Leidos Holdings, Inc. (LDOS) Q3 Diluted EPS Rose 16% YoY to $3.28

What happened

Leidos reported third-quarter FY2026 revenue of $4.63B, up 4% from a year earlier, and diluted earnings per share of $3.28, up 16%. Net income rose 12% to $413M, while the company said it enhanced its 2026 guidance for the third consecutive quarter without providing revised figures.

Confirmed

Global impact / market context

Revenue rose 4% while diluted earnings per share increased 16%, partly because a lower effective tax rate contributed to earnings growth. The contrast matters because it separates operating growth from a tax benefit; the revised 2026 guidance figures are not provided, limiting assessment of future performance.

Analyst inference

The reported quarter combines modest sales growth with faster per-share earnings growth and slightly improved adjusted EBITDA margin, meaning profit before certain costs relative to sales. Defense technology, air traffic management, intelligence work and the ENTRUST acquisition supported revenue, while some programs declined.

Confirmed

What to watch

1. Look for the revised FY2026 guidance ranges: the company said it enhanced guidance again, but the supplied release text gives no figures to compare with results. Confirmed
2. Track whether revenue growth continues across defense technology, air traffic management and intelligence work, and whether gains offset declines in some programs. Analyst inference
3. Assess later cash generation against this quarter’s $476M free cash flow; the supplied text gives no year-over-year comparison, limiting trend assessment. Confirmed

Evidence

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