Revenue growth has exhibited significant cyclical volatility, slowing from 9.7% in 2024Q4 to 3.7% in 2026Q1, while operating margins remain constrained within a narrow range, peaking at only 13.4% in 2025Q2.
| 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 | 17.48B | 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 % | 2.48% | 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 | 14.29B | 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 | 3.02B | 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 % | 17.26% | 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 | 951.94M | 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 | 927.94M | 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 | 0 | -9M | -12M | 681M | 45M | 11M | -31M | -53M | 26M | 136M | 101M | 84M | 575M | 160M | 13M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | 2.02B | 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 % | 11.57% | 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 | 2.23B | 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 % | 12.75% | 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 % | -4.29% | 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) | 230.82M | 299.82M | 290M | 331M | 333M | 325M | 282M | 234M | 257M | 336M | 122M | 44M | 62M | 81M | 113M | 114M | 111M | 93M | 89M | 80M | 72M | 70M |
| EBIT | 2.11B | 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 | -209M | -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 | 209M | 203M | 193M | 212M | 199M | 184M | 182M | 147M | 145M | 148M | 96M | 53M | 75M | 82M | 93M | 114M | 79M | 76M | 74M | 20M | 0 | 0 |
| Other Income/Expense | -231M | -204M | -188M | -218M | -202M | -185M | -217M | -46M | -139M | -166M | -99M | -4M | -69M | -75M | -76M | -104M | -75M | -68M | -73M | -40M | 24M | -2M |
| Pretax Income | 1.85B | 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 % | 10.61% | 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 | 422.18M | 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 % | 22.77% | 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 | 1.36B | 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 % | 7.77% | 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 % | -3.14% | 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) | 1.43B | 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 | 51M | 46M | 48M | 57M | 54M | 53M | 9M | 4M | 3M | 13M | 12M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 56M | 54M |
| EPS (Diluted) | 10.61 | 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 % | -1.04% | 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 | 128M | 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 | 126M | 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% | - |
Contract Recompete Concentration Risk
According to the provided quarterly income statements, Leidos experienced a notable deceleration in top-line expansion, with revenue growth shifting from 9.7% in 2024Q4 to a modest 3.7% by 2026Q1, suggesting that the company's reliance on large-scale federal contract awards may be creating lumpy, inconsistent performance cycles.
The recent revenue trajectory appears sensitive to the timing of major contract wins and the inherent lumpiness of government funding cycles. While the company maintains a significant backlog, the deceleration suggests that organic growth may be struggling to offset the completion of legacy programs, warranting closer scrutiny of the book-to-bill ratio.
As reported in financial statements, Leidos has maintained gross margins fluctuating between 14.9% and 18.4% over the last ten quarters, indicating that the firm's profitability remains heavily tethered to the specific mix of cost-plus versus fixed-price contracts within its diverse federal portfolio.
The variability in gross margins suggests that Leidos lacks the pricing power to fully insulate itself from labor cost inflation or sub-contractor fee pressures. Investors should monitor whether management can shift the contract mix toward higher-margin, fixed-price work to drive sustainable margin expansion beyond current levels.
Based on the income statement data, operating income has demonstrated significant volatility, peaking at $571 million in 2025Q2 before retreating to $508 million in 2026Q1, which implies that SG&A expenses are not consistently scaling in a manner that reliably drives operating margin leverage for shareholders.
The lack of a clear, linear relationship between gross profit growth and operating income suggests that overhead costs remain somewhat rigid or are subject to periodic integration expenses. This inconsistency may indicate that the company's operational efficiency is frequently disrupted by the integration of new acquisitions or shifting administrative requirements.
Analysis of the reported figures reveals that Leidos's heavy reliance on large-scale government contracts creates a binary risk profile, where the potential loss of a single major recompete could significantly impair the company's revenue trajectory and overall financial stability in future reporting periods.
Short-term volatility in EPS growth, which swung from 192.1% in 2024Q3 to -7.6% in 2026Q1, highlights the fragility of the current earnings model. Investors should be wary of the assumption that historical win rates on large IDIQ vehicles will persist indefinitely in an increasingly competitive federal contracting environment.
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.