Leidos Holdings, Inc. Q2 2026 Earnings Recap

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.