Leidos Holdings (LDOS) Q2 FY2026 earnings: revenue $4.6 billion, up 7.2% on the year

Leidos Holdings, Inc. (LDOS) reported revenue of $4.6 billion for Q2 FY2026, the quarter ended 3 July 2026, up 7.2% on the same quarter a year earlier. Net income was $354 million, down 9.5% on the year, and diluted earnings per share $2.81. The figures are the company's own, from the 10-Q it filed with the SEC on 4 August 2026.

Revenue

$4.6 billion

+7.2% on the year · +3.6% on the quarter

Q3 FY2024Q2 FY2026

Operating margin

11.3%

13.4% a year earlier

Q3 FY2024Q2 FY2026

Net income

$354 million

-9.5% on the year · +7.9% on the quarter

Q3 FY2024Q2 FY2026

Diluted EPS

$2.81

-6.6% on the year · +9.8% on the quarter

Q3 FY2024Q2 FY2026

this quarterthe same quarter a year earlierHover a bar for its figure.

What management said

Guidance figures: 1 raised, 2 narrowed, 1 kept.

Revenue rose 7% year over year: Revenues were $4.56 billion, up 7%, including 4% organic growth. Management attributed growth to defense tech products, energy and air traffic management, and intelligence mission support.
Non-GAAP EPS rose 2%: After adjusting for acquisition, amortization and other items, non-GAAP net income decreased 1% to $413 million, and non-GAAP diluted EPS increased 2% to $3.26.
Health revenue fell on lower exams: Health revenue was $1.09 billion, down 8%. Operating margin was 23.4%, against 25.8%, and non-GAAP margin was 23.8%, against 26.3%.

Read the earnings call summary

Income statement (profit and loss)

$ million	Q2 FY2026	Q1 FY2026	Q2 FY2025	On the quarter	On the year
Revenue	4,558	4,400	4,253	+3.6%	+7.2%
Cost of revenue	3,741	3,639	3,471	+2.8%	+7.8%
Gross profit	817	761	782	+7.4%	+4.5%
Gross margin	17.9%	17.3%	18.4%
Selling, general and administrative	283	223	217	+26.9%	+30.4%
Operating income	514	508	571	+1.2%	-10.0%
Operating margin	11.3%	11.5%	13.4%
Interest expense	69.0	55.0	55.0	+25.5%	+25.5%
Pre-tax income	451	429	518	+5.1%	-12.9%
Income tax	95.0	94.0	125	+1.1%	-24.0%
Effective tax rate	21.1%	21.9%	24.1%
Net income	354	328	391	+7.9%	-9.5%
Net margin	7.8%	7.5%	9.2%
Diluted EPS	$2.81	$2.56	$3.01	+9.8%	-6.6%

$ million except per share.

Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow

$ million	Q2 FY2026	Q1 FY2026	Q2 FY2025	On the quarter	On the year
Operating cash flow	793	301	486	+163.5%	+63.2%
Capital expenditure	32.0	31.0	29.0	+3.2%	+10.3%
Free cash flow	761	270	457	+181.9%	+66.5%
Free cash flow margin	16.7%	6.1%	10.7%
Cash from investing	-38.0	-2,359	-314
Cash from financing	-423	1,393	-83.0
Depreciation and amortisation	81.0	72.0	72.0	+12.5%	+12.5%
Share-based compensation	26.0	25.0	25.0	+4.0%	+4.0%
Buybacks	66.0	200	0.0	-67.0%
Dividends paid	55.0	55.0	52.0	0.0%	+5.8%
Dividend per share	$0.43	$0.43	$0.40	0.0%	+7.5%
Diluted shares, weighted	126m	128m	130m	-1.6%	-3.1%
Shares outstanding at period end	125m	126m	128m	-0.2%	-2.2%

Cash flow lines for the quarter; where the company files them year to date, the quarter is the difference between two filings.

Balance sheet

$ million	Q2 FY2026	Q1 FY2026	Q2 FY2025	On the quarter	On the year
Shareholders' equity	5,284	5,013	4,662	+5.4%	+13.3%
Non-controlling interest	52.0	51.0	45.0	+2.0%	+15.6%
Debt	6,009	6,334	5,104	-5.1%	+17.7%
Operating lease liabilities	547	610	598	-10.3%	-8.5%
Other liabilities	3,740	3,379	3,140	+10.7%	+19.1%
Total liabilities and equity	15,632	15,387	13,549	+1.6%	+15.4%
Goodwill	7,663	8,094	6,359	-5.3%	+20.5%
Intangible assets	943	993	515	-5.0%	+83.1%
Cash and equivalents	748	457	930	+63.7%	-19.6%
Receivables	2,968	3,028	2,915	-2.0%	+1.8%
Inventory	94.0	336	364	-72.0%	-74.2%
Other assets	3,216	2,479	2,466	+29.7%	+30.4%
Total assets	15,632	15,387	13,549	+1.6%	+15.4%

Questions

What was Leidos Holdings' revenue in Q2 FY2026?

Leidos Holdings (LDOS) reported revenue of $4.6 billion for Q2 FY2026, the quarter ended 3 July 2026, up 7.2% on the same quarter a year earlier.

How much did Leidos Holdings earn in Q2 FY2026?

Net income for Q2 FY2026 was $354 million, down 9.5% on the year, and diluted earnings per share $2.81.

When did Leidos Holdings report Q2 FY2026 results?

Leidos Holdings filed its 10-Q for the quarter ended 3 July 2026 with the SEC on 4 August 2026.

Quarterly results, the last 20 quarters

	Q4 FY2021 *	Q1 FY2022	Q2 FY2022 †	Q3 FY2022 †	Q4 FY2022 *	Q1 FY2023	Q2 FY2023	Q3 FY2023	Q4 FY2023 *	Q1 FY2024 †	Q2 FY2024	Q3 FY2024	Q4 FY2024 *	Q1 FY2025	Q2 FY2025	Q3 FY2025 †	Q4 FY2025 *	Q1 FY2026	Q2 FY2026	Q3 FY2026
Revenue	3,491	3,494	3,597	3,608	3,697	3,699	3,838	3,921	3,980	3,975	4,132	4,190	4,365	4,245	4,253	4,469	4,207	4,400	4,558	4,630
Cost of revenue	2,983	2,982	3,059	3,095	3,176	3,204	3,271	3,334	3,385	3,337	3,427	3,428	3,672	3,488	3,471	3,648	3,468	3,639	3,741	3,810
Gross profit	508	512	538	513	521	495	567	587	595	638	705	762	693	757	782	821	739	761	817	820
Gross margin	15%	15%	15%	14%	14%	13%	15%	15%	15%	16%	17%	18%	16%	18%	18%	18%	18%	17%	18%	18%
SG&A	244	236	262	232	221	233	237	239	233	226	231	247	279	230	217	290	266	223	283	262
Operating income	270	271	271	281	265	265	331	-336	361	415	475	516	421	530	571	535	473	508	514	553
Operating margin	8%	8%	8%	8%	7%	7%	9%	-9%	9%	10%	11%	12%	10%	12%	13%	12%	11%	12%	11%	12%
Interest expense	n/a	n/a	n/a	n/a	n/a	n/a	56.0	53.0	n/a	49.0	51.0	46.0	47.0	49.0	55.0	51.0	48.0	55.0	69.0	67.0
Pre-tax income	222	222	225	221	218	207	274	-388	310	368	426	470	375	478	518	484	429	429	451	482
Tax rate	21%	20%	24%	26%	17%	21%	23%	n/a	26%	23%	24%	23%	25%	24%	24%	24%	22%	22%	21%	14%
Net income	174	175	171	162	177	162	207	-399	229	284	322	364	284	363	391	367	327	328	354	410
Net margin	5%	5%	5%	4%	5%	4%	5%	-10%	6%	7%	8%	9%	7%	9%	9%	8%	8%	7%	8%	9%
Diluted EPS	$1.24	$1.25	$1.24	$1.17	$1.28	$1.17	$1.50	-$2.91	$1.66	$2.07	$2.37	$2.68	$2.12	$2.77	$3.01	$2.82	$2.53	$2.56	$2.81	$3.28
Operating cash flow	210	93.0	40.0	748	105	-98.0	164	795	304	113	374	656	299	58.0	486	711	n/a	301	793	523
Capital expenditure	33.0	28.0	21.0	27.0	53.0	39.0	40.0	50.0	78.0	17.0	23.0	23.0	86.0	22.0	29.0	31.0	43.0	31.0	32.0	47.0
Free cash flow	177	65.0	19.0	721	52.0	-137	124	745	226	96.0	351	633	213	36.0	457	680	n/a	270	761	476
Buybacks	0.0	n/a	n/a	n/a	n/a	25.0	0.0	0.0	200	150	100	200	400	0.0	0.0	100	300	200	66.0	500
Dividends paid	50.0	51.0	49.0	49.0	50.0	50.0	50.0	50.0	51.0	53.0	51.0	51.0	53.0	53.0	52.0	51.0	55.0	55.0	55.0	52.0
Shares outstanding	140m	137m	137m	137m	137m	137m	137m	138m	136m	135m	135m	133m	131m	129m	128m	128m	126m	126m	125m	122m
Filing	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q

Each quarter as filed, linked to its filing.

* The fourth quarter is the full year less the first three quarters, because the company files the year and not the quarter on its own. A fourth quarter's EPS, and its diluted share count where shown, are from the company's results press release for that quarter, checked against the company's filed figures or a second data source. A quarter marked † is shown as the company last restated it in a later filing, so it compares with the quarters around it on one basis; rest on a figure for the one first filed. EPS is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and the share count are as they are. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Cash flow lines filed year to date are the difference between two filings. Shares outstanding are at the period end where the balance sheet tags them, otherwise the count on the filing's cover page. A derived fourth-quarter EPS is left blank when a split in the year makes the arithmetic meaningless.

10-Q for the period ended 3 July 2026, filed 4 August 2026: the filing.