Update shared on04 Oct 2025
Fair value Increased 1.07%The analyst price target for Leidos Holdings has been increased by approximately $2 to $194.71, as analysts cite ongoing strength in healthcare margins, opportunities in defense solutions, and improved business execution as key factors supporting the higher valuation.
Analyst Commentary
Recent Street research updates reflect a generally positive outlook on Leidos Holdings, with multiple analysts raising their price targets and upgrading the stock in response to improved business execution and strong performance in key sectors.
Bullish Takeaways- Bullish analysts highlight robust performance in Leidos’ healthcare division and emphasize continued growth in healthcare margins as a major factor supporting higher valuation.
- Multiple upward price target revisions indicate confidence in Leidos’ ability to execute on critical programs in defense solutions, veteran health, and border security, aligning well with current government funding priorities.
- Strength in the company’s defense portfolio and strategic positioning is expected to create new growth opportunities, especially in areas such as autonomous maritime, border security, and advanced government systems.
- Improved leadership and a revised strategic direction have increased analysts’ confidence in Leidos’ capacity to achieve guidance and support ongoing momentum across its business segments.
What's in the News
- Leidos and Sky Solutions formed Purple Sky, LLC, a joint venture focused on delivering advanced digital services and improving public trust for federal health agencies through cloud, AI, and cybersecurity capabilities (Key Developments).
- Leidos unveiled Sea Dagger, a next-generation Commando Insertion Craft (CIC) concept for the Royal Navy. The vessel features modular mission systems, advanced autonomy, and integrated weaponry designed for operational resilience in contested maritime environments (Key Developments).
- Leidos and Second Front Systems announced a strategic partnership to streamline software approval processes for government customers, which is intended to accelerate the secure deployment of both commercial and government software (Key Developments).
- The company repurchased 569,772 shares, completing nearly 12% of its buyback program. Purchases now total $2.08 billion (Key Developments).
- Leidos revised its 2025 revenue guidance to a range of $17 billion to $17.25 billion (Key Developments).
Valuation Changes
- Consensus Analyst Price Target has risen slightly from $192.66 to $194.71.
- Discount Rate has decreased marginally from 7.45 percent to 7.41 percent.
- Revenue Growth estimate has dipped slightly from 3.39 percent to 3.34 percent.
- Net Profit Margin has increased narrowly from 8.34 percent to 8.35 percent.
- Future P/E ratio is up modestly from 17.34x to 17.51x.
Disclaimer
AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.