$LDOS · Leidos Holdings, Inc.
Leidos reported Q3 FY2025 results with revenue of $4.63B (+4% YoY), GAAP diluted EPS of $3.28, and non-GAAP diluted EPS of $3.62 (+19% YoY). Adjusted EBITDA reached $644M (13.9% margin). The company raised FY2026 non-GAAP diluted EPS guidance to $12.50-$12.70 while trimming revenue guidance to $18.00-$18.20B to reflect the October 5, 2026 SES joint venture close with Altaris.
- Revenue of $4.63B, up 4% YoY driven by defense tech, air traffic management, and intelligence demand.
- Non-GAAP diluted EPS of $3.62, up 19% YoY; GAAP diluted EPS of $3.28, up 16% YoY.
- Adjusted EBITDA of $644M with margin of 13.9%, up 10 bps YoY.
- Net bookings of $5.5B (book-to-bill 1.2x); total backlog of $49.6B, funded backlog up 22% YoY.
- FY2026 non-GAAP diluted EPS guidance raised to $12.50-$12.70; revenue guidance trimmed to $18.00-$18.20B reflecting SES JV contribution.
Extended-hours trading shows LDOS at $144.00, down 0.11% from the regular close of $144.16 — a muted reaction suggesting the raised EPS guidance and strong bookings were largely priced in, while the slight revenue guide-down from the SES JV deconsolidation may be offsetting enthusiasm.
Leidos delivered its third consecutive guidance raise for FY2026 alongside 19% non-GAAP EPS growth and a 1.2x book-to-bill, signaling durable momentum even as it reshapes its portfolio via the SES joint venture.
Leidos' 1.2x book-to-bill and $49.6B backlog underscore sustained defense IT demand tailwinds. The SES JV deconsolidation mirrors a broader government-services trend of portfolio optimization — peers like CACI and SAIC have pursued similar carve-outs to sharpen focus on higher-margin technology and intelligence work.
Revenue guidance was trimmed by $200M at the midpoint due to the SES business contribution to a joint venture with Altaris, which closed October 5, 2026. Acquisition, integration, and restructuring costs rose to $12M in Q3 (vs. $4M YoY) and $74M YTD (vs. $10M YoY), reflecting ongoing deal-related friction.