Leidos Holdings, Inc. stock research
FY2025 Q2
Leidos Holdings (LDOS) Gross Margin — Quarter Ended Jul 4, 2025
Revenue was stable compared to the prior quarter and higher than the same quarter last year. Gross profit improved relative to both periods, while cost of revenue was stable sequentially and higher year over year, resulting in a gross margin that strengthened from both the prior quarter and the year-ago quarter.
Gross margin takeaway
Quarter ended Jul 4, 2025 · FY2025 Q2
Revenue was stable compared to the prior quarter and higher than the same quarter last year. Gross profit improved relative to both periods, while cost of revenue was stable sequentially and higher year over year, resulting in a gross margin that strengthened from both the prior quarter and the year-ago quarter.
- Gross profit increased while revenue remained stable sequentially, indicating that the improvement in gross margin was driven by a more favorable relationship between revenue and cost of revenue. The year-over-year comparison shows gross profit growing faster than revenue, further supporting margin expansion.
- Compared to the prior quarter, gross margin improved as gross profit rose while revenue was unchanged. Versus the same quarter last year, gross margin strengthened with gross profit increasing more than revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
18.0%
Gross profit
$762.0M
Revenue
$4.2B
Cost of revenue
$3.5B
Quarter-over-quarter change
+0.5 pts
Year-over-year change
+1.4 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Sep 27, 2024 | $4.2B | $741.0M | $3.4B | 17.8% |
| Jan 3, 2025 | $4.3B | $677.0M | $3.7B | 15.6% |
| Apr 4, 2025 | $4.2B | $740.0M | $3.5B | 17.5% |
| Jul 4, 2025 | $4.2B | $762.0M | $3.5B | 18.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Apr 4, 2025
+0.5 pts
Year-over-year change
Jun 28, 2024
+1.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross profit increased while revenue remained stable sequentially, indicating that the improvement in gross margin was driven by a more favorable relationship between revenue and cost of revenue. The year-over-year comparison shows gross profit growing faster than revenue, further supporting margin expansion.
Compared to the prior quarter, gross margin improved as gross profit rose while revenue was unchanged. Versus the same quarter last year, gross margin strengthened with gross profit increasing more than revenue.
Monitor whether the relationship between revenue and cost of revenue can sustain the current gross margin level, given that revenue was flat sequentially.