Key Points – Leidos raised its full-year 2026 guidance after a strong first quarter, with revenue up 4% year over year to $4.4 billion and adjusted EBITDA margin holding at 14%.
Management lifted revenue, EPS and operating cash flow forecasts, citing solid execution and demand across defense, intelligence, health and energy markets. – The ENTRUST acquisition is a major driver of the improved outlook, with management saying it was completed ahead of schedule and should be accretive to EPS and cash in 2026, with more benefit in 2027 and beyond
Leidos also expects the deal to help expand its energy business and order pipeline. – Segment performance was mixed but generally supportive of growth, led by 7% revenue growth in Intelligence and Digital and 6% growth in Homeland, while Defense was only slightly higher and margins declined in Defense and Homeland. Management expects second-half acceleration as awards recover and newer defense programs ramp up. – 3 Stocks Poised to Grow on European Rearmament Spending Leidos (NYSE:LDOS) reported a stronger first quarter for fiscal 2026 and raised its full-year outlook, citing solid core execution, recent acquisitions and continued demand across defense, intelligence, health and energy infrastructure markets. Chief Executive Officer Tom Bell said first-quarter revenue rose 4% year over year to $4.4 billion, while adjusted EBITDA margin remained at 14%.
The company raised its 2026 guidance for revenue by $500 million, non-GAAP diluted earnings per share by $0.05 and operating cash flow by $50 million. – Defense Budget Expansion: 3 Mid-Cap Names in a Sweet Spot “Today, I’m pleased to report a very strong start for Leidos in 2026,” Bell said. He said the results provide another “proof point” that Leidos is positioned to benefit from its scale, customer relationships, technology investments and artificial intelligence capabilities. Revenue Guidance Raised After ENTRUST Acquisition Chief Financial Officer Chris Cage said Leidos now…