Leidos Q2 Revenue Hits $4.56B, Raises Full-Year Guidance on Strong Defense Demand
LDOS sits 24% above its 52-week low of $98.86.
Summary
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. Shares jumped nearly 10%.
Updated with a Reuters report · What changed
Updates
· Reuters — Leidos lifted the low end of 2026 adjusted EPS guidance to $12.20 from $12.10, keeping the high end at $12.50, and raised the low end of revenue guidance to $18.2B from $18.0B, with the high end at $18.4B. Shares jumped nearly 10%.
· PR Newswire — Adjusted EBITDA margin compressed to 13.8% from 15.2% a year ago due to acquisition and restructuring costs. Free cash flow was $761 million.
Key Events · Earnings and Guidance · LDOS
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New · · Reuters
Shares Jump Nearly 10%
Shares jumped nearly 10%.
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Updated · · Reuters
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). The low end of revenue guidance was raised to $18.2B from $18.0B, with the high end at $18.4B.
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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.
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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.
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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.
Analysis · 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, and shares jumped nearly 10%.
How filings like this one have moved
In the 30 days to Oct 2, 2026, 36.4% of the 1070 measured filings Wiseek scored 8 moved their stock by 5% or more by the next session's close. The median move was -0.57%. These are measured outcomes after filings of this importance, not a forecast for this one.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, LDOS was trading at $123.00 on NYSE in the Technology sector, with a market capitalization of approximately $14.9B. The 52-week trading range was $98.86 to $205.77. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.