Powerhouses (3%+ Yield)• Undervalued Small Caps with Insider Buying• High growth Tech and AI CompaniesOr build your own from over 50 metrics.Explore Now for FreeHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":false,"code":"91000000","status":"200"}}}