Leidos misses quarterly revenue estimates on government shutdown impact
Why it matters: The missed revenue and slightly lower profit forecast signal potential challenges for Leidos and the defense contracting sector, impacting investor confidence and raising concerns about the long-term effects of government shutdowns on business performance.
- Leidos Holdings reported Q4 revenue of $4.21 billion, below the estimated $4.31 billion, due to the government shutdown and a 9.3% drop in health and civil segment sales.
- L3Harris Technologies previously flagged a hit from the shutdown, particularly in its space systems business, highlighting a broader impact on defense contractors.
- Leidos' adjusted Q4 profit per share beat expectations at $2.76, but its 2026 adjusted profit forecast of $12.05-$12.45 per share is slightly below analysts' estimates of $12.29, signaling potential future headwinds.
Leidos Holdings missed Q4 revenue estimates due to the U.S. government shutdown's impact on orders and a drop in health and civil segment sales, mirroring similar challenges faced by L3Harris Technologies. Despite the revenue shortfall, Leidos' adjusted profit per share beat expectations through cost controls, though its 2026 profit forecast is slightly below analyst estimates, causing a dip in premarket trading.
