Leidos reports record Q2 as NorthStar 2030 gains momentum

Leidos reported record second-quarter results, citing accelerating execution of its NorthStar 2030 growth strategy. Revenue rose 7% year over year to $4.6 billion, including 4% organic growth. Adjusted EBITDA margin reached 13.8%, operating cash flow was nearly $800 million—both quarterly records—and net bookings topped $4.9 billion, resulting in a book-to-bill ratio of 1.1.

“Our second quarter results once again demonstrate the strength and resilience of the Leidos portfolio — and the value of our NorthStar 2030 strategy,” CEO Tom Bell said on this morning’s earnings call. “Customer procurement activity is beginning to accelerate, so we anticipate continued, positive bookings momentum through the rest of the year.”

The company raised the midpoint of its 2026 guidance by $100 million in revenue and $0.05 in earnings per share, and increased operating cash flow guidance by $50 million.

Leidos said its Defense segment posted accelerating revenue growth, expanding margins, and a book-to-bill ratio of 2.2 for the quarter (1.9 over the trailing twelve months), supporting confidence in a robust outlook. The latest bookings do not yet include several major programs that began this year: an over $1 billion framework agreement with the Department of War to deliver 3,000 Low-Cost Containerized Munitions by 2030; a unique position in the testing phase of the Navy’s next generation medium unmanned surface vessel, positioning the company for a potential production award in Q4; and a recent award to provide sensor payloads for an additional 18 missile warning and tracking satellites in support of Golden Dome for America.

Showcasing a “One Leidos” approach, teams from Leidos Defense and Leidos Digital participated in the U.S. Army’s recent Operation Jailbreak hackathon, where engineers rapidly developed and deployed secure, open APIs to integrate company hardware with the Army’s evolving command-and-control architecture. Bell said the company demonstrated the same capabilities on non-Leidos systems, validating secure interoperability using open and documented standards. “That performance reinforced Leidos’ leadership in open architectures and represents a major step in helping the Pentagon rid themselves of a huge issue — the prevention of seamless battlefield understanding and command-and-control due to proprietary software vendor lock.”

Across the rest of the portfolio, Homeland led all segments in growth, up 32% in total and 15% organically, reflecting demand in commercial energy infrastructure and domestic and international air traffic management, along with some benefit from foreign exchange movements. The Intelligence and Digital segment maintained its first-quarter growth pace, driven principally by demand from the Intelligence Community. Profitability increased significantly in both Defense and Homeland from first-quarter levels, which the company attributed to strong program execution.