Leidos Holdings (LDOS) experienced a significant intraday surge of 5.05% on Wednesday, as the stock soared following positive analyst commentary regarding its future financial prospects.
According to analysis from RBC Capital Markets, Leidos' revenue and margin growth are likely to improve in 2027 despite headwinds from a slump in Veterans Benefits Administration activity. The company is increasing its exposure to energy markets and scaling investments to drive growth in defense and intelligence markets amid rising competition on its VBA contract.
RBC raised its earnings per share estimates for Leidos, now expecting 2026 adjusted EPS of $12.16, up from $12.11, and 2027 adjusted EPS of $13.12, up from $12.71. The firm noted that Leidos is positioned to benefit from higher defense spending in its core markets and that its investments could translate into better-than-peer growth, leading RBC to reiterate its outperform rating on the stock.
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