Leidos Holdings reported 1Q26 results that exceeded consensus expectations, leading to a raise in 2026 guidance. However, Goldman Sachs maintains a Neutral rating with a lowered price target of $171 due to market concerns regarding medium-term growth trajectories.
Key Takeaways
- 1.Leidos reported a 1Q26 beat on revenue ($4.4bn), EBITDA ($614mn), and adjusted EPS ($3.13) compared to consensus estimates.
- 2.2026 guidance was revised upwards to include the ENTRUST acquisition, with revenue now projected at $18.0-$18.4bn.
- 3.Despite the beat, the stock remains Neutral rated as the market seeks clarity on the trajectory of the Health segment and Federal Civilian funding.
Table of Contents
- Our view on the stock post 1Q26 earnings
- Key elements of the quarter
- Revenue
- Margins
- Balance sheet and cash flow
- Backlog
- Guidance
- Price target methodology and key risks
- Disclosure Appendix
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Authors
Noah Poponak, CFAConnor DessertWill Ortmayer
Securities
LDOS
Themes
Defense Contracting & Federal SpendingM&A Integration
Regions
North AmericaUnited States