$LDOS

A GAO audit reviewed $61 billion in reported U.S. contract savings attributed to the Department of Government Efficiency, finding $27.4 billion tied to contracts without documented termination actions and $7.2 billion lacking procurement documentation, or 56.7% of the total. Federal-services shares rose, with CACI up 1.0% to 2.4% after its funded backlog rose 28.6% and fiscal 2026 revenue reached $9.57 billion.

Leidos Holdings reported record Q2 2026 revenue of $4.6 billion and a 1.1 book-to-bill ratio, with Defense at a 2.2 book-to-bill. Full-year revenue guidance was raised by $100 million at the midpoint. Health faces VA incentive payment suspension, while Homeland grew 32%. Capex guidance was cut to about $250 million and share repurchases were authorized.

RBC said Leidos’ Defense and Homeland business remains mispriced, citing a strong balance sheet and management’s preference for internal investment and share buybacks over large acquisitions. RBC kept an Outperform rating but cut its price target to $170 from $180, attributing the change to valuation caution. The view centers on buybacks supporting per-share earnings.

DHS awarded 14 positions on a $1.5B counter-drone IDIQ, split into Track 1 (ceiling $1.01B) for hardware and services and Track 2 (ceiling $489M) for comprehensive services, per USAspending. Leidos and BAE Systems won both tracks; others received single-track spots. Ordering runs Aug. 1, 2026 to July 31, 2031, with a $250M minimum guarantee at award.

Leidos said it won a contract with the Office of Naval Intelligence worth up to $64.8 million, including a base year and four option years, to continue modernizing naval intelligence communications infrastructure. The work builds on Leidos efforts since 2021 and supports the Hopper Global Communications Center, aimed at secure information sharing and technology integration, according to the company.

Baird adjusted its price target on Leidos Holdings to $150 from $125 and kept a Neutral rating, according to the firm. The article also outlines Leidos’ business segment mix and describes Baird’s composite rating methodology based on valuation, EPS revisions, and visibility.

Stifel cut its Leidos Holdings (NYSE:LDOS) price target to $142 from $193 and kept a Hold rating, citing concerns about the company’s Health segment despite strong Q2 results. Leidos reported adjusted EPS of $3.26 vs $2.91 expected and revenue of $4.56B vs $4.44B, raised full-year 2026 guidance, and saw organic revenue growth of 4% YoY.

Leidos Holdings (LDOS) shares rose about 9.3% after the company reported Q2 2026 results and raised guidance again, according to Leidos. Revenue was $4.56B (+7% YoY). Non-GAAP EPS guidance increased to $12.20 to $12.50, with operating cash flow around $1.85B. Net bookings were $4.9B and backlog $48.7B.

Leidos said on its Q2 earnings call that the Defense Health Agency’s plan to move the MHS Genesis electronic health record from a lead systems integrator model to direct contracts with tech providers could increase government in-sourcing of integration and commercial technology. DHA plans bridge contracts with Leidos and targets 2027 for provider transitions. Leidos reported Q2 revenue of $4.5B and adjusted EBITDA $631M, and raised full-year revenue guidance to $18.2B-$18.4B.

Leidos says it was selected by Sierra Space to supply infrared sensing payloads and operational support for 18 AMDT3 Tracking Layer satellites under the US Space Development Agency’s Golden Dome missile defense program. Leidos will integrate flight-proven sensors with onboard digital signal processing and provide sustainment. SDA awarded about $1.75bn for 36 AMDT3 satellites to L3Harris and Sierra Space.