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Leidos Holdings to Report Q1 Earnings: Here's What to Expect

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Key Takeaways

  • LDOS Q1 may reflect benefits from prior-quarter acquisitions that expanded capabilities and reach.
  • LDOS expects solid execution and cost controls to support results despite higher interest costs.
  • Leidos Defense Systems sales may rise on higher volumes tied to growing geopolitical tensions.

Leidos Holdings, Inc. (LDOS - Free Report) is scheduled to release first-quarter 2026 results on May 5, before market open. The company delivered an earnings surprise of 7.39% in the last reported quarter.

Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.

Factors Likely to Influence LDOS’ Q1 Results

Leidos Holdings acquired businesses during the previous quarters, which are likely to have supported earnings growth. These strategic additions may have strengthened its capabilities, expanded its presence across key government and defense markets and enhanced its service offerings, contributing to the company’s performance in the quarter to be reported.

Higher sales volumes, driven by rising demand for managed health services, are likely to have supported the Health & Civil segment’s top-line performance.

Robust program wins, along with prior-year write-downs on certain U.K. operations, are likely to have aided the Commercial & International segment’s top-line performance.

Increased sales volumes, supported by growing geopolitical tensions globally, are likely to have boosted the Defense Systems segment’s top line.

Solid revenue growth expectations, coupled with effective program execution and cost-control measures, are likely to have favorably impacted the company’s bottom-line performance. However, higher interest expenses may have partially reduced some of the gains in the quarter to be reported.

Q1 Expectations for LDOS

The Zacks Consensus Estimate for revenues is pegged at $4.27 billion, indicating a decrease of 0.5% from the year-ago level.

The consensus estimate for earnings is pegged at $2.88 per share, calling for a decline of 3% from the figure recorded a year ago.

What the Zacks Model Unveils for LDOS

Our proven model predicts an earnings beat for LDOS this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here, as you will see below.

Leidos Holdings, Inc. Price and EPS Surprise

Leidos Holdings, Inc. Price and EPS Surprise

Leidos Holdings, Inc. price-eps-surprise | Leidos Holdings, Inc. Quote

Earnings ESP: LDOS has an Earnings ESP of +0.41%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Currently, Leidos Holdings carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Other Stocks to Consider

Below, we have mentioned players from the same industry that also have the right combination of elements to beat on earnings in the upcoming releases.

CDW Corporation (CDW - Free Report) is scheduled to report its first-quarter 2026 results on May 6, before market open. It has an Earnings ESP of +1.90% and a Zacks Rank of 2 at present.

The Zacks Consensus Estimate for sales is pegged at $5.40 billion, which indicates a 3.9% rise from the year-ago quarter’s figure. The consensus estimate for earnings stands at $2.28 per share, which calls for a 6.1% improvement from the year-ago quarter’s figure.

Serve Robotics Inc. (SERV - Free Report) is expected to report its first-quarter 2026 results on May 7, after market close. It has an Earnings ESP of +17.35% and a Zacks Rank of 3 at present.

The Zacks Consensus Estimate for sales is pegged at $2.3 million, which implies a 430.7% increase from the year-ago quarter’s figure. The consensus estimate for earnings is pegged at a loss of 65 cents, indicating a year-over-year drop of 306.3%.

Telos Corporation (TLS - Free Report) is slated to report its first-quarter 2026 results on May 11, before market open. It has an Earnings ESP of +14.29% and a Zacks Rank of 3 at present. 

The Zacks Consensus Estimate for first-quarter sales is pegged at $44.5 million, which calls for a 45.3% improvement from the year-ago quarter’s figure. The consensus estimate for earnings stands at 2 cents per share, which suggests a massive 166.7% increase from the year-ago quarter’s figure.

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