Leidos Holdings, Inc. (LDOS)

Technology · Technology Consulting · Price $139.63
Updated: Aug 29, 2026
Operating Income (TTM)
$2.0B
Trailing 12 Months
Growth Rate
21.86%
Log-Linear Regression (16Q)
Operating Margin
11.51%
Operational Efficiency
EV/Operating Income
12.3x
Valuation Multiple
Net Income
$1.4B
After Interest & Taxes

📈 Operating Income History (16 Quarters)

🧮 LDOS Operating Income Breakdown

Operating Income = Gross Profit - Operating Expenses (SG&A, R&D, etc.)
Revenue (Top Line) $17.6B
Less: Cost of Revenue → Gross Profit $3.1B
Equals: Operating Income (EBIT) $2.0B
Then: Less Interest & Taxes → Net Income $1.4B

Understanding Operating Income

Operating Income, also known as EBIT (Earnings Before Interest and Taxes), measures a company's profit from its core business operations before financing costs and taxes. For LDOS, the trailing twelve month operating income is $2.0B.

Why Operating Income Matters

Operating income isolates business performance from capital structure decisions (debt vs equity financing) and tax strategies. This makes it ideal for comparing companies with different debt levels or tax situations. It shows how efficiently management runs the core operations.

LDOS's operating income growth rate of 21.86% (based on log-linear regression of 16 quarters) indicates exceptional operational growth with improving efficiency.

Operating Income vs Other Profitability Metrics

Net Income: $1.4B →

The bottom line after interest and taxes. Net income shows the final profit, while operating income excludes financing decisions.

Free Cash Flow: $1.9B →

Actual cash generated after capital expenditures. FCF can differ significantly from operating income due to working capital and capex.

Owner Earnings: $1.9B →

Buffett's measure of true cash generation. Adds back depreciation and subtracts only maintenance capex.

Revenue: $17.6B →

The top line that operating income is derived from. Operating margin shows what percentage becomes operational profit.

Operating Margin Analysis

LDOS's operating margin of 11.51% shows what percentage of revenue converts to operating profit after all operating expenses. Operating margins between 8-15% are common in competitive industries.

EV/Operating Income Valuation

The EV/Operating Income ratio of 12.3x shows how the market values LDOS's operational earnings. Ratios between 8-15x are typical for mature, stable businesses.

Summary: LDOS Operating Income Trend

Leidos Holdings, Inc. (LDOS) has an operating margin of 11.51%, which Zyberno classifies as acceptable for a Technology company — within the 8–15% range Zyberno considers typical for technology businesses where software leverage and scalability drive operating margins. Operating income grew at 21.86% annually — significantly above the 20% threshold Zyberno associates with high-growth businesses. For complete financial analysis, view the full LDOS stock report on Zyberno.

Frequently Asked Questions

What is LDOS's current operating income?

Leidos Holdings, Inc.'s TTM operating income is $2.0B, growing at 21.86% annually — significantly above the 20% threshold Zyberno associates with high-growth businesses.

Is LDOS's operating income growing?

Leidos Holdings, Inc. (LDOS) has an operating margin of 11.51%, which Zyberno classifies as acceptable for a Technology company — within the 8–15% range Zyberno considers typical for technology businesses where software leverage and scalability drive operating margins. Operating income grew at 21.86% annually — significantly above the 20% threshold Zyberno associates with high-growth businesses.

What is LDOS's operating margin?

Leidos Holdings, Inc. (LDOS) has an operating margin of 11.51%, which Zyberno classifies as acceptable for a Technology company — within the 8–15% range Zyberno considers typical for technology businesses where software leverage and scalability drive operating margins. Operating income grew at 21.86% annually — significantly above the 20% threshold Zyberno associates with high-growth businesses.

What is the difference between operating income and EBIT?

Operating income and EBIT (Earnings Before Interest and Taxes) are generally the same metric - both measure profit from core operations before financing costs and taxes. LDOS's EBIT/Operating Income is $2.0B.

How does operating income differ from net income?

Operating income excludes interest expense and income taxes, while net income includes them. LDOS's operating income is $2.0B versus net income of $1.4B. The difference reflects financing costs and tax burden.

📊 Valuation Trilogy
Three interconnected metrics built on Owner Earnings
💎
Intrinsic Value
DCF Fair Value
$459.11
🛡️
Margin of Safety
Valuation Gap
69.6%
🎯
Expected Return
Projected Annual
52.3%
Click any metric for full methodology and detailed analysis

📊 Full LDOS Stock Report

See LDOS's intrinsic value, margin of safety, DCF valuation, and complete financial analysis with 250+ metrics.

💵 LDOS Free Cash Flow

Compare to Free Cash Flow which subtracts all capital expenditures, not just maintenance CapEx.

💰 LDOS Owner Earnings

Compare to Buffett's Owner Earnings metric which uses maintenance CapEx instead of total capital expenditures.

📈 LDOS Earnings Per Share

Analyze EPS trends, P/E ratio, earnings yield, and per-share profitability metrics.

🎯 LDOS Earnings Surprise (SUE)

See whether LDOS is beating or missing its own earnings trend — Standardized Unexpected Earnings and post-earnings drift.

📊 LDOS Revenue

Analyze revenue trends, growth rate, P/S ratio, and top-line sales performance.

💰 LDOS Net Income

Analyze the bottom-line profit, P/E ratio, and net profit margin trends.

🔶 LDOS Operating Income

Analyze EBIT, operating margin, and core business profitability before interest and taxes.

💜 LDOS Gross Profit

Analyze gross margin, pricing power, and profitability before operating expenses.

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