Core Insights - Leidos Holdings, Inc. reported strong financial results for Q2 FY2025, with significant growth in earnings and revenue, driven by a differentiated portfolio and alignment with government priorities [2][4][8] Financial Performance - Revenues for Q2 FY2025 reached $4.25 billion, a 3% increase from $4.13 billion in Q2 FY2024, attributed to heightened demand across all customer segments, particularly in Defense Systems [4][8] - Net income for the quarter was $393 million, or $3.01 per diluted share, reflecting year-over-year increases of 21% and 27%, respectively [4][8] - Adjusted EBITDA was $647 million, up 16% year-over-year, with an adjusted EBITDA margin of 15.2%, compared to 13.5% in the prior year [5][8] Cash Flow and Capital Management - The company generated $486 million in net cash from operating activities, with free cash flow of $457 million for the quarter [6][8] - Leidos made a strategic acquisition of Kudu Dynamics for $291 million, enhancing its capabilities in artificial intelligence-enabled cyber solutions [6][8] Business Awards and Backlog - Net bookings totaled $3.9 billion, resulting in a backlog of $46.2 billion, with $7.1 billion funded [8][9] - Significant contract awards included a $1.3 billion contract from the Intelligence Community and a $350 million subcontract for the U.S. Air Force [9][10] Forward Guidance - The company raised its fiscal year 2025 guidance, projecting revenues between $17.00 billion and $17.25 billion, and non-GAAP diluted EPS between $11.15 and $11.45 [11][8]

EXHIBIT 99.1 Leidos Posts Strong Second Quarter Results and Raises Full-Year Guidance RESTON, Va., August 5, 2025 – Leidos Holdings, Inc. (NYSE: LDOS) today reported financial results for the second quarter of fiscal year 2025, highlighted by robust earnings and revenue growth. "Our second quarter results showcase the strength of our differentiated portfolio and the alignment of our NorthStar 2030 strategy with the priorities of the new Administration," said Leidos Chief Executive Officer Tom Bell. "With re ...

Analysts on Wall Street project that Leidos (LDOS) will announce quarterly earnings of $2.63 per share in its forthcoming report, representing no change year over year. Revenues are projected to reach $4.23 billion, increasing 2.4% from the same quarter last year. The current level reflects a downward revision of 0.8% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this per ...

Core Insights - ZenaTech's subsidiary ZenaDrone has upgraded its membership to the Advocacy level with AUVSI, allowing it to join key committees that influence drone policy and procurement [1][2] - This strategic move is aimed at enhancing ZenaDrone's role in shaping drone policies and deepening relationships with stakeholders in the defense sector [1][2] - The involvement comes at a crucial time as recent government directives are pushing for the adoption of secure, domestically produced drone technologies [3] Company Overview - ZenaTech specializes in AI drones, Drone as a Service (DaaS), enterprise SaaS, and Quantum Computing solutions, focusing on mission-critical applications [5] - The company has been expanding its drone design and manufacturing capabilities since 2017, serving sectors such as agriculture, defense, logistics, and land surveying [5][6] - ZenaDrone's product lineup includes the ZenaDrone 1000 for agriculture and defense, the IQ Nano for inventory management, and the IQ Square for land surveying [6] Industry Context - AUVSI, founded in 1972, is the largest nonprofit organization promoting uncrewed and autonomous systems, connecting government, industry, and academia [4] - The Defense Advocacy Committee influences defense acquisition policies, while the Air Advocacy Committee focuses on expanding drone operations in national airspace [4] - Recent Executive Orders from the White House and Department of Defense are accelerating support for NDAA-compliant drone technologies, necessitating practical policy frameworks [3]

Company Overview - Leidos (LDOS) is expected to report flat earnings of $2.63 per share for the quarter ended June 2025, with revenues projected at $4.23 billion, reflecting a 2.4% increase year-over-year [3][12] - The consensus EPS estimate has been revised down by 0.76% over the last 30 days, indicating a reassessment by analysts [4] Earnings Expectations - The earnings report is anticipated to be released on August 5, and the stock may rise if actual results exceed expectations, while a miss could lead to a decline [2] - Leidos has an Earnings ESP of +1.46%, suggesting a likelihood of beating the consensus EPS estimate, supported by a Zacks Rank of 2 (Buy) [12][10] Historical Performance - In the last reported quarter, Leidos exceeded the expected earnings of $2.47 per share by delivering $2.97, resulting in a surprise of +20.24% [13] - The company has consistently beaten consensus EPS estimates in the last four quarters [14] Industry Context - DXC Technology, another player in the IT services industry, is expected to report a decline in earnings per share to $0.64, a year-over-year decrease of -13.5%, with revenues projected at $3.07 billion, down 5.2% [18][19] - DXC Technology has an Earnings ESP of -3.13% and a Zacks Rank of 2 (Buy), making it challenging to predict a beat on the consensus EPS estimate [20]

Core Insights - Leidos has been awarded a $128 million task order by the FBI for agile software development and modernization of the Next Generation Identification (NGI) system, which serves as the bureau's biometric and criminal history repository [1][4] Company Overview - Leidos is a leader in industry and technology, serving both government and commercial customers with innovative digital and mission solutions. The company is headquartered in Reston, Virginia, and employs approximately 47,000 people globally. For the fiscal year ending January 3, 2025, Leidos reported annual revenues of about $16.7 billion [5] Project Details - The NGI system's repository enhances investigative capabilities for the FBI and other law enforcement and intelligence agencies. It is managed by the FBI's Criminal Justice Information Services (CJIS) division and is recognized as the world's largest electronic repository of biometric and criminal history information. Leidos has improved the system's accuracy for fingerprint identification to over 99.6 percent [2][3] - The task order includes a one-year base period of performance with four option years, and Leidos will enhance the system with mobile applications, biometric algorithms, automated testing, and integration of emerging technologies [4]

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside- audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.09% increase. Leidos is holding a Zacks Rank of #1 (Strong Buy) right now. Looking at its valuation, Leidos is holding a Forward P/E ratio of 15.02. Its industry sports an average Forward P/E of 19.78, so one might conclud ...

Core Insights - Mobix Labs Inc. will participate in the 2025 Leidos Supplier Innovation & Technology Symposium on August 7, 2025, in Washington, D.C. [1] - The company's wireless division, RaGE Systems, will showcase innovations in RF and wireless technologies, including millimeter-wave sensor development and advanced communication solutions [2][4] - The symposium serves as a platform for collaboration between Leidos technology leaders and strategic suppliers, highlighting advancements in defense and commercial technologies [3] Company Overview - Mobix Labs is a U.S.-based supplier of advanced connectivity solutions targeting aerospace, defense, AI, and 5G infrastructure markets [9] - The company specializes in performance-critical RF, optical, and electromagnetic interference interconnect technologies through proprietary semiconductor IP and vertically integrated manufacturing [9]

Core Viewpoint - Palo Alto Networks has completed the acquisition of Protect AI, enhancing its capabilities in securing AI applications and models, thereby establishing itself as a leader in comprehensive AI security solutions [1][2][3]. Group 1: Acquisition Details - The acquisition of Protect AI is aimed at integrating its advanced technology and expertise into Palo Alto Networks' Prisma® AIRS™, which is described as the industry's most comprehensive AI security platform [2][4]. - Protect AI's technology will enable Palo Alto Networks to address the evolving security needs of organizations that are increasingly adopting AI across various sectors, including finance, government, healthcare, manufacturing, and retail [1][4]. Group 2: Security Enhancements - The combination of Protect AI and Palo Alto Networks will provide a range of security features, including model scanning, posture management, AI red teaming, runtime protection, and AI agent security, which are essential for managing the new attack surfaces created by AI ecosystems [4][5]. - The integration is expected to help businesses confidently deploy AI-driven innovations while maintaining a strong security posture throughout the AI lifecycle [5][6]. Group 3: Industry Impact - The acquisition is seen as a significant advancement in delivering secure AI solutions, particularly in regulated industries and national security environments where the risks associated with AI adoption are heightened [7]. - Leidos, a strategic partner, is already utilizing Prisma AIRS to demonstrate safe AI acceleration for government customers, indicating strong market anticipation for a unified security platform [6][7]. Group 4: Customer Insights - Early adopters of Prisma AIRS, such as TELUS Digital, express excitement about the platform's capabilities, particularly in monitoring API calls and detecting malicious activities performed by AI tools [8].

Group 1 - Leidos (LDOS) has shown strong year-to-date performance, returning approximately 13.2%, outperforming the average gain of 7.8% in the Computer and Technology sector [4] - The Zacks Rank for Leidos is currently 2 (Buy), indicating a favorable outlook based on earnings estimate revisions and improving earnings outlooks [3] - Leidos is part of the Computers - IT Services industry, which has seen an average loss of 9.9% this year, further highlighting Leidos' strong performance relative to its peers [6] Group 2 - Creative Realities, Inc. (CREX) has also outperformed the sector with a year-to-date increase of 38%, and its consensus EPS estimate has risen by 196.8% over the past three months [5] - The Computers - IT Services industry, which includes Leidos, is ranked 91 in the Zacks Industry Rank, while the Internet - Software industry, which includes Creative Realities, is ranked 67 and has gained 15.9% year to date [6] - Investors should continue to monitor both Leidos and Creative Realities, Inc. for potential sustained strong performance in the Computer and Technology sector [7]