Are Wall Street Analysts Bullish on Leidos Holdings Stock?

Are Wall Street Analysts Bullish on Leidos Holdings Stock?

Wed, August 19, 2026 at 5:17 PM GMT+3 3 min read

• LDOS -3.38%
• ^GSPC -0.87%

Reston, Virginia-based Leidos Holdings, Inc. (LDOS) provides services and solutions in the defense, intelligence, engineering, civil, and health markets. With a market cap of $18 billion, the company provides scientific, engineering, systems integration, and technical services and solutions.

Shares of this global science and technology leader have notably underperformed the broader market over the past year. LDOS has declined 20.1% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 19.3%. In 2026, LDOS stock is down 20.8%, compared to the SPX's 12.4% rise on a YTD basis.

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Narrowing the focus, LDOS' underperformance is also apparent compared to the Global X Defense Tech ETF (SHLD). The exchange-traded fund has gained about 16.2% over the past year. Moreover, the ETF's 7.9% gains on a YTD basis outshine the stock's double-digit losses over the same time frame.

LDOS has underperformed due to contract transitions, execution delays, and government budget friction. A primary drag came from the Defense Health Agency shifting away from Leidos as the lead systems integrator for its MHS Genesis health platform toward direct insourcing, paired with VA contract modifications that added vendor competition. Simultaneously, an increasing push by government clients toward fixed-price contracts heightened cost overrun risks on complex defense programs, while Wall Street penalized management's warnings of mid-year margin compression and pull-forward revenue timing despite solid quarterly top-line beats.

On Aug. 4, LDOS shares jumped over 10% after reporting its Q2 results. Its adjusted EPS of $3.26 surpassed Wall Street expectations of $2.90. The company's revenue was $4.6 billion, topping Wall Street forecasts of $4.4 billion. LDOS expects full-year adjusted EPS in the range of $12.20 to $12.50, and revenue in the range of $18.2 billion to $18.4 billion.

For the current fiscal year, ending in December, analysts expect LDOS' EPS to grow 3.3% to $12.38 on a diluted basis. The company's earnings surprise history is impressive. It beat the consensus estimate in each of the last four quarters.

Among the 18 analysts covering LDOS stock, the consensus is a "Moderate Buy." That's based on seven "Strong Buy" ratings, one "Moderate Buy," and 10 "Holds."

This configuration is less bullish than three months ago, with eight analysts suggesting a "Strong Buy."

On Aug. 17, Wells Fargo & Company (WFC) analyst David Strauss kept an "Equal Weight" rating on LDOS and raised the price target to $165, implying a potential upside of 15% from current levels.

The mean price target of $160.12 represents an 11.6% premium to LDOS' current price levels. The Street-high price target of $225 suggests an ambitious upside potential of 56.8%.

On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com