Leidos Holdings, Inc.LDOS

Leidos Holdings, Inc. Earnings Per Share Disclosure

10-KFiled Feb 17, 20262 min read
Note 16—Earnings Per Share
Basic EPS is computed by dividing net income attributable to Leidos common stockholders by the basic weighted average number of shares outstanding. Diluted EPS is calculated to give effect to all potentially dilutive common shares that were outstanding during the reporting period. The dilutive effect of outstanding equity-based compensation awards is reflected in diluted EPS by application of the treasury stock method, only in periods in which such effect would have been dilutive for the period.
We issue unvested stock awards that have forfeitable rights to dividends or dividend equivalents. These stock awards are dilutive common share equivalents subject to the treasury stock method.
The weighted average number of shares used to compute basic and diluted EPS attributable to Leidos stockholders were:
 Year Ended
(in millions)
January 2,
2026		January 3,
2025		December 29,
2023
Basic weighted average number of shares outstanding128134137
Dilutive common share equivalents—stock options and other stock awards221
Diluted weighted average number of shares outstanding130136138
Anti-dilutive stock-based awards are excluded from the weighted average number of shares outstanding used to compute diluted EPS. The total number of outstanding stock options and vesting stock awards that were anti-dilutive was less than 0.5 million for both fiscal 2025 and 2024, and was 1 million for fiscal 2023.
SHARE REPURCHASES
During fiscal 2025, 2024 and 2023, we made open market repurchases of our common stock for an aggregate purchase price of $400 million, $850 million, and $225 million, respectively. All repurchased shares were immediately retired.
In fiscal 2025, we entered into an ASR agreement with a financial institution to repurchase shares of our outstanding common stock. We paid $500 million to the financial institution and received 3.6 million shares.
The repurchases were recorded to “Additional paid-in capital” in the consolidated balance sheets. All shares delivered were immediately retired.

Historical Timeline

Fiscal YearFiled
2026Feb 17, 2026Showing above
2025Feb 11, 2025
2023Feb 13, 2024
2022Feb 14, 2023
2021Feb 23, 2021
2020Feb 18, 2020
2018Feb 19, 2019
2017Feb 23, 2018

About Earnings Per Share Disclosures

The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.

Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.

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