Leidos misses quarterly revenue estimates on government shutdown impact

Core Viewpoint - Leidos Holdings reported fourth-quarter revenue below Wall Street estimates due to the impact of a six-week U.S. government shutdown, which disrupted operations and orders for defense contractors [1] Financial Performance - Leidos' fourth-quarter revenue was $4.21 billion, a decrease of 3.6% from the previous year and lower than analysts' expectations of $4.31 billion [1] - The company's adjusted profit per share for the fourth quarter was $2.76, exceeding expectations of $2.61, aided by a 160-basis point expansion in adjusted core profit margin and improved cost controls [1] Segment Performance - The health and civil segment, which provides electronic health record systems to the Department of Defense and Veteran Affairs hospitals, experienced a 9.3% drop in sales [1] Future Outlook - Leidos forecasted 2026 adjusted profit per share to be between $12.05 and $12.45, with the midpoint being 4 cents lower than analysts' estimates of $12.29 [1]