Professional Services
Leidos reported Q2 FY2026 revenue growth of 7.2% driven by the Entrust acquisition and homeland strength, but operating income fell 10% as higher costs and integration expenses weighed on profitability, while backlog and cash flow trends remained robust.
Key risk: Integration and Goodwill Impairment Risk from Large Acquisitions
The $2.4B Entrust acquisition significantly increased goodwill to $7.66B and intangible assets, and any failure to integrate effectively or achieve expected synergies could lead to asset impairments and operating disruptions.
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