Revenue reached $4.6B in 2026Q3 with operating margin of 11.8% and net margin of 8.9%, but the 16.3% year-over-year EPS gain well exceeds 3.6% revenue growth, suggesting share count or non-operating items may be contributing.
Leidos Holdings, Inc. (LDOS) annual income statement — 21-year revenue, gross profit & net income history
| Metric | TTM | Jan'26 | Jan'25 | Dec'23 | Dec'22 | Dec'21 | Jan'21 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Jan'15 | Jan'14 | Jan'13 | Jan'12 | Jan'11 | Jan'10 | Jan'09 | Jan'08 | Jan'07 | Jan'06 |
|---|
| Sales/Revenue | 17.99B | 17.17B | 16.66B | 15.44B | 14.4B | 13.74B | 12.3B | 11.09B | 10.19B | 10.17B | 7.04B | 5.09B | 5.06B | 5.77B | 11.17B | 10.59B | 11.12B | 10.85B | 10.07B | 8.94B | 8.29B | 7.79B |
| Revenue Growth % | 4.74% | 3.07% | 7.93% | 7.24% | 4.8% | 11.71% | 10.84% | 8.83% | 0.24% | 44.4% | 38.48% | 0.45% | -12.28% | -48.34% | 5.54% | -4.77% | 2.5% | 7.71% | 12.7% | 7.73% | 6.44% | - |
| Cost of Goods Sold | 14.72B | 14.14B | 13.86B | 13.19B | 12.31B | 11.72B | 10.56B | 9.55B | 8.69B | 8.92B | 6.19B | 4.47B | 4.39B | 5.01B | 9.81B | 9.61B | 9.63B | 9.34B | 8.69B | 7.7B | 7.18B | 6.8B |
| COGS % of Revenue | - | 82.34% | 83.21% | 85.46% | 85.52% | 85.34% | 85.87% | 86.05% | 85.25% | 87.74% | 87.9% | 87.85% | 86.75% | 86.73% | 87.79% | 90.73% | 86.64% | 86.14% | 86.32% | 86.16% | 86.62% | 87.28% |
| Gross Profit | 3.16B | 3.03B | 2.8B | 2.24B | 2.08B | 2.01B | 1.74B | 1.55B | 1.5B | 1.25B | 852M | 618M | 671M | 766M | 1.36B | 981M | 1.49B | 1.5B | 1.38B | 1.24B | 1.11B | 991M |
| Gross Margin % | 17.56% | 17.66% | 16.79% | 14.54% | 14.48% | 14.66% | 14.13% | 13.95% | 14.75% | 12.26% | 12.1% | 12.15% | 13.25% | 13.27% | 12.21% | 9.27% | 13.36% | 13.86% | 13.68% | 13.84% | 13.38% | 12.72% |
| Gross Profit Growth % | - | 8.4% | 24.69% | 7.68% | 3.48% | 15.95% | 12.21% | 2.93% | 20.61% | 46.36% | 37.86% | -7.9% | -12.4% | -43.84% | 39.04% | -33.94% | -1.2% | 9.07% | 11.4% | 11.44% | 12.01% | - |
| Operating Expenses | 1.04B | 925.94M | 971M | 1.62B | 996M | 862M | 739M | 636M | 755M | 873M | 523M | 232M | 885M | 600M | 480M | 543M | 495M | 636M | 602M | 567M | 514M | 480M |
| OpEx % of Revenue | - | 5.39% | 5.83% | 10.51% | 6.92% | 6.28% | 6.01% | 5.73% | 7.41% | 8.58% | 7.43% | 4.56% | 17.48% | 10.39% | 4.3% | 5.13% | 4.45% | 5.86% | 5.98% | 6.35% | 6.2% | 6.16% |
| Selling, General & Admin | 969.94M | 934.94M | 983M | 942M | 951M | 851M | 770M | 689M | 729M | 737M | 422M | 232M | 310M | 440M | 467M | 543M | 495M | 636M | 602M | 567M | 514M | 480M |
| SG&A % of Revenue | - | 5.44% | 5.9% | 6.1% | 6.61% | 6.19% | 6.26% | 6.21% | 7.15% | 7.25% | 5.99% | 4.56% | 6.12% | 7.62% | 4.18% | 5.13% | 4.45% | 5.86% | 5.98% | 6.35% | 6.2% | 6.16% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 3M | -9M | -12M | 681M | 45M | 11M | -31M | -53M | 26M | 136M | 101M | 84M | 575M | 160M | 13M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | 2.07B | 2.11B | 1.83B | 621M | 1.09B | 1.15B | 998M | 912M | 749M | 559M | 417M | 298M | -214M | 164M | 734M | 311M | 958M | 867M | 776M | 666M | 585M | 497M |
| Operating Margin % | 11.5% | 12.27% | 10.97% | 4.02% | 7.56% | 8.39% | 8.12% | 8.22% | 7.35% | 5.5% | 5.92% | 5.86% | -4.23% | 2.84% | 6.57% | 2.94% | 8.62% | 7.99% | 7.71% | 7.45% | 7.05% | 6.38% |
| Operating Income Growth % | - | 15.34% | 194.2% | -42.92% | -5.56% | 15.43% | 9.43% | 21.76% | 33.99% | 34.05% | 39.93% | 239.25% | -230.49% | -77.66% | 136.01% | -67.54% | 10.5% | 11.73% | 16.52% | 13.85% | 17.71% | - |
| EBITDA | 2.25B | 2.41B | 2.12B | 952M | 1.42B | 1.48B | 1.28B | 1.15B | 1.01B | 895M | 539M | 342M | -152M | 245M | 847M | 425M | 1.07B | 960M | 865M | 746M | 657M | 567M |
| EBITDA Margin % | 12.53% | 14.02% | 12.71% | 6.17% | 9.87% | 10.75% | 10.41% | 10.33% | 9.87% | 8.8% | 7.65% | 6.72% | -3% | 4.24% | 7.58% | 4.01% | 9.62% | 8.85% | 8.59% | 8.35% | 7.92% | 7.28% |
| EBITDA Growth % | -6.36% | 13.7% | 122.37% | -33% | -3.79% | 15.39% | 11.69% | 13.92% | 12.4% | 66.05% | 57.6% | 325% | -162.04% | -71.07% | 99.29% | -60.24% | 11.35% | 10.98% | 15.95% | 13.55% | 15.87% | - |
| D&A (Non-Cash Add-back) | 232.82M | 299.82M | 290M | 331M | 333M | 325M | 282M | 234M | 257M | 336M | 122M | 44M | 62M | 81M | 113M | 114M | 111M | 93M | 89M | 80M | 72M | 70M |
| EBIT | 2.07B | 2.11B | 1.83B | 615M | 1.08B | 1.15B | 963M | 1.01B | 755M | 541M | 414M | 408M | -208M | 171M | 751M | 321M | 962M | 875M | 781M | 673M | 707M | 470M |
| Net Interest Income | -246M | -203M | -193M | -212M | -199M | -184M | -179M | -133M | -138M | -140M | -86M | -49M | -74M | -67M | -84M | -109M | -77M | -74M | -58M | 36M | 0 | 0 |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 3M | 14M | 7M | 8M | 10M | 4M | 1M | 15M | 9M | 5M | 2M | 2M | 20M | 56M | 0 | 0 |
| Interest Expense | 239M | 203M | 193M | 212M | 199M | 184M | 182M | 147M | 145M | 148M | 96M | 53M | 75M | 82M | 93M | 114M | 79M | 76M | 74M | 20M | 0 | 0 |
| Other Income/Expense | -247M | -204M | -188M | -218M | -202M | -185M | -217M | -46M | -139M | -166M | -99M | -4M | -69M | -75M | -76M | -104M | -75M | -68M | -73M | -40M | 24M | -2M |
| Pretax Income | 1.79B | 1.9B | 1.64B | 403M | 886M | 967M | 781M | 866M | 610M | 393M | 318M | 328M | -283M | 88M | 658M | 207M | 883M | 799M | 703M | 626M | 603M | 484M |
| Pretax Margin % | 9.92% | 11.08% | 9.84% | 2.61% | 6.15% | 7.04% | 6.35% | 7.81% | 5.98% | 3.86% | 4.52% | 6.45% | -5.59% | 1.52% | 5.89% | 1.96% | 7.94% | 7.37% | 6.98% | 7.01% | 7.27% | 6.21% |
| Income Tax | 156.18M | 441.18M | 388M | 195M | 193M | 208M | 152M | 196M | 28M | 29M | 72M | 92M | 47M | 4M | 135M | 215M | 314M | 299M | 256M | 240M | 234M | 139M |
| Effective Tax Rate % | 8.75% | 23.18% | 23.67% | 48.39% | 21.78% | 21.51% | 19.46% | 22.63% | 4.59% | 7.38% | 22.64% | 28.05% | -16.61% | 4.55% | 20.52% | 103.86% | 35.56% | 37.42% | 36.42% | 38.34% | 38.81% | 28.72% |
| Net Income | 1.42B | 1.46B | 1.25B | 199M | 685M | 753M | 628M | 667M | 581M | 366M | 244M | 254M | -323M | 164M | 525M | 59M | 618M | 497M | 452M | 415M | 391M | 927M |
| Net Margin % | 7.91% | 8.48% | 7.53% | 1.29% | 4.76% | 5.48% | 5.11% | 6.01% | 5.7% | 3.6% | 3.46% | 4.99% | -6.38% | 2.84% | 4.7% | 0.56% | 5.56% | 4.58% | 4.49% | 4.64% | 4.71% | 11.9% |
| Net Income Growth % | -2.34% | 16.11% | 530.15% | -70.95% | -9.03% | 19.9% | -5.85% | 14.8% | 58.74% | 50% | -3.94% | 178.64% | -296.95% | -68.76% | 789.83% | -90.45% | 24.35% | 9.96% | 8.92% | 6.14% | -57.82% | - |
| Net Income (Continuing) | 1.63B | 1.46B | 1.25B | 208M | 693M | 759M | 629M | 670M | 582M | 364M | 246M | 243M | -330M | 84M | 323M | -8M | 547M | 500M | 447M | 390M | 381M | 353M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 67M | 0 | 0 | 5M | 26M | 22M | 586M |
| Minority Interest | 53M | 46M | 48M | 57M | 54M | 53M | 9M | 4M | 3M | 13M | 12M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 56M | 54M |
| EPS (Diluted) | 11.38 | 11.13 | 9.22 | 1.44 | 4.96 | 5.27 | 4.36 | 4.60 | 3.80 | 2.38 | 2.35 | 3.43 | -4.36 | 1.94 | 6.16 | 0.72 | 6.52 | 4.96 | 4.36 | 4.00 | 4.28 | 10.32 |
| EPS Growth % | 0.72% | 20.72% | 540.28% | -70.97% | -5.88% | 20.87% | -5.22% | 21.05% | 59.66% | 1.28% | -31.49% | 178.67% | -324.74% | -68.51% | 755.56% | -88.96% | 31.45% | 13.76% | 9% | -6.54% | -58.53% | - |
| EPS (Basic) | - | 11.22 | 9.36 | 1.45 | 5.00 | 5.34 | 4.42 | 4.66 | 3.85 | 2.41 | 2.39 | 3.48 | -4.36 | 1.94 | 6.16 | 0.72 | 6.56 | 5.00 | 4.44 | 4.12 | 4.44 | 10.64 |
| Diluted Shares Outstanding | 125M | 132.41M | 136M | 138M | 138M | 143M | 144M | 145M | 153M | 154M | 104M | 74M | 74M | 83M | 83.25M | 84M | 91.5M | 97.5M | 100.5M | 104.25M | 91M | 89.75M |
| Basic Shares Outstanding | 124M | 132.41M | 134M | 137M | 137M | 141M | 142M | 143M | 151M | 152M | 102M | 73M | 74M | 83M | 83.06M | 84M | 91M | 96.5M | 98.75M | 101M | 88M | 87M |
| Dividend Payout Ratio | - | 14.49% | 16.59% | 101% | 29.05% | 26.43% | 31.21% | 29.69% | 34.08% | 54.1% | 465.16% | 46.06% | - | 290.85% | 31.43% | - | - | - | 0.22% | 0.48% | 623.79% | - |
Quick answers to the most common questions about buying LDOS stock.
For fiscal year 2025, Leidos Holdings, Inc. (LDOS) reported total revenue of $17.17B. This represents a 120.4% increase compared to $7.79B in 2005.
Leidos Holdings, Inc. (LDOS) is profitable, generating $1.46B in net income for the fiscal year ending 2025 with a net profit margin of 8.5%.
Leidos Holdings, Inc. (LDOS) reported an operating income of $2.11B, resulting in an operating profit margin of 12.3%. This margin reflects the operational efficiency of the business before interest and taxes.
Leidos Holdings, Inc. (LDOS) generated $3.03B in gross profit for the year, representing a gross profit margin of 17.7%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Federal budget and contract timing risk
Metrics are mathematically derived from official filings.
Revenue Growth Holding Near Mid-Single Digits
Based on reported quarterly figures, Leidos revenue grew 3.6% year over year in 2026Q3 to $4.6B, following 7.2% growth in 2026Q2, suggesting growth has moderated from the high single digits seen through 2025 and may be increasingly dependent on sustained contract awards.
The reported figures show growth decelerating from 9.2% in 2025Q2 to 3.6% in the latest quarter, which suggests the revenue base is expanding more slowly as the large Lockheed Martin IS&GS and Dynetics integrations are absorbed. The Q2 2026 pickup to 7.2% and the reported $5B in bookings may indicate that award conversion is re-accelerating, but investors should monitor whether this holds across consecutive quarters given the lumpiness of government contract timing. Growth appears to rely on a mix of recompetes and new awards rather than a clearly demonstrated organic acceleration, warranting further investigation of the segment-level drivers.
Gross Margin Stable Within a Narrow Band
Reported gross margin of 17.7% in 2026Q3 sits within a 15.9% to 18.4% range across the ten quarters shown, indicating pricing and contract mix have been relatively contained compared with the 20.9% gross margin reported for peer Booz Allen Hamilton.
The gross margin band suggests Leidos operates as a pass-through integrator where labor and subcontractor costs absorb most revenue, leaving limited room for pricing power. The gap to Booz Allen and CACI's 33.2% gross margin may imply that Leidos competes more on scale and integration capability than on proprietary, higher-margin offerings. Margin movements appear tied to contract mix shifts between fixed-price and cost-plus work, which investors should monitor as the book evolves.
Operating Income Scaling Ahead of Revenue
Operating margin expanded to 11.8% in 2026Q3 from 9.6% in 2024Q4, and operating income reached $546M against $4.6B of revenue, suggesting that overhead and SG&A have grown more slowly than the revenue base over recent periods.
SG&A of $262M in 2026Q3 is well below the $279M to $286M range seen in several 2024 and 2025 quarters despite comparable revenue, which may indicate meaningful overhead efficiency. This operating leverage appears to be a genuine driver of earnings improvement rather than a timing artifact, though quarterly SG&A is volatile enough that a single period should not be extrapolated. The margin expansion is worth tracking against integration costs from recent acquisitions that could reverse this trend.
Net Income Growth Outpacing Operating Trends
Net income of $410M in 2026Q3 and diluted EPS of $3.28 reflect a 16.3% year-over-year EPS gain, which exceeds the 3.6% revenue growth and may partly reflect a lower share count or non-operating items rather than purely operational gains.
Net margin of 8.9% sits below the operating margin of 11.8%, consistent with the interest and tax burden typical of a leveraged federal contractor, and the gap appears to have remained relatively steady. The EPS growth outpacing revenue growth suggests either buybacks, a favorable tax rate, or non-operating contributions, and the data provided does not isolate these drivers. Amortization of acquired intangibles from the IS&GS and Dynetics deals likely depresses GAAP earnings, so reported net income may understate cash generation, which warrants verification against free cash flow.
Concentration and Lumpy Margins Challenge Thesis
Leidos depends heavily on U.S. government funding, and quarterly net margin swung from 12.3% in 2024Q3 to 7.5% in 2026Q1, suggesting earnings may be more volatile than the recent beat-and-raise narrative implies.
Bears would likely focus on the fact that revenue growth slowed to 3.6% in the latest quarter and that a single strong quarter may not establish a durable trend, particularly with government shutdowns or continuing resolutions capable of delaying awards and payments. The reliance on fixed-price contracts introduces execution risk where cost overruns could compress margins quickly. Investors should monitor whether the reported $5B in bookings converts to revenue at a pace that justifies the current valuation relative to peers.