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Jan 02
Leidos Q4 2025 Earnings Report
Leidos reported fourth quarter fiscal 2025 results with higher earnings and margins despite a revenue decline.
Key Takeaways
Leidos generated $4.207 billion in Q4 revenue, down year-over-year, but delivered strong profitability with net income of $335 million, EPS of $2.53, and improved margins. Cash flow from operations reached a record $495 million for the quarter.
Revenue declined to $4.207 billion, impacted by a government shutdown and prior-year extra work week.
Net income increased to $335 million with margin expansion to 8.0%.
Adjusted EBITDA rose to $556 million with a 13.2% margin.
Operating cash flow reached $495 million, driving strong free cash flow conversion.
Revenue by Segment
Forward Guidance
For fiscal 2026, Leidos guided for revenue between $17.5 billion and $17.9 billion, mid-13% adjusted EBITDA margin, non-GAAP diluted EPS of $12.05 to $12.45, and approximately $1.75 billion in operating cash flow.
Positive Outlook
- Projected revenue growth to $17.5–$17.9 billion.
- Mid-13% adjusted EBITDA margin outlook.
- Non-GAAP EPS guidance of $12.05–$12.45.
- Strong expected operating cash flow of approximately $1.75 billion.
- Continued demand across priority markets.
Challenges Ahead
- Exposure to U.S. government budget uncertainty.
- Potential impact from geopolitical volatility.
- Interest rate and inflationary pressures.
- Risks related to contract procurement delays.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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