Leidos

LDOS

Market cap $24.4B

Zacks.com users have recently been watching Leidos (LDOS) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.

Artificial intelligence continues to reshape the defense landscape, and both emerging innovators and established integrators are competing aggressively for relevance across federal agencies. BigBear.ai Holdings, Inc. BBAI and Leidos Holdings, Inc. LDOS sit at two different ends of this spectrum.

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RESTON, Va. , Nov. 25, 2025 /PRNewswire/ -- By integrating their computed tomography (CT) and X-ray diffraction imaging (XRDI) systems into a new offering, Leidos (NYSE: LDOS) and Quadridox, a leader in XRDI imaging and detection, are developing an advanced checked baggage screening technology aimed at increasing security while keeping luggage moving quickly during the screening process.

Leidos Holdings delivered strong Q3 2025 results, with Non-GAAP EPS of $3.03 and revenue of $4.5B, both beating estimates. LDOS's National Security & Digital, Health & Civil, and Defense segments all posted year-over-year revenue growth, while Commercial & International saw a slight decline. The company raised its 2025 Non-GAAP EPS guidance to $11.45-$11.75 and increased its dividend by 7.5%, reflecting confidence in future performance.

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Starlab invited Leidos last week to help it build a new international space station. Led by Voyager Technologies, the Starlab group of companies is the biggest and most international team working to replace ISS.

Leidos remains undervalued despite a 33% stock gain, with Q3 results exceeding expectations and a raised target price of $220 (11% upside). Q3 revenue grew 7% YoY, backlog reached $69 billion, and strong demand from defense and intelligence agencies supports continued growth for LDOS. Management raised guidance for Q4, and both Wall Street and my forecasts expect further EPS and revenue outperformance, driven by backlog and buybacks.