Reston, Virginia-based Leidos Holdings, Inc. (LDOS) operates as an IT services company, serving defense, intelligence, civil, and health markets. With a market cap of $20.5 billion, the company provides solutions related to cybersecurity, data analytics, operations & logistics, software development, and more.

The tech major has lagged behind the broader market over the past year, but outperformed in 2025. LDOS stock has gained 7.3% over the past 52 weeks and 10.7% on a YTD basis, compared to the S&P 500 Index’s ($SPX) 12.5% gains over the past year and 1.4% uptick in 2025.

Narrowing the focus, LDOS has also lagged behind the Technology Select Sector SPDR Fund’s (XLK) 10.7% surge over the past year, but significantly outpaced XLK’s marginal 87 bps uptick in 2025.

Leidos Holdings’ stock prices gained 4.6% after the release of its impressive Q1 results on May 6. The company has continued to observe solid momentum and strong demand across its segments, leading to a 6.8% year-over-year growth in revenues to $4.3 billion, exceeding the Street’s expectations by 4%. Meanwhile, the company also observed solid margin expansion, leading to a 23.9% year-over-year surge in adjusted non-GAAP net income to $389 million. Moreover, the company has significantly increased its share repurchase activities. During the quarter, Leidos repurchased $528 million worth of shares. This led to its adjusted EPS surging by an even more impressive 29.7% year-over-year to $2.97, surpassing the consensus estimates by 20.2%.

Furthermore, the company’s backlog at the end of Q1 stood at $46.3 billion, up from $43.6 billion reported in Q4 2024, boosting investor confidence.

For the full FY 2025, ending in December, analysts expect LDOS to deliver a modest 4.3% year-over-year growth in adjusted EPS to $10.65. However, the company has a robust earnings surprise history. Leidos has surpassed the Street’s bottom-line projections in each of the past four quarters by large margins.

The stock holds a consensus “Moderate Buy” rating overall. Of the 15 analysts covering the stock, opinions include nine “Strong Buys” and six “Holds.”

This configuration is slightly less bullish than three months ago, when 10 analysts gave “Strong Buy” recommendations.

On May 8, Wells Fargo (WFC) analyst Matthew Akers reiterated an "Overweight" rating on LDOS and raised the price target from $173 to $200.

Leidos' mean price target of $175.67 represents a notable 10.1% premium to current price levels. Meanwhile, the street-high target of $209 suggests a staggering 31% potential upside.