Leidos lifts annual forecasts on strong defense demand

Defense supplier Leidos Holdings lifted the lower end of its 2026 profit and revenue forecasts, banking on strong demand for military technology amid heightened geopolitical tensions.

Shares of the company rose nearly 10% in morning trading.

Here are some details:

• Defense contractors have been benefiting as the U.S. government prioritizes military spending, with Trump proposing a record military budget of $1.5 trillion for fiscal 2027.
• Leidos reported increased demand for defense tech products, energy and air traffic management solutions as well as support for intelligence missions.
• It lifted the lower end of its 2026 adjusted profit per share forecast to $12.20 from $12.10, while keeping the upper end unchanged at $12.50.
• The midpoint of the new forecast is above analysts' expectations of $12.33 a share, according to data compiled by LSEG.
• Leidos expects full-year revenue between $18.2 billion and $18.4 billion, compared with $18 billion to $18.4 billion expected previously.
• It posted second-quarter revenue of $4.56 billion, up 7% from last year and higher than Wall Street estimates of $4.44 billion.