Leidos reported a strong second quarter with revenues of $4.56 billion, up 7% year-over-year, and net income of $356 million, or $2.81 per diluted share. On a non-GAAP basis, adjusted diluted EPS was $3.26 and adjusted EBITDA was $631 million (13.8% margin). Management raised fiscal 2026 guidance for revenue, non-GAAP diluted EPS and operating cash flow.

Financial Highlights

  • Revenues: $4,558 million for the quarter, up 7% year-over-year (4% organic growth).
  • Net income: $356 million; diluted GAAP EPS: $2.81 for the quarter.
  • Adjusted diluted EPS (non-GAAP): $3.26, up 2% year-over-year.
  • Adjusted EBITDA (non-GAAP): $631 million; adjusted EBITDA margin: 13.8%.
  • Operating cash flow: $793 million for the quarter; non-GAAP free cash flow: $761 million.

Business Highlights

  • Booked $4.9 billion of new contract awards in the quarter (book-to-bill 1.1), ending backlog $48.7 billion with $10.2 billion funded.
  • Segment performance: Intelligence & Digital revenues grew ~6%; Homeland revenues rose 32% (including Entrust acquisition); Defense revenues increased ~6%; Health revenues declined ~8% driven by lower medical disability exam volumes.
  • Key contract awards include significant wins across defense and public sector: $475M U.S. Air Force AIS PIS follow-on, $456M GSA Military OneSource, $350M Air Force electronic warfare modification, $325M DHA RHRP modification, $270M CBP MEM Systems IDIQ, and an $88M hypersonics test-bed OTA.
  • Completed organizational realignment into four reportable segments (Intelligence & Digital, Health, Homeland, Defense) and continued integration activity (Entrust acquisition reflected in Homeland results and backlog).

Original SEC Filing:

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