Leidos Q4 Revenue Falls 4% to $4.21B, EBITDA Rises 9%
Leidos posted Q4 2025 revenue of $4.21 billion, down 4% year-over-year due to calendar effects and a six-week government shutdown, while net income rose 19% to $335 million. Adjusted EBITDA increased 9% to $556 million, operating cash flow reached $495 million, and 2026 guidance targets $17.5–17.9 billion in revenue with a mid-13% EBITDA margin.
1. Q4 Revenue and Net Income
Leidos reported Q4 2025 revenue of $4.21 billion, marking a 4% year-over-year decline driven by an extra work week in Q4 2024 and a six-week government shutdown in Q4 2025. Net income climbed 19% to $335 million, reflecting stronger profitability despite lower top-line results.
2. Adjusted EBITDA Growth
Adjusted EBITDA reached $556 million in the quarter, up 9% year-over-year. This improvement was attributed to increased efficiencies on fixed-price programs, enhanced program execution, and disciplined cost control measures.
3. Operating Cash Flow
Net cash provided by operating activities totaled $495 million, supported by robust EBITDA performance, timely collections, and effective working capital management throughout the period.
4. FY 2026 Guidance
For FY 2026, Leidos forecasts revenue between $17.5 billion and $17.9 billion, with an adjusted EBITDA margin in the mid-13% range, underscoring expectations for continued margin expansion and revenue growth.