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    Leidos Holdings (LDOS) Following New AI Partnerships Still Looks Undervalued

    Simply Wall St·07/16/2026 09:38:45
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    Leidos Holdings (LDOS) is back in focus after new AI partnerships aimed at military logistics and federal data modernization, prompting investors to reassess how these deals fit with the stock’s long term growth priorities.

    See our latest analysis for Leidos Holdings.

    Leidos Holdings’ recent AI deals come as the stock trades at $108.21, with the 1-day share price return of 1.55% and 7-day share price return of 0.96% contrasting with a much weaker 90-day share price return. The 3-year total shareholder return of 23.65% suggests earlier gains that current pressure has partly unwound.

    If these AI partnerships have your attention, it can be useful to see what else is happening across defense and infrastructure technology by scanning 34 power grid technology and infrastructure stocks

    After a sharp 90 day slide and mixed shorter term returns, the question for Leidos Holdings now is whether today’s valuation and those new AI partnerships still leave more upside than downside for fresh buyers.

    Most Popular Narrative: 34.5% Undervalued

    Leidos Holdings is trading at $108.21 against a most followed fair value estimate of $165.27, so the current AI and defense story is being benchmarked against a sizable valuation gap.

    The business mix is shifting towards recurring, service-based and software-driven revenue streams (logistics, health IT, cloud-native platforms), enhancing earnings visibility and stability, which is expected to support higher long-term valuation multiples as the market recognizes improved predictability in cash flow and profit growth.

    Read the complete narrative.

    Want to see how that shift to recurring revenue feeds into the $165.27 fair value for Leidos Holdings? The narrative focuses on steady growth, stable margins, and a future earnings multiple that sits below many peers. Curious which specific revenue and margin paths have to align for that gap to close?

    Result: Fair Value of $165.27 (UNDERVALUED)

    Have a read of the narrative in full and understand what's behind the forecasts.

    However, if U.S. federal funding priorities shift or healthcare contracts reset on tougher terms, the Leidos Holdings narrative built around recurring AI-driven growth could be tested.

    Find out about the key risks to this Leidos Holdings narrative.

    Next Steps

    If the mixed sentiment around Leidos Holdings has you weighing both risks and rewards, it makes sense to move quickly and review the numbers yourself. Then, see how those risks and rewards stack up in the context of the 5 key rewards and 1 important warning sign.

    Looking for more Leidos Holdings style investment ideas?

    If Leidos Holdings has sharpened your focus on quality and valuation, do not stop here; widen your search with curated stock ideas that many investors overlook.

    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.