Leidos Holdings, Inc. reported a revenue increase of 7.2% for the second quarter of fiscal 2026, reaching $4.558 billion compared to $4.253 billion in the same period last year. For the first half of the fiscal year, revenues rose by 5.4% to $8.958 billion from $8.498 billion. However, the company experienced a decline in net income, which fell by 9.4% to $356 million for the quarter and by 8.8% to $691 million for the six-month period. This resulted in earnings per share of $2.81 for the second quarter, down from $3.03 a year earlier.

The financial performance reflects significant operational changes, including the acquisition of Entrust for $2.4 billion, which was completed in March 2026. This acquisition is expected to enhance Leidos' capabilities in energy infrastructure within its Homeland segment. The company also reported a notable increase in its backlog, which rose to $48.7 billion as of July 3, 2026, compared to $46.2 billion a year prior, driven by strong bookings of $4.9 billion and $8.2 billion for the quarter and half-year, respectively.

Operationally, Leidos has restructured its reporting segments into four categories: Intelligence & Digital, Health, Homeland, and Defense. This realignment aims to better reflect the company's capabilities and market focus. The Intelligence & Digital segment saw a revenue increase of 6.5% for the quarter, while the Homeland segment experienced a significant 32% rise, largely attributed to the Entrust acquisition and increased program volumes. Conversely, the Health segment reported a decline in revenues, primarily due to decreased volumes.

Leidos' total assets increased to $15.632 billion as of July 3, 2026, up from $13.493 billion at the beginning of the fiscal year. The company's cash and cash equivalents decreased to $748 million, down from $1.108 billion, while total liabilities rose to $10.296 billion from $8.531 billion. The company remains committed to maintaining liquidity, with a revolving credit facility of up to $1.5 billion and no outstanding borrowings as of the reporting date. Looking ahead, Leidos anticipates continued growth driven by its strategic acquisitions and a focus on government contracts, although it remains cautious about potential impacts from government funding uncertainties.

About Leidos Holdings, Inc.

Leidos Holdings, Inc. is a technology and services company providing mission-critical solutions primarily to government agencies. Its core activities include defense, intelligence, cybersecurity, digital modernization, health, civil infrastructure, and security products. Leveraging advanced science, engineering, and IT capabilities, it delivers software, hardware, and integrated systems to enhance national security, public health, and infrastructure resilience worldwide.

This description was generated via AI from an annual report. Updated about 1 year ago.

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