Leidos

Leidos received an $875 million contract option from the US Department of the Navy for the second year of the Next Generation Enterprise Network Service Management, Integration and Transport program. The contract covers support services for more than 650,000 personnel at over 2,500 locations and includes management of more than 425,000 devices across three networks. Leidos cites accelerated automation processes that sped patch deployment by 93% and enterprise-wide distribution by 94%; the company reported approximately $17.2 billion in revenue for fiscal 2026 and employs 50,000 people. » More on de.investing.com

Leidos said at the Jefferies conference that organic growth was 4% in Q2 (5% in H1) and the annual guidance has been raised. Drivers are defense and homeland security, and the USD 2.4 billion acquisition of ENTRUST significantly expands the energy infrastructure business. Management cites a low leverage ratio, reduced 2024 capex to USD 250 million, and strong cash-flow generation. Risks remain: uncertainties around the VBA contract, the future structure of MHS GENESIS, and the timeline for FAA modernization awards. » More on de.investing.com

Leidos reported adjusted EPS of $3.26 in the second quarter (expectation $2.91) on revenue of $4.56bn, up 7% year over year. Operating cash flow ($793m) and free cash flow ($761m) reached quarterly records. The company raised its 2026 outlook for revenue, non-GAAP EPS, and operating and free cash flow, and points to a defense pipeline of about $12bn. The health segment showed weakness, while defense and homeland security drove growth. » More on de.investing.com

Leidos was contracted by Sierra Space to deliver infrared sensor payloads and onboard signal processing for 18 satellites in tranche 3 of the accelerated missile defense program. The payloads combine infrared technology with onboard digital signal processing to detect hypersonic missiles and other advanced missile threats from low Earth orbit and to produce tracking data directly. Leidos will also provide ground systems, operational support and sustainment across the program lifecycle; financial contract terms were not disclosed. » More on de.investing.com

The board of directors of Leidos approved a quarterly cash dividend of $0.43 per common share, payable on September 30, 2026 to shareholders of record on September 15, 2026. At the same time, the board approved a new share repurchase program for up to 20 million common shares, replacing the fully used 2022 authorization. The timing and actual volume of repurchases will depend on investment needs, capital requirements, price, market conditions and regulatory requirements. » More on de.investing.com