Leidos Holdings, Inc. reported a notable increase in financial performance for the third quarter of fiscal 2025, with revenues reaching $4.469 billion, a 6.7% increase from $4.190 billion in the same period last year. For the nine months ending October 3, 2025, revenues totaled $12.967 billion, up 5.4% from $12.297 billion in the prior year. The company’s operating income also saw growth, rising to $535 million for the quarter, compared to $516 million a year earlier, and $1.636 billion for the nine-month period, up from $1.406 billion.
The increase in revenue was attributed to several factors, including program wins and a net increase in volumes, alongside $26 million in revenue recognized from the acquisition of Kudu Dynamics, which was completed in May 2025. This acquisition, which added artificial intelligence-enabled cyber capabilities to Leidos' offerings, contributed to the overall growth despite the completion of certain contracts that had previously generated revenue. The company’s operating margin slightly decreased to 12.0% from 12.3% year-over-year for the quarter, while it improved to 12.6% from 11.4% for the nine-month period.
Leidos also reported significant operational developments, including an increase in total assets to $13.542 billion as of October 3, 2025, up from $13.010 billion at the beginning of the fiscal year. The company’s cash and cash equivalents rose to $974 million, compared to $849 million at the start of the year. The workforce expanded to approximately 47,000 employees, reflecting the company’s growth strategy and operational demands. Additionally, the company recorded $17 billion in remaining performance obligations, indicating a strong pipeline of future revenue.
In terms of strategic initiatives, Leidos has been actively managing its capital structure, evidenced by the issuance of $1 billion in senior unsecured notes in February 2025, which were used to refinance existing debt and fund share repurchases. The company repurchased $639 million in stock during the nine months ended October 3, 2025, as part of its ongoing capital return strategy. Looking ahead, Leidos anticipates continued growth driven by government spending, particularly in national security and intelligence sectors, despite potential disruptions from the recent federal government shutdown.
Overall, Leidos Holdings, Inc. is positioned for continued growth, supported by a robust backlog, strategic acquisitions, and a focus on enhancing operational efficiencies. The company remains optimistic about its future performance, with expectations of further revenue recognition from its existing contracts and new business opportunities in both domestic and international markets.
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.
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