Leidos Holdings to Report Q3 Earnings: What's in the Cards?

Leidos Holdings, Inc. LDOS is scheduled to release third-quarter 2025 results on Nov. 4, before market open. The company delivered an earnings surprise of 22.05% 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’ Q3 Results

In May 2025, the company completed the acquisition of Savanna Industries, Inc. (Kudu Dynamics). Kudu Dynamics provides Artificial Intelligence-enabled cyber capabilities for defense, intelligence and homeland security customers. This acquisition is expected to strengthen the company’s National Security and Digital segment by enhancing its cybersecurity expertise, expanding its presence in government markets and improving its ability to offer advanced AI-based cyber defense solutions.

Higher sales volumes, backed by increasing demand for the managed health services business, are likely to have boosted the Health & Civil segment’s top-line performance.

Robust program wins and prior year write-downs on certain programs within U.K. operations are likely to have boosted the Commercial & International unit’s top-line performance.

Increased activity in space sensing and hypersonic programs, fueled by heightened geopolitical tensions worldwide, is likely to have boosted the Defense Systems’ top line.

Solid sales growth expectations, along with a strong adjusted EBITDA margin, are likely to have contributed to the company’s bottom line. However, higher interest expenses owing to additional debt are likely to have offset the positive impact of the factors benefiting third-quarter earnings.

Leidos Holdings, Inc. Price and EPS Surprise

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

Q3 Expectations for LDOS

The robust revenue performance in all four of its major business segments is likely to have bolstered LDOS’ overall top line.

The Zacks Consensus Estimate for revenues is pegged at $4.27 billion, indicating an increase of 1.8% from the year-ago level.

The consensus estimate for earnings is pegged at $2.61 per share, indicating a decline of 10.9% from the figure recorded a year ago.

The consensus estimate for Leidos’ total backlog indicates growth of 18.4% year over year to $48.03 billion.

The consensus estimate for Leidos’ National Security and Digital segment’s backlog indicates growth of 20.7% year over year to $23.97 billion.

What the Zacks Model Unveils for LDOS

Our proven model does not conclusively predict 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 not the case here, as you will see below.

Earnings ESP: LDOS has an Earnings ESP of -2.30%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

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

Stocks to Consider

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

Fair Issac FICO is slated to report its fiscal fourth-quarter 2025 results on Nov. 5, after market close. It has an Earnings ESP of +0.46% and a Zacks Rank of 1 at present.

The Zacks Consensus Estimate for sales is pegged at $511.8 million, which calls for a 12.8% improvement from the year-ago quarter’s figure. The consensus estimate for earnings stands at $7.34 per share.

EPAM Systems EPAM is expected to report its second-quarter 2025 results on Nov. 6, 2025, before market open. It has an Earnings ESP of +0.52% and a Zacks Rank of 3 at present.

The Zacks Consensus Estimate for sales is pegged at $1.37 billion, which implies a 17.7% increase from the year-ago quarter’s figure. The consensus estimate for earnings stands at $3.02 per share.

Nutanix NTNX is scheduled to report its third-quarter 2025 results soon. It has an Earnings ESP of +4.10% and a Zacks Rank of 2 at present.

The Zacks Consensus Estimate for sales is pegged at $677 million, which indicates a 14.6% improvement from the year-ago quarter’s figure. The consensus estimate for earnings stands at 41 cents per share.

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This article originally published on Zacks Investment Research (zacks.com).

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