Leidos has reported $4.4 billion in revenue, a 4 percent year-over-year increase, in the first quarter of fiscal year 2026. In an earnings press release posted Tuesday, the company attributed the growth to increased customer demand for its intelligence, commercial energy infrastructure, and domestic and international air traffic management products.
The company’s adjusted EBITDA during the period was $614 million, up by 2 percent compared to the year prior, and with a margin of 14 percent, slightly lower than the 14.2 percent recorded in Q1 of FY25.
“Leidos delivered strong first quarter performance, as our teams worked proactively with customers to drive improved mission outcomes early in the year,” stated Tom Bell, CEO of Leidos and a three-time Wash100 awardee.
Bell also noted that the company’s $2.4 billion acquisition of Entrust Solutions Group and its recent joint venture with Analogic to deliver security screening systems for airports and borders are part of its NorthStar 2030 strategy.
What Contracts Did Leidos Secure in Q1 FY25?
During the period, Leidos’ net bookings reached a total of $3.3 billion, with a book-to-bill ratio of 0.8. Its backlog reached $48.4 billion at the end of Q1.
Some of its most significant contract wins include:
- an $869 million task order under the U.S. Army’s Mission Awareness Capabilities Ramp-up and Optimization II
- over $461 million multi-year awards under the Defense Information Systems Agency’s Global Solutions Management-Operations II
- a $335 million contract from the National Security Agency to modernize its technical signals intelligence systems
- the $284 million Infrastructure Support Services 2 contract from the Securities and Exchange Commission
What Is Leidos’ New FY26 Guidance?
Bell announced that the company is raising its full-year FY26 financial guidance as a result of its strong Q1 performance. The executive shared that Leidos sees the second half of the year as “the launchpad for multiyear growth acceleration.”
The company expects to end the fiscal year with a total revenue of $18 billion to $18.4 billion, up from the previous estimate of $17.5 billion to $17.90 billion. Expected adjusted EBITDA margin remained unchanged at mid-13 percent.
