Leidos Q3 FY26: EPS beats, guidance raised, Health drags
Leidos beat consensus EPS by 6.1% and raised full-year earnings guidance, even as reported revenue growth slowed to 3.3% and organic growth was just 0.6%. Read the quarter as a cash-and-backlog story: $476 million of free cash flow and a $49.6 billion backlog carried the result while the Health segment shrank 12.0%. Everything below is pulled from the 8-K and its own tables.
1 · Expected vs. Actual
Free preview belowGAAP EPS of $3.28 beat the $3.091 consensus by $0.19, or 6.1%. Non-GAAP EPS of $3.62 rose 19% year-over-year, helped by a lower tax rate tied to a bigger federal research credit. Note how much tax did: income tax expense fell to $69 million from $115 million on roughly flat pre-tax income of $482 million.
Revenue came in at $4.62 billion, up 3.3% from $4.47 billion a year earlier. The mix is lopsided: Homeland rose 32.1% on air traffic management and the ENTRUST acquisition, while Health fell 12.0%. Strip out acquisitions and divestitures and the whole company grew 0.6%.
The revenue range moved down to $18.00–$18.20 billion from $18.20–$18.40 billion, but the cause is structural: the Security Enterprise Solutions and Industrial Automation businesses left for a joint venture on October 5, 2026. Non-GAAP EPS guidance went the other way, to $12.50–$12.70 from $12.20–$12.50, a $0.25 midpoint increase. Operating cash flow guidance rose to roughly $1.90 billion from $1.85 billion.
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Figures on this page come from the company's original SEC filings. The analysis is generated automatically and checked against validation rules, but may still contain errors or omissions. Not investment advice. · Generated 2026-11-03
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