Leidos Holdings, Inc. (LDOS) Balance Sheet

Retained earnings rose from $2.9B in 2024Q2 to $5.2B in 2026Q3, indicating that accumulated profits are the main source of book equity growth rather than new share issuance. Total assets expanded to $15.5B largely on the back of goodwill, which reached $7.7B after the 2026Q1 acquisition activity, so the improvement in equity partly reflects an asset base that is increasingly intangible-heavy. Investors should monitor whether the equity build continues without further acquisition-driven increases in goodwill.

The move from 1.06x in 2025Q3 to 1.37x in 2026Q1 shows leverage has been episodically elevated by acquisition funding, then partially moderated as equity accumulated. Total liabilities of $10.2B against $15.5B in assets imply that debt represents a substantial share of the capital structure, so refinancing conditions and interest costs warrant monitoring. The data does not disclose the maturity profile, so refinancing risk cannot be assessed from these figures alone.

The reduction in cash coincided with $504M of share repurchases and acquisition outflows, indicating management is prioritizing capital returns and deal activity over building a liquidity cushion. A current ratio near 1.6x is reasonable for a government contractor with predictable billing cycles, but it offers less protection against a delayed federal funding event. Investors should watch whether cash rebuilds in coming quarters, as sustained low cash would reduce the buffer against budget disruptions.

Net PP&E of $1.4B is modest relative to total assets, consistent with an asset-light services model dependent on labor and contract backlog. The step-up in goodwill from $6.3B in 2025Q4 to $7.7B in 2026Q3 reflects acquisitions that expanded scale, but it also concentrates impairment risk, since a sustained decline in contract economics could force write-downs that would reduce equity. Management's historical reliance on large M&A makes this concentration a structural feature to track.