Leidos Q4 revenue falls short, profit beats expectations
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- Leidos posted Q4 revenue of $4.21 billion, down 3.6% year‑over‑year and $0.10 billion below analysts’ $4.31 billion estimate (LSEG data).
- Leidos saw a 9.3% decline in sales from its health and civil segment, which provides electronic health record systems to the Department of Defense and Veteran Affairs hospitals.
- Leidos reported adjusted earnings per share of $2.76, beating expectations of $2.61, helped by a 160‑basis‑point expansion in its adjusted core profit margin and tighter cost controls.
- Leidos forecast 2026 adjusted profit of $12.05‑$12.45 per share, a midpoint 4 cents lower than analysts’ $12.29 estimate.
- Leidos shares fell 1.6% in pre‑market trading after the earnings release.
- L3Harris Technologies also flagged a shutdown‑related hit, primarily in its space systems business.
Why it matters: The revenue shortfall hurts Leidos’ top‑line growth expectations, while the earnings beat shows cost‑control success; investors see a modest share dip, and the defense‑sector outlook remains pressured by government shutdowns that curtail contract flow.
