LDOS Leidos Holdings, Inc.

Overview and Growth

Leidos Holdings, Inc. generated $17.17B of revenue in fiscal 2025, with net income of $1.45B and an operating cash inflow of $1.75B. At $17.17B, the top line establishes the operating scale supporting the company’s profit and cash-flow profile. Compared with $16.66B in fiscal 2024, revenue recorded a 3.1% year-over-year increase. Diluted earnings per share were $11.14, translating the period’s attributable earnings into the amount reported for each diluted share. Diluted EPS increased by 20.8% from $9.22 in fiscal 2024, showing how the earnings change reached shareholders on a per-share basis. Revenue equaled 1.27x of total assets, indicating how much reported top-line activity the company produced relative to its period-end asset base.

Profitability

The first profit layer was $3.10B of gross profit, the amount available after reported direct revenue costs to absorb operating expenses. Gross margin was 18.0%, so that share of each revenue unit remained after the cost of revenue reported for the period. Operating income was $2.11B, the earnings remaining from reported operations after the company’s recognized operating cost structure. The operating result equaled 12.3% of revenue, placing the absolute operating-income figure in the context of the company’s sales base. Net income came to $1.45B, completing the progression from revenue through gross and operating profitability to the final reported result. Measured against reported revenue, net income produced a 8.4% margin after operating costs and the remaining recognized items. Before income taxes, the company reported $1.91B of earnings, providing a bridge between the operating result and final net income. The pretax margin was 11.1%, relating income before taxes directly to revenue. The company recognized $447.00M of income tax for the period, completing the transition from pretax income to net income. The income-tax provision equaled 23.4% of pretax income, showing the tax burden absorbed by the year’s earnings. The relationship between net income and period-end equity was 29.2%, indicating the profitability achieved on book capital. Return on period-end assets was 10.7%, connecting net income with the company’s total asset base.

Liquidity and Capital Structure

At period end, the $13.49B asset base was financed through $8.53B of liabilities and $4.96B of equity. Current assets were $4.81B against $2.83B of current liabilities, framing the resources and obligations classified within the near-term balance-sheet horizon. Current assets covered current liabilities by 1.7x, leaving a positive buffer for near-term obligations. Cash and equivalents totaled $1.11B, identifying the most liquid reported component available within the broader current-asset balance. The cash balance equaled 39.2% of current liabilities, showing how much near-term coverage came from cash alone. The liabilities-to-assets relationship was 63.2%, placing reported obligations against the full positive asset balance. Measured against total assets, cash and equivalents represented 8.2%, a balance-sheet composition measure rather than a liquidity forecast. Compared with $13.01B in fiscal 2024, the current asset base moved 3.7% and finished higher.

Cash Flow and Earnings Quality

Cash flow from operations was $1.75B, a reported cash inflow that can be compared directly with net income and capital spending. The operating-cash-flow-to-net-income relationship was 1.21x, comparing cash generated by operations with the bottom-line earnings result. Capital expenditures used $125.00M, identifying the reported investment outflow deducted from operating cash flow in the free-cash-flow calculation. Capital expenditures represented 7.1% of operating cash flow, leaving the remainder available as free cash flow. Free cash flow came to $1.62B, leaving a positive amount after capital expenditures. Relative to revenue, free cash flow equaled 9.5%, showing how much sales converted into cash after investment. Measured against total assets, free cash flow represented 12.0%, showing the cash productivity of the company’s assets.

Based on the annual report for the fiscal year ending Jan 2, 2026. Analysis generated Oct 21, 2026.