Leidos Holdings, Inc. stock research
FY2025 Q4
Leidos Holdings (LDOS) Gross Margin — Quarter Ended Jan 2, 2026
Revenue and gross profit both decreased from the prior quarter, while cost of revenue also declined. Gross margin weakened compared to the prior quarter but improved relative to the same quarter one year earlier.
Gross margin takeaway
Quarter ended Jan 2, 2026 · FY2025 Q4
Revenue and gross profit both decreased from the prior quarter, while cost of revenue also declined. Gross margin weakened compared to the prior quarter but improved relative to the same quarter one year earlier.
- The strongest observable margin driver is the year-over-year improvement in gross margin, as gross profit increased while cost of revenue decreased relative to the same quarter last year.
- Compared to the prior quarter, revenue, gross profit, and gross margin were all lower, while cost of revenue was also lower. Compared to the same quarter one year earlier, revenue was slightly lower, gross profit was higher, cost of revenue was lower, and gross margin was higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
17.4%
Gross profit
$729.0M
Revenue
$4.2B
Cost of revenue
$3.5B
Quarter-over-quarter change
-0.6 pts
Year-over-year change
+1.8 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 |
|---|---|---|---|---|
| Apr 4, 2025 | $4.2B | $740.0M | $3.5B | 17.5% |
| Jul 4, 2025 | $4.2B | $762.0M | $3.5B | 18.0% |
| Oct 3, 2025 | $4.4B | $801.0M | $3.6B | 18.0% |
| Jan 2, 2026 | $4.2B | $729.0M | $3.5B | 17.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Oct 3, 2025
-0.6 pts
Year-over-year change
Jan 3, 2025
+1.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the year-over-year improvement in gross margin, as gross profit increased while cost of revenue decreased relative to the same quarter last year.
Compared to the prior quarter, revenue, gross profit, and gross margin were all lower, while cost of revenue was also lower. Compared to the same quarter one year earlier, revenue was slightly lower, gross profit was higher, cost of revenue was lower, and gross margin was higher.
Monitor the trend in gross margin relative to both the prior quarter and the year-ago quarter, as the sequential decline contrasts with the year-over-year improvement.