Leidos Q1 revenue beats estimates, lifts outlook

Leidos Holdings

05/05/2026 11:16

Overview

U.S. government tech contractor's Q1 revenue up 4%, beating analyst expectations

Adjusted EPS for Q1 rose 5%, beating analyst expectations

Company raised full-year revenue and earnings guidance after Entrust acquisition

Outlook

Leidos raises FY26 revenue guidance to $18.00-$18.40 bln from $17.50-$17.90 bln

Company expects FY26 non-GAAP diluted EPS of $12.10-$12.50

Result Drivers

INCREASED CUSTOMER DEMAND - Co said revenue growth was driven by increased demand for innovative products and solutions in Intelligence, commercial energy infrastructure, and air traffic management

CONTRACT AWARDS & ACQUISITIONS - Recent contract awards and the acquisitions of Entrust and Kudu Dynamics contributed to revenue growth, particularly in Intelligence & Digital and Homeland segments

ONE-TIME COSTS IMPACT PROFITABILITY - Net income and diluted EPS declined due to $39 mln in costs related to the Entrust acquisition and pending joint venture

Company press release: ID:nPn2cTNLfa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Beat
$4.40 bln
$4.28 bln (14 Analysts)
Q1 Adjusted EPS
Beat
$3.13
$2.90 (13 Analysts)
Q1 EPS
$2.56
Q1 Net Income
$335 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 10 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the it services & consulting peer group is "buy"

Wall Street's median 12-month price target for Leidos Holdings Inc is $195.00, about 31% above its May 4 closing price of $148.81

The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 15 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)