Leidos Holdings: Q2 Preview: Flat Growth Ahead Of H2 Acceleration

研报英文原文证据摘录

Leidos Holdings: Q2 Preview: Flat Growth Ahead Of H2 Acceleration

USA | Aerospace & Defense Electronics

Leidos Holdings EquityJulyResearch1, 2026

TARGET | ESTIMATE CHANGEQ2 Preview: Flat Growth Ahead Of H2

RATING HOLDAcceleration

PRICE $102.97^

We recently downgraded LDOS on risk from VBA which represents 45% of EPS

and lack of growth at least for Q2. We believe Q2 marks a bottom for the year PRICE TARGET | % TO PT $110.00 ($140.00) | +7%

with flat organic revenue growth driven by a 3% decline in Health. The offset is 52W HIGH-LOW $205.77 - $98.86

momentum in H2 +5% organic w/ +3.5 pts form ENTRUST. We view potential FLOAT (%) | ADV MM (USD) 97.4% | 178.41

corporate action given the cos defense tech portfolio as a game changer for MARKET CAP $13.2B

LDOS as the VBA recompete could be a drag on shares likely for next 6 months. TICKER LDOS ^Prior trading day's closing price unless otherwise

noted.

Q2 Marks Growth Low Point, Expect 2026 Guidance Maintained. We est ~flat organic growth

in Q2 on Health revs -3% given tough VBA comps, vs +3% in Q1 ahead of H2 ramp +5% organic

FY (Dec) CHANGE TO JEFe JEF vs CONS

w/ +3.5 pts from ENTRUST. Each 5pts of organic growth in Health is worth $0.08/sh (3%) to our

2026 2027 2026 2027

base Q2 EPS est of $2.91 w/ each 100bps of margin worth $0.07/sh (2%). Our margin of 13.6%

in Q2 (cons 13.4%) leaves H1 at 13.8%, ahead of the mid-13% range guide. We est Q2 EPS of REV* NM NA NM -1%

$2.91 vs cons $2.89. We do not expect a guidance raise on the H2 weighted outlook and major EPS NA NA -1% -1%

pending award decisions supporting the H2 acceleration. LDOS typically narrows guidance at Q2 w/

2026 rev potentially to $18.1-18.4BB (+0.3% from $18.0-18.4BB). Margin guide could be reaffirmed 2026 ($) Q1A Q2 Q3 Q4 FY