NYSEIndustrialsInformation Technology ServicesSnapshot 2026-08-31
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Create your account →Broken: Primary pillar broken — Increase cash flow from operations above $1.8 billion in FY26: TTM OCF $1.8B vs $1.8B target.
Leidos is growing revenue with a target of about $18.2 billion in 2026. Profit margins are expected to stay near 20%. The company is forming a strategic joint venture projected to add $625 million in revenue. Cash flow from operations is a focus to support investments and shareholder returns.
Revenue growth is below the double-digit target, with recent growth around 4%. Cash flow from operations declined from $495 million to $301 million in the latest quarter. Risks include losing key contracts like military health records, which could hurt revenue.
The market prices in about 7% revenue growth and a valuation below peers. Our fair value is above the Street median, reflecting some optimism. The recent selloff and guidance cut suggest investors are cautious about growth and cash flow execution.
Breaks if: Cash flow from operations remains below $1.5 billion in FY26
Breaks if: Gross margin falls below 18% in FY26
Breaks if: Revenue falls below $17 billion in FY26
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a durable compounder with a focus on long-term growth. The current thesis state is intact, supported by recent earnings beats and a commitment to revenue growth.
The valuation is considered cheap compared to peers, with a negative expectations gap. The market seems to have priced in some level of risk but does not reflect significant fragility.
Fundamentals are likely to continue improving, as management is on track to achieve double-digit revenue growth and increase cash flow from operations. However, there is an elevated risk due to the potential for sector peers to miss earnings.
The long-term thesis hinges on the performance of sector bellwethers like BR, CACI, and G. If these companies continue to perform well, it could support LDOS's growth; conversely, any negative guidance from them could impact LDOS adversely.
The most important moves since the prior daily snapshot.
Yes, our read has strengthened. The latest earnings beat supports the growth outlook. Strong defense demand reinforces the goal of achieving double-digit revenue growth. No significant threats have emerged to weaken this view.
as of 2026-08-31
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Breaks if: Joint venture revenue falls below $500 million in 2026
Leidos is forming a strategic joint venture to enhance its market position and capabilities.
Overall, LDOS appears to be in a stable position for the next 1 to 3 years, but its success will depend on broader industry trends. Not investment advice.
