Leidos raises FY outlook as Q1 revenue reaches $4.4B

Leidos Holdings (NYSE:LDOS) reported solid financial results for the first quarter of 2026, characterized by steady top-line expansion and a significant upward revision to its full-year guidance.

The defense and information technology contractor recorded revenue of $4.40 billion, a 4% increase compared to the prior-year period, with organic growth contributing 3% to the total.

Profitability remained robust throughout the quarter, with Leidos reporting net income of $335 million, resulting in a diluted earnings per share (EPS) of $2.56.

On a non-GAAP basis, diluted EPS rose 5% year-over-year to $3.13.

The company’s adjusted EBITDA for the quarter reached $614 million, representing an adjusted EBITDA margin of 14%, as management successfully balanced program execution with strategic investments in digital modernization and cybersecurity.

A major milestone for the quarter was the successful completion of the Entrust acquisition, a move designed to enhance the company’s capabilities in secure identity and credentialing solutions for government and commercial clients.

The integration of this portfolio is expected to provide high-margin synergies as federal agencies prioritize zero-trust architecture and secure digital infrastructure.

The company’s operational visibility remains high, with a total backlog standing at $48.4 billion at the end of the first quarter.

This substantial pipeline of funded and unfunded work underscores the consistent demand for Leidos' specialized services in defense, intelligence, and civil health markets.

Leidos ended the quarter with $6.3 billion in debt and continues to maintain a disciplined approach to capital management.

The Board of Directors declared a quarterly cash dividend of $0.43 per share, payable to shareholders of record as of mid-June.