Leidos lifts FY 2026 outlook after $4.56 billion quarter

Leidos Holdings, Inc. (NYSE: LDOS) reported second-quarter fiscal 2026 revenue of $4.56 billion for the period ended July 3, 2026, up 7% from a year earlier and about 4% organically, according to a press release furnished with an Aug. 4 Form 8-K. The company also raised its full-year 2026 guidance for revenue, non-GAAP diluted EPS, and operating cash flow.

Net income was $356 million, or $2.81 per diluted share, down 9% and 7%, respectively, from the year-ago quarter. Non-GAAP diluted EPS was $3.26, up 2%. Adjusted EBITDA was $631 million, a 13.8% margin. Operating cash flow was $793 million, and non-GAAP free cash flow was $761 million. At quarter-end, Leidos held $748 million in cash and cash equivalents and $6.0 billion of debt.

Net bookings totaled $4.9 billion, a 1.1 book-to-bill. Backlog reached $48.7 billion, including $10.2 billion funded. Notable awards cited included a $475 million U.S. Air Force Avionics Intermediate Shop follow-on, a $456 million GSA Military OneSource contract, and a $350 million Air Force electronic warfare mission-support modification.

Leidos raised FY 2026 revenue guidance to $18.20 billion to $18.40 billion from $18.00 billion to $18.40 billion, non-GAAP diluted EPS to $12.20 to $12.50 from $12.10 to $12.50, and operating cash flow to approximately $1.85 billion from approximately $1.80 billion. Adjusted EBITDA margin guidance remained mid-13%.

By the numbers

• Q2 revenue: $4.56 billion (+7% y/y; ~4% organic)
• Diluted EPS: $2.81 GAAP / $3.26 non-GAAP
• Net bookings: $4.9 billion; backlog: $48.7 billion
• FY 2026 revenue guide: $18.20–$18.40 billion
• FY 2026 non-GAAP EPS guide: $12.20–$12.50

Sources

1. Leidos Holdings, Inc. Form 8-K / Exhibit 99.1, accession 0001336920-26-000243

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