Is Leidos Holdings (NYSE:LDOS) a buy in 2026?
Yes, on balance. The Compass leans toward accumulating Leidos Holdings at current levels.
Leidos is trading at deep-value multiples for a defense/IT franchise generating $1.2B in free cash flow with accelerating AI-defense demand.
Where LDOS is headed
Leidos Holdings (NYSE:LDOS) sits near its 52-week low at $124, a price that implies the market thinks something is broken. It isn't. This is a $15.6 billion company throwing off $1.2 billion in free cash flow (nearly 8% FCF yield), running a 30%+ return on equity, and sitting at the intersection of two spending surges the U.S. government is accelerating simultaneously: AI-driven defense modernization and digital health infrastructure. By late 2027, Leidos should be running closer to $17-18 billion in revenue as the Department of Defense ramps spending on autonomous systems, cyber operations, and space-based ISR (intelligence, surveillance, reconnaissance) payloads, all areas where Leidos has deep contract incumbency.
Read the full Compass Direction on LDOS
The complete destination call, the overlooked angle, milestones, and bull, base, and bear price scenarios (around $123.52).
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Frequently asked questions
Is Leidos Holdings (NYSE:LDOS) a buy in 2026?
Yes, on balance. The Compass leans toward accumulating Leidos Holdings at current levels. Leidos is trading at deep-value multiples for a defense/IT franchise generating $1.2B in free cash flow with accelerating AI-defense demand.
What is LDOS's Compass Score?
Leidos Holdings scores 80/100 on Alexandria's Compass, placing it in the "True North" tier. Scores blend eight factors and update weekly.
What is the price target for LDOS?
Alexandria's full Compass Direction includes bull, base, and bear price scenarios with the valuation math behind each. Read the full breakdown on the LDOS page.
Compass verdicts are AI-generated, forward-looking editorial research from publicly available data, not investment advice or a recommendation regarding any security. Scores and verdicts update as the data changes.