Leidos Q2 Revenue Hits $4.6B, Raises Full-Year Outlook on Strong Defense Demand
LDOS sits 21% above its 52-week low of $98.86.
Summary
Leidos posted Q2 revenue of $4.56 billion, up 7% year-over-year, driven by defense tech, energy, and intelligence demand. Non-GAAP diluted EPS rose 2% to $3.26, while adjusted EBITDA margin compressed to 13.8% from 15.2% a year ago due to acquisition and restructuring costs. The company raised its full-year 2026 guidance, lifting the low end of adjusted EPS to $12.20 from $12.10, keeping the high end at $12.50, and raising the low end of revenue to $18.2B from $18.0B, with the high end at $18.4B. Bookings reached $4.9 billion, a 1.1 book-to-bill, pushing backlog to $48.7 billion. This follows a string of major contract wins, including a $2.7 billion Army hypersonics award and a $717 million Air Force task order, underscoring a robust pipeline. Free cash flow of $761 million provides ample capacity for debt reduction and shareholder returns. 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%.
At the time of this announcement, LDOS was trading at $119.84 on NYSE in the Trade & Services sector, with a market capitalization of approximately $14.9B. The 52-week trading range was $98.86 to $205.77. This news item was assessed with positive market sentiment and an importance score of 9 out of 10. Source: PR Newswire.