May 5 - Leidos Holdings raised its full-year profit and revenue outlook for 2026 on Tuesday, attributing the change to robust demand for its information technology and military intelligence services.
The company said sales in its intelligence and digital segment - which delivers military software, intelligence analysis and global logistics services - increased by 7% to $1.51 billion. That uptick in the business helped support the upward revisions to both profit and revenue targets.
Leidos last week secured an $869 million Army contract to develop AI-enabled systems designed to convert large volumes of data into actionable insights, an award the company cited as part of the momentum behind its guidance revision. The firm also pointed to Pentagon efforts to replenish weapons stockpiles, which have been strained by operations linked to Iran and the ongoing Russia-Ukraine conflict, as a driver of heightened demand for equipment and services.
Financial results for the first quarter showed adjusted earnings of $3.13 per share, up from $2.97 in the year-ago quarter. Based on recent performance and contract activity, Leidos now expects full-year adjusted earnings to be in a range of $12.10 to $12.50 per share, versus a prior forecast of $12.05 to $12.45.
On the revenue front, the company increased its 2026 sales guidance to a range of $18 billion to $18.4 billion, up from the earlier $17.5 billion to $17.9 billion projection.
Other defense sector developments noted in the period included commentary from L3Harris, which said production in its intelligence, surveillance and reconnaissance systems unit for classified and international aircraft programs has risen. That company-level production increase aligns with the broader signs of demand growth observed across defense suppliers.
Leidos said the combination of higher segment sales, a significant new Army contract for AI-enabled decision support and the broader Pentagon replenishment activity supported its decision to raise guidance for the coming year.
Looking ahead, the company will monitor execution on its programs and the continuation of the demand drivers it cited as reasons for the upgrades.
Contextual note: The company-provided figures and contract details form the basis for the updated guidance and the financial outlook summarized above.