Leidos' Health Segment Uncertainty Weighing on Sentiment, RBC Says

12:11 PM EST, 11/04/2026 (MT Newswires) -- Leidos (LDOS) posted Q3 adjusted earnings ahead of consensus, but focus during a call was on upcoming re-compete process to keep providing health services to US veterans, RBC Capital Markets said in a note Tuesday. The company reported Q3 adjusted EPS of $3.62, compared with consensus of $3.03 in a FactSet poll. The company struck a confident tone in its positioning in the market given its incumbency and service levels, the note said. Leidos expects an award decision on the Veterans Benefits Administration re-compete in April/May 2027. "We appreciate 2027 is a re-set year with Health margins normalizing and uncertainty in the VBA outcome, but we believe the portfolio diversification...and capital allocation optionality are reasons to remain bullish," the report said. RBC kept its outperform rating and $170 price target. Price: 132.44, Change: -2.28, Percent Change: -1.69