Leidos Holdings stock declined following the company's earnings announcement and forward guidance. The company provided FY2026 adjusted earnings per share guidance of $12.05-$12.45, below the consensus estimate of $12.29. Sales guidance of $17.500B-$17.900B came in below the consensus estimate of $17.893B. The stock experienced selling pressure despite the company reporting record profits for the full year ended January 2, 2026. The company also reported asset impairment charges for the quarter ended January 2, 2026. Recent contract wins include a $2.2 billion five-year Air Force contract for passive radar systems, a $455 million six-year Air Force Cloud One program, and a $142 million federal cybersecurity contract. The stock was trading at approximately $176.30 per share at the time of reporting.
Read full analysisLeidos Holdings stock declined following the company's earnings announcement and forward guidance. The company provided FY2026 adjusted earnings per share guidance of $12.05-$12.45, below the consensus estimate of $12.29. Sales guidance of $17.500B-$17.900B came in below the consensus estimate of $17.893B. The stock experienced selling pressure despite the company reporting record profits for the full year ended January 2, 2026. The company also reported asset impairment charges for the quarter ended January 2, 2026. Recent contract wins include a $2.2 billion five-year Air Force contract for passive radar systems, a $455 million six-year Air Force Cloud One program, and a $142 million federal cybersecurity contract. The stock was trading at approximately $176.30 per share at the time of reporting.
Leidos Holdings is a major U.S. defense and IT services contractor providing technology solutions to the Department of Defense, intelligence agencies, and other federal customers, with roughly $17 billion in annual revenue. The company recently won a $2.2 billion Air Force passive radar contract and a $455 million cloud architecture program, and is expanding into AI governance and cybersecurity. Its near-total dependence on U.S. government spending makes it acutely vulnerable to federal shutdowns and budget uncertainty — the very risks now driving its steep post-earnings selloff.