Leidos Q3 profit beats estimates on cost controls; lifts FY EPS outlook
LDOS•Leidos reported Q3 adjusted EPS of $3.62, above the $3.03 estimate, while revenue of $4.63 billion missed the $4.71 billion estimate. It raised its FY26 adjusted EPS and operating cash flow outlook, but lowered its revenue forecast.
1. Quarterly results
Leidos Q3 revenue rose 4% year over year to $4.63 billion, below analyst expectations of $4.71 billion. Adjusted EPS rose 19% to $3.62, beating the $3.03 estimate; net income was $413 million.
2. Updated FY26 outlook
The company now expects FY26 revenue of $18.00 billion to $18.20 billion, down from its prior forecast of $18.20 billion to $18.40 billion. It raised its adjusted EPS outlook to $12.50-$12.70 from $12.20-$12.50 and expects operating cash flow of about $1.90 billion, up from $1.85 billion.
3. Drivers
Revenue growth came from demand for defense technology products, air traffic management solutions and intelligence mission support, as well as the acquisition of ENTRUST Solutions. These gains offset declines in some managed health and federal civilian IT programs. Profitability was supported by improved program performance, cost management and a lower effective tax rate.
