Leidos Holdings, Inc. Earnings Recaps
Q2 2026
Aug 7, 2026
Leidos’ Q2 results outpaced expectations with revenue growth, margin expansion, and raised guidance, driving a strong 6.8% stock rally. Defense segment momentum and improved bookings were key contributors to investor optimism.
Key takeaways
- Q2 revenue rose 7% year-over-year to $4.6 billion, with 4% organic growth.
- Adjusted EBITDA margin held steady at a best-in-class 13.8%.
- Operating cash flow hit a Q2 record near $800 million.
- Book-to-bill ratio of 1.1 for the quarter, led by a robust 2.2 ratio in Defense.
- Raised 2026 revenue midpoint by $100 million, EPS midpoint by $0.05, and operating cash flow guidance by $50 million, reflecting confidence in ongoing momentum.
Q1 2026
May 6, 2026
Leidos shares dropped 9.3% post-earnings on concerns about a cautious outlook and potential near-term margin pressures despite reported revenue growth and revenue guidance raise.
Key takeaways
- Q1 revenue increased 4% year-on-year to $4.4 billion, with adjusted EBITDA margin at 14%.
- Company raised 2026 revenue guidance by $500 million, EPS by $0.05, and operating cash flow by $50 million, citing strong core performance and accretive acquisition benefits.
- Major contract milestones include serial production start on $2.2 billion ALPS passive sensing system and over $9 billion in Defense Tech awards in the past 15 months.
- Growth pillars emphasized: Defense Tech, managed health, digital infrastructure and cyber, energy resilience, and mission software.
- Despite positive business developments, the sizable share price decline suggests investor skepticism around sustainable growth, margin stability, or possibly cautious language in outlook not fully offset by reported metrics.
Q3 2025
Nov 5, 2025
Leidos delivered robust Q3 2025 results with a 7% revenue growth, bolstered by significant operational cash flow of $711 million, prompting a second guidance raise for the year.
Key takeaways
- Adjusted EBITDA margin improved to 13.8%, reflecting effective cost management and operational efficiency.
- $0.5 billion counterterrorism contract rewon, demonstrating successful integration of automation and AI in operations.
- Energy infrastructure segment remains strong with over $600 million in annual revenues and double-digit growth, capitalizing on a significant investment in U.S. energy infrastructure.
- Leidos' NorthStar 2030 strategy is driving momentum across key growth pillars, focusing on customer-aligned outcomes and innovative solutions.
- Continued resilience in operations during the government shutdown, with most projects classified as mission essential and unaffected.