"The revenue shortfall reflected a 3.6% year-over-year decline, which management attributed to an extra work week in the prior year quarter and a six-week government shutdown that created an estimated 7 percentage point headwind. CEO Tom Bell emphasized operational strength despite the timing challenges: "Our performance this quarter and throughout the year underscores the incredible resilience of our team and the power of our strategy in action.""
"Where Leidos truly impressed was on the bottom line. Net income surged 18% year-over-year to $335 million, with margins expanding 150 basis points to 8.0%. Operating cash flow of $495 million marked the company's best Q4 performance ever, up 66% year-over-year. Free cash flow more than doubled to $452 million, achieving 127% conversion."
"The company announced a $2.4 billion acquisition of Entrust, a power design firm that will expand Leidos's energy infrastructure capabilities. This follows notable contract wins, including a $2.2 billion Air Force air base defense systems award and a position on the MDA's SHIELD IDIQ with a $151 billion ceiling. Total backlog reached $49.0 billion on a 1.3x book-to-bill ratio in Q4."
Leidos reported non-GAAP EPS of $2.76, beating consensus $2.66, while Q4 revenue totaled $4.21 billion versus $4.40 billion expected, a 3.6% year-over-year decline attributed to an extra prior-year work week and a six-week government shutdown that created an estimated 7 percentage-point headwind. Shares fell 5.1% intraday but remained up 26.5% year over year. Net income rose 18% to $335 million, margins expanded 150 basis points to 8.0%, operating cash flow reached $495 million, and free cash flow was $452 million. Full-year revenue was $17.17 billion and backlog reached $49.0 billion, with a $2.4 billion Entrust acquisition announced and fiscal 2026 revenue guidance of $17.2–17.8 billion.
Read at 24/7 Wall St.
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