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# Leidos Raises 2026 Profit And Cash-Flow Guidance A Third Time, Trims Revenue Range After Joint Venture
- URL: https://www.bullished.co/leidos-raises-2026-profit-and-cash-flow-guidance-a-third-time-trims-revenue-range-after-cf21a57f/
- Published: 2026-11-03T11:06:57.000Z
- Updated: 2026-11-03T11:06:57.000Z
- Description: Leidos now sees adjusted EPS of $12.50 to $12.70 and revenue of $18.00 billion to $18.20 billion after the Altaris venture closed.
- Author: Matteo Parrino
- Tags: Earnings, LDOS, Industry: Industrials

[Leidos](https://www.bullished.co/tag/ldos/), which provides science, engineering and technology services mostly to government agencies, raised its 2026 adjusted earnings and operating cash flow outlook while cutting its revenue range, the company said in [third-quarter results](https://www.sec.gov/Archives/edgar/data/0001336920/000133692026000290/ldos100226q3pressreleaseex.htm?ref=bullished.co) released Tuesday. It was the third straight quarter of improved guidance, and the lower revenue range reflects the joint venture it closed with Altaris.

## Guidance up on profit, down on sales

Leidos now expects non-GAAP (adjusted) diluted earnings per share of $12.50 to $12.70, up from $12.20 to $12.50\. Operating cash flow is forecast at about $1.90 billion, versus about $1.85 billion before.

Revenue guidance fell to $18.00 billion to $18.20 billion from $18.20 billion to $18.40 billion. On October 5, Leidos closed its deal with Altaris, contributing its Security Enterprise Solutions and Industrial Automation businesses to a new joint venture, and the company adjusted the outlook for that. The adjusted EBITDA margin forecast stayed at the mid-13% range.

CEO Tom Bell said the quarter allowed Leidos to "enhance our 2026 guidance for the third consecutive quarter."

## Homeland surges, Health shrinks

Third-quarter revenue rose 4% to $4.63 billion. Net income was $413 million, or $3.28 per diluted share, against $369 million and $2.82 a year earlier. Adjusted diluted EPS rose 19% to $3.62, and adjusted EBITDA was $644 million, a 13.9% margin.

Homeland revenue jumped 32% to $1.02 billion, including $142 million from the ENTRUST Solutions acquisition and strong demand for air traffic management work. Health revenue fell 12% to $1.07 billion on expected program shifts and lower volumes in managed health services. Defense rose 3% to $992 million, and Intelligence & Digital rose 1% to $1.55 billion.

Operating cash flow was $523 million and free cash flow was $476 million, down from $711 million and $680 million a year earlier.

## Buybacks and a record backlog

Leidos returned $556 million to shareholders in the quarter, including $504 million of share repurchases and $52 million in dividends. It ended the period with $630 million in cash and $6.0 billion of debt.

Net bookings were $5.5 billion, a book-to-bill ratio of 1.2, lifting backlog to $49.6 billion, of which $11.1 billion was funded. Big awards included a $717 million Air Force intelligence support contract and a $672 million TSA security equipment deployment contract.

The board declared a quarterly dividend of $0.45 per share, up 4.7% from the prior quarter, payable December 31 to holders of record on December 15.

Management discusses the quarter on an 8 a.m. ET conference call Tuesday.

Learn

- [Item 2.02: results of operations →](https://www.bullished.co/learn/8-k-items-explained/#item-202-results-of-operations)  
From 8-K Items Explained: What Every Item Code From 1.01 To 9.01 Tells You, With Examples

### Sources

- [8-K Filing — Leidos Holdings, Inc. (LDOS)](https://www.sec.gov/Archives/edgar/data/0001336920/000133692026000290/ldos-20261103.htm?ref=bullished.co) — SEC EDGAR
- [Exhibit ldos100226q3pressreleaseex.htm — Leidos Holdings, Inc. 8-K exhibit](https://www.sec.gov/Archives/edgar/data/0001336920/000133692026000290/ldos100226q3pressreleaseex.htm?ref=bullished.co) — SEC EDGAR
- [Leidos Holdings (LDOS) Lands Pentagon Deals As Fair Value Still Sits Higher](https://sg.finance.yahoo.com/news/leidos-holdings-ldos-lands-pentagon-071023425.html?ref=bullished.co) — Yahoo Finance

### More on Leidos Holdings

- [Leidos Gets $317,986,855 Sole-Source Bridge Contract To Keep MHS GENESIS Running](https://www.bullished.co/leidos-gets-317-986-855-sole-source-bridge-contract-to-keep-mhs-genesis-running-e942d1b5/)
- [Leidos Closes Analogic Venture With 41.5% Stake, Gives Altaris The Board Majority](https://www.bullished.co/leidos-closes-analogic-venture-with-41-5-stake-gives-altaris-the-board-majority-98afd4e7/)

[All Leidos Holdings (LDOS) coverage →](https://www.bullished.co/tag/ldos/)