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, /PRNewswire/ -- Leidos (NYSE: LDOS) maritime autonomy recently reached two significant milestones supporting U.S. Navy operations, with Sea Hunter at Rim of the Pacific 2026 (RIMPAC) and Seahawk operating with the USS Theodore Roosevelt Carrier Strike Group.

Why it matters: The milestones reinforce the growing role of autonomous vessels and mark a milestone in moving these systems from experimentation to the U.S. Navy fleet.

The MUSV Seahawk is the first medium uncrewed surface vessel to deploy operationally with a carrier strike group. The appearance of U.S. Department of War (DoW) visual information does not imply or constitute DoW endorsement. At RIMPAC 2026

Sea Hunter, originally developed by Leidos, participated in RIMPAC as the exercise's only Medium Unmanned Surface Vessel (MUSV).

Powered by the Leidos Autonomous Vessel Architecture (LAVA), Sea Hunter:

Operated autonomously more than 2,000 nautical miles from Pearl Harbor, Hawaii, to San Diego, California Demonstrated autonomous surveillance Demonstrated manned-unmanned teaming, operating as part of a larger naval force as well as a stand-alone platform With the USS Theodore Roosevelt Carrier Strike Group

Seahawk is operating alongside crewed naval forces as the first MUSV to deploy operationally with a carrier strike group.

Operating within the strike group's communications, command-and-control and operational framework, Seahawk's capabilities include:

Autonomous navigation and perception Collision avoidance: Compliance with International Regulations for Preventing Collisions at Sea (COLREGs) and hazard avoidance Keep Out Zone avoidance: Automatically navigates around designated restricted areas Communications failover and remote control: Maintains control through alternate communications paths GPS-denied navigation: Followed commanded waypoints without GPS and reintegrated GPS while remaining on track Expert perspective

"Sea Hunter and Seahawk show what more than a decade of operating autonomy at sea brings to the mission," said Mike Rickels, Leidos senior vice president for Maritime. "Real-world operations validate performance while providing lessons that further refine autonomy for future missions."

The technology

Sea Hunter and Seahawk are powered by LAVA, the modular software that enables autonomous navigation, mission execution, obstacle avoidance and other critical functions. It also provides a common autonomy foundation that can support different vessels and mission requirements.

By the numbers

Across its autonomous maritime portfolio, Leidos vessels and autonomy software have accumulated:

Over 200,000 nautical miles of autonomous operation 14,000 hours of safe autonomous operation More than a decade of autonomous maritime development and operational experience The big picture

Leidos' experience extends beyond autonomous navigation. In 2021, the Leidos-built MUSV Ranger, operating with LAVA, test-fired an SM-6 Standard Missile from a modular launch system as part of the Navy's Ghost Fleet Overlord program.

Together, Sea Hunter, Seahawk and Ranger demonstrate the breadth of Leidos maritime autonomy across vessels, missions and operating environments.

About Leidos

Leidos is an industry and technology leader serving government and commercial customers with smarter, more efficient digital and mission innovations. Headquartered in Reston, Virginia, with approximately 50,000 global employees, Leidos reported annual revenues of approximately $17.2 billion for the fiscal year ended January 2, 2026.

Certain statements in this announcement constitute "forward-looking statements" within the meaning of the rules and regulations of the U.S. Securities and Exchange Commission (SEC). These statements are based on management's current beliefs and expectations and are subject to significant risks and uncertainties. These statements are not guarantees of future results or occurrences. A number of factors could cause our actual results, performance, achievements, or industry results to be different from the results, performance, or achievements expressed or implied by such forward-looking statements. These factors include, but are not limited to, the "Risk Factors" set forth in Leidos' Annual Report on Form 10-K for the fiscal year ended January 2, 2026, and other such filings that Leidos makes with the SEC from time to time. Readers are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date hereof. Leidos does not undertake to update forward-looking statements to reflect the impact of circumstances or events that arise after the date the forward-looking statements were made.

Media Contact:

Brandon Ver Velde
[email protected] 
(571) 526-6257

SOURCE Leidos Holdings, Inc.

A month has gone by since the last earnings report for Leidos (LDOS - Free Report) . Shares have added about 5.5% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Leidos due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important drivers.

Leidos' Q2 Earnings Surpass Estimates, Revenues Improve Y/Y

Leidos Holdings’ reported second-quarter 2026 non-GAAP earnings of $3.26 per share, beating the Zacks Consensus Estimate of $2.90 by 12.4%. Earnings increased 1.6% from $3.21 in the year-ago quarter.

On a GAAP basis, earnings per share were $2.81, down from $3.01 a year ago. Management attributed the year-over-year decline in GAAP results to discrete costs tied to the Entrust acquisition and the pending joint venture involving security-related businesses.

LDOS' Total RevenuesTotal revenues came in at $4.56 billion, up 7.2% year over year and above the Zacks Consensus Estimate of $4.36 billion by 4.5%. Organic revenues increased 3.9% to $4.41 billion.

The company said revenues grew on higher customer demand for defense technology products, energy and air traffic management solutions, and intelligence mission support. Acquisition and divestiture revenues totaled $150 million compared with $9 million in the prior-year quarter.

Demand remained solid in the quarter. Net bookings totaled $4.9 billion, translating into a book-to-bill ratio of 1.1. The trailing-12-month book-to-bill ratio was also 1.1, supporting year-over-year growth in both total and funded backlog.

LDOS' Total RevenuesTotal revenues came in at $4.56 billion, up 7.2% year over year and above the Zacks Consensus Estimate of $4.36 billion by 4.5%. Organic revenues increased 3.9% to $4.41 billion.

The company said revenues grew on higher customer demand for defense technology products, energy and air traffic management solutions, and intelligence mission support. Acquisition and divestiture revenues totaled $150 million compared with $9 million in the prior-year quarter.

Demand remained solid in the quarter. Net bookings totaled $4.9 billion, translating into a book-to-bill ratio of 1.1. The trailing-12-month book-to-bill ratio was also 1.1, supporting year-over-year growth in both total and funded backlog.

LDOS’ BacklogBacklog at quarter-end was $48.71 billion, including $10.22 billion funded and $38.49 billion unfunded. Total backlog increased 5% year over year, while funded backlog jumped 44%.

By segment, Intelligence & Digital backlog totaled $18.41 billion, Health was $6.61 billion, Homeland was $9.93 billion and Defense was $13.76 billion. Backlog as of July 3, 2026, included $371 million acquired through the Entrust transaction within the Homeland segment.

Operational Statistics of LDOSCost of revenues totaled $3.74 billion compared with $3.47 billion in the prior-year quarter. Selling, general and administrative expenses increased to $283 million from $217 million, while acquisition, integration and restructuring costs rose to $27 million from $2 million.

Operating income was $514 million, down from $571 million in the year-ago period. The operating margin contracted to 11.3% from 13.4%. Interest expense increased to $69 million from $55 million.

Adjusted EBITDA declined to $631 million from $647 million. The adjusted EBITDA margin was 13.8% compared with 15.2% a year ago. The prior-year quarter benefited from several one-time, non-operational gains, including a $25 million insurance reimbursement for legal costs.

Leidos’ Segmental PerformanceIntelligence & Digital revenues rose to $1.50 billion from $1.41 billion, supported by recent contract awards and higher Intelligence Community mission-support volumes. The segment also included $9 million of revenues from Kudu Dynamics. Non-GAAP operating margin remained unchanged at 10.1%.

Health revenues declined to $1.09 billion from $1.18 billion, primarily due to lower medical disability examination volumes. Non-GAAP operating margin decreased to 23.8% from 26.3%.

Homeland revenues increased to $1.02 billion from $771 million, driven by continued demand in the Air Traffic and Energy businesses. Results included $141 million from Entrust. Non-GAAP operating margin improved to 12.1% from 9.3% on a better mix of security products, improved program performance and lower indirect expenses.

Defense revenues were $955 million compared with $899 million a year ago, reflecting increased demand for several defense technology product lines. Non-GAAP operating margin was 9.9% compared with 10% in the prior-year period.

LDOS’ FinancialsCash and cash equivalents were $748 million at quarter-end compared with $1.11 billion as of Jan. 2, 2026. Long-term debt, net of the current portion, increased to $6.01 billion from $4.63 billion over the same period.

Net cash provided by operating activities totaled $793 million for the quarter, up from $486 million in the prior-year period.

Leidos returned $127 million to shareholders, including $72 million in share repurchases and $55 million in dividend payments.

LDOS’ 2026 GuidanceLeidos raised its 2026 revenue outlook to $18.20-$18.40 billion from the prior range of $18.00-$18.40 billion. The Zacks Consensus Estimate for revenues is pegged at $18.12 billion, which is below the company’s guided range.

Non-GAAP earnings are now projected at $12.20-$12.50 per share compared with the previous range of $12.10-$12.50. The Zacks Consensus Estimate for earnings is pegged at $12.30 per share, which lies below the midpoint of the company’s guided range.

The company also raised its cash flows provided by operating activities outlook to approximately $1.85 billion from approximately $1.80 billion.

How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a downward trend in estimates revision.

VGM ScoresCurrently, Leidos has a great Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. Charting a somewhat similar path, the stock has a grade of A on the value side, putting it in the top 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Leidos has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry PlayerLeidos belongs to the Zacks Computers - IT Services industry. Another stock from the same industry, Roper Technologies (ROP - Free Report) , has gained 5.4% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026.

Roper Technologies reported revenues of $2.11 billion in the last reported quarter, representing a year-over-year change of +8.5%. EPS of $5.38 for the same period compares with $4.87 a year ago.

For the current quarter, Roper Technologies is expected to post earnings of $5.79 per share, indicating a change of +12.7% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.1% over the last 30 days.

Roper Technologies has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of F.

, /PRNewswire/ -- Leidos (NYSE:LDOS) was recently awarded a contract by the Naval Health Research Center (NHRC) to provide behavioral health research, operational assessments, and data-driven analyses that strengthen the psychological health and operational readiness of members of the U.S. armed services.

The work will focus on identifying risks and protective measures and interventions that affect the health, performance and readiness of military personnel throughout the deployment cycle, while developing evidence-based strategies that enhance resilience, support informed-decision making and reduce adverse outcomes. Leveraging more than 50 years of experience supporting research, Leidos will help NHRC translate scientific findings into practical solutions aimed at improving force readiness and optimizing performance and readiness within the military.

"This program reinforces the need for mission-critical health research in the military community," said Sarah McNichol, vice president of Behavioral Health & Readiness at Leidos Health. "It is vitally important we work to improve warfighter readiness by studying the various psychological factors that can impact military populations."

The NHRC is one of the eight laboratories within the Navy Medical Research & Development Enterprise tasked with optimizing the operational readiness and health of U.S. armed forces through behavioral health, epidemiology, readiness, and disease surveillance. The contract holds a total value of $56 million over a 66-month period of performance.

About Leidos 

Leidos is an industry and technology leader serving government and commercial customers with smarter, more efficient digital and mission innovations. Headquartered in Reston, Virginia, with approximately 50,000 global employees, Leidos reported annual revenues of approximately $17.2 billion for the fiscal year ended January 2, 2026. For more information, visit www.Leidos.com.

Certain statements in this announcement constitute "forward-looking statements" within the meaning of the rules and regulations of the U.S. Securities and Exchange Commission (SEC). These statements are based on management's current beliefs and expectations and are subject to significant risks and uncertainties. These statements are not guarantees of future results or occurrences. A number of factors could cause our actual results, performance, achievements, or industry results to be different from the results, performance, or achievements expressed or implied by such forward-looking statements. These factors include, but are not limited to, the "Risk Factors" set forth in Leidos' Annual Report on Form 10-K for the fiscal year ended January 2, 2026, and other such filings that Leidos makes with the SEC from time to time. Readers are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date hereof. Leidos does not undertake to update forward-looking statements to reflect the impact of circumstances or events that arise after the date the forward-looking statements were made.

Media contact:

Brandon Ver Velde
(571) 526-6257
[email protected] 

SOURCE Leidos Holdings, Inc.

BlackRock Inc. acquired a new stake in Leidos Holdings, Inc. (NYSE:LDOS – Free Report) in the second quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The firm acquired 9,948,879 shares of the aerospace company’s stock, valued at approximately $1,024,436,000. BlackRock Inc. owned 7.91% of Leidos at the end of the most recent quarter.

A number of other large investors have also added to or reduced their stakes in LDOS. Longview Financial Advisors Inc. bought a new position in shares of Leidos during the first quarter valued at about $26,000. Hantz Financial Services Inc. lifted its position in Leidos by 94.7% during the fourth quarter. Hantz Financial Services Inc. now owns 148 shares of the aerospace company’s stock valued at $27,000 after buying an additional 72 shares during the period. Hilton Head Capital Partners LLC bought a new stake in Leidos during the fourth quarter worth about $28,000. Kelleher Financial Advisors bought a new stake in Leidos during the 2nd quarter valued at about $28,000. Finally, Rakuten Securities Inc. grew its position in Leidos by 110.5% in the 4th quarter. Rakuten Securities Inc. now owns 160 shares of the aerospace company’s stock worth $29,000 after purchasing an additional 84 shares during the period. Hedge funds and other institutional investors own 76.12% of the company’s stock.

Wall Street Analyst Weigh In A number of brokerages have recently issued reports on LDOS. UBS Group increased their price objective on shares of Leidos from $124.00 to $138.00 and gave the stock a “neutral” rating in a research note on Wednesday, August 5th. Wall Street Zen raised Leidos from a “hold” rating to a “buy” rating in a research note on Thursday, July 16th. Wells Fargo & Company set a $165.00 target price on Leidos in a research report on Monday. Jefferies Financial Group reissued a “hold” rating and issued a $145.00 price target on shares of Leidos in a research report on Sunday, August 9th. Finally, Bank of America reissued a “neutral” rating and issued a $125.00 price target (down from $200.00) on shares of Leidos in a report on Wednesday, June 17th. One research analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating and ten have given a Hold rating to the company. According to MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus price target of $162.93.

Check Out Our Latest Analysis on Leidos Insider Buying and Selling In other Leidos news, Director Noel B. Geer sold 10,000 shares of the business’s stock in a transaction that occurred on Tuesday, August 11th. The shares were sold at an average price of $140.66, for a total transaction of $1,406,600.00. Following the completion of the sale, the director directly owned 34,274 shares in the company, valued at $4,820,980.84. The trade was a 22.59% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. 0.77% of the stock is owned by corporate insiders.

Leidos Stock Performance NYSE:LDOS opened at $141.84 on Friday. The company has a debt-to-equity ratio of 1.13, a current ratio of 1.63 and a quick ratio of 1.60. Leidos Holdings, Inc. has a 12 month low of $98.86 and a 12 month high of $205.77. The firm has a market capitalization of $17.80 billion, a PE ratio of 13.23, a price-to-earnings-growth ratio of 2.06 and a beta of 0.52. The business’s fifty day moving average price is $117.10 and its 200 day moving average price is $141.19.

Leidos (NYSE:LDOS – Get Free Report) last issued its quarterly earnings results on Tuesday, August 4th. The aerospace company reported $3.26 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.91 by $0.35. Leidos had a net margin of 7.80% and a return on equity of 30.81%. The business had revenue of $4.56 billion for the quarter, compared to analyst estimates of $4.44 billion. During the same period in the previous year, the business posted $3.21 earnings per share. The business’s revenue was up 7.2% compared to the same quarter last year. Leidos has set its FY 2026 guidance at 12.200-12.500 EPS. On average, sell-side analysts anticipate that Leidos Holdings, Inc. will post 12.38 earnings per share for the current fiscal year.

Leidos Announces Dividend The company also recently declared a quarterly dividend, which will be paid on Wednesday, September 30th. Shareholders of record on Tuesday, September 15th will be paid a dividend of $0.43 per share. The ex-dividend date is Tuesday, September 15th. This represents a $1.72 annualized dividend and a yield of 1.2%. Leidos’s dividend payout ratio is currently 16.04%.

Leidos declared that its board has approved a share repurchase program on Friday, July 31st that allows the company to repurchase 20,000,000 shares. This repurchase authorization allows the aerospace company to reacquire shares of its stock through open market purchases. Shares repurchase programs are usually an indication that the company’s board of directors believes its stock is undervalued.

Leidos Company Profile (Free Report)

Leidos is an American technology and engineering company that provides services and solutions to government and commercial customers, with a strong focus on national security, defense, intelligence, and civil government markets. The company delivers systems integration, engineering, cybersecurity, software development, data analytics, cloud migration and managed IT services, as well as mission support for complex programs. Leidos’ work spans areas such as C4ISR (command, control, communications, computers, intelligence, surveillance and reconnaissance), secure communications, sensors and systems engineering, and health IT solutions for public-sector healthcare programs.

Leidos traces its corporate roots to Science Applications International Corporation (SAIC) and emerged as an independent, publicly traded company following a corporate separation in 2013.

See Also Five stocks we like better than Leidos Blueprint for a Boom: SEC Clears the Crypto Runway Ross Stores Just Flipped the Off-Price Retail Story After TJX’s Marmaxx Miss Advance Auto Parts Plunged, But Its Turnaround Is Still Working Is Palo Alto Networks Priced for Perfection Again as AI Security Demand Accelerates? Want to see what other hedge funds are holding LDOS? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Leidos Holdings, Inc. (NYSE:LDOS – Free Report).

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Revenues of $4.6 billion, up 7% year-over-year Net income of $356 million or $2.81 per diluted share Adjusted EBITDA (non-GAAP) of $631 million and Adjusted EBITDA margin (non-GAAP) of 13.8% Non-GAAP Diluted Earnings per Share of $3.26, up 2% year-over-year Cash Flows from Operations of $793 million; Non-GAAP Free Cash Flow of $761 million , /PRNewswire/ -- Leidos Holdings, Inc. (NYSE: LDOS) today reported financial results for the second quarter of fiscal year 2026, highlighted by robust revenue growth and free cash flow generation.

"I'm pleased to report another strong quarter for Leidos," said Chief Executive Officer Tom Bell. "In addition to achieving milestones for revenue and cash, we booked $5 billion of contract awards. We're seeing meaningful growth emerge across our Defense Tech, Energy Infrastructure, and Cyber growth pillars.  And we have greater visibility into the long-term role of our Managed Healthcare pillar. The strength of our balanced portfolio allows us to enhance our 2026 guidance for revenues, earnings, and cash."

SUMMARY OPERATING RESULTS

Three Months Ended

(in millions, except margin and per share data)

July 3, 2026

July 4, 2025

Revenues

$               4,558

$                4,253

Net income

$                  356

$                   393

Net income margin

7.8 %

9.2 %

Diluted earnings per share (EPS)

$                 2.81

$                  3.01

Non-GAAP Measures*:

Adjusted EBITDA

$                  631

$                   647

Adjusted EBITDA margin

13.8 %

15.2 %

Non-GAAP diluted EPS

$                 3.26

$                  3.21

* Non-GAAP financial measures should be considered in addition to, but not as a substitute for, the information provided in accordance with GAAP. Management believes that these non-GAAP measures provide another representation of Leidos' results of operations and financial condition, including its ability to comply with financial covenants. See Non-GAAP Financial Measures at the end of this press release for more information and a reconciliation of our selected reported results to these non-GAAP measures.

Revenues for the quarter were $4.56 billion, up 7% compared to the second quarter of 2025, including 4% organically. Revenues grew year-over-year due to increased customer demand for defense tech products, energy and air traffic management solutions, and intelligence mission support.

For the second quarter, net income was $356 million, or $2.81 per diluted share. Net income and diluted EPS were both down 9% and 7%, respectively, year-over-year; net income margin was 7.8% compared to 9.2% in the second quarter of 2025. Net income and diluted EPS for the quarter reflect $29 million in costs associated with the acquisition of ENTRUST Solutions Group ("Entrust") and the pending joint venture with Analogic Corporation, as well as restructuring costs associated with the NorthStar 2030 re-alignment. Adjusting for these and certain other items, non-GAAP net income decreased 1% year-over-year, to $413 million for the second quarter, and non-GAAP diluted EPS increased 2% to $3.26.

In addition, adjusted EBITDA was $631 million for the second quarter, down 2% year-over-year. Adjusted EBITDA margin of 13.8% decreased from 15.2% in the second quarter of 2025. Profitability in the current quarter reflected excellent program execution and disciplined cost management across the portfolio; profitability in the year-ago quarter benefited from several one-time, non-operational gains, including a $25 million insurance reimbursement for legal costs.

CASH FLOW SUMMARY

Net cash provided by operating activities for the quarter was $793 million for an operating cash flow conversion ratio of 224%. After adjusting for property, equipment, and software payments, quarterly free cash was $761 million for a free cash flow conversion ratio of 185%.

For the quarter, Leidos used $38 million in investing activities, including $32 million in property, equipment and software payments. Leidos used $423 million in financing activities, consisting primarily of $300 million in debt paydown and $127 million returned to shareholders, including $72 million in share repurchases and $55 million as part of a regular quarterly cash dividend program. As of July 3, 2026, Leidos had $748 million in cash and cash equivalents and $6.0 billion of debt.

NEW BUSINESS AWARDS

Net bookings totaled $4.9 billion in the quarter, representing a book-to-bill ratio of 1.1. As a result, backlog at the end of the quarter was $48.7 billion, of which $10.2 billion was funded. Trailing-twelve-month book-to-bill of 1.1 resulted in year-over-year growth in total and funded backlog of 5% and 44%, respectively. Quarterly bookings included several key awards:

Avionics Intermediate Shop (AIS) Production Support Integration (PIS). The U.S. Air Force Sustainment Center awarded Leidos a $475 million follow-on AIS PIS contract to manage the computerized diagnostic system that fixes the F-16 fighter jets. The company will deliver independent systems engineering, resolve complex component shortages, and manage original equipment manufacturer subcontracts. This work ensures sustained mission readiness of F-16 fleets for the U.S. Air Force, European, and foreign partners. General Services Administration (GSA) Military OneSource. Leidos secured a $456 million contract from the GSA to manage the Military OneSource program over the next four years. Under this agreement, Leidos will deliver comprehensive 24/7 well-being services, including confidential counseling, tax support, and relocation tools to more than 4.7 million service members and their families worldwide. This strategic win further cements Leidos as a leading provider of global military health and managed health services. U.S. Air Force Electronic Warfare Mission Support. Leidos received a $350 million contract modification to provide additional high-end technical support for the U.S. Air Force Material Command. The company will supply additional units of its advanced low-band surveillance radar infrastructure alongside specialized signal-processing software. These mission-critical capabilities are engineered to defeat adversary low-observable assets and mitigate heavy electronic countermeasures, providing defense networks with the definitive, high-fidelity threat intelligence required for modern multi-domain operations. Defense Health Agency (DHA) Reserve Health Readiness Program (RHRP) 3.1. Leidos will maintain uninterrupted medical and dental exams for U.S. military reservists under a potential 30-month, $325 million contract modification while the DHA finalizes its long-term transition strategy for RHRP. Customs Border Patrol (CBP) Medium Energy Mobile (MEM) Systems. Leidos secured a five-year, $270 million single-award indefinite delivery, indefinite quantity (IDIQ) contract from CBP to deliver up to 100 MEM Systems. These flexible, non-intrusive inspection units scan vehicles and cargo for contraband, drugs, and weapons and will be deployed at various points of entry across the U.S. This award will align to the Leidos Security Enterprise Solutions and Analogic Corporation joint venture upon its formation. Naval Surface Warfare Center (NSWC) Multi-Service Advanced Capability Hypersonics Test Bed (MACH-TB) 2.0. The NSWC awarded Leidos an $88 million other transaction authority (OTA) contract to develop experimental hypersonic glide vehicles to serve as real-world testbeds for advancing high-speed flight technologies. FORWARD GUIDANCE

Leidos is raising its fiscal year 2026 guidance as follows:

FY26 Guidance

Measure

Current

Prior

Revenues (B)

$18.20 - $18.40

$18.00 - $18.40

Adjusted EBITDA Margin

Mid 13%

Mid 13%

Non-GAAP Diluted EPS

$12.20 - $12.50

$12.10 - $12.50

Cash Flows Provided by Operating Activities (B)

Approximately $1.85

Approximately $1.80

For information regarding adjusted EBITDA margin and non-GAAP diluted EPS, see the related explanations and reconciliations to GAAP measures included elsewhere in this release.

Leidos does not provide a reconciliation of forward-looking adjusted EBITDA margins or non-GAAP diluted EPS to net income margin or diluted EPS due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliation. Because certain deductions for non-GAAP exclusions used to calculate projected net income margin or diluted EPS may vary significantly based on actual events, Leidos is not able to forecast on a GAAP basis with reasonable certainty all deductions needed in order to provide a GAAP calculation of projected net income at this time. The amounts of these deductions may be material and, therefore, could result in projected net income margin and diluted EPS being materially less than what may be implied by projected adjusted EBITDA margins and non-GAAP diluted EPS.

CONFERENCE CALL INFORMATION

Leidos management will discuss operations and financial results in an earnings conference call beginning at 8 A.M. eastern time on August 4, 2026. A live audio broadcast of the conference call along with a supplemental presentation will be available to the public through links on the Leidos Investor Relations website (http://ir.leidos.com). An archived version of the webcast will be available on the Leidos Investor Relations website until August 4, 2027.

ABOUT LEIDOS

Leidos is an industry and technology leader serving government and commercial customers with smarter, more efficient digital and mission innovations. Headquartered in Reston, Virginia, with 50,000 global employees, Leidos reported annual revenues of approximately $17.2 billion for the fiscal year ended January 2, 2026. For more information, visit www.leidos.com. 

FORWARD-LOOKING STATEMENTS

Certain statements in this release contain or are based on "forward-looking" information within the meaning of the Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by words such as "expects," "intends," "plans," "anticipates," "believes," "estimates," "guidance" and similar words or phrases. Forward-looking statements in this release include, among others, estimates of our future growth, strategy and financial and operating performance, including future revenues, adjusted EBITDA margins, diluted EPS (including on a non-GAAP basis) and cash flows provided by operating activities, as well as statements about our business contingency plans, government budgets and spending, uncertainties in tax due to new tax legislation or other regulatory developments, strategy, planned investments including the pending joint venture, sustainability goals and our future dividends, share repurchases, capital expenditures, debt repayments, acquisitions, dispositions and cash flow conversion. These statements reflect our belief and assumptions as to future events that may not prove to be accurate.

Actual performance and results may differ materially from those results anticipated by our guidance and other forward-looking statements made in this release depending on a variety of factors, including, but not limited to: developments in the U.S. government defense and non-defense budgets, including budget reductions, sequestration, implementation of spending limits or changes in budgetary priorities, potential future U.S. government shutdown and other or future delays in the U.S. government budget process, or the U.S. government's failure to raise the debt ceiling, which increases the possibility of a default by the U.S. government on its debt obligations, related credit-rating downgrades, or an economic recession; uncertainties in tax due to new tax legislation or other regulatory developments; deterioration of economic conditions or weakening in credit or capital markets; uncertainty in the consequences of current and future geopolitical events; inflationary pressures and fluctuations in interest rates; delays in the U.S. government contract procurement process or the award of contracts and delays or loss of contracts as a result of competitor protests; changes in U.S. government procurement rules, regulations and practices; our compliance with various U.S. government and other government procurement rules and regulations; governmental reviews, audits and investigations of our company; our ability to effectively compete and win contracts with the U.S. government and other customers; our ability to respond rapidly to emerging technology trends, including the use of artificial intelligence; our reliance on information technology spending by hospitals/healthcare organizations; our reliance on infrastructure investments by industrial and natural resources organizations; energy efficiency and alternative energy sourcing investments; investments by U.S. government and commercial organizations in environmental impact and remediation projects; the effects of an epidemic, pandemic or similar outbreak may have on our business, financial position, results of operations and/or cash flows; our ability to attract, train and retain skilled employees, including our management team, and to obtain security clearances for our employees; our ability to accurately estimate costs, including cost increases due to inflation, associated with our firm-fixed-price contracts and other contracts; resolution of legal and other disputes with our customers and others or legal or regulatory compliance issues; cybersecurity, data security or other security threats, system failures or other disruptions of our business; our compliance with international, federal, state and local laws and regulations regarding privacy, data security, protection, storage, retention, transfer, disposal and other processing, technology protection and personal information; the damage and disruption to our business resulting from natural disasters and the effects of climate change; our ability to effectively acquire businesses and make investments; our ability to maintain relationships with prime contractors, subcontractors and joint venture partners; our ability to manage performance and other risks related to customer contracts; the failure of our inspection or detection systems to detect threats; the adequacy of our insurance programs, customer indemnifications or other liability protections designed to protect us from significant product or other liability claims, including cybersecurity attacks; our ability to manage risks associated with our international business; our ability to comply with the U.S. Foreign Corrupt Practices Act, the U.K. Bribery Act of 2010 and similar worldwide anti-corruption and anti-bribery laws and regulations; our ability to protect our intellectual property and other proprietary rights by third parties of infringement, misappropriation or other violations by us of their intellectual property rights; our ability to prevail in litigation brought by third parties of infringement, misappropriation or other violations by us of their intellectual property rights; our ability to declare or increase future dividends based on our earnings, financial condition, capital requirements and other factors, including compliance with applicable law and our agreements; our ability to grow our commercial health and infrastructure businesses, which could be negatively affected by budgetary constraints faced by hospitals and by developers of energy and infrastructure projects; our ability to successfully integrate acquired businesses; and our ability to execute our business plan and long-term management initiatives effectively and to overcome these and other known and unknown risks that we face.

These are only some of the factors that may affect the forward-looking statements contained in this release. For further information concerning risks and uncertainties associated with our business, please refer to the filings we make from time to time with the U.S. Securities and Exchange Commission (SEC), including the "Risk Factors," "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Legal Proceedings" sections of our latest Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, all of which may be viewed or obtained through the Investor Relations section of our website at www.leidos.com.

All information in this release is as of August 4, 2026. Leidos expressly disclaims any duty to update the guidance or any other forward-looking statement provided in this release to reflect subsequent events, actual results or changes in Leidos' expectations. Leidos also disclaims any duty to comment upon or correct information that may be contained in reports published by investment analysts or others.

CONTACTS:

Investor Relations:

Media Relations:

Stuart Davis

Brandon Ver Velde

571.526.6124

571.526.6257

[email protected] 

[email protected] 

LEIDOS HOLDINGS, INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Three Months Ended

Six Months Ended

(in millions, except per share data)

July 3,
2026

July 4,
2025

July 3,
2026

July 4,
2025

Revenues

$        4,558

$         4,253

$        8,958

$         8,498

Cost of revenues

3,741

3,471

7,380

6,959

Selling, general and administrative expenses

283

217

506

447

Acquisition, integration and restructuring costs

27

2

62

6

Equity earnings of non-consolidated subsidiaries

(7)

(8)

(12)

(15)

Operating income

514

571

1,022

1,101

Non-operating expense:

Interest expense, net

(69)

(55)

(124)

(104)

Other income (expense), net

6

2

(18)

(1)

Income before income taxes

451

518

880

996

Income tax expense

(95)

(125)

(189)

(238)

Net income

356

393

691

758

Less: net income attributable to non-controlling interest

2

2

9

4

Net income attributable to Leidos common stockholders

$           354

$           391

$           682

$           754

Earnings per share:

Basic

$          2.81

$           3.03

$          5.41

$           5.84

Diluted

2.81

3.01

5.37

5.80

Weighted average number of common shares outstanding:

Basic

126

129

126

129

Diluted

126

130

127

130

Cash dividends declared per share

$          0.43

$           0.40

$          0.86

$           0.80

LEIDOS HOLDINGS, INC.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(in millions, except share and per share data)

July 3,
2026

January 2,
2026

Assets:

Cash and cash equivalents

$         748

$        1,108

Receivables, net

2,968

2,708

Inventory, net

94

342

Other current assets

493

656

Assets held for sale

943

—

Total current assets

5,246

4,814

Property, plant and equipment, net

900

961

Intangible assets, net

943

458

Goodwill

7,663

6,342

Operating lease right-of-use assets, net

491

526

Other long-term assets

389

392

Total assets

$     15,632

$       13,493

Liabilities:

Accounts payable and accrued liabilities

$       2,180

$        1,988

Accrued payroll and employee benefits

855

819

Current portion of long-term debt

22

20

Liabilities held for sale

163

—

Total current liabilities

3,220

2,827

Long-term debt, net of current portion

6,009

4,628

Operating lease liabilities

547

587

Other long-term liabilities

520

489

Total liabilities

10,296

8,531

Stockholders' equity:

Common stock, $0.0001 par value, 500,000,000 shares authorized, 125,492,013 and 126,380,657 shares issued and outstanding at July 3, 2026, and January 2, 2026, respectively

—

—

Additional paid-in capital

88

319

Retained earnings

5,219

4,647

Accumulated other comprehensive loss

(23)

(50)

Total Leidos stockholders' equity

5,284

4,916

Non-controlling interest

52

46

Total stockholders' equity

5,336

4,962

Total liabilities and stockholders' equity

$     15,632

$       13,493

LEIDOS HOLDINGS, INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Three Months Ended

Six Months Ended

 (in millions)

July 3,
2026

July 4,
2025

July 3,
2026

July 4,
2025

Cash flows from operations:

Net income

$           356

$           393

$           691

$           758

Adjustments to reconcile net income to net cash provided by operations:

Depreciation and amortization

81

72

153

141

Stock-based compensation

26

25

51

46

Deferred income taxes

6

224

(2)

200

Net (gain) loss on pension plan settlement

(3)

—

20

—

Other

4

1

14

—

Change in assets and liabilities, net of effects of acquisitions and dispositions:

Receivables

(33)

10

(193)

(236)

Other current assets and other long-term assets

35

(7)

38

(34)

Accounts payable and accrued liabilities and other long-term liabilities

43

(188)

97

(260)

Accrued payroll and employee benefits

188

155

34

7

Income taxes receivable/payable

90

(199)

191

(78)

Net cash provided by operating activities

793

486

1,094

544

Cash flows from investing activities:

Acquisition of a business, net of cash acquired

—

(285)

(2,338)

(285)

Payments for property, equipment and software

(32)

(29)

(63)

(51)

Divestiture of a business

—

—

4

—

Net proceeds from sale of assets

4

—

4

—

Other

(10)

—

(4)

—

Net cash used in investing activities

(38)

(314)

(2,397)

(336)

Cash flows from financing activities:

Proceeds from debt issuance

—

—

1,397

997

Repayments from commercial paper

(300)

—

—

—

Repayments of borrowings

(5)

(30)

(10)

(559)

Payments for debt issuance costs

—

—

(15)

(7)

Dividend payments

(55)

(52)

(110)

(105)

Repurchases of stock and other

(72)

(9)

(315)

(537)

Proceeds from issuances of stock

17

16

33

31

Net capital distributions to non-controlling interests

(1)

(2)

(3)

(7)

Other

(7)

(6)

(7)

(6)

Net cash (used in) provided by financing activities

(423)

(83)

970

(193)

Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash

1

7

—

14

Net increase (decrease) in cash, cash equivalents and restricted cash, including cash classified in current assets held for sale

333

96

(333)

29

Less: change in cash balances classified as assets held for sale

41

—

41

—

Net increase (decrease) in cash, cash equivalents and restricted cash

292

96

(374)

29

Cash, cash equivalents and restricted cash at beginning of period

538

924

1,204

991

Cash, cash equivalents and restricted cash at end of period

830

1,020

830

1,020

Less: restricted cash at end of period

82

90

82

90

Cash and cash equivalents at end of period

$           748

$           930

$           748

$           930

LEIDOS HOLDINGS, INC.

UNAUDITED SEGMENT OPERATING RESULTS

Three Months Ended

Six Months Ended

(in millions)

July 3,
2026

July 4,
2025

July 3,
2026

July 4,
2025

Revenues:

Intelligence & Digital

$       1,499

$         1,408

$       3,012

$         2,816

Health

1,086

1,175

2,274

2,363

Homeland

1,018

771

1,834

1,541

Defense

955

899

1,838

1,778

Total

$       4,558

$         4,253

$       8,958

$         8,498

Operating income (loss):

Intelligence & Digital

$         142

$           135

$         288

$           267

Health

254

303

538

591

Homeland

92

64

125

125

Defense

84

78

146

152

Corporate

(58)

(9)

(75)

(34)

Total

$         514

$           571

$       1,022

$         1,101

Operating income margin:

Intelligence & Digital

9.5 %

9.6 %

9.6 %

9.5 %

Health

23.4 %

25.8 %

23.7 %

25.0 %

Homeland

9.0 %

8.3 %

6.8 %

8.1 %

Defense

8.8 %

8.7 %

7.9 %

8.5 %

Total

11.3 %

13.4 %

11.4 %

13.0 %

Beginning fiscal 2026, we completed a realignment of our reporting structure, which resulted in the identification of four reportable segments: Intelligence & Digital, Health, Homeland and Defense. Additionally, we separately present the unallocable costs associated with corporate functions as Corporate. We commenced operating and reporting under the new organizational structure effective the first day of fiscal 2026. As a result of this change, prior year segment results have been recast to reflect the current reportable segment structure.

Intelligence & Digital

Intelligence & Digital revenues grew 6% year-over-year to $1.50 billion driven by recent contract awards and increased volumes for Intelligence Community mission support, as well as $9 million from Kudu Dynamics through May 23, 2026 (12 months from the close of the acquisition). Operating income margin was 9.5% compared to 9.6% in the prior year quarter, and non-GAAP operating income margin was 10.1%, unchanged from the prior year quarter. 

Health

Health revenues of $1.09 billion decreased by 8% compared to the prior year quarter. Health operating income margin for the quarter was 23.4%, compared to 25.8% in the prior year quarter, and non-GAAP operating income margin was 23.8%, compared to 26.3% in the prior year quarter. The declines in revenues and margins were primarily driven by lower medical disability exam volumes.

Homeland

Homeland revenues of $1.02 billion increased by 32% compared to the prior year quarter. Revenue growth was driven by continued strong demand in the Air Traffic and Energy businesses, and included $141 million from the acquisition of ENTRUST Solutions. Operating income margin for the quarter was 9.0%, compared to 8.3% in the prior year quarter, and non-GAAP operating margin increased to 12.1% from 9.3% in the prior year quarter. Profitability enhancements were driven by a better mix of security products, as well as improved program performance and lower indirect expenses across the portfolio.

Defense

Defense revenues of $955 million were up 6% compared to the prior year quarter led by increased demand for several defense tech product lines. Defense operating income margin for the quarter was 8.8%, compared to 8.7% in the prior year quarter, and non-GAAP operating margin was 9.9%, compared to 10.0% in the prior year quarter.

LEIDOS HOLDINGS, INC.
UNAUDITED BACKLOG BY REPORTABLE SEGMENT

Backlog represents the revenues we expect to recognize under negotiated contracts and unissued task orders on sole source IDIQ contracts, to the extent we believe their execution and funding to be probable. Backlog does not include potential task orders expected to be awarded under multiple award IDIQ contracts.

Backlog value is based on management's estimates about volume of services, availability of customer funding and other factors, and excludes contracts that are under protest. Estimated backlog comprises both funded and negotiated unfunded backlog. Backlog estimates are subject to change and may be affected by several factors, including modifications of contracts, non-exercise of options and foreign currency movements.

Funded backlog for contracts with the U.S. government represents the value on contracts for which funding is appropriated less revenues previously recognized on these contracts. Funded backlog for contracts with non-U.S. government entities and commercial customers represents the estimated value on contracts, which may cover multiple future years, under which Leidos is obligated to perform, less revenue previously recognized on the contracts. Unfunded backlog represents all remaining value on task orders that is not funded, including options, that we expect to recognize as well as expected future task orders under sole source IDIQ contracts. 

The estimated value of backlog as of the dates presented was as follows:

July 3, 2026

July 4, 2025

(in millions)

Funded

Unfunded

Total

Funded

Unfunded

Total

Intelligence & Digital

$       1,922

$     16,492

$     18,414

$        1,667

$       16,081

$       17,748

Health

1,242

5,369

6,611

504

7,522

8,026

Homeland

3,669

6,261

9,930

2,918

6,920

9,838

Defense

3,390

10,366

13,756

2,033

8,565

10,598

Total

$     10,223

$     38,488

$     48,711

$        7,122

$       39,088

$       46,210

Backlog at July 3, 2026, includes amounts acquired as part of the Entrust transaction. As of March 27, 2026, the acquisition date, Entrust had $371 million of backlog that was included within the Homeland reportable segment.

LEIDOS HOLDINGS, INC.
UNAUDITED NON-GAAP FINANCIAL MEASURES

Leidos uses and refers to non-GAAP operating income, non-GAAP operating margin, adjusted EBITDA, adjusted EBITDA margin, non-GAAP diluted EPS, non-GAAP free cash flow and non-GAAP free cash flow conversion, which are not measures of financial performance under generally accepted accounting principles in the U.S. and, accordingly, these measures should not be considered in isolation or as a substitute for the comparable GAAP measures and should be read in conjunction with Leidos's consolidated financial statements prepared in accordance with GAAP.

Management believes that these non-GAAP measures provide another representation of the results of operations and financial condition, including its ability to comply with financial covenants. These non-GAAP measures are frequently used by financial analysts covering Leidos and its peers. The computation of non-GAAP measures may not be comparable to similarly titled measures reported by other companies, thus limiting their use for comparability.

Organic revenues capture the revenue that is inherent in the underlying business excluding the impact of acquisitions and divestitures made within the prior year; it is computed as current revenues excluding revenues from acquisitions within the last 12 months and divestitures within the current and year-ago periods.

Non-GAAP operating income is computed by excluding the following discrete items from operating income:

Acquisition, integration and restructuring costs – Represents acquisition, integration, lease termination, severance and retention costs and asset markdowns related to acquisitions and restructuring activities. Amortization of acquired intangible assets – Represents the amortization of the fair value of the acquired intangible assets. We do not exclude the revenue associated with these acquired intangible assets from non-GAAP operating income. Asset impairment charges – Represents impairments of long-lived intangible assets and other assets. Non-GAAP non operating income is computed by excluding the discrete items from operating income and the following discrete items from non operating income.

Settlement loss on pension plan buy-out – Represents the settlement loss in connection with the buy-out of our UK defined benefit pension plan. Acquisition related financing costs – Represents the cost associated with the termination of the bridge loan facility in connection with the acquisition of Entrust. Non-GAAP operating margin is computed by dividing non-GAAP operating income by revenues.

Adjusted EBITDA is computed by excluding the following items from income before income taxes: (i) discrete items as identified above; (ii) interest expense; (iii) interest income; (iv) depreciation expense; and (v) amortization of internally developed intangible assets.

Adjusted EBITDA margin is computed by dividing adjusted EBITDA by revenues.

Non-GAAP net income is computed by excluding the discrete items listed under non-GAAP operating income and non-GAAP non operating income and their related tax impacts.

Non-GAAP diluted EPS is computed by dividing net income attributable to Leidos common stockholders, adjusted for the discrete items as identified above and the related tax impacts, by the diluted weighted average number of common shares outstanding.

Non-GAAP free cash flow is computed by deducting expenditures for property, equipment and software from net cash provided by (used in) operating activities.

Non-GAAP free cash flow conversion is computed by dividing non-GAAP free cash flow by non-GAAP net income attributable to Leidos common stockholders; operating cash flow conversion is computed by dividing net cash provided by operating activities by net income attributable to Leidos common stockholders.

LEIDOS HOLDINGS, INC.

UNAUDITED NON-GAAP FINANCIAL MEASURES [CONTINUED]

(in millions, except growth percentages)

The following table presents the reconciliation of revenues to organic revenues by reportable segment and total operations:

Three Months Ended

July 3, 2026

July 4, 2025

Percent Change

Intelligence & Digital

Revenues, as reported

$         1,499

$         1,408

6.5 %

Acquisition revenues(1)

9

—

Organic revenues

1,490

1,408

5.8 %

Health

Revenues, as reported

1,086

1,175

(7.6) %

Homeland

Revenues, as reported

1,018

771

32.0 %

Acquisition and divestiture revenues(1)(2)

141

9

Organic revenues

877

762

15.1 %

Defense

Revenues, as reported

955

899

6.2 %

Total Operations 

Revenues, as reported

4,558

4,253

7.2 %

Acquisition and divestiture revenues(1)(2)

150

9

Organic revenues

$         4,408

$         4,244

3.9 %

(1) 

Current period acquisition revenues reflects revenues in the current as reported figures for 12 months from closing of each acquisition. Acquisition revenues for the three months ended July 3, 2026, for the Intelligence & Digital and Homeland segments includes Kudu Dynamics (acquired May 23, 2025) and Entrust (acquired March 27, 2026).

(2) 

Prior period divestiture revenues reflect revenues from assets subsequently divested. Divestiture revenues for the three months ended July 4, 2025, for the Homeland segment include an immaterial business not aligned to the Company's long term strategy (divested October 31, 2025).

LEIDOS HOLDINGS, INC.

UNAUDITED NON-GAAP FINANCIAL MEASURES [CONTINUED]

(in millions, except per share data and margin percentages)

The following tables present the reconciliation of non-GAAP operating income, net income, diluted EPS, adjusted EBITDA, and adjusted EBITDA margin to the most directly comparable GAAP measures for the three months ended July 3, 2026:

Three Months Ended July 3, 2026

As reported

Acquisition,
integration
and
restructuring
costs (1)

Amortization
of acquired
intangibles

Asset
impairment
charges

Non-GAAP
results

Operating income

$         514

$           29

$           40

$             1

$         584

Non-operating expense, net

(63)

—

—

—

(63)

Income before income taxes

451

29

40

1

521

Income tax expense(2)

(95)

(3)

(10)

—

(108)

Net income

356

26

30

1

413

Less: net income attributable to non-controlling interest

2

—

—

—

2

Net income attributable to Leidos common stockholders

$         354

$           26

$           30

$             1

$         411

Diluted EPS attributable to Leidos common stockholders(3)

$        2.81

$         0.21

$         0.24

$         0.01

$        3.26

Diluted shares

126

126

126

126

126

Three Months Ended July 3, 2026

As reported

Acquisition,
integration
and
restructuring
costs (1)

Amortization
of acquired
intangibles

Asset
impairment
charges

Non-GAAP
results

Net income

$       356

$           26

$           30

$             1

$        413

Income tax expense(2)

95

3

10

—

108

Income before income taxes

451

29

40

1

521

Depreciation expense

41

—

—

—

41

Amortization of intangibles

40

—

(40)

—

—

Interest expense, net

69

—

—

—

69

Adjusted EBITDA

$       601

$           29

$           —

$             1

$        631

Adjusted EBITDA margin

13.2 %

13.8 %

(1)

Asset markdowns associated with restructuring activities were recorded to "Cost of revenues" in the condensed consolidated statements of operations.

(2)

Calculation uses an estimated statutory tax rate on non-GAAP adjustments.

(3)

Earnings per share is computed independently for each of the non-GAAP adjustment presented and therefore may not sum to the total non-GAAP earnings per share due to rounding.

LEIDOS HOLDINGS, INC.

UNAUDITED NON-GAAP FINANCIAL MEASURES [CONTINUED]

(in millions, except per share data and margin percentages)

The following tables present the reconciliation of non-GAAP operating income, net income, diluted EPS, adjusted EBITDA, and adjusted EBITDA margin to the most directly comparable GAAP measures for the three months ended July 4, 2025:

Three Months Ended July 4, 2025

As reported

Acquisition,
integration
and
restructuring
costs

Amortization
of acquired
intangibles

Non-GAAP
results

Operating income

$          571

$             2

$           32

$          605

Non-operating expense, net

(53)

—

—

(53)

Income before income taxes

518

2

32

552

Income tax expense(1)

(125)

(1)

(7)

(133)

Net income

393

1

25

419

Less: net income attributable to non-controlling interest

2

—

—

2

Net income attributable to Leidos common stockholders

$          391

$             1

$           25

$          417

Diluted EPS attributable to Leidos common stockholders(2)

$         3.01

$         0.01

$         0.19

$         3.21

Diluted shares

130

130

130

130

Three Months Ended July 4, 2025

As reported

Acquisition,
integration
and
restructuring
costs

Amortization
of acquired
intangibles

Non-GAAP
results

Net income

$        393

$             1

$           25

$        419

Income tax expense(1)

125

1

7

133

Income before income taxes

518

2

32

552

Depreciation expense

40

—

—

40

Amortization of intangibles

32

—

(32)

—

Interest expense, net

55

—

—

55

Adjusted EBITDA

$        645

$             2

$           —

$        647

Adjusted EBITDA margin

15.2 %

15.2 %

(1)

Calculation uses an estimated statutory tax rate on non-GAAP adjustments.

(2)

Earnings per share is computed independently for each of the non-GAAP adjustment presented and therefore may not sum to the total non-GAAP earnings per share due to rounding.

LEIDOS HOLDINGS, INC.

UNAUDITED NON-GAAP FINANCIAL MEASURES [CONTINUED]

(in millions, except per share data and margin percentages)

The following tables present the reconciliation of non-GAAP operating income, net income, diluted EPS, adjusted EBITDA, and adjusted EBITDA margin to the most directly comparable GAAP measures for the six months ended July 3, 2026:

Six Months Ended July 3, 2026

As reported

Acquisition,
integration
and
restructuring
costs(1)

Amortization
of acquired
intangibles

Asset
impairment
charges

Settlement
loss on
pension plan
buy-out

Acquisition
related
financing
costs

Non-GAAP
results

Operating income

$      1,022

$           64

$          70

$           1

$          —

$          —

$      1,157

Non-operating expense, net

(142)

—

—

—

23

5

(114)

Income before income taxes

880

64

70

1

23

5

1,043

Income tax expense(2)

(189)

(9)

(17)

—

(6)

(1)

(222)

Net income

691

55

53

$           1

$          17

$            4

821

Less: net income attributable to non-controlling interest

9

—

—

—

—

—

9

Net income attributable to Leidos common stockholders

$        682

$           55

$          53

$           1

$          17

$            4

$        812

Diluted EPS attributable to Leidos common stockholders(3)

$       5.37

$         0.43

$        0.42

$       0.01

$        0.13

$        0.03

$       6.39

Diluted shares

127

127

127

127

127

127

127

Six Months Ended July 3, 2026

As reported

Acquisition,
integration
and
restructuring
costs(1)

Amortization
of acquired
intangibles

Asset
impairment
charges

Settlement
loss on
pension plan
buy-out

Acquisition
related
financing
costs

Non-GAAP
results

Net income

$      691

$          55

$          53

$            1

$          17

$            4

$       821

Income tax expense(2)

189

9

17

—

6

1

222

Income before income taxes

880

64

70

1

23

5

1,043

Depreciation expense

83

—

—

—

—

—

83

Amortization of intangibles

70

—

(70)

—

—

—

—

Interest expense, net

124

—

—

—

—

(5)

119

Adjusted EBITDA

$    1,157

$          64

$          —

$            1

$          23

$          —

$     1,245

Adjusted EBITDA margin

12.9 %

13.9 %

(1) 

Asset markdowns associated with restructuring activities were recorded to "Cost of revenues" in the condensed consolidated statements of operations.

(2) 

Calculation uses an estimated statutory tax rate on non-GAAP adjustments.

(3) 

Earnings per share is computed independently for each of the non-GAAP adjustment presented and therefore may not sum to the total non-GAAP earnings per share due to rounding.

UNAUDITED NON-GAAP FINANCIAL MEASURES [CONTINUED]

(in millions, except per share data and margin percentages)

The following tables present the reconciliation of non-GAAP operating income, net income, diluted EPS, adjusted EBITDA, and adjusted EBITDA margin to the most directly comparable GAAP measures for the six months ended July 4, 2025:

Six Months Ended July 4, 2025

As reported

Acquisition,
integration
and
restructuring
costs(1)

Amortization
of acquired
intangibles

Non-GAAP
results

Operating income

$       1,101

$             7

$           62

$        1,170

Non-operating expense, net

(105)

—

—

(105)

Income before income taxes

996

7

62

1,065

Income tax expense(2)

(238)

(2)

(15)

(255)

Net income

758

5

47

810

Less: net loss attributable to non-controlling interest

4

—

—

4

Net income attributable to Leidos common stockholders

$         754

$             5

$           47

$          806

Diluted EPS attributable to Leidos common stockholders(3)

$        5.80

$         0.04

$         0.36

$         6.20

Diluted shares

130

130

130

130

Six Months Ended July 4, 2025

As reported

Acquisition,
integration
and
restructuring
costs(1)

Amortization
of acquired
intangibles

Non-GAAP
results

Net income

$       758

$             5

$           47

$        810

Income tax expense(2)

238

2

15

255

Income before income taxes

996

7

62

1,065

Depreciation expense

79

—

—

79

Amortization of intangibles

62

—

(62)

—

Interest expense, net

104

—

—

104

Adjusted EBITDA

$     1,241

$             7

$           —

$      1,248

Adjusted EBITDA margin

14.6 %

14.7 %

(1) 

Asset markdowns associated with restructuring activities were recorded to "Cost of revenues" in the condensed consolidated statements of operations.

(2) 

Calculation uses an estimated statutory tax rate on non-GAAP adjustments.

(3) 

Earnings per share is computed independently for each of the non-GAAP adjustment presented and therefore may not sum to the total non-GAAP earnings per share due to rounding.

LEIDOS HOLDINGS, INC.

UNAUDITED NON-GAAP FINANCIAL MEASURES [CONTINUED]

(in millions, except margin percentages)

The following tables present the reconciliation of non-GAAP operating income by reportable segment and Corporate to operating income:

Three Months Ended July 3, 2026

Operating
income
(loss)

Acquisition,
integration
and
restructuring
costs(1)

Amortization
of acquired
intangibles

Asset
impairment
charges

Non-GAAP
operating
income
(loss)

Non-GAAP
operating
margin

Intelligence & Digital

$        142

$             1

$             7

$              1

$        151

10.1 %

Health

254

2

3

—

259

23.8 %

Homeland

92

12

19

—

123

12.1 %

Defense

84

—

11

—

95

9.9 %

Corporate

(58)

14

—

—

(44)

NM

Total

$        514

$           29

$           40

$              1

$        584

12.8 %

NM - Not Meaningful

(1) Asset markdowns associated with restructuring activities were recorded to "Cost of revenues" in the condensed consolidated statements of operations

Three Months Ended July 4, 2025

Operating
income

 (loss)

Acquisition,
integration
and
restructuring
costs

Amortization
of acquired
intangibles

Non-GAAP
operating
income

 (loss)

Non-GAAP
operating
margin

Intelligence & Digital

$         135

$           —

$             7

$         142

10.1 %

Health

303

—

6

309

26.3 %

Homeland

64

1

7

72

9.3 %

Defense

78

—

12

90

10.0 %

Corporate

(9)

1

—

(8)

NM

Total

$         571

$             2

$           32

$         605

14.2 %

Six Months Ended July 3, 2026

Operating
income
(loss)

Acquisition,
integration
and
restructuring
costs(1)

Amortization
of acquired
intangibles

Asset
impairment
charges

Non-GAAP
operating
income
(loss)

Non-GAAP
operating
margin

Intelligence & Digital

$        288

$             2

$           15

$             1

$        306

10.2 %

Health

538

2

7

—

547

24.1 %

Homeland

125

41

26

—

192

10.5 %

Defense

146

—

22

—

168

9.1 %

Corporate

(75)

19

—

—

(56)

NM

Total

$      1,022

$           64

$           70

$             1

$      1,157

12.9 %

NM - Not Meaningful

(1)  Asset markdowns associated with restructuring activities were recorded to "Cost of revenues" in the condensed consolidated statements of operations.

LEIDOS HOLDINGS, INC.

UNAUDITED NON-GAAP FINANCIAL MEASURES [CONTINUED]

(in millions, except margin percentages)

The following tables present the reconciliation of non-GAAP operating income by reportable segment and Corporate to operating income:

Six Months Ended July 4, 2025

Operating
income

(loss)

Acquisition,
integration
and
restructuring
costs(1)

Amortization
of acquired
intangibles

Non-GAAP
operating
income

(loss)

Non-GAAP
operating
margin

Intelligence & Digital

$         267

$           —

$           12

$         279

9.9 %

Health

591

—

12

603

25.5 %

Homeland

125

5

14

144

9.3 %

Defense

152

—

24

176

9.9 %

Corporate

(34)

2

—

(32)

NM

Total

$       1,101

$             7

$           62

$       1,170

13.8 %

NM - Not Meaningful

(1)  Asset markdowns associated with restructuring activities were recorded to "Cost of revenues" in the condensed consolidated statements of operations.

LEIDOS HOLDINGS, INC.

UNAUDITED NON-GAAP FINANCIAL MEASURES [CONTINUED]

(in millions, except percentages)

The following table presents the reconciliation of free cash flow to net cash provided by operating activities as well as the calculation of operating cash flow and free cash flow conversion ratios:

Three Months Ended

July 3, 2026

July 4, 2025

Net cash provided by operating activities

$               793

$                486

Payments for property, equipment and software

(32)

(29)

Non-GAAP free cash flow

$               761

$                457

Net income attributable to Leidos common stockholders

$               354

$                391

Acquisition, integration and restructuring costs(1)(2)

26

1

Amortization of acquired intangibles(1)

30

25

Asset impairment charges(1)

1

—

Non-GAAP net income attributable to Leidos common stockholders

$               411

$                417

Operating cash flow conversion ratio

224 %

124 %

Non-GAAP free cash flow conversion ratio

185 %

110 %

(1) 

After-tax expenses excluded from non-GAAP net income.

(2) 

Asset markdowns associated with restructuring activities for the three months ended July 3, 2026, were recorded to "Cost of revenues" in the condensed consolidated statements of operations.

SOURCE Leidos Holdings, Inc.

, /PRNewswire/ -- Leidos (NYSE: LDOS) will continue modernizing the infrastructure underpinning secure naval intelligence systems worldwide through a recent contract worth up to $64.8 million from the Office of Naval Intelligence. 

The agreement, which is for a base year with four option years, advances work Leidos has performed since 2021 and will help improve operational reliability, secure information sharing and accelerate technology integration for the Hopper Global Communications Center (GCC). 

"Modern intelligence operations depend on digital infrastructure that performs securely and reliably across the globe," said Chad Haferbier, senior vice president of Decision Advantage at Leidos. "We are helping the Office of Naval Intelligence modernize that foundation so trusted information reaches warfighters faster." 

The Hopper GCC provides IT services that rapidly disseminate intelligence to decision makers in the Navy and across the Department of War. Its systems manage some of the military's most highly controlled information.

This work advances Leidos' NorthStar 2030 strategy by strengthening two of the company's core growth pillars, cyber and mission & digital solutions, while delivering secure, resilient capabilities in support of national security.

About Leidos

Leidos is an industry and technology leader serving government and commercial customers with smarter, more efficient digital and mission innovations. Headquartered in Reston, Virginia, with approximately 50,000 global employees, Leidos reported annual revenues of approximately $17.2 billion for the fiscal year ended January 2, 2026. For more information, visit www.Leidos.com.

Certain statements in this announcement constitute "forward-looking statements" within the meaning of the rules and regulations of the U.S. Securities and Exchange Commission (SEC). These statements are based on management's current beliefs and expectations and are subject to significant risks and uncertainties. These statements are not guarantees of future results or occurrences. A number of factors could cause our actual results, performance, achievements, or industry results to be different from the results, performance, or achievements expressed or implied by such forward-looking statements. These factors include, but are not limited to, the "Risk Factors" set forth in Leidos' Annual Report on Form 10-K for the fiscal year ended January 2, 2026, and other such filings that Leidos makes with the SEC from time to time. Readers are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date hereof. Leidos does not undertake to update forward-looking statements to reflect the impact of circumstances or events that arise after the date the forward-looking statements were made.

Media Contact:

Philip Carder
(571) 926-6698
[email protected]

SOURCE Leidos Holdings, Inc.

, /PRNewswire/ -- Leidos Holdings, Inc. (NYSE: LDOS) announced today that its board of directors has declared a quarterly cash dividend of $0.43 per outstanding share of the company's common stock. The cash dividend is payable on September 30, 2026, to stockholders of record as of the close of business on September 15, 2026.

The board also authorized a new stock repurchase program for up to 20 million shares of common stock. This supersedes the prior authorization of 20 million shares made in February 2022, which has been exhausted.  Whether repurchases are made, and the timing and actual number of shares repurchased, will depend on a variety of factors including innovation and production capacity investment needs, other corporate capital requirements, price, market conditions, and regulatory requirements.   

Stock repurchases may be made on the open market at prevailing market prices or in privately negotiated transactions, including through accelerated share repurchase or derivative transactions, transactions with Leidos retirement and deferred compensation plans, transactions under 10b5-1 plans or 10b-18 plans or any of the foregoing combined or otherwise.

About Leidos

Leidos is an industry and technology leader serving government and commercial customers with smarter, more efficient digital and mission innovations. Headquartered in Reston, Virginia, with 50,000 global employees, Leidos reported annual revenues of approximately $17.2 billion for the fiscal year ended January 2, 2026. For more information, visit www.leidos.com.

Media Contact:

Todd Blecher
(571) 926-3822

[email protected] 
Investor Relations:

Stuart Davis
(571) 526-6124
[email protected] 

SOURCE Leidos Holdings Inc.

, /PRNewswire/ -- Government and commercial organizations could soon thwart potential cybersecurity threats by deploying Parcata™, a proprietary platform Leidos (NYSE: LDOS) has developed to autonomously find and fix software vulnerabilities.

This next-generation, model-agnostic tool harnesses a diverse set of large language models to accelerate vulnerability detection in first and third-party software and can patch zero-day vulnerabilities in real time.

"The use of AI by cyber adversaries has changed the game. We must detect and remediate before a breach," said Jason O'Connor, president of Leidos Intelligence. "Developed by our Kudu Dynamics team, with technology validated through DARPA's AI Cyber Challenge, Parcata will help organizations stay ahead of evolving threats. This tool will make sense out of the chaos and ensure the mission isn't dependent on any single frontier model."

The platform has demonstrated its capabilities through recent internal technical exercises and is being executed against Leidos code before it is deployed to mission environments.

This work aligns with Leidos' NorthStar 2030 strategy and its focus on AI-enabled capabilities and effects at operational scale across dynamic warfighting environments.  

For more information or to request a demo, visit leidos.com/parcata.

About Leidos 

Leidos is an industry and technology leader serving government and commercial customers with smarter, more efficient digital and mission innovations. Headquartered in Reston, Virginia, with more than 50,000 global employees, Leidos reported annual revenues of approximately $17.2 billion for the fiscal year ended January 2, 2026. For more information, visit www.Leidos.com.

Certain statements in this announcement constitute "forward-looking statements" within the meaning of the rules and regulations of the U.S. Securities and Exchange Commission (SEC). These statements are based on management's current beliefs and expectations and are subject to significant risks and uncertainties. These statements are not guarantees of future results or occurrences. A number of factors could cause our actual results, performance, achievements, or industry results to be different from the results, performance, or achievements expressed or implied by such forward-looking statements. These factors include, but are not limited to, the "Risk Factors" set forth in Leidos' Annual Report on Form 10-K for the fiscal year ended January 2, 2026, and other such filings that Leidos makes with the SEC from time to time. Readers are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date hereof. Leidos does not undertake to update forward-looking statements to reflect the impact of circumstances or events that arise after the date the forward-looking statements were made. 

Media Contact:

Victoria Piccoli
(571) 992-5142
[email protected] 

SOURCE Leidos Holdings, Inc.

In the latest trading session, Leidos (LDOS - Free Report) closed at $104.92, marking a -1.96% move from the previous day. The stock fell short of the S&P 500, which registered a gain of 0.89% for the day. Elsewhere, the Dow saw an upswing of 0.74%, while the tech-heavy Nasdaq appreciated by 1.29%.

Coming into today, shares of the security and engineering company had gained 2.08% in the past month. In that same time, the Computer and Technology sector lost 6.6%, while the S&P 500 lost 0.63%.

Market participants will be closely following the financial results of Leidos in its upcoming release. The company plans to announce its earnings on August 4, 2026. The company is expected to report EPS of $2.9, down 9.66% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.36 billion, up 2.55% from the year-ago period.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $12.3 per share and revenue of $18.12 billion. These totals would mark changes of +2.59% and +5.53%, respectively, from last year.

Any recent changes to analyst estimates for Leidos should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.41% higher. Leidos presently features a Zacks Rank of #3 (Hold).

Looking at its valuation, Leidos is holding a Forward P/E ratio of 8.7. This indicates a discount in contrast to its industry's Forward P/E of 12.98.

Investors should also note that LDOS has a PEG ratio of 1.57 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Computers - IT Services stocks are, on average, holding a PEG ratio of 0.99 based on yesterday's closing prices.

The Computers - IT Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 68, putting it in the top 28% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

, /PRNewswire/ -- Leidos (NYSE: LDOS) and Rune Technologies Inc. are partnering to help military organizations anticipate logistics requirements, improve resource availability, and strengthen mission readiness through AI-enabled predictive sustainment capabilities designed for contested and distributed operational environments.

The partnership combines Rune's AI-enabled predictive logistics and sustainment mission command software with Leidos' AI-enabled decision advantage and course-of-action generation capabilities to provide commanders with greater sustainment insight and decision support across contested environments, including the unique distance, time, scale and maritime challenges of the Indo-Pacific region.

"Sustaining forces across the vast distances of the Indo-Pacific requires the ability to understand logistics demand before it affects mission execution," said Jason McCarthy, Leidos senior vice president, Airborne & Mission Solutions. "Together with Rune, we're giving commanders the insight and decision support they need to improve logistics visibility and increase readiness in complex and dispersed operating areas, today, not years from now."

The partnership brings together complementary capabilities designed to help military organizations sustain operations where speed, distance and uncertainty can challenge readiness.

"Technology alone doesn't solve logistics challenges in the Indo-Pacific," said David Tuttle, Co-Founder & CEO of Rune Technologies. "Winning in this environment requires using technology to connect data across planning, decision-making, and execution in complex operational environments to enable sustainment at speed. By combining Rune's AI-enabled predictive logistics capabilities with Leidos' enterprise data integration expertise, we're helping commanders do exactly that."

The Leidos and Rune partnership reflects Leidos' NorthStar 2030 strategy and its focus on AI-enabled decision advantage, mission software and operational readiness, helping commanders anticipate sustainment requirements before they become mission challenges.    

About Leidos 

Leidos is an industry and technology leader serving government and commercial customers with smarter, more efficient digital and mission innovations. Headquartered in Reston, Virginia, with more than 50,000 global employees, Leidos reported annual revenues of approximately $17.2 billion for the fiscal year ended January 2, 2026. For more information, visit www.Leidos.com.

About Rune Technologies

Rune Technologies is revolutionizing military logistics through AI-enabled predictive software that operates in contested environments where communications are denied or degraded. Rune's TyrOS platform transforms manual logistics processes into intelligent supply webs that anticipate needs, optimize resources, and enable distributed operations at machine speed—even when supply lines are targeted by near-peer adversaries. Founded by veterans with deep operational experience and Silicon Valley engineering talent, Rune is ensuring military effectiveness through precise execution of critical logistics operations. For more information, visit runetech.co.

Certain statements in this announcement constitute "forward-looking statements" within the meaning of the rules and regulations of the U.S. Securities and Exchange Commission (SEC). These statements are based on management's current beliefs and expectations and are subject to significant risks and uncertainties. These statements are not guarantees of future results or occurrences. A number of factors could cause our actual results, performance, achievements, or industry results to be different from the results, performance, or achievements expressed or implied by such forward-looking statements. These factors include, but are not limited to, the "Risk Factors" set forth in Leidos' Annual Report on Form 10-K for the fiscal year ended January 2, 2026, and other such filings that Leidos makes with the SEC from time to time. Readers are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date hereof. Leidos does not undertake to update forward-looking statements to reflect the impact of circumstances or events that arise after the date the forward-looking statements were made.

Media Contacts: 

Leidos

Brandon Ver Velde
(571) 526-6257
[email protected]

Rune

Sam Polstein
(646) 337-1472
[email protected]

SOURCE Leidos Holdings, Inc.