Leidos Q2 FY26: revenue up 7.2%, EPS beat, guidance raised
Leidos delivered a solid fiscal 2026 second quarter: revenue rose 7.2% to $4.55 billion, non-GAAP EPS of $3.26 beat the $2.97 consensus, and management nudged full-year guidance higher. The catch is the quality of growth — only 3.9% was organic, GAAP EPS fell 7% to $2.81, and adjusted EBITDA margin slipped to 13.8%. Read the segment mix and the cash flow line, not just the headline beat.
1 · Expected vs. Actual
Free preview belowGAAP diluted EPS of $2.81 fell 7% from $3.01, weighed down by $29 million of Entrust and Analogic joint-venture costs plus NorthStar 2030 restructuring. Strip those out and non-GAAP EPS of $3.26 rose 2% and beat the $2.97 consensus by about 9.9%. That $0.45 gap between the two numbers is the price of the deals management is doing.
Revenue of $4.55 billion rose 7.2% from $4.25 billion a year ago, but only 3.9% was organic, with acquisitions adding $150 million. Homeland did the heavy lifting, up 32% and including $141 million from Entrust, while Health fell 7.6% on lower medical disability exam volumes. The top line is broadening beyond the legacy Health engine, but part of the increase was bought rather than earned.
Management raised full-year revenue guidance to $18.20–$18.40 billion from $18.00–$18.40 billion, non-GAAP EPS to $12.20–$12.50 from $12.10–$12.50, and operating cash flow to about $1.85 billion. The top end of revenue and EPS guidance did not move, so this is a firmer floor rather than a dramatically better year. Adjusted EBITDA margin guidance stayed at mid-13%, below the 13.8% booked this quarter.
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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 2026-09-17
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