All Q2 FY26 results →

LH

Leidos Holdings, Inc.

Q2 FY26Professional Services

Leidos Holdings, Inc. Q2 FY26 Results — Earnings Call Analysis

Q2 FY26 earnings call: what management said on revenue, margins and capex.

Price₹132

Market cap₹16.6K Cr

P/E11.7

Updated29 May 2026

Read4 min read

Leidos Holdings, Inc. Q2 FY26 key numbers

Revenue: The $10 billion order pipeline from the Entrust acquisition is expected to convert rapidly, with orders liquidated within 1-2 years, supporting near-term revenue growth.

As stated in Leidos Holdings, Inc.'s Q2 FY26 earnings call transcript · published 29 May 2026. Reported figures, not investment advice.

The short version

- Intelligence and Digital segment revenues grew 7% YoY, driven by recent contract awards and acquisitions, indicating continued growth. - Leidos raised its 2026 revenue guidance by $500 million to a range of $18 billion to $18.4 billion.

From Leidos Holdings, Inc.'s Q2 FY26 earnings-call transcript · updated 29 May 2026.

Revenue & Sales Performance

Moderate growth

Intelligence and Digital segment revenues grew 7% YoY, driven by recent contract awards and acquisitions, indicating continued growth.
Nearly 70% of the next 12-month pipeline is focused on new business and takeaway activity, skewed towards growth opportunities.
The $10 billion order pipeline from the Entrust acquisition is expected to convert rapidly, with orders liquidated within 1-2 years, supporting near-term revenue growth.
The Health business expects elevated volumes to continue in the near term, with growth opportunities in digital health services like Military OneSource and My Service Treatment Record pilot.
Digital infrastructure and cybersecurity offerings aligned with AI integration position the company for scalable growth.

2 more points from Leidos Holdings, Inc.'s call on revenue

Create a free account to keep reading this call

Profitability & Margins

Leidos raised its 2026 revenue guidance by $500 million to a range of $18 billion to $18.4 billion.
Non-GAAP diluted EPS guidance increased by $0.05, now expected between $12.10 and $12.50.
Operating cash flow guidance was raised by $50 million to approximately $1.8 billion.
Entrust acquisition is expected to be accretive to non-GAAP EPS and cash in 2026, with greater accretion from synergies in 2027 and beyond.
Defense business profitability expected to improve as ramp-up progresses on higher-margin programs.
Health segment margins forecasted to remain above 20%, supported by operational and technology improvements.

2 more points from Leidos Holdings, Inc.'s call on margins

Create a free account to keep reading this call

See what Leidos Holdings, Inc. said on profitability & margins — free account, 30 seconds.

Capital Expenditure Plans

Capex planned

Leidos has planned a significant increase in CapEx for 2026, targeting up to $350 million, marking a tripling from prior levels.
Q1 2026 CapEx was $31 million, lower than initially anticipated, with expectations for higher spend in Q2.
The elevated CapEx is for a fixed, finite period to support production programs, possibly extending into early 2027.
They formed a joint venture (JV) with Analogic for the SES business to avoid high capital intensity directly on Leidos.
Leidos is cautious, earmarking capital but only deploying it when necessary, emphasizing disciplined cash stewardship.

2 more points from Leidos Holdings, Inc.'s call on capex

Create a free account to keep reading this call

Fundraising & Capital Structure

The company closed the Entrust acquisition using a mix of $500 million cash on hand, $500 million commercial paper, and $1.4 billion in new bonds.
Post-acquisition, they borrowed less than planned and have started paying down commercial paper early.
The commercial paper balance was $300 million at the end of Q1, expected to be paid off through 2026.
The company emphasizes strong cash flow generation and disciplined capital management.

2 more points from Leidos Holdings, Inc.'s call on fundraising

Create a free account to keep reading this call

See what Leidos Holdings, Inc. said on fundraising & capital structure — free account, 30 seconds.

Order Book & Pipeline

Order book rising

Entrust business has an approximately $10 billion order pipeline.
The Entrust order pipeline is characterized by shorter cycle times, with orders typically liquidated within 1 to 2 years, allowing rapid order booking and growth.
The overall Leidos book-to-bill ratio was 0.8 in the recent quarter and 1.1x for the trailing 12 months, indicating solid award activity.
The Defense segment expects multiple potential product line awards contributing to growth.
The Health segment anticipates scaling with awards like the Military OneSource and My Service Treatment Record Pilot.

2 more points from Leidos Holdings, Inc.'s call on order book

Create a free account to keep reading this call

What the Q2 FY26 call signalled

2 of 4 strong

RevenueModerate growth

MarginMargins steady

CapexCapex planned

Order bookOrder book rising

Others in Professional Services this season

CACI International Inc (Q2 FY26)
CACI International Inc Q2 FY26 quarterly results analysis. Continued strong growth expected in fiscal year 2027, supported by a nearly 4-year revenue backlog. M
TransUnion (Q2 FY26)
TransUnion Q2 FY26 quarterly results analysis. Trusted Call Solutions (TCS) expected to grow from $27M in 2021 to $200M by end of 2026, and $300M by 2028 (p.13)
SS&C Technologies Holdings, Inc. (Q2 FY26)
SS&C Technologies Holdings, Inc. Q2 FY26 quarterly results analysis. SS&C raised its 2026 revenue guidance to $6.664 billion - $6.824 billion, expecting 5.3% or
UL Solutions Inc. (Q2 FY26)
UL Solutions Inc. Q2 FY26 quarterly results analysis. UL Solutions expects mid-single-digit consolidated organic revenue growth in 2026 versus 2025, with contri

Compare:vs Automatic Data Processing, Inc.vs Thomson Reuters Corporation vs Paychex, Inc.

🔎 Who's planning the most growth?

Companies ranked by management's own guidance — revenue, margins, capex and order book, from every earnings call in India.

See rankings →

Arthneeti Pro · Annual

Leidos Holdings, Inc. and 15K+ more earnings calls,
for less than your morning chai

a day

Every earnings call, ranking and concall Q&A across all four results seasons.

Secure Razorpay payment · instant access

Frequently Asked Questions

What were Leidos Holdings, Inc. Q2 FY26 results?

- Intelligence and Digital segment revenues grew 7% YoY, driven by recent contract awards and acquisitions, indicating continued growth. - Leidos raised its 2026 revenue guidance by $500 million to a range of $18 billion to $18.4 billion.

What is Leidos Holdings, Inc. share price analysis?

Leidos Holdings, Inc. currently shows a below-average growth signal. The stock trades at a P/E of 11.7 with a market cap of $16,552. Investors should review the full earnings analysis for detailed insights.

Is Leidos Holdings, Inc. planning capital expenditure?

- Leidos has planned a significant increase in CapEx for 2026, targeting up to $350 million, marking a tripling from prior levels.

Keep Leidos Holdings, Inc. on your radar — track it to get its next earnings analysis in your feed.

This analysis is AI-generated based on publicly available earnings data and the company's earnings call transcript. This is not investment advice. Please consult a SEBI-registered advisor before making investment decisions.