Leidos Holdings, Inc. filed its third-quarter fiscal year 2026 earnings release on November 3, 2026, reporting revenues of $4.63 billion and net income of $413 million for the quarter ended October 2, 2026.

Key Highlights

  • Revenue of $4.63 billion: up 4% compared to the third quarter of 2025, according to the filing.
  • Net income of $413 million: or $3.28 per diluted share, representing year-over-year increases of 12% and 16%, respectively.
  • Non-GAAP diluted EPS of $3.62: up 19% year-over-year, with non-GAAP net income of $455 million.
  • Adjusted EBITDA of $644 million: reflecting a margin of 13.9%, compared to 13.8% in the third quarter of 2025.
  • Cash flow from operations of $523 million: with non-GAAP free cash flow of $476 million for the quarter.
  • Net bookings of $5.5 billion: producing a book-to-bill ratio of 1.2 and total backlog of $49.6 billion at quarter end.
  • Quarterly dividend increased to $0.45 per share: representing a 4.7% increase over the prior quarter's dividend amount, payable December 31, 2026.

Leidos Third-Quarter FY2026 Financial Results and Contract Awards

According to the filing, Leidos Holdings, Inc. (NYSE:LDOS) reported revenues of $4.63 billion for the quarter ended October 2, 2026, compared to $4.469 billion in the same period of 2025. The company disclosed that revenue growth was driven by increased customer demand for defense tech products, air traffic management solutions, and intelligence mission support, as well as the acquisition of ENTRUST Solutions, partially offset by declines in some managed health and federal civilian IT programs.

The filing reported net income of $413 million, or $3.28 per diluted share, with a net income margin of 8.9%. The company noted that net income and diluted EPS for the quarter reflect $12 million in costs associated with recent strategic corporate transactions. After adjusting for these and certain other items, non-GAAP net income reached $455 million and non-GAAP diluted EPS was $3.62. The filing attributed GAAP and non-GAAP earnings performance in part to a lower effective tax rate, primarily due to an increase in the federal research tax credit and a decrease in unrecognized tax benefits.

On the balance sheet and capital allocation front, the filing disclosed that as of October 2, 2026, Leidos held $630 million in cash and cash equivalents and $6.0 billion of debt. During the quarter, the company used $549 million in financing activities, including $504 million in share repurchases and $52 million in regular quarterly cash dividends. The Leidos Board of Directors declared a dividend of $0.45 per share on October 30, 2026, payable December 31, 2026, to stockholders of record as of December 15, 2026. The filing also disclosed several notable contract awards in the quarter, including a $717 million Air Force ACC A2 contract, a $672 million TSA security equipment contract, and a $318 million sole-source bridge contract for MHS GENESIS, among others.

What Was Disclosed

Leidos disclosed third-quarter fiscal 2026 results including revenues, earnings, cash flows, backlog, and new contract awards totaling several billion dollars across defense, intelligence, health, and air traffic management programs, along with an increased quarterly dividend.