Leidos beats Q4 estimates, shares rise on strong 2025 outlook

Published 11/02/2025, 12:20
Leidos beats Q4 estimates, shares rise on strong 2025 outlook

NEW YORK - Defense and health technology company Leidos Holdings (NYSE:LDOS), Inc reported fourth-quarter earnings on Tuesday that surpassed analyst expectations, driving its shares up 2.47% as the company provided an optimistic forecast for fiscal year 2025.

Leidos announced Q4 adjusted earnings per share of $2.37, beating the analyst estimate of $2.26 by $0.11. Revenue for the quarter came in at $4.37 billion, surpassing the consensus estimate of $4.13 billion and marking a 10% increase YoY.

The company’s strong performance was attributed to robust demand across all customer segments, particularly in managed health services. Net income for the quarter rose 23% YoY to $282 million, with net income margin improving by 70 basis points to 6.5%.

Looking ahead, Leidos provided an upbeat outlook for fiscal year 2025. The company expects EPS in the range of $10.35 to $10.75, above the analyst consensus of $10.11. Revenue is projected to be between $16.9 billion and $17.3 billion, surpassing the consensus estimate of $16.43 billion.

CEO Tom Bell expressed confidence in the company’s future, stating, "Our outlook for the future remains decidedly positive, as we have a clearly defined strategy and technology-enabled team that is poised to navigate this dynamic environment from a position of strength."

Leidos reported strong bookings for the quarter, with net bookings totaling $7.6 billion, representing a book-to-bill ratio of 1.7. This contributed to a year-end backlog of $43.6 billion, up 18% YoY.

The company also announced a quarterly cash dividend of $0.40 per share, payable on March 28, 2025, to stockholders of record as of March 14, 2025.

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