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Oct 03
Leidos Q3 2025 Earnings Report
Leidos posted strong third quarter results and raised full-year guidance.
Key Takeaways
Leidos delivered robust earnings and revenue growth in Q3 2025, driven by strength across mission-critical work in national security and health segments, and raised its EPS and margin guidance for the full year.
Revenue reached a record $4.47 billion in Q3 2025.
Net income was $369 million with GAAP EPS of $2.82.
Adjusted EBITDA came in at $616 million with a 13.8% margin.
Free cash flow was strong at $680 million driven by strong EBITDA and collections.
Leidos
Leidos
Leidos Revenue by Segment
Revenue by Segment
National Security & Digital Revenue
CapyFin.comHealth & Civil Revenue
CapyFin.comCommercial & International Revenue
CapyFin.comDefense Systems Revenue
CapyFin.com Forward Guidance
Leidos raised its full-year 2025 non-GAAP EPS and margin guidance, citing strong portfolio performance despite the impact of a government shutdown.
Positive Outlook
- Raised non-GAAP EPS guidance to $11.45–$11.75 from $11.15–$11.45.
- Adjusted EBITDA margin outlook moved to high 13% range.
- Maintained revenue guidance at $17.00B–$17.25B.
- Cash flow from operations expected to remain around $1.65B.
- Strong contract wins and increased backlog support future revenue.
Challenges Ahead
- Net income margin decreased year-over-year.
- Adjusted EBITDA margin declined slightly from prior year.
- Commercial & International segment saw a 1% revenue decline.
- Government shutdown created temporary operational uncertainty.
- Profitability impacted by a $24 million increase in legal reserves.