Leidos Delivers Strong Third Quarter and Enhances Full-Year Guidance
Q3 revenue $4.63B up 4% y/y; non-GAAP EPS $3.62 up 19%; FY26 guidance raised a third straight quarter; dividend up 4.7% to $0.45.
What this release says
Leidos reported third-quarter fiscal 2026 revenue of $4.63 billion, up 4% year over year, with GAAP diluted EPS of $3.28 and non-GAAP diluted EPS of $3.62, up 19%. Growth came from defense tech, air traffic management and intelligence work plus the ENTRUST Solutions acquisition, partly offset by declines in managed health and federal civilian IT. The release says the company raised its 2026 guidance for the third straight quarter and declared a $0.45 quarterly dividend.
Key figures
- Third-quarter revenue
- $4.63 billion
- Net income
- $413 million
- Diluted EPS (GAAP)
- $3.28
- Non-GAAP diluted EPS
- $3.62
- Cash flows from operations
- $523 million
- Quarterly dividend
- $0.45 per share
Positive for shareholders
- Revenue rose 4% and non-GAAP diluted EPS rose 19% year over year.
- Management raised 2026 guidance for the third consecutive quarter.
- Non-GAAP free cash flow was $476 million for the quarter.
- Homeland revenue grew 32%, helped by air traffic management demand and the ENTRUST acquisition.
Negative for shareholders
- Health revenue fell 12% on expected program shifts and reduced managed health volumes.
- GAAP net income included $12 million in costs tied to recent strategic corporate transactions.
- Health segment operating margin fell from 26.8% to 22.5%.
Written by Quantisnow AI from this release. Not financial advice.
Key terms
- Adjusted EBITDA:
- Earnings before interest, taxes, depreciation and amortization, further adjusted by the company for certain items, shown as a non-GAAP measure.
- Non-GAAP:
- Financial measures that exclude or adjust items beyond standard accounting rules, so the company can show an alternative view of performance.
- Organic revenue:
- Revenue from the underlying business, excluding the effect of acquisitions and divestitures made within the prior year.
FAQ
Did Leidos raise its 2026 guidance?
Yes, the release says Leidos enhanced its 2026 guidance for the third consecutive quarter.
What is Leidos paying in dividends?
The Board declared a cash dividend of $0.45 per share, payable December 31, 2026, to holders of record on December 15, 2026.
Why did Leidos Health revenue decline?
The release attributes the 12% decline to expected program shifts and reduced volumes on managed health services programs.
Historical context for LDOS
Across the 25 sessions after earlier LDOS headlines, the stock closed higher 12 times and lower 13 times, with a median move of 2.3% in either direction. This shows timing only: many things move a stock in a session, and these figures do not show that any headline caused a move.
| Session | Earlier headline | LDOS | SPY |
|---|---|---|---|
| Nov 3, 2026 | Leidos mobilizes supply chain to scale production of thousands of U.S. cruise missiles | -6.5% | +0.3% |
| Nov 2, 2026 | Leidos Holdings, Inc. Increases Quarterly Cash Dividend by 4.7% | +0.8% | -0.5% |
| Oct 28, 2026 | U.S. Cyber Command selects Leidos to deploy unified cyber planning platform | -0.0% | +0.3% |
| Oct 22, 2026 | Leidos bringing AI advances to Pentagon logistics system | +4.3% | -1.2% |
| Oct 21, 2026 | U.S. Cyber Command selects Leidos for full-spectrum cyber operations | +1.2% | +0.5% |
| Oct 14, 2026 | MOD extends Leidos LCST contract, continuing critical logistics support to UK defence | +0.7% | -1.1% |
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