Core Insights - Leidos Holdings, Inc. (LDOS) reported second-quarter 2025 adjusted earnings of $3.21 per share, exceeding the Zacks Consensus Estimate of $2.63 by 22.1% and improving 22.1% from the prior-year quarter's $2.63 [1] - Total revenues reached $4.25 billion, surpassing the Zacks Consensus Estimate of $4.23 billion by 0.5% and reflecting a year-over-year increase of 2.9% driven by strong demand in Defense Systems [2] - The company raised its 2025 EPS guidance to $11.15-$11.45, higher than the previous projection of $10.35-$10.75, with the Zacks Consensus Estimate for earnings at $10.81, below the new guidance [11] Financial Performance - GAAP earnings were reported at $3.01 per share, an increase from $2.37 in the prior-year quarter [1] - Adjusted operating income rose to $605 million from $524 million year-over-year, with an adjusted operating margin of 14.2%, up from 12.7% [4] - Cash and cash equivalents totaled $930 million as of July 4, 2025, compared to $849 million as of January 3, 2025 [10] Revenue Breakdown - National Security and Digital segment revenues increased by 3.3% year-over-year to $1.87 billion, with adjusted operating income improving to $195 million [5] - Health & Civil segment revenues were $1.27 billion, up 0.7% year-over-year, with adjusted operating income totaling $317 million [6] - Defense Systems segment revenues amounted to $543 million, reflecting a 9.7% year-over-year increase driven by higher volumes in space sensing and integrated air defense [8] Backlog and Guidance - Total backlog stood at $46.21 billion, slightly down from $46.30 billion at the end of the first quarter of 2025, with $7.12 billion funded [3] - The company expects 2025 revenues to be in the range of $17.00-$17.25 billion, compared to the prior guidance of $16.90-$17.30 billion [12] - Operating cash flow outlook was raised to approximately $1.65 billion, up from the previous guidance of $1.45 billion [12]