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# Leidos Spent $500 Million On Buybacks In A Quarter Its Operating Cash Flow Fell
- URL: https://www.bullished.co/leidos-spent-500-million-on-buybacks-in-a-quarter-its-operating-cash-flow-fell-2fba1587/
- Published: 2026-11-03T17:11:21.000Z
- Updated: 2026-11-03T17:11:21.000Z
- Description: Operating cash flow fell to $523 million as vendor-payment timing turned, while lower tax payments flattered the nine-month total.
- Author: Matteo Parrino
- Tags: SEC Filings, LDOS, Industry: Industrials

[Leidos](https://www.bullished.co/tag/ldos/), the Reston, Virginia, government contractor, [repurchased $500 million of its stock](https://www.sec.gov/Archives/edgar/data/0001336920/000133692026000293/ldos-20261002.htm?ref=bullished.co) in the quarter ended October 2, while operating cash flow fell to $523 million from $711 million a year earlier, according to its 10-Q filed Tuesday.

## Buybacks up, cash flow down

The company blamed unfavorable working capital, including the timing of vendor payments and of payroll and employee benefit payments, for the $188 million drop in quarterly operating cash flow.

Open-market repurchases were $500 million in the quarter against $100 million a year earlier, and $766 million over nine months. The [prior 10-Q](https://www.sec.gov/Archives/edgar/data/0001336920/000133692026000246/ldos-20260703.htm?ref=bullished.co) covered $66 million of buybacks in its quarter. Cash and equivalents ended the period at $630 million, down from $748 million at the end of that quarter.

The filing says the $400 million year-over-year rise in repurchases partly offset lower financing outflows, since the prior-year quarter included a $450 million term-loan prepayment.

## Taxes flatter the nine-month total

Nine-month operating cash flow was $1,617 million, up $362 million from $1,255 million. Leidos pointed to a working-capital benefit and $148 million less in tax payments. Income taxes receivable/payable contributed $239 million, and cash taxes paid were $31 million versus $179 million a year earlier.

## A bigger balance sheet underneath

Leidos provides science, engineering and technology services, software and products, mostly to government agencies. Debt stood at $6.0 billion on October 2, up from $4.6 billion at the start of the year, after the company sold $600 million and $800 million of senior notes in March to help fund its $2.4 billion cash purchase of Entrust, an engineering firm serving utilities.

Leidos put its security-equipment business into a new Altaris joint venture, a deal that closed October 5\. It kept a 41.5% stake, accounted for under the equity method, and expects a non-operating gain of about $100 million in the fourth quarter. The estimate is preliminary. Fourth-quarter revenue will be lower because of the deal.

The company's market value was $18.1 billion in Tuesday trading.

A continuing resolution funds the government through December 11; without further legislation after that, Leidos warns, a partial or full shutdown would follow.

### Sources

- [10-Q Filing — Leidos Holdings (LDOS)](https://www.sec.gov/Archives/edgar/data/0001336920/000133692026000293/ldos-20261002.htm?ref=bullished.co) — SEC EDGAR
- [10-Q Filing — Leidos Holdings (LDOS), Q2 FY2026 filed 2026-08-04 (comparison basis)](https://www.sec.gov/Archives/edgar/data/0001336920/000133692026000246/ldos-20260703.htm?ref=bullished.co) — SEC EDGAR
- [Earnings release (8-K Item 2.02, ldos100226q3pressreleaseex.htm) — Leidos Holdings, filed 2026-11-03](https://www.sec.gov/Archives/edgar/data/0001336920/000133692026000290/ldos100226q3pressreleaseex.htm?ref=bullished.co) — SEC EDGAR
- [Leidos (LDOS) Tops Q3 Earnings Estimates](https://finance.yahoo.com/markets/stocks/articles/leidos-ldos-tops-q3-earnings-112503019.html?.tsrc=rss&ref=bullished.co) — Yahoo Finance
- [Leidos: Q3 Earnings Snapshot](https://finance.yahoo.com/markets/stocks/articles/leidos-q3-earnings-snapshot-111136012.html?ref=bullished.co) — Associated Press
- [Leidos (LDOS) Q3 Earnings: Taking a Look at Key Metrics Versus Estimates](https://finance.yahoo.com/markets/stocks/articles/leidos-ldos-q3-earnings-taking-133004859.html?.tsrc=rss&ref=bullished.co) — Yahoo Finance
- [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
- [Why the Market Dipped But Leidos (LDOS) Gained Today](https://finance.yahoo.com/markets/stocks/articles/why-market-dipped-leidos-ldos-204503379.html?ref=bullished.co) — Yahoo Finance

### More on Leidos Holdings

- [Leidos CEO Says He Can't Bound VA Exam Contract Risk, Argues Stock Is Cheap Even Without It](https://www.bullished.co/leidos-ceo-says-he-cant-bound-va-exam-contract-risk-argues-stock-is-cheap-even-without-it-8d5ff0b9/)
- [Leidos Raises 2026 Profit And Cash-Flow Guidance A Third Time, Trims Revenue Range After Joint Venture](https://www.bullished.co/leidos-raises-2026-profit-and-cash-flow-guidance-a-third-time-trims-revenue-range-after-cf21a57f/)
- [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/)

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