Leidos Raises 2026 Forecasts on Robust Defense Sector Demand

Leidos Holdings (LDOS) raised its financial outlook for 2026, signaling confidence in sustained demand for its defense technology and services amid heightened geopolitical tensions. The news, coupled with a strong quarterly earnings report, sent the company's shares up nearly 10% in morning trading.

Updated Financial Outlook

The Reston, Virginia-based contractor tightened its full-year guidance, lifting the lower end of its forecasts for both profit and revenue. The company attributed the revision to increased demand for its defense technology, energy and air traffic management solutions, and intelligence mission support.

Key updates to the 2026 forecast include:

• Adjusted profit per share: The range is now $12.20 to $12.50, narrowed from a previous $12.10 to $12.50. The new midpoint of this forecast is above the analyst consensus of $12.33 a share, according to LSEG data.
• Full-year revenue: Expected to be between $18.2 billion and $18.4 billion, up from a prior floor of $18.0 billion.

Ad

Strong Quarterly Performance

The optimistic forecast follows a second-quarter performance that surpassed Wall Street expectations. Leidos reported quarterly revenue of $4.56 billion, a 7% increase from the same period last year. This figure exceeded analyst estimates of $4.44 billion.

Industry Context

Defense contractors like Leidos have benefited from a strategic focus on military spending by the U.S. government. The source material noted that the trend is supported by proposals for record defense budgets, reflecting a response to the current global security environment. This has translated into a robust pipeline of government contracts for advanced technology and support services.