Leidos' second quarter revenue grew 7% to $4.6B, beating estimates and prompting a full-year 2026 guidance raise.

Leidos reported second quarter 2026 revenue of $4.56 billion, a 7% year-over-year increase, and non-GAAP diluted EPS of $3.26, up 2% from the prior year. The strong results led the company to raise its full-year 2026 guidance for revenue, non-GAAP EPS, and operating cash flow. The company's book-to-bill ratio was a solid 1.1 for the quarter.

Key Highlights

• Revenue grew 7% YoY to $4.56 billion (4% organic), driven by strong performance in the Homeland segment (+32%) and Intelligence & Digital segment (+6%).
• The Health segment, a key area of investor focus, reported an 8% YoY revenue decline to $1.09 billion, a steeper drop than the 3% decline analysts had anticipated.
• Leidos raised its full-year 2026 guidance, increasing the low end of its revenue range to $18.20 billion and its non-GAAP diluted EPS range to $12.20 - $12.50.
• The company recorded net bookings of $4.9 billion in the quarter, bringing its total backlog to $48.7 billion, a 5% increase from the prior year.