Update shared on19 Sep 2025
Fair value Increased 1.32%Upward analyst revisions for Leidos Holdings reflect confidence in its strategic investments in health and border security, strong healthcare margins, and effective leadership, resulting in a modest price target increase from $190.15 to $192.66.
Analyst Commentary
- Bullish analysts highlight Leidos' strategic investments in veteran health, border security, and autonomous maritime, positioning the company to benefit from new government funding priorities.
- Strength and consistent execution in the Health Services segment, along with robust healthcare margins, underpin optimism about sustained EPS growth.
- The defense solutions and border security portfolio are seen as key growth drivers, with enhanced opportunities arising from the company's positioning in these sectors.
- Upgrades and price target increases are supported by leadership changes, with increased confidence in CEO Tom Bell's revised strategic direction and the company’s well-diversified, growth-oriented strategy.
- Recent earnings beats and positive sector momentum, coupled with ongoing mix shifts toward higher-margin businesses, contribute to continuing bullish sentiment and higher forward estimates.
What's in the News
- Leidos unveiled Sea Dagger, a next-generation maritime Commando Insertion Craft for the Royal Navy, combining speed, range, modularity, and advanced autonomous technology, aligning with AUKUS and UK defense objectives.
- Announced a strategic partnership with Second Front Systems to streamline secure software adoption for government customers, with Leidos becoming the preferred services partner for the Game Warden DevSecOps platform.
- Repurchased 569,772 shares for $78.88 million during Q2 2025, completing a total share buyback of 16,206,187 shares ($2.08 billion) since February 2022.
- Raised 2025 revenue guidance to $17 billion–$17.25 billion from the previous outlook of $16.90–$17.30 billion.
- Awarded a $128 million FBI contract to modernize the Next Generation Identification system and enhance biometric capabilities; also secured an $87 million multinational NATO contract to modernize IT infrastructure and cybersecurity.
Valuation Changes
Summary of Valuation Changes for Leidos Holdings
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from $190.15 to $192.66.
- The Consensus Revenue Growth forecasts for Leidos Holdings has significantly risen from 3.0% per annum to 3.4% per annum.
- The Net Profit Margin for Leidos Holdings has risen slightly from 8.06% to 8.34%.
Disclaimer
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