Leidos reports strong Q2, raises full-year guidance

Leidos delivered strong earnings and revenue growth for the second quarter of 2025, contributing to robust year-to-date performance that allowed it to raise its performance outlook for the year. 

During the company’s quarterly earnings call this morning, CEO Tom Bell said “these results are especially gratifying given the dynamic market environment through which we are navigating.”

Quarterly net income rose 21% from a year ago, to $393 million, and revenue rose 3% to $4.25 billion. The 15.2% earnings margin was more than 12% better than Q2 2024. 

Bell credited the decisive actions Leidos has taken with its customers, coupled with proactive cost control measures, for allowing the company to raise its 2025 guidance. 

The company now projects full-year earnings per share of $11.15 to $11.45, up from prior guidance of $10.35 to $10.75. Revenue is now expected to be $17 billion to $17.25 billion, up from the prior guidance of $16.9 billion to $17.3 billion. 

Behind the company’s strong performance, Bell cited:

• Leaning on unparalleled customer understanding and proactively engaging customers as their partner to create smarter and more efficient outcomes,
• Wrapping technology, including AI and the Leidos “Golden Bolts,” even more aggressively around products and services to enhance customer effectiveness,
• Aligning all of Leidos around its NorthStar 2030 strategy, which is comprised of five growth pillars: Space and Maritime, Energy Infrastructure, Digital Modernization and Cyber, Mission Software, and Managed Health Services.

“Our customers are moving out to execute programs against significant multi-year funds for essential missions right in our wheelhouse,” he said. 

Bell cited a number of examples of this, including the Golden Dome missile defense initiative, ambitions for a new state-of-the-art air traffic control system and sweeping airport modernization efforts.

“All in all, it’s indeed a very exciting time for all of Leidos.” 

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Certain statements in this announcement constitute “forward-looking statements” within the meaning of the rules and regulations of the U.S. Securities and Exchange Commission (SEC). These statements are based on management’s current beliefs and expectations and are subject to significant risks and uncertainties. These statements are not guarantees of future results or occurrences. A number of factors could cause our actual results, performance, achievements, or industry results to be different from the results, performance, or achievements expressed or implied by such forward-looking statements. These factors include, but are not limited to, the “Risk Factors” set forth in Leidos’ Annual Report on Form 10-K for the fiscal year ended January 3, 2025, and other such filings that Leidos makes with the SEC from time to time. Readers are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date hereof. Leidos does not undertake to update forward-looking statements to reflect the impact of circumstances or events that arise after the date the forward-looking statements were made.