Leidos Holdings, Inc. (LDOS) Earnings Call Transcripts

Leidos Holdings, Inc.'s Latest Earnings Call - Q1 FY2026

Leidos Holdings, Inc. (LDOS:US) reported a strong Q1 2026, with revenues of $4.4 billion, up 4% year-on-year, and adjusted EBITDA margin of 14%. The company raised its full-year guidance, increasing revenue expectations by $500 million to a range of $18 billion to $18.4 billion and non-GAAP diluted EPS by $0.05 to a range of $12.10 to $12.50. Management highlighted robust demand in Defense Tech and Health segments, driven by recent contract wins and strategic acquisitions, notably the Entrust acquisition, which is expected to be accretive in 2026.

Reported metrics

Guidance from management

Leidos raised its 2026 revenue guidance by $500 million to a range of $18 billion to $18.4 billion and increased non-GAAP diluted EPS guidance by $0.05 to $12.10-$12.50. Operating cash flow guidance was also raised by $50 million to approximately $1.8 billion.

What management said

Thanks, Josh. Yes. And we did earmark a sizable increase in our CapEx for this year, anticipating the need to invest. But that need hasn't risen in the first quarter to a level that we might have anticipated. Part of our anticipation of a second quarter that is higher spend rate is lower profitability because of that. And so we do anticipate spending more in CapEx this year, whether or not we spend the whole $350 mil...

Noah, I'd just add, I mean, beyond VBA, which is a very well run part of the business. I mean the team has evidenced by the Military OneSource takeaway and looking ahead to $6 billion and expected submits over Q2 and Q3 have a lot of other avenues to scale this business up. My service treatment record were very small in a pilot phase. I mean that could turn into a very nice technology-oriented high revenue and profit...

What analysts pressed on

Analysts expressed concerns about the potential dip in revenue and margins in Q2, with management indicating this could be a pull-forward effect from Q1. There were questions about the sustainability of margins in the Health segment and the impact of ongoing recompetes in the Defense sector.

Main topics on the call

• Revenue Growth and Guidance Increase — Leidos reported Q1 2026 revenues of $4.4 billion, a 4% increase year-on-year. Management raised the full-year revenue guidance by $500 million, now expecting between $18 billion and $18.4 billion, signaling strong demand...
• Entrust Acquisition Impact — The acquisition of Entrust is already showing positive effects, with management stating it is 'immediately accretive' and expected to enhance revenue and cash flow guidance for 2026. The integration is described as 'seam...
• Defense Segment Performance — Defense revenues were reported at $883 million, slightly up year-over-year, with management noting strong demand for integrated air defense systems. However, profitability in this segment declined due to the wind down of...
• Health Segment Stability and Growth — The Health segment maintained stable revenues year-over-year, with management expressing optimism about future growth driven by contracts like the $456 million Military OneSource award. They emphasized a focus on leverag...

Read the full Leidos Holdings, Inc. transcript (Q1 FY2026) → Summary generated from the call transcript; every figure above is stated by management on the record.

Earnings Call History

EarningsCalls.dev has 73 Leidos Holdings, Inc. earnings call transcripts on record, spanning February 4, 2020 to May 5, 2026. Based on this history, Leidos Holdings, Inc. reports quarterly. The most recent call on file is dated May 5, 2026. The full list is below — each row opens the complete, free-to-read transcript.

Ticker

LDOS

Exchange

NYSE

Country

US

Sector

Industrials

Industry

Professional Services

Calls on record

73

First call

February 4, 2020

Most recent

May 5, 2026

Reporting cadence

quarterly