Leidos Holdings Inc (NYSE:LDOS) Q2 2025 Earnings Beat Estimates and Raise Full-Year Guidance

LEIDOS HOLDINGS INC (NYSE:LDOS) reported its second-quarter earnings for fiscal year 2025, delivering results that exceeded analyst expectations on profitability while revenue came in slightly below estimates. The defense and technology services provider also raised its full-year guidance, signaling confidence in continued demand for its products and services.

Key Earnings Highlights

• Revenue: Reported at $4.25 billion, up 2.9% year-over-year but slightly below the consensus estimate of $4.32 billion.
• Earnings Per Share (EPS): Non-GAAP EPS came in at $3.21, significantly surpassing the $2.71 estimate, marking a 20.9% beat.
• Full-Year Guidance: The company raised its adjusted EPS forecast to $11.15–$11.45, up from the previous range of $10.35–$10.75, reflecting stronger-than-expected performance.

Market Reaction

The stock saw a pre-market surge of ~4.07%, indicating a positive investor response to the earnings beat and upward revision in guidance. Over the past month, shares had declined slightly (-2.13%), but the latest results appear to have reversed some of that weakness. The market’s reaction suggests that investors are more focused on profitability improvements than the slight revenue miss.

Outlook vs. Analyst Estimates

Leidos’ updated full-year EPS guidance aligns closely with analysts’ expectations, which had estimated $11.11 for 2025. Revenue expectations for the full year stand at $17.51 billion, while the company’s midpoint guidance of $17.1 billion is slightly more conservative. For the third quarter, analysts project revenue of $4.38 billion and EPS of $2.72, setting the stage for another critical earnings period.

Press Release Summary

The earnings announcement highlighted:

• Strong demand in defense and intelligence sectors, particularly in drone and aerial defense systems.
• Continued growth in technology services for government and commercial clients.
• Improved operational efficiency contributing to higher-than-expected margins.

The company’s performance follows a broader trend among defense contractors, with peers like Northrop Grumman also raising full-year forecasts amid heightened global security spending.

For more detailed earnings estimates and historical performance, see Leidos’ earnings and estimates page.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own research or consult a financial advisor before making decisions.