#United States #Inc. #financial results #Reston #Leidos Holdings #Q2 2026

Leidos Reports Strong Second Quarter Results and Adjusts Annual Forecast

Leidos Holdings, Inc., the prominent defense, aviation, information technology, and biomedical research firm, has reported a remarkable financial performance for the second quarter of fiscal year 2026, solidifying its position within the industry. The company's revenues reached $4.56 billion, reflecting a 7% increase from the same period last year, with organic growth contributing 4%.

Key Financial Highlights

Leidos' notable financial metrics include:

• - Net Income: $356 million, or $2.81 per diluted share.
• - Adjusted EBITDA: $631 million with an adjusted EBITDA margin of 13.8%.
• - Non-GAAP Diluted Earnings per Share: Up by 2% year-over-year to $3.26.
• - Cash Flows from Operations: A robust $793 million, showcasing effective operational efficiency and cash generation.

In the words of Chief Executive Officer Tom Bell, "I'm pleased to report another strong quarter for Leidos. Alongside our revenue and cash achievements, we secured $5 billion in contract awards. The growth in our Defense Tech, Energy Infrastructure, and Cyber sectors is significant, and our Managed Healthcare business is showing promising long-term potential."

Detailed Performance Analysis

Despite the positive outcomes, net income saw a decline from the previous year, reflecting increased costs associated with acquisitions and restructuring efforts. Specifically, $29 million of costs related to the acquisition of ENTRUST Solutions Group incurred during this quarter impacted the bottom line. Adjusting for these costs, non-GAAP net income slightly declined 1% year-over-year to $413 million with continued strategies to enhance profitability in sight.

Quarterly Revenue Breakdown:

• - Intelligence & Digital: $1.50 billion, increasing by 6%.
• - Health: $1.09 billion, dropping by 8% year-on-year.
• - Homeland: Rising significantly by 32% to $1.02 billion.
• - Defense: Up by 6% at $955 million.

New bookings totaled approximately $4.9 billion, yielding a book-to-bill ratio of 1.1 and boosting the company's backlog to $48.7 billion.

Insight into Future Growth

Leidos has enhanced its fiscal 2026 guidance, now projecting revenues between $18.20 billion and $18.40 billion, along with an expected adjusted EBITDA margin in the mid-13% range. This elevated outlook reflects the firm's confidence in sustained contracts and market demand.

Key Contracts Secured:

• - A $475 million contract from the U.S. Air Force for F-16 support.
• - A $456 million deal with the General Services Administration for comprehensive military health services.
• - Additional contracts include support for the U.S. Air Force's electronic warfare missions and the Department of Homeland Security.

Conclusion

The consistently strong performance from Leidos showcases the company's resilience and growth trajectory in a competitive landscape. As they continue to invest in strategic initiatives, the outlook remains promising for both Leidos and its stakeholders, further establishing its leading role in national security and healthcare solutions.

For investor inquiries, the earnings conference call will commence on August 4, 2026, at 8 A.M. Eastern Time, with a live broadcast available on Leidos’ Investor Relations website. More details on this event and financial updates are expected to provide further insights into the company's strategic direction and financial health.