Earnings Call
May 5, 2026
Q1 FY2026
EPS Estimate
2.61
EPS Actual
2.76
Post-Earnings Close
$137.19
Earnings Reaction
-7.8%
Leidos opened 2026 with first-quarter revenue of $4.4 billion, up 4% year-over-year, and non-GAAP diluted EPS of $3.13, a 5% increase driven by higher adjusted EBITDA, a lower share count, and a modestly favorable tax rate. Adjusted EBITDA margin held at 14%, supported by strong award and incentive fee performance and a $15 million insurance reimbursement that will not recur in Q2. The headline beat prompted management to raise full-year 2026 guidance: revenue up $500 million to $18.0, $18.4 billion, non-GAAP diluted EPS up $0.05 to $12.10, $12.50, and operating cash flow up $50 million to approximately $1.8 billion. The raises are primarily attributable to the Entrust acquisition, which closed in March, just two months after announcement, and is already described as immediately accretive to both EPS and cash.
Report generated on May 6, 2026
AI-generated earnings analysis. Not investment advice.
Chief Executive Officer
The quarter's results reflected a combination of company-specific execution and broader sector dynamics, with management addressing several of the key debates that analysts had flagged heading into the print. Guidance commentary pointed to continued momentum in the core segments, while questions on margins and capital allocation drew more nuanced responses from the leadership team over the course of the call.
The quarter's results reflected a combination of company-specific execution and broader sector dynamics, with management addressing several of the key debates that analysts had flagged heading into the print. Guidance commentary pointed to continued momentum in the core segments, while questions on margins and capital allocation drew more nuanced responses from the leadership team over the course of the call.
The quarter's results reflected a combination of company-specific execution and broader sector dynamics, with management addressing several of the key debates that analysts had flagged heading into the print. Guidance commentary pointed to continued momentum in the core segments, while questions on margins and capital allocation drew more nuanced responses from the leadership team over the course of the call.
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