Leidos Q2 Revenue Hits $4.56B, Raises Full-Year Guidance on Strong Defense Demand

summarizeSummary

Leidos reported Q2 FY2026 revenue of $4.56 billion (+7% YoY) and non-GAAP diluted EPS of $3.26, beating expectations and raising full-year guidance across revenue, EPS, and cash flow.

check_boxKey Events · Earnings and Guidance · LDOS

• Q2 Revenue and Earnings Beat

  Revenue of $4.56 billion grew 7% year-over-year, with non-GAAP diluted EPS of $3.26, up 2% and above the high end of prior implied guidance.

• Full-Year Guidance Raised

  FY2026 revenue guidance raised to $18.20–$18.40 billion (from $18.00–$18.40 billion), non-GAAP diluted EPS to $12.20–$12.50 (from $12.10–$12.50), and operating cash flow to ~$1.85 billion (from ~$1.80 billion).

• Record Backlog and Bookings

  Net bookings of $4.9 billion (book-to-bill 1.1x) drove total backlog to $48.7 billion, up 5% year-over-year, with funded backlog surging 44% to $10.2 billion.

• Strong Cash Flow and Capital Deployment

  Operating cash flow of $793 million (224% conversion) funded $72 million in share repurchases, $55 million in dividends, and $300 million in debt paydown, ending with $748 million cash.

auto_awesomeAnalysis · LDOS · Technology

Leidos delivered a strong second quarter with revenue up 7% to $4.56 billion, driven by defense tech, energy, and intelligence demand. Non-GAAP diluted EPS of $3.26 beat the high end of prior implied guidance, and the company raised its full-year revenue, EPS, and cash flow outlook. Operating cash flow surged to $793 million, funding $72 million in buybacks and $300 million in debt reduction. Backlog grew to $48.7 billion, with funded backlog up 44%, signaling sustained momentum. The results reinforce Leidos's position as a prime beneficiary of elevated defense and infrastructure spending.