Leidos Holdings, Inc. reported a revenue increase of 3% for the fiscal year ending January 2, 2026, totaling $17.2 billion, compared to $16.7 billion in the previous fiscal year. The company's operating income rose by 15% to $2.1 billion, with an operating margin of 12.3%, up from 11.0% in fiscal 2024. Net income attributable to Leidos common stockholders also saw a significant increase of 15%, reaching $1.4 billion, compared to $1.3 billion in the prior year. The growth in revenue and profitability was primarily driven by program wins and increased volumes, although it was partially offset by the completion of certain contracts.
In terms of strategic developments, Leidos completed the acquisition of Savanna Industries, Inc. (Kudu Dynamics) for $293 million, enhancing its capabilities in artificial intelligence-enabled cyber solutions. The acquisition contributed approximately $60 million to revenues in the National Security & Digital segment. Additionally, the company announced plans to acquire Entrust for $2.4 billion, which is expected to close in the first half of fiscal 2026. This acquisition aims to strengthen Leidos' core competencies in engineering and design services.
Operationally, Leidos employed approximately 47,000 individuals globally, with 41,900 based in the United States. The company generated about 87% of its revenues from U.S. government contracts, with significant contributions from the Department of War and the U.S. Intelligence Community. The company reported a total backlog of $49 billion, including $9.7 billion in funded backlog, indicating a strong pipeline for future revenue. The National Security & Digital segment accounted for 44% of total revenues, while Health & Civil contributed 30%, and Defense Systems represented 13%.
Looking ahead, Leidos anticipates continued growth driven by its NorthStar 2030 strategy, which focuses on aligning with customer priorities and enhancing operational efficiencies through digital modernization and automation. However, the company also faces challenges, including competitive pressures in the U.S. government contracting space and potential impacts from budgetary constraints. The ongoing geopolitical landscape and economic conditions may also influence future performance, particularly in defense and homeland security spending.
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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