Leidos posts record Q2 as NorthStar 2030 gains traction

Leidos posted record second-quarter results, driven by accelerating execution of the NorthStar 2030 growth strategy. 

Q2 at a glance:

• Revenue: Q2 record $4.6 billion, up 7% year-over-year (4% organically) 

• Adjusted EBITDA margin: 13.8%, best-in-class 

• Operating cash flow: Q2 record of nearly $800 million 

• Net bookings: $4.9B+, for a book-to-bill ratio of 1.1

“Our second quarter results once again demonstrate the strength and resilience of the Leidos portfolio — and the value of our NorthStar 2030 strategy,” CEO Tom Bell said on this morning’s earnings call. “Customer procurement activity is beginning to accelerate, so we anticipate continued, positive bookings momentum through the rest of the year.”

Leidos raised the midpoint of its 2026 guidance by $100 million in revenue and $0.05 in earnings per share, and operating cash flow guidance by $50 million.

Defense: Growth accelerating, margins expanding

Leidos Defense posted accelerating revenue growth, expanding margins, and a book-to-bill ratio of 2.2 for the quarter (1.9 over the trailing twelve months), giving the company confidence in the segment’s robust business outlook.

Notably, those bookings do not yet reflect several major Defense tech programs begun this year, such as:

• An over $1 billion framework agreement with the Department of War to deliver 3,000 Low-Cost Containerized Munitions by 2030,

• A unique position in the testing phase of the Navy’s next generation medium unmanned surface vessel, positioning the company for a potential production award in Q4,

• And a recent award to provide sensor payloads for an additional 18 missile warning and tracking satellites in support of Golden Dome for America.

Leidos Defense and Leidos Digital demonstrated the company’s “One Leidos” approach during the U.S. Army’s recent Operation Jailbreak hackathon, where Leidos engineers rapidly developed and deployed secure, open APIs that enabled the company’s hardware to integrate seamlessly with the Army’s evolving command and control architecture.

Importantly, Bell said, Leidos demonstrated those same capabilities on non-Leidos systems, validating secure interoperability using open and documented standards. “That performance reinforced Leidos' leadership in open architectures and represents a major step in helping the Pentagon rid themselves of a huge issue — the prevention of seamless battlefield understanding and command-and-control due to proprietary software vendor lock." 

Homeland, Intelligence & Digital: Broad-based growth

Homeland led all Leidos segments in growth this quarter, with 32% total and 15% organic growth, reflecting robust demand in commercial energy infrastructure and domestic and international air traffic management, along with some benefit from Foreign Exchange movements.

The Intelligence and Digital segment maintained its growth rate from Q1, driven principally by strong demand from the Intelligence Community. Profitability increased significantly in both Defense and Homeland from Q1 levels, which the company attributes to strong program execution.

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_{Certain statements in this release contain or are based on "forward-looking" information within the meaning of the Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by words such as "expects," "intends," "plans," "anticipates," "believes," "estimates," "guidance" and similar words or phrases. Forward-looking statements in this release include, among others, estimates of our future growth, strategy and financial and operating performance, including future revenues, adjusted EBITDA margins, diluted EPS (including on a non-GAAP basis) and cash flows provided by operating activities, as well as statements about our business contingency plans, government budgets and spending, uncertainties in tax due to new tax legislation or other regulatory developments, strategy, planned investments including the pending joint venture, sustainability goals and our future dividends, share repurchases, capital expenditures, debt repayments, acquisitions, dispositions and cash flow conversion. These statements reflect our belief and assumptions as to future events that may not prove to be accurate.} 

_{Actual performance and results may differ materially from those results anticipated by our guidance and other forward-looking statements made in this release depending on a variety of factors, including, but not limited to: developments in the U.S. government defense and non-defense budgets, including budget reductions, sequestration, implementation of spending limits or changes in budgetary priorities, continuation of the U.S. government shutdown and other or future delays in the U.S. government budget process, or the U.S. government’s failure to raise the debt ceiling, which increases the possibility of a default by the U.S. government on its debt obligations, related credit-rating downgrades, or an economic recession; uncertainties in tax due to new tax legislation or other regulatory developments; deterioration of economic conditions or weakening in credit or capital markets; uncertainty in the consequences of current and future geopolitical events; inflationary pressures and fluctuations in interest rates; delays in the U.S. government contract procurement process or the award of contracts and delays or loss of contracts as a result of competitor protests; changes in U.S. government procurement rules, regulations and practices; our compliance with various U.S. government and other government procurement rules and regulations; governmental reviews, audits and investigations of our company; our ability to effectively compete and win contracts with the U.S. government and other customers; our ability to respond rapidly to emerging technology trends, including the use of artificial intelligence; our reliance on information technology spending by hospitals/healthcare organizations; our reliance on infrastructure investments by industrial and natural resources organizations; energy efficiency and alternative energy sourcing investments; investments by U.S. government and commercial organizations in environmental impact and remediation projects; the effects of an epidemic, pandemic or similar outbreak may have on our business, financial position, results of operations and/or cash flows; our ability to attract, train and retain skilled employees, including our management team, and to obtain security clearances for our employees; our ability to accurately estimate costs, including cost increases due to inflation, associated with our firm-fixed-price contracts and other contracts; resolution of legal and other disputes with our customers and others or legal or regulatory compliance issues; cybersecurity, data security or other security threats, system failures or other disruptions of our business; our compliance with international, federal, state and local laws and regulations regarding privacy, data security, protection, storage, retention, transfer, disposal and other processing, technology protection and personal information; the damage and disruption to our business resulting from natural disasters and the effects of climate change; our ability to effectively acquire businesses and make investments; our ability to maintain relationships with prime contractors, subcontractors and joint venture partners; our ability to manage performance and other risks related to customer contracts; the failure of our inspection or detection systems to detect threats; the adequacy of our insurance programs, customer indemnifications or other liability protections designed to protect us from significant product or other liability claims, including cybersecurity attacks; our ability to manage risks associated with our international business; our ability to comply with the U.S. Foreign Corrupt Practices Act, the U.K. Bribery Act of 2010 and similar worldwide anti-corruption and anti-bribery laws and regulations; our ability to protect our intellectual property and other proprietary rights by third parties of infringement, misappropriation or other violations by us of their intellectual property rights; our ability to prevail in litigation brought by third parties of infringement, misappropriation or other violations by us of their intellectual property rights; our ability to declare or increase future dividends based on our earnings, financial condition, capital requirements and other factors, including compliance with applicable law and our agreements; our ability to grow our commercial health and infrastructure businesses, which could be negatively affected by budgetary constraints faced by hospitals and by developers of energy and infrastructure projects; our ability to successfully integrate acquired businesses; and our ability to execute our business plan and long-term management initiatives effectively and to overcome these and other known and unknown risks that we face.}

_{These are only some of the factors that may affect the forward-looking statements contained in this release. For further information concerning risks and uncertainties associated with our business, please refer to the filings we make from time to time with the U.S. Securities and Exchange Commission (SEC), including the "Risk Factors," "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Legal Proceedings" sections of our latest Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, all of which may be viewed or obtained through the Investor Relations section of our website at www.leidos.com.} 

_{All information in this release is as of August 4, 2026. Leidos expressly disclaims any duty to update the guidance or any other forward-looking statement provided in this release to reflect subsequent events, actual results or changes in Leidos' expectations. Leidos also disclaims any duty to comment upon or correct information that may be contained in reports published by investment analysts or others.}

_{This post includes non-GAAP financial information, including adjusted EBITDA margin, which should be considered supplemental to, not a substitute for, or superior to, the financial measure calculated in accordance with GAAP. The Company believes that these non-GAAP financial measures provide users of our financial information with useful supplemental information that enables a better comparison of our performance across periods. There are a number of limitations related to the use of these non-GAAP financial measures and their nearest GAAP equivalents. For example, the Company’s definitions of non-GAAP financial measures may differ from non-GAAP financial measures used by other companies. For a description of the non-GAAP financial information included herein, and reconciliations to the most directly comparable GAAP measure, see our earnings release.}