Update shared on04 Sep 2025
Fair value Increased 1.85%Analysts maintain a positive outlook on Leidos Holdings due to strong execution in Health Services, favorable positioning for government funding priorities, increased management confidence, and a strategic pivot toward higher-margin growth sectors, resulting in an unchanged $186.69 price target.
Analyst Commentary
- Continued strength and solid execution within Leidos' Health Services business, contributing to improved outlook and confidence.
- Positive positioning in the defense portfolio and ability to capitalize on new government funding priorities, including autonomous naval fleet, border security, and FAA air traffic control initiatives.
- Higher conviction in management under CEO Tom Bell and revised strategic direction, with DOGE-related risks believed to have peaked.
- Ongoing momentum in the aerospace and defense sector, supporting positive earnings results and analyst optimism for further growth.
- Strategic shift and business mix pivot towards growth areas and higher-margin businesses enhances long-term growth prospects.
What's in the News
- Leidos and Second Front Systems established a strategic partnership to streamline government software approval and jointly manage the Game Warden DevSecOps platform.
- The company repurchased 569,772 shares for $78.88 million, completing a total buyback of 16.2 million shares (11.96%) for $2.08 billion under its ongoing program.
- Raised FY2025 revenue guidance to $17.0-$17.25 billion from a prior $16.9-$17.3 billion outlook.
- Awarded a $128 million FBI task order to provide agile software development, modernization, and advanced biometric solutions for the Next Generation Identification system.
- Secured an $87 million NATO contract to modernize IT infrastructure, lead a multi-national team, and deliver secure cloud-based solutions for NATO's operational networks.
Valuation Changes
Summary of Valuation Changes for Leidos Holdings
- The Consensus Analyst Price Target remained effectively unchanged, at $186.69.
- The Consensus Revenue Growth forecasts for Leidos Holdings remained effectively unchanged, at 3.0% per annum.
- The Net Profit Margin for Leidos Holdings remained effectively unchanged, at 8.01%.
Disclaimer
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