Exploring Leidos Holdings, Inc. (LDOS) Investor Profile: Who’s Buying and Why?

You're looking at Leidos Holdings, Inc. (LDOS) and wondering why a stock with a massive government services backlog is showing mixed institutional trading-it's a fair question, especially with the defense sector's current complexity. Right now, a huge chunk of the company, about 78% to 79%, is held by institutional players like Vanguard Group, Inc. and BlackRock, Inc.. But if you dig into the recent 13F filings, you see a tug-of-war: some major holders trimmed their positions in Q3 2025, while others, like Fmr Llc, ramped up their stake by a massive 31.91%. Why the split? It likely comes down to how investors weigh the company's solid Q3 2025 performance-record revenues of $4.5 billion, up 7% year-over-year, and a total backlog of $47.7 billion-against the political and budgetary risks inherent in their business model. Are the buyers focusing on the raised full-year 2025 revenue guidance of up to $17.25 billion, or are the sellers worried about margin pressure despite the $3.05 Non-GAAP Diluted EPS? Let's break down who is defintely buying and why they see the path to value in this mission-critical enterprise.

Who Invests in Leidos Holdings, Inc. (LDOS) and Why?

You want to know who is really buying Leidos Holdings, Inc. (LDOS) stock and what their endgame is. The direct takeaway is this: Leidos is overwhelmingly owned by large institutional money managers who are primarily focused on the company's stable, government-backed growth and its reliable, increasing dividend.

As of late 2025, institutional investors-think massive mutual funds, pension funds, and endowments-hold a commanding stake, typically around 76% to 79% of the shares outstanding. This is a crucial number. It means the stock price is defintely sensitive to their collective trading actions, and they hold the power to influence major corporate decisions.

Key Investor Types: The Institutional Giants

The investor base for Leidos Holdings, Inc. is a classic example of a defense and government services contractor: dominated by the biggest names in asset management. Retail investors, or the general public, hold a respectable but non-controlling stake of about 20-21%. Interestingly, the presence of hedge funds-those known for aggressive, short-term bets-is not meaningful here, which underscores the stock's stability profile.

The top shareholders are the behemoths of the financial world. Here's the quick math on who owns the most, based on Q2 and Q3 2025 filings:

• The Vanguard Group, Inc.: Holds approximately 12% of the shares, valued at roughly $2.38 billion.
• BlackRock Inc.: Another top holder, with a position worth over $1.88 billion and holding more than 10 million shares.

When you see names like Vanguard and BlackRock leading the pack, you know a significant portion of the ownership is passive investment (index funds) or long-term core holdings. They buy and hold because Leidos Holdings, Inc. is a massive, stable component of the US defense and technology sector. This is a bedrock stock for many large portfolios.

Investment Motivations: Stability, Growth, and Income

Investors are drawn to Leidos Holdings, Inc. by a compelling mix of stable government contracts and solid financial performance, which translates into predictable shareholder returns. It's a classic defensive growth play.

What attracts this money? It boils down to three clear factors:

• Growth Prospects: The company is delivering. In the third quarter of fiscal year 2025, Leidos Holdings, Inc. reported record revenues of $4.5 billion, a 7% jump year-over-year. Plus, they secured $5.9 billion in net bookings, pushing their total backlog to an enormous $47.7 billion. That backlog is future revenue, plain and simple.
• Reliable Income (Dividends): Income-focused investors love consistency. Leidos Holdings, Inc. raised its quarterly cash dividend in late 2025 to $0.43 per share, which annualizes to $1.72. This marks its seventh consecutive year of dividend growth, and with a low payout ratio of about 14.88%, the dividend is very sustainable.
• Mission-Critical Market Position: Leidos Holdings, Inc. is deeply embedded in national security, health, and engineering solutions. This alignment with core government priorities provides a stable revenue stream, insulating the company somewhat from broader economic swings. You can read more about what drives their business in the Mission Statement, Vision, & Core Values of Leidos Holdings, Inc. (LDOS).

Investment Strategies: Long-Term and Value-Oriented

The strategies employed by the major investors are generally long-term and value-conscious, though active managers are still making moves. The low beta (a measure of volatility) of Leidos Holdings, Inc. makes it attractive for those seeking lower-risk exposure to the technology and defense sectors.

Active managers are responding directly to the company's raised full-year 2025 guidance for Non-GAAP Diluted Earnings Per Share (EPS) to a range of $11.45 to $11.75, seeing a clear path for earnings growth. This is a company that is executing well on its contracts and returning cash to shareholders, so active funds are adding to their positions. It's a classic case of money following performance. The stock is a reliable performer, not a speculative bet.

Institutional Ownership and Major Shareholders of Leidos Holdings, Inc. (LDOS)

You're looking at Leidos Holdings, Inc. (LDOS) and trying to figure out who is really driving the stock. The direct takeaway is this: institutional investors-the big money-effectively control the company, holding approximately 76.12% to over 80% of the stock, which makes their trading activity the primary force behind price movements.

This high concentration means Leidos's stock is defintely sensitive to the collective sentiment of these large asset managers. When they move, the stock moves. For context, the top 19 shareholders alone control about 50% of the entire business.

Top Institutional Investors: Who's Holding the Bulk of LDOS?

The largest shareholders of Leidos are exactly who you'd expect: the giants of passive and active asset management, the firms that manage index funds and massive pension portfolios. These institutions hold a total value of approximately $19,024 million in Leidos shares. Their presence lends significant credibility to the company in the broader investment community, signaling that Leidos is a stable, well-researched component of major indices.

Here's a snapshot of the top three holders and their approximate stakes based on recent 2025 filings:

The Vanguard Group, Inc. and BlackRock, Inc. alone account for over 20% of the common stock. This is typical for a large-cap company like Leidos, which is a core holding in many exchange-traded funds (ETFs) and mutual funds that track indices like the S&P 500. It's a key reason why Leidos's stock price saw a 5.6% gain in a recent week, rewarding these large holders.

Recent Shifts: Are Institutions Buying or Selling?

Looking at the 2025 fiscal year data, institutional money has generally been accumulating Leidos shares, though with some key players taking profits. Overall, the number of institutional owners has seen a modest increase of about 1.1%. This accumulation is a vote of confidence, especially following the company's strong Q3 2025 earnings, where it reported $3.05 in non-GAAP diluted earnings per share (EPS) on $4.47 billion in revenue.

The trend is a mix of high-conviction buying and minor trimming:

• Aggressive Buyers: Pacer Advisors Inc. lifted its position by a massive 3,450.0% in Q1 2025, and Allianz Asset Management GmbH raised its stake by 262.9% in the same quarter.
• Strategic Increases: JPMorgan Chase & Co. lifted its holdings by 7.9% in Q1, while Nomura Asset Management Co. Ltd. raised its position by 8.3% in Q2.
• Minor Trims: The Vanguard Group, Inc., despite being the largest holder, slightly reduced its stake by 1.1% in Q2. This small reduction is often just rebalancing within index funds, not a fundamental shift in view.

The significant new and increased positions suggest that a number of funds are buying into the company's raised full-year 2025 guidance of $11.45 to $11.75 EPS, seeing the defense and IT contractor as a safe bet aligned with government spending priorities. If you want to dig deeper into the company's strategic alignment, you should review the Mission Statement, Vision, & Core Values of Leidos Holdings, Inc. (LDOS).

The Impact of Institutional Ownership on Strategy

When institutions own this much of a company, they aren't just passive investors; they are a powerful constituency that the management and board must respect. Since they own more than half the stock, the board of directors will have to pay close attention to their preferences on capital allocation, executive compensation, and strategic direction.

Here's the quick math on their influence: their collective preference for steady returns and low volatility is a key reason Leidos continues to return capital to shareholders, like the recent raise of the quarterly cash dividend to $0.43 per share. Plus, their focus on long-term value reinforces the company's commitment to its core defense and civil government contracts, which provide predictable revenue streams.

What this estimate hides is the potential for a crowded trade (a situation where too many investors own the same stock). If a major negative catalyst hits, the high institutional ownership could lead to a rapid, sharp sell-off as multiple large funds compete to exit. Still, the company's solid fundamentals-like its backlog of $47.7 billion as of Q3 2025-provide a strong buffer against short-term volatility.

Key Investors and Their Impact on Leidos Holdings, Inc. (LDOS)

You want to know who is really driving the stock at Leidos Holdings, Inc. (LDOS) and why, because understanding the big money's moves is half the battle in a stock like this. The direct takeaway is that Leidos is overwhelmingly an institutional favorite, with nearly 78% of shares held by large funds as of late 2025, meaning their collective, passive movements dictate much of the stock's volatility and valuation.

The Institutional Giants: Vanguard, BlackRock, and State Street

When you look at the shareholder registry, you see the titans of passive and active management. These aren't activist hedge funds looking to break up the company; they are the index and mutual fund behemoths whose sheer size gives them immense, albeit often passive, influence. The Vanguard Group, Inc. is the largest shareholder, holding approximately 11.73% of the shares outstanding, which translates to over 15 million shares. BlackRock, Inc. is right behind them, controlling about 8.45%, or more than 10.8 million shares.

State Street Global Advisors, Inc. rounds out the top three, owning around 4.48% of the stock. Here's the quick math: these three firms alone account for well over a quarter of all outstanding shares, and the top 19 institutional shareholders control roughly 50%. That's a huge concentration of capital, and it's why Leidos's total institutional ownership value sits at a staggering $19,024 million.

Investor Influence: Why Passive Ownership Matters

Because institutional ownership is so high-around 78% of the equity-the stock price is defintely sensitive to their trading actions. When a major index fund like Vanguard or BlackRock needs to rebalance its massive S&P 500 or Total Stock Market funds, they buy or sell millions of Leidos shares, and that volume can move the market without any change in the company's fundamentals. You're not seeing a lot of activist investor (a shareholder who tries to pressure management for a specific change) activity here, which is typical for a defense contractor with stable government contracts.

Instead, the influence is structural: these large holders generally support management, especially when performance is strong. The company's Q3 2025 results, with revenue of $4.47 billion and raised full-year non-GAAP diluted EPS guidance of $11.45 to $11.75, keep these big investors happy. This financial stability is the primary reason for their continued, large-scale investment.

Recent Moves: Trimming Stakes and Corporate Buybacks

The most notable recent moves from the big funds have been minor trims, which is something to watch but not panic over. For instance, Vanguard reduced its stake by 1.1% in the second quarter of 2025. BlackRock also decreased its holding by 3.628% as of the September 30, 2025, filing date. These small reductions are often portfolio adjustments, not a vote of no confidence.

• Vanguard reduced its stake by 166,748 shares in Q2 2025.
• BlackRock cut its position by over 406,000 shares in Q3 2025.
• FMR LLC, another top holder, increased its position by 31.91% in Q3 2025.

The company's own capital allocation is also a huge factor for investors. In Q3 2025, Leidos returned $153 million to shareholders, which included repurchasing $102 million worth of its own shares. Plus, the Board declared an increased quarterly cash dividend of $0.43 per share, a 7.5% increase over the prior quarter. This aggressive capital return strategy is a clear signal to institutional investors that management is focused on shareholder value, which helps to offset any minor selling pressure from index rebalancing. For a deeper look at the balance sheet supporting these moves, check out Breaking Down Leidos Holdings, Inc. (LDOS) Financial Health: Key Insights for Investors.

The action plan is simple: monitor the 13F filings for any major, non-index-related changes, but for now, the institutional base is solid, buying into the company's strong performance and defense-sector resilience.

Market Impact and Investor Sentiment

The investor sentiment toward Leidos Holdings, Inc. (LDOS) is defintely positive, anchored by strong institutional conviction and a series of impressive financial beats in the 2025 fiscal year. Right now, institutional investors-the big money managers like The Vanguard Group, Inc. and BlackRock, Inc.-own a substantial chunk of the company, holding between 76.12% and 80.04% of the shares outstanding. That kind of concentration means major trading moves can swing the stock, but it also signals deep-pocketed confidence in the long-term story.

You see this confidence reflected in recent filings. Funds like Kendall Capital Management and Kathmere Capital Management LLC significantly boosted their positions in the second quarter of 2025, with one increasing its stake by 93.7% and the other by 145.6%. This buying pressure is a clear vote for Leidos's strategy in national security and digital solutions. Still, you should note that insider sentiment is mixed, with some executives selling shares, which can sometimes signal caution despite the overall bullish institutional trend.

• Institutional ownership is near 80%.
• The Vanguard Group, Inc. is the largest holder, with a stake of approximately 11.78%.
• BlackRock, Inc. is a major holder, with an ownership percentage of approximately 8.45%.

Recent Market Reactions to Ownership Shifts

The market's reaction to Leidos Holdings, Inc.'s operational performance has been constructive, especially following the Q3 2025 earnings release on November 4, 2025. The stock's price, which closed near $186.49 on November 21, 2025, has been trending well, largely due to better-than-expected results. The company reported an Earnings Per Share (EPS) of $3.05, handily beating the consensus estimate of $2.61, plus revenue of $4.47 billion against an expected $4.28 billion. That's a solid beat.

The stock's immediate reaction was a modest but positive bump, showing that investors were pleased with the operational execution. Plus, the company's decision to increase its quarterly cash dividend to $0.43 per share (a 7.5% increase from the prior $0.40) was a strong signal of management's confidence in future free cash flow generation. A higher dividend payout is a tangible way to return capital and typically attracts income-focused investors, which helps stabilize the stock price. If you want a deeper dive into the financials that support this, check out Breaking Down Leidos Holdings, Inc. (LDOS) Financial Health: Key Insights for Investors.

Analyst Perspectives and Key Investor Impact

The analyst community is largely on the same page as the institutional investors, maintaining a consensus rating of 'Moderate Buy' or 'Strong Buy.' This isn't just a generic rating; it's grounded in the company's strong positioning in high-priority government sectors like cybersecurity, veteran health services, and autonomous defense systems. Analysts are raising their price targets because the company is delivering on its contracts and expanding its margins.

Here's the quick math: Leidos Holdings, Inc. raised its full-year 2025 guidance, projecting revenue between $17.0 billion and $17.25 billion and an adjusted EPS range of $11.45 to $11.75. This upward revision is the catalyst for the price target increases. For example, Bank of America recently raised its target to $235.00, and Cantor Fitzgerald moved its target to $225.00. This indicates a potential upside of over 20% from the current trading price, suggesting the stock remains undervalued (trading at a P/E of about 17.83 versus an industry average closer to 27.2x).

The key takeaway is that the big investors are buying because the company is executing, and the analysts are following suit by raising their valuation models. The biggest opportunity is mapping the company's record $69 billion contract backlog (a forward-looking indicator) to the current valuation discount. That backlog essentially underwrites years of stable revenue growth, which is exactly what a seasoned investor wants to see.