Leidos Holdings Financials
This page shows Leidos Holdings (LDOS) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 16 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
Higher contract profitability and light reinvestment needs turned modest growth into faster cash generation and wider margins.
From FY2023 to FY2026, operating margin expanded from4.0% to12.3% even though revenue growth was far less dramatic, which points to better gross profit capture and fixed-cost absorption rather than simple volume growth. Free cash flow then reached$1.6B on only$125M of capex, showing that the recovery was cash-backed in an asset-light operating model.
Cash conversion quality is stronger than GAAP earnings alone imply: in FY2023, net income dropped to
Liquidity and leverage improved by FY2026, with the current ratio at 1.7x and debt-to-equity down to 0.9x, so near-term financing pressure looks lower than earlier in the period. Goodwill still represents about half the asset base, with
Financial Health Signals
Scored against operating companies for FY2026. Each of the six dimensions is a percentile rank within that peer group; the overall is their average, with missing dimensions counted as zero out of six. A high score means strong standing among peers, not absolute cross-industry strength. How this score is calculated →
Health score ≠ stock price. This rates the quality of Leidos Holdings's business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.
Leidos Holdings has an operating margin of 12.3%, meaning the company retains $12 of operating profit per $100 of revenue. This strong profitability earns a score of 68/100, reflecting efficient cost management and pricing power. This is up from 11.0% the prior year.
Leidos Holdings's revenue grew a modest 3.1% year-over-year to $17.2B. This slow but positive growth earns a score of 52/100.
Leidos Holdings has elevated debt relative to equity (D/E of 1.20), meaning the company relies heavily on borrowed funds. This high leverage results in a low score of 27/100, reflecting increased financial risk.
Leidos Holdings's current ratio of 1.40 indicates adequate short-term liquidity, earning a score of 37/100. The company can meet its near-term obligations, though with limited headroom.
Leidos Holdings has a free cash flow margin of 9.5%, earning a moderate score of 62/100. The company generates positive cash flow after capital investments, but with room for improvement.
Leidos Holdings earns a strong 28.9% return on equity (ROE), meaning it generates $29 of profit for every $100 of shareholders' equity. This efficient capital use earns a returns score of 78/100. This is down from 29.5% the prior year.
Leidos Holdings scores 2.92, placing it in the grey zone between 1.81 and 2.99. This signals moderate financial risk that warrants monitoring.
Distress-screening estimate for non-financial companies. Not computed for banks or insurers, where the Altman model does not apply.
Leidos Holdings passes 5 of 9 financial strength tests. 3 of 4 profitability signals pass, 1 of 3 leverage/liquidity signals pass, 1 of 2 efficiency signals pass.
For every $1 of reported earnings, Leidos Holdings generates $1.21 in operating cash flow ($1.8B OCF vs $1.4B net income). This indicates profits are well-supported by actual cash generation, not accounting adjustments.
Leidos Holdings earns $10.4 in operating income for every $1 of interest expense ($2.1B vs $203.0M). This wide margin provides strong safety for debt servicing, even if earnings decline temporarily.
Key Financial Metrics
Earnings & Revenue
Leidos Holdings generated $17.2B in revenue in fiscal year 2026. This represents an increase of 3.1% from the prior year.
Leidos Holdings's EBITDA was $2.4B in fiscal year 2026, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 13.3% from the prior year.
Leidos Holdings reported $1.4B in net income in fiscal year 2026. This represents an increase of 15.5% from the prior year.
Leidos Holdings earned $11.14 per diluted share (EPS) in fiscal year 2026. This represents an increase of 20.8% from the prior year.
Cash & Balance Sheet
Leidos Holdings generated $1.6B in free cash flow in fiscal year 2026, representing cash available after capex. This represents an increase of 26.4% from the prior year.
Leidos Holdings held $457.0M in cash against $6.0B in long-term debt as of fiscal year 2026.
Leidos Holdings paid $1.63 per share in dividends in fiscal year 2026. This represents an increase of 5.8% from the prior year.
Leidos Holdings had 126M shares outstanding in fiscal year 2026. This represents a decrease of 2.3% from the prior year.
Margins & Returns
Leidos Holdings's gross margin was 18.0% in fiscal year 2026, indicating the percentage of revenue retained after direct costs. This is up 1.3 percentage points from the prior year.
Leidos Holdings's operating margin was 12.3% in fiscal year 2026, reflecting core business profitability. This is up 1.3 percentage points from the prior year.
Leidos Holdings's net profit margin was 8.4% in fiscal year 2026, showing the share of revenue converted to profit. This is up 0.9 percentage points from the prior year.
Leidos Holdings's ROE was 28.9% in fiscal year 2026, measuring profit generated per dollar of shareholder equity. This is down 0.6 percentage points from the prior year.
Capital Allocation
Leidos Holdings invested $187.0M in research and development in fiscal year 2026. This represents an increase of 24.7% from the prior year.
Leidos Holdings spent $400.0M on share buybacks in fiscal year 2026, returning capital to shareholders by reducing shares outstanding. This represents a decrease of 52.9% from the prior year.
Leidos Holdings invested $125.0M in capex in fiscal year 2026, funding long-term assets and infrastructure. This represents a decrease of 16.1% from the prior year.
LDOS Income Statement
| Metric | Q1'27 | Q4'26 | Q3'26 | Q2'26 | Q1'26 | Q4'25 | Q3'25 | Q2'25 |
|---|---|---|---|---|---|---|---|---|
| Revenue | $4.4B+4.6% | $4.2B-5.9% | $4.5B+5.1% | $4.3B+0.2% | $4.2B-2.7% | $4.4B+4.2% | $4.2B+1.4% | $4.1B |
| Cost of Revenue | $3.6B+4.9% | $3.5B-4.9% | $3.6B+5.1% | $3.5B-0.5% | $3.5B-5.0% | $3.7B+7.1% | $3.4B0.0% | $3.4B |
| Gross Profit | $761.0M+3.0% | $739.0M-10.0% | $821.0M+5.0% | $782.0M+3.3% | $757.0M+9.2% | $693.0M-9.1% | $762.0M+8.1% | $705.0M |
| R&D Expenses | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A Expenses | $223.0M-16.2% | $266.0M-7.0% | $286.0M+31.8% | $217.0M-5.7% | $230.0M-17.6% | $279.0M+13.0% | $247.0M+6.9% | $231.0M |
| Operating Income | $508.0M+7.4% | $473.0M-11.6% | $535.0M-6.3% | $571.0M+7.7% | $530.0M+25.9% | $421.0M-18.4% | $516.0M+8.6% | $475.0M |
| Interest Expense | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Income Tax | $94.0M0.0% | $94.0M-18.3% | $115.0M-8.0% | $125.0M+10.6% | $113.0M+21.5% | $93.0M-13.9% | $108.0M+5.9% | $102.0M |
| Net Income | $328.0M+0.3% | $327.0M-10.9% | $367.0M-6.1% | $391.0M+7.7% | $363.0M+27.8% | $284.0M-22.0% | $364.0M+13.0% | $322.0M |
| EPS (Diluted) | $2.56 | N/A | $2.82-6.3% | $3.01+8.7% | $2.77 | N/A | $2.68+13.1% | $2.37 |
LDOS Balance Sheet
| Metric | Q1'27 | Q4'26 | Q3'26 | Q2'26 | Q1'26 | Q4'25 | Q3'25 | Q2'25 |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $15.4B+14.0% | $13.5B-0.4% | $13.5B-0.1% | $13.5B+2.7% | $13.2B+1.4% | $13.0B-2.5% | $13.3B+3.3% | $12.9B |
| Current Assets | $4.4B-8.5% | $4.8B-0.7% | $4.8B+1.4% | $4.8B+5.1% | $4.5B+5.0% | $4.3B-7.1% | $4.7B+10.3% | $4.2B |
| Cash & Equivalents | $457.0M-58.8% | $1.1B+13.8% | $974.0M+4.7% | $930.0M+10.5% | $842.0M-0.8% | $849.0M-22.6% | $1.1B+47.4% | $744.0M |
| Inventory | $336.0M-1.8% | $342.0M-5.0% | $360.0M-1.1% | $364.0M+4.9% | $347.0M+10.2% | $315.0M-2.5% | $323.0M-3.0% | $333.0M |
| Accounts Receivable | N/A | $2.7B | N/A | N/A | N/A | $2.6B | N/A | N/A |
| Goodwill | $8.1B+27.6% | $6.3B0.0% | $6.3B-0.3% | $6.4B+4.3% | $6.1B+0.2% | $6.1B-0.6% | $6.1B+0.3% | $6.1B |
| Total Liabilities | $10.3B+21.0% | $8.5B-0.7% | $8.6B-2.9% | $8.8B-0.6% | $8.9B+4.0% | $8.6B-1.4% | $8.7B+3.2% | $8.4B |
| Current Liabilities | $3.2B+11.5% | $2.8B-5.3% | $3.0B+1.3% | $2.9B-0.4% | $3.0B-16.8% | $3.6B-5.9% | $3.8B+7.9% | $3.5B |
| Long-Term Debt | $6.0B+29.9% | $4.6B-0.1% | $4.6B-7.1% | $5.0B-0.6% | $5.0B+23.7% | $4.1B-0.7% | $4.1B-0.7% | $4.1B |
| Total Equity | $5.0B+2.0% | $4.9B+0.1% | $4.9B+5.3% | $4.7B+9.5% | $4.3B-3.5% | $4.4B-4.4% | $4.6B+3.6% | $4.5B |
| Retained Earnings | $4.9B+5.9% | $4.6B+6.2% | $4.4B+7.7% | $4.1B+9.1% | $3.7B+9.1% | $3.4B+7.3% | $3.2B+10.9% | $2.9B |
LDOS Cash Flow Statement
| Metric | Q1'27 | Q4'26 | Q3'26 | Q2'26 | Q1'26 | Q4'25 | Q3'25 | Q2'25 |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | $301.0M-39.2% | $495.0M-30.4% | $711.0M+46.3% | $486.0M+737.9% | $58.0M-80.3% | $294.0M-54.6% | $647.0M+69.8% | $381.0M |
| Capital Expenditures | $31.0M-27.9% | $43.0M+38.7% | $31.0M+6.9% | $29.0M+31.8% | $22.0M-74.4% | $86.0M+273.9% | $23.0M0.0% | $23.0M |
| Free Cash Flow | $270.0M-40.3% | $452.0M-33.5% | $680.0M+48.8% | $457.0M+1169.4% | $36.0M-82.7% | $208.0M-66.7% | $624.0M+74.3% | $358.0M |
| Investing Cash Flow | -$2.4B-7048.5% | -$33.0M+8.3% | -$36.0M+88.5% | -$314.0M-1327.3% | -$22.0M+74.4% | -$86.0M-273.9% | -$23.0M-9.5% | -$21.0M |
| Financing Cash Flow | $1.4B+490.2% | -$357.0M+40.0% | -$595.0M-616.9% | -$83.0M+24.5% | -$110.0M+75.0% | -$440.0M-71.2% | -$257.0M-61.6% | -$159.0M |
| Dividends Paid | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | $200.0M-33.3% | $300.0M+200.0% | $100.0M | $0 | $0-100.0% | $400.0M+100.0% | $200.0M+100.0% | $100.0M |
LDOS Financial Ratios
| Metric | Q1'27 | Q4'26 | Q3'26 | Q2'26 | Q1'26 | Q4'25 | Q3'25 | Q2'25 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 17.3%-0.3pp | 17.6%-0.8pp | 18.4%-0.0pp | 18.4%+0.6pp | 17.8%+1.9pp | 15.9%-2.3pp | 18.2%+1.1pp | 17.1% |
| Operating Margin | 11.6%+0.3pp | 11.2%-0.7pp | 12.0%-1.5pp | 13.4%+0.9pp | 12.5%+2.8pp | 9.6%-2.7pp | 12.3%+0.8pp | 11.5% |
| Net Margin | 7.4%-0.3pp | 7.8%-0.4pp | 8.2%-1.0pp | 9.2%+0.6pp | 8.6%+2.0pp | 6.5%-2.2pp | 8.7%+0.9pp | 7.8% |
| Return on Equity | 6.5%-0.1pp | 6.7%-0.8pp | 7.5%-0.9pp | 8.4%-0.1pp | 8.5%+2.1pp | 6.4%-1.4pp | 7.9%+0.7pp | 7.2% |
| Return on Assets | 2.1%-0.3pp | 2.4%-0.3pp | 2.7%-0.2pp | 2.9%+0.1pp | 2.8%+0.6pp | 2.2%-0.6pp | 2.7%+0.2pp | 2.5% |
| Current Ratio | 1.40-0.3 | 1.70+0.1 | 1.620.0 | 1.62+0.1 | 1.54+0.3 | 1.22-0.0 | 1.23+0.0 | 1.21 |
| Debt-to-Equity | 1.20+0.3 | 0.940.0 | 0.94-0.1 | 1.07-0.1 | 1.18+0.3 | 0.92+0.0 | 0.88-0.0 | 0.92 |
| FCF Margin | 6.1%-4.6pp | 10.7%-4.5pp | 15.2%+4.5pp | 10.8%+9.9pp | 0.9%-3.9pp | 4.8%-10.1pp | 14.9%+6.2pp | 8.7% |
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Frequently Asked Questions
What is Leidos Holdings's annual revenue?
Leidos Holdings (LDOS) reported $17.2B in total revenue for fiscal year 2026. This represents a 3.1% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
How fast is Leidos Holdings's revenue growing?
Leidos Holdings (LDOS) revenue grew by 3.1% year-over-year, from $16.7B to $17.2B in fiscal year 2026.
Is Leidos Holdings profitable?
Yes, Leidos Holdings (LDOS) reported a net income of $1.4B in fiscal year 2026, with a net profit margin of 8.4%.
What is Leidos Holdings's EBITDA?
Leidos Holdings (LDOS) had EBITDA of $2.4B in fiscal year 2026, measuring earnings before interest, taxes, depreciation, and amortization.
How much debt does Leidos Holdings have?
As of fiscal year 2026, Leidos Holdings (LDOS) had $457.0M in cash and equivalents against $6.0B in long-term debt.
What is Leidos Holdings's gross margin?
Leidos Holdings (LDOS) had a gross margin of 18.0% in fiscal year 2026, indicating the percentage of revenue retained after direct costs of goods sold.
What is Leidos Holdings's operating margin?
Leidos Holdings (LDOS) had an operating margin of 12.3% in fiscal year 2026, reflecting the profitability of core business operations before interest and taxes.
What is Leidos Holdings's net profit margin?
Leidos Holdings (LDOS) had a net profit margin of 8.4% in fiscal year 2026, representing the share of revenue converted into profit after all expenses.
Does Leidos Holdings pay dividends?
Yes, Leidos Holdings (LDOS) paid $1.63 per share in dividends during fiscal year 2026.
What is Leidos Holdings's return on equity (ROE)?
Leidos Holdings (LDOS) has a return on equity of 28.9% for fiscal year 2026, measuring how efficiently the company generates profit from shareholder equity.
What is Leidos Holdings's free cash flow?
Leidos Holdings (LDOS) generated $1.6B in free cash flow during fiscal year 2026. This represents a 26.4% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.
What is Leidos Holdings's operating cash flow?
Leidos Holdings (LDOS) generated $1.8B in operating cash flow during fiscal year 2026, representing cash generated from core business activities.
What are Leidos Holdings's total assets?
Leidos Holdings (LDOS) had $15.4B in total assets as of fiscal year 2026, including both current and long-term assets.
What are Leidos Holdings's capital expenditures?
Leidos Holdings (LDOS) invested $125.0M in capital expenditures during fiscal year 2026, funding long-term assets and infrastructure.
How much does Leidos Holdings spend on research and development?
Leidos Holdings (LDOS) invested $187.0M in research and development during fiscal year 2026.
What is Leidos Holdings's current ratio?
Leidos Holdings (LDOS) had a current ratio of 1.40 as of fiscal year 2026, which is considered adequate.
What is Leidos Holdings's debt-to-equity ratio?
Leidos Holdings (LDOS) had a debt-to-equity ratio of 1.20 as of fiscal year 2026, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is Leidos Holdings's return on assets (ROA)?
Leidos Holdings (LDOS) had a return on assets of 9.4% for fiscal year 2026, measuring how efficiently the company uses its assets to generate profit.
What is Leidos Holdings's Altman Z-Score?
Leidos Holdings (LDOS) has an Altman Z-Score of 2.92, placing it in the Grey Zone (moderate risk). The Z-Score combines five financial ratios (working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets) to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.
What is Leidos Holdings's Piotroski F-Score?
Leidos Holdings (LDOS) has a Piotroski F-Score of 5 out of 9, indicating neutral financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7 to 9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are Leidos Holdings's earnings high quality?
Leidos Holdings (LDOS) has an earnings quality ratio of 1.21x, considered cash-backed (high quality). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.
Can Leidos Holdings cover its interest payments?
Leidos Holdings (LDOS) has an interest coverage ratio of 10.4x, meaning it can comfortably cover its interest obligations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.
How financially healthy is Leidos Holdings?
Leidos Holdings (LDOS) scores 54 out of 100 on our Financial Health Score, indicating moderate standing within its operating companies peer group. The score is a 0-100 composite of six dimensions (Profitability, Growth, Leverage, Liquidity, Cash Flow, Returns), each ranked as a percentile relative to companies in the same scoring family (banks against banks, REITs against REITs, and so on) rather than across all industries. It rates the quality of the business, not whether the stock is fairly priced, and is not financial advice. Learn more in our complete guide to financial health indicators.