Leidos 10-Q, filed Aug 4, 2026

Summary

Leidos reported second-quarter 2026 revenue of $4.56 billion, up 7.2% from a year earlier, while operating income fell 10% to $514 million and operating margin narrowed to 11.3% from 13.4%. Beginning in fiscal 2026 the company realigned into four reportable segments — Intelligence & Digital, Health, Homeland and Defense — and said it expects lawmakers may rely on a short-term continuing resolution to fund the U.S. government past September 30, 2026, warning that failure to pass appropriations or a CR by then would cause a full or partial shutdown.

Key points

• Second-quarter revenue was $4.558 billion versus $4.253 billion a year earlier; net income attributable to common stockholders was $354 million, down 9.5%.
• Net bookings were an estimated $4.9 billion in the quarter and $8.2 billion for the six months, with total backlog of $48.7 billion as of July 3, 2026, up from $46.2 billion.
• Homeland segment revenue rose 32% to $1.018 billion, including $141 million from the Entrust acquisition completed March 27, 2026, while Health revenue fell 7.6% on lower volumes.
• Non-operating expense rose to $63 million from $53 million, driven by interest expense from issuing $600 million and $800 million of senior notes and terminating a bridge loan facility, and the six-month period included a $23 million settlement loss on the buy-out of a UK defined benefit pension plan.
• Approximately 83% of quarterly revenue came from U.S. government contracts, down from 87% a year earlier.

Written by an AI model from the filing text. It can be incomplete or wrong; the filing on SEC.gov is the record.