Leidos (LDOS) Q3 2026 earnings summary

Executive summary

• Q3 revenue was $4.630B, up 3.6% YoY; adjusted EBITDA margin was 13.9%, and non-GAAP diluted EPS rose 18.7% to $3.62.

• FY26 guidance was revised after the SES and Industrial Automation joint-venture transaction: revenue guidance fell, while non-GAAP EPS and operating cash-flow expectations increased.

Financial highlights

• Revenue was $4.630B, up 3.6% YoY; organic revenue increased 0.6% to $4.488B.

• Adjusted EBITDA was $644M versus $616M, with a 13.9% margin versus 13.8%.

• Non-GAAP diluted EPS was $3.62 versus $3.05; GAAP diluted EPS was $3.28 versus $2.82.

• Operating cash flow was $523M, down 26.4% YoY; non-GAAP free cash flow was $476M versus $680M.

Outlook and guidance

• FY26 revenue guidance is $18.00B–$18.20B, down from $18.20B–$18.40B; adjusted EBITDA margin guidance remains in the mid-13% range.

• FY26 non-GAAP diluted EPS guidance rose to $12.50–$12.70 from $12.20–$12.50; operating cash-flow guidance increased to ~$1.90B from ~$1.85B.

• Guidance assumes a continuing resolution through 2026, 126M weighted-average diluted shares, and a ~20% non-GAAP effective tax rate.

• Q4 revenue will be lower following the SES divestiture; a preliminary non-operating gain of ~$100M is expected, subject to closing adjustments and retained-interest valuation.

• RPO was $21B; 64% is expected to be recognized within 12 months and 83% within 24 months.