Leidos Q4 Revenue $4.21B, EPS Up 19%, to Acquire Entrust for $2.4B
Leidos reported fourth-quarter revenue of $4.21B (down 4% YoY) with GAAP EPS rising 19% to $2.53, while full-year sales increased 3% to $17.17B. The company generated Q4 free cash flow of $452M (127% conversion), declared a $0.43 dividend and agreed to acquire Entrust for $2.4B.
1. Financial Results
Leidos delivered Q4 revenue of $4.21B, down 4% year-over-year, with GAAP EPS rising 19% to $2.53 and non-GAAP EPS increasing 16% to $2.76. Full-year revenue grew 3% to $17.17B and non-GAAP EPS climbed 17% to $11.99, driven by efficiency gains and strong demand in priority markets.
2. Cash Flow and Capital Allocation
Net cash from operations reached $495M in Q4, generating free cash flow of $452M with a 127% conversion rate—the highest fourth-quarter performance in company history. For the full year, free cash flow rose 26% to $1.63B, supporting a $0.43 per-share dividend and $305M in share repurchases.
3. Entrust Acquisition and Dividend
The board declared a $0.43 per-share dividend payable March 31, 2026, to holders of record on March 16. Post-quarter, Leidos agreed to acquire power design firm Entrust for $2.4B, subject to customary adjustments, to expand its energy infrastructure engineering capabilities.