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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.

Jupiter Topco LLC acquired a new position in shares of Leidos Holdings, Inc. (NYSE:LDOS – Free Report) in the second quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm acquired 15,708 shares of the aerospace company’s stock, valued at approximately $1,617,000.

A number of other hedge funds and other institutional investors also recently made changes to their positions in LDOS. BlackRock Inc. acquired a new position in shares of Leidos in the 2nd quarter worth approximately $1,024,436,000. Diamant Asset Management Inc. increased its position in shares of Leidos by 16,475.4% during the first quarter. Diamant Asset Management Inc. now owns 4,156,784 shares of the aerospace company’s stock worth $646,463,000 after buying an additional 4,131,706 shares during the period. Norges Bank bought a new position in Leidos during the fourth quarter worth $318,839,000. SG Americas Securities LLC raised its stake in Leidos by 998.6% during the first quarter. SG Americas Securities LLC now owns 1,097,724 shares of the aerospace company’s stock worth $170,718,000 after buying an additional 997,807 shares during the last quarter. Finally, Deutsche Bank AG acquired a new position in Leidos in the second quarter valued at $68,998,000. 76.12% of the stock is owned by institutional investors and hedge funds.

Analysts Set New Price Targets A number of brokerages have recently issued reports on LDOS. Citigroup boosted their price objective on Leidos from $138.00 to $161.00 and gave the company a “buy” rating in a research note on Tuesday, August 11th. JPMorgan Chase & Co. lowered their target price on Leidos from $210.00 to $160.00 and set an “overweight” rating for the company in a report on Monday, July 13th. TD Cowen boosted their price target on Leidos from $115.00 to $135.00 and gave the company a “hold” rating in a research note on Friday, August 7th. Wall Street Zen raised shares of Leidos from a “hold” rating to a “buy” rating in a research report on Thursday, July 16th. Finally, Jefferies Financial Group reiterated a “hold” rating and set a $145.00 target price on shares of Leidos in a research report on Sunday, August 9th. One analyst has rated the stock with a Strong Buy rating, six have given a Buy rating and ten have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, Leidos has an average rating of “Hold” and a consensus target price of $162.93.

View Our Latest Report on LDOS Insiders Place Their Bets In other news, Director Gary May sold 1,000 shares of the stock in a transaction dated Tuesday, September 1st. The shares were sold at an average price of $140.85, for a total value of $140,850.00. Following the completion of the sale, the director owned 10,204 shares in the company, valued at $1,437,233.40. This represents a 8.93% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Noel Geer sold 10,000 shares of the firm’s stock in a transaction dated 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 transaction, 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 disclosure for this sale is available in the SEC filing. 0.77% of the stock is owned by insiders.

Leidos Trading Up 0.6% LDOS opened at $133.19 on Friday. Leidos Holdings, Inc. has a fifty-two week low of $98.86 and a fifty-two week high of $205.77. The firm has a market capitalization of $16.71 billion, a PE ratio of 12.42, a P/E/G ratio of 1.47 and a beta of 0.56. The company has a debt-to-equity ratio of 1.13, a current ratio of 1.63 and a quick ratio of 1.60. The company’s 50-day moving average is $123.14 and its 200 day moving average is $137.80.

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

Leidos Dividend Announcement The business also recently disclosed 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 1.3%. Leidos’s dividend payout ratio (DPR) is 16.04%.

Leidos announced that its Board of Directors has approved a share buyback plan on Friday, July 31st that allows the company to buyback 20,000,000 shares. This buyback authorization allows the aerospace company to repurchase shares of its stock through open market purchases. Shares buyback plans are typically a sign that the company’s management believes its stock is undervalued.

Leidos 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 Revolution Medicines Got Its Breakthrough—What Moves It Next? Retail Earnings Just Exposed a Bigger Divide in the U.S. Consumer Economy FB Financial’s Southern Expansion and Buybacks Drive Analyst Optimism AST SpaceMobile Stock Soared 12%—This Was the Catalyst 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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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.

Caisse de depot et placement du Quebec cut its holdings in Leidos Holdings, Inc. (NYSE:LDOS – Free Report) by 71.7% in the second quarter, according to the company in its most recent Form 13F filing with the SEC. The institutional investor owned 7,734 shares of the aerospace company’s stock after selling 19,594 shares during the quarter. Caisse de depot et placement du Quebec’s holdings in Leidos were worth $796,000 at the end of the most recent reporting period.

A number of other institutional investors have also made changes to their positions in the business. Jupiter Topco LLC bought a new stake in Leidos during the 2nd quarter worth about $1,617,000. Hsbc Holdings PLC lifted its position in shares of Leidos by 47.5% during the second quarter. Hsbc Holdings PLC now owns 415,545 shares of the aerospace company’s stock worth $42,411,000 after purchasing an additional 133,836 shares in the last quarter. Connor Clark & Lunn Investment Management Ltd. grew its stake in shares of Leidos by 28.5% during the second quarter. Connor Clark & Lunn Investment Management Ltd. now owns 39,808 shares of the aerospace company’s stock valued at $4,099,000 after purchasing an additional 8,818 shares during the last quarter. Kendall Capital Management increased its holdings in shares of Leidos by 36.5% in the second quarter. Kendall Capital Management now owns 10,565 shares of the aerospace company’s stock valued at $1,088,000 after purchasing an additional 2,825 shares in the last quarter. Finally, Commerce Bank raised its position in Leidos by 7.8% in the 2nd quarter. Commerce Bank now owns 5,721 shares of the aerospace company’s stock worth $589,000 after purchasing an additional 413 shares during the last quarter. 76.12% of the stock is owned by institutional investors.

Insider Transactions at Leidos In other news, Director Noel B. Geer sold 10,000 shares of the business’s stock in a transaction dated Tuesday, August 11th. The stock was sold at an average price of $140.66, for a total transaction of $1,406,600.00. Following the completion of the transaction, the director directly owned 34,274 shares in the company, valued at approximately $4,820,980.84. The trade was a 22.59% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Company insiders own 0.77% of the company’s stock.

Wall Street Analyst Weigh In A number of research analysts have commented on LDOS shares. Jefferies Financial Group reiterated a “hold” rating and issued a $145.00 price objective on shares of Leidos in a research report on Sunday, August 9th. Bank of America reaffirmed a “neutral” rating and set a $125.00 price target (down from $200.00) on shares of Leidos in a research note on Wednesday, June 17th. Wells Fargo & Company set a $165.00 price target on Leidos in a report on Monday, August 17th. Stifel Nicolaus lowered their price objective on Leidos from $205.00 to $193.00 and set a “hold” rating for the company in a research report on Wednesday, May 6th. Finally, Weiss Ratings cut Leidos from a “hold (c+)” rating to a “hold (c)” rating in a report on Monday, June 8th. One analyst has rated the stock with a Strong Buy rating, six have given a Buy rating and ten have assigned a Hold rating to the stock. According to MarketBeat.com, Leidos currently has a consensus rating of “Hold” and an average target price of $162.93. Get Our Latest Analysis on LDOS

Leidos Stock Performance LDOS stock opened at $140.59 on Monday. The business’s fifty day moving average is $119.90 and its 200-day moving average is $139.03. The company has a quick ratio of 1.60, a current ratio of 1.63 and a debt-to-equity ratio of 1.13. The company has a market cap of $17.64 billion, a P/E ratio of 13.11, a price-to-earnings-growth ratio of 2.05 and a beta of 0.52. Leidos Holdings, Inc. has a twelve month low of $98.86 and a twelve month high of $205.77.

Leidos (NYSE:LDOS – Get Free Report) last announced its quarterly earnings data on Tuesday, August 4th. The aerospace company reported $3.26 EPS for the quarter, topping analysts’ consensus estimates of $2.91 by $0.35. Leidos had a return on equity of 30.81% and a net margin of 7.80%.The business had revenue of $4.56 billion during the quarter, compared to analysts’ expectations of $4.44 billion. During the same period in the previous year, the firm earned $3.21 earnings per share. The firm’s quarterly 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. Equities research analysts forecast that Leidos Holdings, Inc. will post 12.38 EPS for the current year.

Leidos declared that its board has authorized a stock repurchase program on Friday, July 31st that permits the company to buyback 20,000,000 outstanding shares. This buyback authorization permits the aerospace company to reacquire shares of its stock through open market purchases. Shares buyback programs are often a sign that the company’s board of directors believes its shares are undervalued.

Leidos Dividend Announcement The business also recently announced a quarterly dividend, which will be paid on Wednesday, September 30th. Shareholders of record on Tuesday, September 15th will be issued a dividend of $0.43 per share. The ex-dividend date is Tuesday, September 15th. This represents a $1.72 dividend on an annualized basis and a yield of 1.2%. Leidos’s dividend payout ratio (DPR) is 16.04%.

Leidos 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.

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DAVIDSON, N.C.--(BUSINESS WIRE)---- $CW--Curtiss-Wright Corporation (NYSE: CW) today announced that it has been awarded contracts by Leidos valued at approximately $40 million to support the production of the U.S. Army's Indirect Fire Protection Capability Increment 2 (IFPC Inc 2) system. Under the agreement, Curtiss-Wright will provide electromechanical actuation technology along with rugged, small form factor mission computers for mobile ground-based air defense systems. “Curtiss-Wright is proud to c.

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Stock to Watch: Leidos (LDOS - Free Report) Founded in 1969, Delaware-based Leidos Holdings, Inc. is a global science and technology leader that serves the defense, intelligence, civil and health markets. Its core capabilities include providing solutions in the fields of cybersecurity; data analytics; enterprise IT modernization; operations and logistics; sensors, collection and phenomenology; software development; and systems engineering.

LDOS is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.

Additionally, the company could be a top pick for growth investors. LDOS has a Growth Style Score of A, forecasting year-over-year earnings growth of 3.3% for the current fiscal year.

For fiscal 2026, four analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.12 to $12.38 per share. LDOS boasts an average earnings surprise of +11.3%.

With a solid Zacks Rank and top-tier Growth and VGM Style Scores, LDOS should be on investors' short list.

Leidos will provide around-the-clock cyber operations and develop new capabilities to advance the Department of War's cyber resilience

, /PRNewswire/ -- Leidos (NYSE: LDOS) will help the Department of War detect and defend against cyber threats by monitoring military networks 24 hours a day, seven days a week under a five-year contract.

Work under the $301 million contract with the U.S. Army strengthens the Department of War Information Network, the global network used by all U.S. military organizations.

"Resilience is the real measure of cyber defense," said Steve Hull, president of Leidos Digital. "Our job is to help protect our nation's cyber terrain by anticipating increasingly sophisticated threats, responding with speed and keeping critical missions moving. That means equipping our experts with AI-enabled capabilities for stronger cyber resilience, better situational awareness and faster, more coordinated responses that help mission leaders stay ahead of adversaries."

This follow-on contract continues Leidos' work supporting this Army mission to deliver defensive cyber capabilities for the U.S. and its allies. Throughout the program, Leidos has combined operational excellence with continuous innovation, enhancing cyber defense with advanced AI-enabled technologies. By integrating cyber operations, engineering and technology development, Leidos has compressed the time between detection and response.

This award supports Leidos' NorthStar 2030 strategy and its focus on digital transformation and defensive cyber capabilities.

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.  

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:

Elizabeth Torres
[email protected]
(571) 732-6875 

SOURCE Leidos Holdings, Inc.

Markets have been on a wild ride this summer, with the S&P 500 finally making a new all-time high and several left-for-dead stocks showing new life in the second half of the year. But not all rallies are created equally.

Three catalyst-driven stocks have bounced more than 30% off their 2026 lows, but each still carries fundamental questions that could complicate the rebound. Catalysts can drive stocks to unprecedented heights, but they can also mask underlying fundamental weakness, and that’s the common theme among these three summer standouts. After such sharp rebounds, is it time for investors to take profits?

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Intuit: Price Hikes and Restructuring Hide Slowing GrowthIntuit Today

$367.00 +5.13 (+1.42%)

As of 08/21/2026 04:00 PM Eastern

$252.84▼

$705.081.31%

22.23

$451.26

Intuit Inc. NASDAQ: INTU has been one of the poster children of the software apocalypse, and the stock is still down more than 40% year-to-date (YTD) despite the recent rally. Investors had reason to exhale when the company reported its fiscal Q3 2026 numbers on May 20, posting earnings per share (EPS) and revenue above expectations, with sales growing more than 10% year-over-year (YOY). But as always, the underlying numbers tell the story, and much of this growth is coming from price increases, not new business.

Average revenue per user (APRU) rose 11%, with paid online units up 2%, but total online units declined 2%. Intuit is getting more cash from each customer but losing market share, especially among DIY filers earning under $50,000 annually. TurboTax Live, which offers expert advice from tax professionals, now accounts for more than 50% of the franchise’s revenue. The company laid off 17% of its workforce as a cost-cutting measure, but selling more assisted services and less software creates some potentially painful arithmetic for Intuit in fiscal 2027.

INTU shares began 2026 with a Death Cross-aided drawdown that cascaded more than 60% between January and June. But the stock is now 30% off that June low and recently broke through the 50-day moving average, which has been stiff resistance since the decline began. However, this minor technical milestone has pushed the Relative Strength Index (RSI) into overbought territory, even as the price remains well below the 200-day moving average.

Intuit reports fiscal Q4 2026 results on Aug. 25, and the market expects quarterly EPS of $1.43 and revenue of $4.28 billion. But investors and analysts will be watching the full-year guidance projections for fiscal 2027 more closely. A conservative guide will fuel the AI-disruption trade in many investors’ minds and validate the Sell rating Goldman Sachs gave the stock last year.

MGM Resorts: Decaying Premium Shows Market Considering Deal RiskMGM Resorts International Today

MGM

MGM Resorts International

$43.72 +0.55 (+1.27%)

As of 08/21/2026 03:58 PM Eastern

$29.18▼

$51.5926.50

$53.37

Shares of MGM Resorts International NYSE: MGM jumped from about $32 to $50 earlier this summer based on excitement surrounding two catalysts. First, a series of price target boosts from analysts in April and May, which included a pair of prescient upgrades from Truist Financial and KeyCorp. Then, on June 1, Barry Diller’s People Inc. offered to buy out the company for $48.30 per share, which sent the stock up more than 16% that day, closing above $50.

But since the announcement, the stock has fallen below the buyout offer price, suggesting investors are now factoring in significant deal risk. The MGM board has authorized a committee to review the offer, which would increase People Inc’s stake from 26.1% to 50.1%. Additionally, Las Vegas numbers have declined since the price-target boost parade, with visitor volume down more than 11% in June and Strip occupancy down 6.5%.

The stock is now back under its 50-day moving average, and the Moving Average Convergence Divergence (MACD) indicator shows a complete collapse in bullish momentum. The spread between current prices and the buyout offer price suggests the offer scrutiny has legitimacy, but investors should know they’re facing a merger situation, not a fundamentally broken company.

Leidos Holdings: Weak Guidance Doesn’t Support Stock Run-upLeidos Today

$141.84 +0.47 (+0.33%)

As of 08/21/2026 03:58 PM Eastern

$98.86▼

$205.771.21%

13.23

$162.93

Leidos Holdings Inc. NYSE: LDOS reported its fiscal Q2 2026 numbers on Aug. 4 and produced some legitimately impressive stuff.

Revenue was up 7% YOY to a record $4.6 billion; the company-wide book-to-bill ratio was 1.1, with the Defense segment at 2.2; operating cash flow reached a record $793 million; and EPS and revenue guidance were raised for the rest of fiscal 2026.

However, the Health segment faces significant headwinds due to the VA’s suspension of all medical disability examination vendor incentive payments throughout the rest of the year, and the revenue guidance raise equated to roughly 0.5% at the midpoint.

Adjusted EBITDA margins declined 140 basis points YOY in Q2, and margin guidance was maintained, not raised, for the rest of fiscal 2026.

Shares of LDOS have climbed about 32% over the past month, with the Q2 report adding fuel to the rally despite unchanged margin guidance and only a modest revenue guidance increase. Analysts were also mixed on the numbers, with four target boosts, two target drops, and (most tellingly) zero upgrades.

The market may have gotten ahead of itself with the reaction to the Q2 report, and with the RSI now screaming overbought, it may be time to take profits here.

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Key Takeaways Leidos is integrating AI across defense, cybersecurity, logistics and other mission-critical applications.LDOS uses AI to support faster decisions, identify vulnerabilities and improve military resource planning.Leidos' OpenAI partnership supports generative and agentic AI adoption across government workflows. Leidos Holdings, Inc. (LDOS - Free Report) is expanding its Artificial Intelligence (AI) capabilities as government agencies and defense organizations increasingly adopt AI to improve decision-making, automate processes and manage large volumes of data. The company is integrating AI across defense, cybersecurity, logistics and other mission-critical applications, creating opportunities to benefit from the growing demand for secure and reliable AI solutions.

Leidos is using AI to support national security and defense operations by helping military customers analyze complex information and make faster, data-driven decisions. Its AI capabilities are also being applied to cybersecurity, where the company is developing solutions that can identify vulnerabilities and help organizations respond to emerging threats more efficiently.

The company is further expanding AI into military logistics, using predictive technologies to help customers anticipate requirements, improve resource planning and strengthen operational readiness. These efforts complement Leidos’ broader focus on digital modernization and mission-critical technology.

Leidos is also working with leading technology companies to accelerate the adoption of generative and agentic AI across government workflows. Its partnership with OpenAI, announced in January 2026, supports the company’s efforts to integrate advanced AI into areas such as national security, defense and digital modernization.

As AI adoption continues to grow across the defense sector, Leidos’ expanding AI capabilities and focus on secure, mission-critical applications position it well to benefit from the long-term shift toward AI-enabled government and military operations.

Other Companies Benefiting From AI DemandOther companies that are likely to benefit from the expanding AI market are discussed below:

Northrop Grumman Corporation (NOC - Free Report) : The company is integrating AI and machine learning into complex mission systems, including decision-support, autonomous systems and edge-processing applications. In March 2026, its Talon IQ autonomous testbed successfully flew with Shield AI’s Hivemind software, demonstrating the ability to integrate third-party AI systems into an open architecture.

Lockheed Martin Corporation (LMT - Free Report) : The company is expanding AI across defense applications, including space-based systems and decision-support technologies. Its AI Fight Club provides a simulated environment for testing AI systems across air, land, sea and space, while recent efforts are focused on using AI to help warfighters process complex information and make faster decisions.

The Zacks Rundown for LDOSShares of LDOS have surged 15.4% in the past three months compared with the industry’s 4.5% growth.

Image Source: Zacks Investment Research

The company shares are trading at a discount on a relative basis, with its forward 12-month Price/Sales being 0.96X compared with its industry’s average of 11.87X.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for LDOS’ 2026 earnings has moved north over the past 60 days.

Image Source: Zacks Investment Research

Key Takeaways Leidos raised 2026 revenue guidance to $18.20B-$18.40B and EPS guidance to $12.20-$12.50.Defense posted a 2.2 book-to-bill ratio, with a $12B Defense Tech pipeline over the next year.LDOS expects Health revenues near Q2 levels after VBA incentive payments were suspended for the rest of 2026. Leidos Holdings, Inc. (LDOS - Free Report) used its fiscal second-quarter call to emphasize that faster Defense, Homeland and Intelligence & Digital growth is offsetting pressure in Health. Management raised revenue, earnings and cash flow guidance despite changes in the Veterans Benefits Administration medical-exam business.

The call gave investors more detail on defense-tech scaling, the VBA recompete and how agency in-sourcing could reshape Leidos’ role in health-system integration.

LDOS Raises the Floor on 2026 GuidanceExecutive vice president and CFO Chris Cage said fiscal 2026 revenue guidance is now $18.20-$18.40 billion, while non-GAAP earnings guidance rose to $12.20-$12.50 per share.

Cage raised operating cash flow guidance to approximately $1.85 billion. The adjusted EBITDA margin outlook remains in the mid-13% range, and the guidance excludes the pending Security Enterprise Solutions joint venture with Analogic.

Second-quarter non-GAAP earnings of $3.26 per share topped the $2.90 consensus mark. Revenues of $4.56 billion exceeded the Zacks Consensus Estimate of $4.36 billion.

Leidos Defense Tech Builds ScaleCEO Tom Bell said Defense posted a 2.2 book-to-bill ratio in the quarter and 1.9 over the trailing 12 months. He also cited a $12 billion pipeline of Defense Tech opportunities over the next year.

Bell highlighted low-cost containerized munitions, the small cruise missile, IFPC, space-sensor payloads, autonomous vessels and counter-UAS capabilities. Leidos plans to deliver 3,000 containerized munitions by 2030 under its framework agreement.

Cage said profitability should improve as programs mature and production volumes rise. Bell added that management can see double-digit profitability and double-digit revenue CAGR over time in Defense Tech.

LDOS’ Health Reset Focuses on VBABell said the VA suspended incentive payments for all vendors in the medical disability examination program for the rest of 2026. He said the change is incorporated into the higher companywide guidance.

Cage expects Health revenues to remain near second-quarter levels for the balance of the year, with non-GAAP operating margins around 20%. Management views the fourth-quarter run rate as the starting point for 2027.

A BNP Paribas analyst pressed for recompete clarity. Bell said Leidos expects a draft request for proposals shortly, formal bids near year-end and customer decisions in early 2027, with extensions providing continuity into next year.

Leidos Adapts to Agency In-SourcingA Melius Research analyst asked whether the next phase of MHS GENESIS signaled a broader reduction in systems-integrator roles. Bell said agencies are exploring more in-sourcing and direct commercial-software purchases.

Bell maintained that Leidos can shift toward higher-level mission integration while continuing to maintain and enhance MHS GENESIS. Cage said negotiations are continuing because the customer lacks capacity to absorb all current activities.

A JPMorgan analyst asked about fixed-price work. CEO Bell and CFO Cage said customers are increasingly requesting outcome-based contracts, a model they believe fits Leidos’ software, cyber and mission-technology offerings.

LDOS’ Cash Flow Supports Capital ChoicesCage emphasized second-quarter operating cash flow of $793 million and free cash flow of $761 million. Lower expected capital spending, now closer to $250 million, lifted implied full-year free cash flow guidance by about $150 million.

Bell reiterated that Leidos remains a low-capital-intensity business, with capital expenditures generally targeted at 1% to 1.5% of revenues, even as it funds selected Defense Tech programs.

Leidos paid down $300 million of commercial paper, completed a $66 million open-market repurchase and put a new board authorization in place. Bell said expensive acquisition targets favor a balanced approach to investment, repurchases and dividends.

Leidos Leans on Portfolio BalanceManagement’s tone was confident but centered on execution. Defense and Homeland are carrying more of the growth load while Health moves through contract and incentive changes.

The priorities are converting bookings into revenues, protecting cash generation and securing the VBA franchise without slowing investment in defense tech, cyber and energy infrastructure.

Zacks Signals for LDOSLDOS carries a Zacks Rank #3 (Hold), alongside Value and Growth Scores of A, a Momentum Score of B and a VGM Score of A. The Style Scores indicate favorable value, growth and momentum characteristics, while the Rank carries a Hold stance. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The combination is constructive but lacks the stronger signal associated with Zacks Rank #1 or #2 (Buy) stocks paired with A or B Style Scores. The Zacks Rank can change as estimates are revised after the just-reported results.

Leidos Holdings, Inc. (LDOS) Q2 2026 Earnings Call Transcript

Leidos (LDOS - Free Report) came out with quarterly earnings of $3.26 per share, beating the Zacks Consensus Estimate of $2.9 per share. This compares to earnings of $3.21 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +12.41%. A quarter ago, it was expected that this security and engineering company would post earnings of $2.88 per share when it actually produced earnings of $3.13, delivering a surprise of +8.68%.

Over the last four quarters, the company has surpassed consensus EPS estimates four times.

Leidos, which belongs to the Zacks Computers - IT Services industry, posted revenues of $4.56 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 4.50%. This compares to year-ago revenues of $4.25 billion. The company has topped consensus revenue estimates three times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Leidos shares have lost about 34.2% since the beginning of the year versus the S&P 500's gain of 11%.

What's Next for Leidos?While Leidos has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Leidos was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $3.19 on $4.72 billion in revenues for the coming quarter and $12.30 on $18.12 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Computers - IT Services is currently in the bottom 39% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Another stock from the same industry, Cerence (CRNC - Free Report) , has yet to report results for the quarter ended June 2026. The results are expected to be released on August 6.

This automotive artificial intelligence developer is expected to post quarterly earnings of $0.13 per share in its upcoming report, which represents a year-over-year change of +44.4%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

Cerence's revenues are expected to be $68.26 million, up 9.7% from the year-ago quarter.

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.

Leidos continues to strengthen U.S. Navy's secure intelligence operations PR Newswire RESTON, Va., Aug. 3, 2026

Leidos selected to provide flight-proven infrared sensors to Sierra Space for missile defense satellites in support of Golden Dome for America

, /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.

CoreWeave shares are climbing with conviction. Why are CRWV shares rallying? Secure AI Cloud for Federal MissionsCoreWeave plans to offer its cloud platform within Sensitive Compartmented Information Facility-accredited data centers, while Leidos will lead mission integration, secure architecture accreditation, cyber operations, and customer delivery.

“CoreWeave is trusted by many of the world’s leading AI organizations to power the most complex workloads,” said Sachin Jain, Chief Operating Officer of CoreWeave. “Through CoreWeave Federal and our collaboration with Leidos, we intend to extend those capabilities to highly secure government environments with the performance, resilience, and operational rigor these missions require.”

The collaboration builds on the recent launch of CoreWeave Federal, the company’s dedicated business focused on delivering AI cloud services to U.S. government agencies and the Defense Industrial Base.

CoreWeave Shares Trend HigherCRWV Price Action: At the time of publication, CoreWeave shares are trading 6.93% higher at $79.02, according to data from Benzinga Pro.

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, /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.

Wall Street expects a year-over-year decline in earnings on higher revenues when Leidos (LDOS - Free Report) reports results for the quarter ended June 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.

The earnings report, which is expected to be released on August 4, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.

While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.

Zacks Consensus EstimateThis security and engineering company is expected to post quarterly earnings of $2.90 per share in its upcoming report, which represents a year-over-year change of -9.7%.

Revenues are expected to be $4.36 billion, up 2.6% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.19% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for Leidos?For Leidos, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +0.55%.

On the other hand, the stock currently carries a Zacks Rank of #3.

So, this combination indicates that Leidos will most likely beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that Leidos would post earnings of $2.88 per share when it actually produced earnings of $3.13, delivering a surprise of +8.68%.

Over the last four quarters, the company has beaten consensus EPS estimates four times.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Leidos appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

, /PRNewswire/ -- Leidos (NYSE: LDOS) successfully demonstrated a tactical cyber detection capability during Valiant Shield 2026, showing how military operators can spot potential cyber threats to connected mission systems in real time.

During the joint field training exercise, held from June 22 to July 2 in Guam, Leidos' Cyber and Electromagnetic Activities Resiliency System (CRS) detected simulated cyber intrusions and identified unusual activities across tactical platforms and networks. The demonstration showed how CRS can help military teams identify possible cyber threats before they affect the mission.

"Cyber resilience is now essential to military readiness," said Jason O'Connor, president of Leidos Intelligence. "Commanders need to know when cyber activity could put the mission at risk. Valiant Shield gave us the opportunity to show that CRS can provide that awareness in realistic field conditions and help warfighters stay focused on the mission."

Valiant Shield is a major U.S. military exercise in the Indo-Pacific. It brings together U.S. and partner nation forces across air, land, sea, space and cyber to test how well they can operate together in complex scenarios.

CRS is designed for military environments where standard cybersecurity tools may not work well or may not have enough visibility. As missions rely more on connected platforms, sensors and networks, CRS helps close that gap by monitoring mission equipment and other connected technologies for signs of unusual cyber activity. This gives operators earlier warning and clearer information so they can respond before a cyber issue disrupts operations. 

Through the Valiant Shield exercise, Leidos showed how it can bring cyber defense closer to the mission. CRS combines Leidos' experience in cybersecurity, mission technology and military systems to help operators understand cyber risks in real time without slowing down operations.

The demonstration reflects Leidos' NorthStar 2030 strategy and the company's focus on innovation, resilience and trusted solutions that help customers operate securely in challenging 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 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
[email protected]
(571) 526-6257

SOURCE Leidos Holdings, Inc.

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.

The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.

Zacks Premium includes access to the Zacks Style Scores as well.

What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.

Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.

The Style Scores are broken down into four categories:

Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.

Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.

Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.

VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.

#1 (Strong Buy) stocks have produced an unmatched +23.94% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.

But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.

That's where the Style Scores come in.

To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.

Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.

Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Leidos (LDOS - Free Report) Founded in 1969, Delaware-based Leidos Holdings, Inc. is a global science and technology leader that serves the defense, intelligence, civil and health markets. Its core capabilities include providing solutions in the fields of cybersecurity; data analytics; enterprise IT modernization; operations and logistics; sensors, collection and phenomenology; software development; and systems engineering.

LDOS is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.

Momentum investors should take note of this Computer and Technology stock. LDOS has a Momentum Style Score of B, and shares are up 10.3% over the past four weeks.

For fiscal 2026, three analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.05 to $12.30 per share. LDOS boasts an average earnings surprise of +13.8%.

With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, LDOS should be on investors' short list.

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.

The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.

It also includes access to the Zacks Style Scores.

What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.

Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.

The Style Scores are broken down into four categories:

Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.

Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.

Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.

VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.

It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.

That's where the Style Scores come in.

You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.

The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.

For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Leidos (LDOS - Free Report) Founded in 1969, Delaware-based Leidos Holdings, Inc. is a global science and technology leader that serves the defense, intelligence, civil and health markets. Its core capabilities include providing solutions in the fields of cybersecurity; data analytics; enterprise IT modernization; operations and logistics; sensors, collection and phenomenology; software development; and systems engineering.

LDOS is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.

Additionally, the company could be a top pick for growth investors. LDOS has a Growth Style Score of A, forecasting year-over-year earnings growth of 2.6% for the current fiscal year.

Three analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.05 to $12.30 per share. LDOS also boasts an average earnings surprise of +13.8%.

With a solid Zacks Rank and top-tier Growth and VGM Style Scores, LDOS should be on investors' short list.

, /PRNewswire/ -- Leidos (NYSE: LDOS) and DHL Supply Chain have formed a strategic alliance to bring integrated, resilient and scalable logistics capabilities aligned to the UK Ministry of Defence's (MOD) Future Defence Support Services (FDSS) programme.

Operating as the Logistics & Mission Support Alliance as part of a competitive contract bidding process, the partnership brings together Leidos' Defence integration expertise and DHL's global logistics scale and operational capability in support of the MOD's future Defence logistics requirements. If successful, the alliance would help modernise Defence logistics, strengthen readiness, improve resilience and provide more agile support to the UK's Armed Forces.

Purpose built for complex and contested environments, the alliance will operate as a single, integrated team, drawing on global networks, proven infrastructure and surge capacity to keep Defence operations moving through disruption. By maintaining continuity of supply and enabling rapid recovery, the alliance will help ensure the Armed Forces have the support they need, when and where they need it.

The alliance will also draw on advanced technologies, including artificial intelligence, data analytics and automation to help optimise logistics operations and enhance visibility across demand, inventory and assets. This approach is intended to support more informed decision-making and strengthen operational effectiveness.

Adam Clarke, Chief Executive Officer, Leidos UK & Europe, said:

"Leidos and DHL bring together proven delivery expertise and complementary strengths to transform how Defence logistics is delivered. Through this alliance, we are aligning capability, data and decision-making to enable faster, more resilient and more precise support to the UK's Armed Forces.

By combining advanced technologies with deep operational experience, we will strengthen readiness, improve visibility and deliver the agility Defence needs to respond with confidence in an increasingly complex and contested environment."

Martin Willmor, Chief Executive Officer, DHL Supply Chain UK&I, said:

"The FDSS programme presents an opportunity to modernise support of UK Defence at a time of increasing operational complexity.

DHL brings global logistics scale, advanced digital capabilities and proven operational leadership, and by working in partnership with Leidos, we aim to enable a more integrated, resilient and responsive supply chain that helps the MOD maximise its strategic advantage."

About Leidos

Leidos is an industry and technology leader serving government and commercial customers with smarter, more efficient digital and mission innovations. Leidos UK & Europe is a leading partner to the UK and Scottish governments supporting national security, defence and logistics programmes, as well as serving key clients in transportation and energy. 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.

About DHL

DHL is the leading global brand in the logistics industry. Our DHL divisions offer an unrivalled portfolio of logistics services ranging from national and international parcel delivery, e-commerce shipping and fulfilment solutions, international express, road, air and ocean transport to industrial supply chain management. With approximately 389,000 employees in more than 220 countries and territories worldwide, DHL connects people and businesses securely and reliably, enabling global sustainable trade flows. With specialized solutions for growth markets and industries including technology, life sciences and healthcare, engineering, manufacturing & energy, auto-mobility and retail, DHL is decisively positioned as "The logistics company for the world".

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:

Victor Melara
Senior Media Relations Manager
703.431.4612
[email protected] 

SOURCE Leidos

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Stock to Watch: Leidos (LDOS - Free Report) Founded in 1969, Delaware-based Leidos Holdings, Inc. is a global science and technology leader that serves the defense, intelligence, civil and health markets. Its core capabilities include providing solutions in the fields of cybersecurity; data analytics; enterprise IT modernization; operations and logistics; sensors, collection and phenomenology; software development; and systems engineering.

LDOS is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.

It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 8.66; value investors should take notice.

Three analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.05 to $12.30 per share. LDOS boasts an average earnings surprise of +13.8%.

With a solid Zacks Rank and top-tier Value and VGM Style Scores, LDOS should be on investors' short list.