Leidos Raises 2026 Guidance After Record Quarterly Cash Flow

Leidos Holdings reported second quarter fiscal 2026 results on August 4, 2026, revealing record quarterly operating cash flow of $793 million and revenue of $4.56 billion. These figures exceeded analyst expectations, driving the company's shares up 6.22% to $126.10.

Growth was led by the Homeland segment, where revenue rose 32% to $1.018 billion. The company also noted a strong defense opportunity pipeline valued at $12 billion. Conversely, the Health segment saw a 7.6% revenue decline, which the company attributed to changes in the Veterans Affairs medical disability exam business.

Based on strong first-half performance, Leidos increased its full-year 2026 revenue guidance to a range of $18.20-18.40 billion. The company also raised its operating cash flow expectations for the year to approximately $1.85 billion.