You’ve probably noticed that the defense sector isn't just about building tanks and jets anymore. It’s about data. It’s about the cloud. And right now, it's very much about Leidos. If you’re checking the leidos stock price today, you’ll see it hovering around $194.70. On Friday, January 16, it closed up about 0.67%, ending the week on a high note after a somewhat volatile start to 2026.
Honestly, the price action lately has been a bit of a roller coaster. Just a few days ago, the stock took a hit because a UBS analyst pointed out some competition in their veterans’ health business. But then, almost immediately, Jefferies came out and named Leidos their top IT services pick for the year. Talk about whiplash.
What’s Actually Moving the Leidos Stock Price Today?
Investors aren't just looking at the ticker; they're looking at the backlog. Leidos is sitting on a massive mountain of promised work—roughly $38.66 billion worth of contracts. That is a lot of guaranteed revenue.
The market is reacting to a few specific things right now:
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- The AI Push: They recently re-won a $500 million counter-terrorism contract. Why does that matter? Because they won it by pitching automation and AI tools that the competition couldn't match.
- Cloud Supremacy: The Air Force just handed them a $455 million "Cloud One Next" contract. Basically, Leidos is the one moving the military into the modern era of AWS and Azure.
- Health Tech: Despite the UBS worries, their health and civil segment is a cash cow, with operating margins near 25.7%.
The stock has a 52-week high of $205.77. We aren't quite there yet, but we aren't far off either. It’s trading at a forward P/E ratio of about 16.16, which, if you compare it to a tech giant like ServiceNow (trading at over 36x), looks like a total steal.
Why Analysts Are Fighting Over LDOS
It’s kind of funny to watch the big banks disagree. On one hand, you have UBS being cautious because a new provider is trying to steal some market share in the Veterans Benefits Administration exams. That’s a real risk. Margins could get squeezed when that work gets re-competed in 2027.
On the other hand, Citigroup and Bank of America just hiked their price targets to $232 and $235, respectively. They see the "North Star 2030" strategy—which is basically CEO Tom Bell’s plan to pivot the company into higher-margin tech work—as a winner. They aren't just buying a defense contractor; they're buying a software company in a camouflage jacket.
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The Numbers You Actually Need to Know
If you’re trying to decide if the leidos stock price today is a "buy" or a "wait and see," look at the earnings. They are scheduled to drop their Q4 and full-year 2025 results on February 17, 2026.
Here is the quick breakdown of where they stand:
- Projected EPS: Analysts are looking for $2.54 for the quarter.
- Revenue Growth: They expect to hit between $17 billion and $17.25 billion for the full year 2025.
- Dividends: They just bumped the quarterly dividend by 7.5% to $0.43 per share. It’s not a huge yield (around 0.88%), but it’s a sign they have plenty of cash.
Is It Too Late to Get In?
Most people get this wrong. They see a stock near its all-time high and think they missed the boat. But valuation matters more than the chart's height. Simply Wall St currently estimates that LDOS might be nearly 33% undervalued based on its cash flow potential.
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The real question is the "DOGE" factor. With government efficiency efforts making headlines in 2026, some investors are scared of budget cuts. But Leidos focuses on "mission-critical" stuff—cybersecurity, signals intelligence, and health records. Those aren't usually the first things to get the axe.
Actionable Strategy for Investors
If you’re looking at the leidos stock price today as a potential entry point, keep these steps in mind:
- Watch the February 17 Earnings Call: This will be the first real look at how they plan to navigate the 2026 budget environment. Pay attention to the "Book-to-Bill" ratio. If it stays above 1.0, the growth story is intact.
- Monitor the VBA Re-compete: Keep an eye on news regarding the Veterans Benefits Administration. If Leidos loses more ground there, it could act as a temporary drag on the price.
- Check the Sector Sentiment: Defense stocks often move in a pack. If names like Lockheed or General Dynamics are sliding, Leidos might give you a better entry price even if its own business is doing fine.
Ultimately, Leidos has transformed. It’s no longer just a "government services" firm. It’s a tech integrator that the Pentagon can't seem to live without. Whether that justifies a $230+ price tag is what the market will be figuring out over the next few weeks.
Next Steps:
- Monitor the $190.00 support level. If the stock dips below this on high volume, it might indicate the UBS competitive concerns are weighing heavier than expected.
- Track the upcoming Q4 earnings release on February 17 to see if the company raises its 2026 guidance, which would likely trigger a fresh rally toward previous highs.