Revenue Growth Driven by Core Business Expansion
Leidos grew Q2 2026 revenue to $4.4B, up $155M or 3.7% YoY from $4.245B, indicating continued demand for its defense and government IT services despite a challenging macro environment.
Leidos Holdings, Inc. is expected to release its Q3 2026 10-Q filing in the upcoming earnings season. Last quarter: Leidos (LDOS) reported Q2 2026 revenue of $4.4B (+3.7% YoY), but net income fell 9.6% to $328M as higher costs and a significant acquisition-driven balance sheet expansion weighed on margins and cash balances.
Drawn from management commentary in the Q2 2026 10-Q:
Leidos grew Q2 2026 revenue to $4.4B, up $155M or 3.7% YoY from $4.245B, indicating continued demand for its defense and government IT services despite a challenging macro environment.
Cost of revenue rose 4.3% YoY to $3.639B, outpacing revenue growth of 3.7%, which compressed operating margin from 12.5% to 11.5%. Operating income declined 4.2% to $508M, signaling cost pressures in contract execution.
Total assets surged 16.6% YoY to $15.387B while total liabilities rose 16.1% to $10.323B, strongly suggesting a significant acquisition was completed during the period. Investing cash outflows of -$2.359B (vs. -$22M prior year) and financing inflows of $1.393B corroborate this.
Revenue
$4.4B
++3.65% YoY
EPS (Basic)
$2.60
-6.81% YoY
Operating Income
$508M
-4.15% YoY
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