Leidos (LDOS) reported $4.21 billion in revenue for the quarter ended December 2025, representing a year-over-year decline of 3.6%. EPS of $2.76 for the same period compares to $2.37 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $4.25 billion, representing a surprise of -1.07%. The company delivered an EPS surprise of +7.6%, with the consensus EPS estimate being $2.57.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how the ...

Core Viewpoint - Leidos (LDOS) is expected to report quarterly earnings of $2.57 per share, an increase of 8.4% year-over-year, while revenues are forecasted to decline by 2.6% to $4.25 billion [1] Earnings Estimates - Revisions to earnings estimates are crucial indicators for predicting investor actions regarding the stock, with empirical research showing a strong correlation between earnings estimate trends and short-term stock performance [2] Revenue Projections - Analysts forecast 'Revenues- Health & Civil' to reach $1.26 billion, indicating a year-over-year decrease of 4.8% [3] - 'Revenues- National Security and Digital' are projected to be $1.90 billion, reflecting a slight increase of 0.5% year-over-year [4] - 'Revenues- Commercial & International' are expected to be $568.93 million, down 5.8% from the prior-year quarter [4] - 'Revenues- Defense Systems' are estimated at $527.48 million, a decrease of 2.1% from the year-ago quarter [4] Operating Income Estimates - The consensus estimate for 'Non-GAAP operating income (loss)- Defense Systems' is $47.23 million, compared to $19.00 million from the previous year [5] - 'Operating income (loss)- National Security & Digital' is expected to be $180.05 million, up from $175.00 million in the same quarter last year [5] - 'Non-GAAP operating income (loss)- Health & Civil' is projected at $273.68 million, down from $287.00 million year-over-year [6] - 'Non-GAAP operating income (loss)- Commercial & International' is estimated at $44.62 million, compared to $48.00 million last year [7] - 'Operating income (loss)- Health & Civil' is expected to be $270.49 million, down from $279.00 million year-over-year [7] - 'Operating income (loss)- Commercial & International' is projected at $40.48 million, slightly up from $40.00 million in the same quarter last year [8] Stock Performance - Shares of Leidos have shown a return of -0.6% over the past month, compared to a -0.3% change in the Zacks S&P 500 composite [8] - Leidos holds a Zacks Rank 3 (Hold), indicating it is expected to mirror overall market performance in the near future [8]

Core Insights - Leidos Holdings, Inc. reported strong financial results for Q3 2025, with revenue growth of 7% year-over-year, reaching $4.47 billion, driven by increased customer demand in national security and defense sectors [3][9][24] - The company raised its fiscal year 2025 earnings and margin guidance, reflecting confidence in future performance despite challenges such as the government shutdown [2][10] - Net income for the quarter was $369 million, or $2.82 per diluted share, marking increases of 2% and 5% year-over-year, respectively [4][9] Financial Performance - Revenues for Q3 2025 were $4.47 billion, up from $4.19 billion in Q3 2024, with a year-over-year growth attributed to innovative products and solutions [3][9] - Net income was $369 million, with a net income margin of 8.3%, slightly down from 8.6% in the previous year [4][9] - Adjusted EBITDA was $616 million, reflecting a 3% increase year-over-year, with an adjusted EBITDA margin of 13.8%, down from 14.2% [5][9] Cash Flow and Dividends - Leidos generated $711 million in net cash from operating activities, with free cash flow of $680 million for the quarter [6][9] - The company declared a cash dividend of $0.43 per share, a 7.5% increase from the previous quarter [8] New Business Awards and Backlog - Net bookings totaled $5.9 billion in the quarter, resulting in a backlog of $47.7 billion, with a funded backlog increase of 27% sequentially [10][32] - Significant contract awards included a $2.2 billion contract in the intelligence community and a $760 million subcontract with NASA [15][10] Segment Performance - National Security & Digital revenues increased by 8% to $2.02 billion, driven by contract awards and increased volumes [24] - Health & Civil revenues rose by 6% to $1.30 billion, with an operating income margin improvement to 25.2% [25] - Defense Systems revenues grew by 11% to $582 million, although operating income margin decreased to 6.4% due to a higher mix of materials [27]

Core Insights - Leidos reported $4.25 billion in revenue for Q2 2025, a year-over-year increase of 2.9%, with an EPS of $3.21 compared to $2.63 a year ago, resulting in a surprise of +0.52% over the Zacks Consensus Estimate [1] - The EPS surprise was +22.05% compared to the consensus estimate of $2.63 [1] Revenue Breakdown - Health & Civil revenues were $1.27 billion, slightly below the average estimate of $1.28 billion, reflecting a year-over-year change of +0.7% [4] - National Security and Digital revenues reached $1.87 billion, exceeding the average estimate of $1.86 billion, with a year-over-year increase of +3.3% [4] - Commercial & International revenues were $566 million, below the average estimate of $584.26 million, showing a year-over-year change of +0.9% [4] - Defense Systems revenues amounted to $543 million, surpassing the average estimate of $514.06 million, with a year-over-year increase of +9.7% [4] Operating Income Analysis - Defense Systems operating income was $41 million, exceeding the average estimate of $33.31 million [4] - Non-GAAP operating income for Defense Systems was $53 million, compared to the average estimate of $45.61 million [4] - National Security & Digital operating income was $188 million, closely matching the average estimate of $188.13 million [4] - Non-GAAP operating income for Health & Civil was $317 million, significantly above the average estimate of $270.25 million [4] - Non-GAAP operating income for National Security and Digital was $195 million, exceeding the average estimate of $185.47 million [4] - Non-GAAP operating income for Commercial & International was $48 million, slightly above the average estimate of $47.82 million [4] - Health & Civil operating income was $311 million, above the average estimate of $289.99 million [4] - Commercial & International operating income was $40 million, exceeding the average estimate of $34.83 million [4] Stock Performance - Leidos shares have returned -2.1% over the past month, while the Zacks S&P 500 composite has changed by +1% [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential outperformance in the near term [3]