Leidos Holdings, Inc. (LDOS) Earnings Call Transcripts

Leidos Holdings, Inc.'s Latest Earnings Call - Q2 FY2026

Leidos Holdings, Inc. reported strong Q2 2026 results with revenue of $4.6 billion, reflecting a 7% year-over-year increase and 4% organic growth. Adjusted EBITDA margin remained robust at 13.8%, and the company generated record operating cash flow of nearly $800 million. Management raised the midpoint of 2026 revenue guidance by $100 million and EPS guidance by $0.05, indicating confidence in continued growth driven by strong demand in Defense and Health segments.

Reported metrics

Guidance from management

Management raised the midpoint of 2026 revenue guidance by $100 million and EPS guidance by $0.05, reflecting confidence in continued growth despite challenges in the Health segment.

What management said

Scott, I'd just add that even in the case of DHMSM, ongoing negotiations are taking place around how we can continue to support them even with the current set of activities. So it's trending the way Tom talked about potentially, but at the same time, the customer doesn't necessarily have the capacity to jump in and do all the activities that Leidos has historically supported. So there's a good chance that we perpetua...

Just to -- Tobey, back to your question on margins, and Tom alluded to it, as we see these more maturity in some of the programs we've already fielded a being a great example, radar systems. We're seeing the profitability of those programs increase, as you would expect. On our space payloads, every tranche has had higher profitability than the previous tranche 0, 1, 2. Now we've announced our most recent win. And so ...

What analysts pressed on

Analysts expressed concerns regarding the Health segment's revenue contraction due to the suspension of incentive payments and the potential impact on margins. There were also questions about the timing of the RFP for the VBA recompete and its implications for future profitability.

Main topics on the call

• Revenue Growth Acceleration — Leidos achieved a record revenue of $4.6 billion, up 7% year-over-year and 4% organically. CEO Tom Bell noted, 'Customer procurement activity is beginning to accelerate,' suggesting sustained momentum in bookings.
• Defense Segment Performance — The Defense segment reported a 6% organic growth, with a book-to-bill ratio of 2.2 in Q2. Bell stated, 'This level of customer traction gives us continued confidence in this segment's robust business outlook.'
• Health Segment Challenges — The Health segment faced revenue contraction due to the VA's suspension of incentive payments. Bell mentioned, 'We concurred with their decision there,' indicating management's proactive approach to customer relations am...
• Guidance Revisions — Management raised revenue guidance by $100 million and EPS by $0.05 for 2026. Chris Cage highlighted, 'We're now expecting CapEx to be closer to $250 million for the year,' reflecting a positive outlook despite Health se...

Read the full Leidos Holdings, Inc. transcript (Q2 FY2026) → Summary generated from the call transcript; every figure above is stated by management on the record.

Earnings Call History

EarningsCalls.dev has 74 Leidos Holdings, Inc. earnings call transcripts on record, spanning February 4, 2020 to August 4, 2026. Based on this history, Leidos Holdings, Inc. reports quarterly. The most recent call on file is dated August 4, 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

74

First call

February 4, 2020

Most recent

August 4, 2026

Reporting cadence

quarterly