Leidos Q1 2026 results gave defense-tech investors a guidance raise instead of a wait-and-see quarter. The company reported $4.4 billion in revenue, up 4% year over year, and raised its full-year revenue, earnings and cash-flow guidance.
The update matters because government technology contractors are being watched for demand tied to intelligence, air traffic, cybersecurity and energy infrastructure modernization.
What happened
Leidos said net income was $335 million, or $2.56 per diluted share, while non-GAAP diluted EPS rose 5% year over year to $3.13. Adjusted EBITDA was $614 million, with a 14.0% adjusted EBITDA margin.
Why it matters
The company sits at the intersection of defense budgets and enterprise technology. A guidance raise suggests spending priorities around national security, air traffic management and mission-critical software are still intact.
Market impact
For defense and government-services stocks, revenue visibility is the whole story. Leidos' higher 2026 guidance supports the view that key programs are moving forward despite budget noise and procurement risk.
Key numbers
- Q1 revenue: $4.4 billion, up 4% year over year.
- Net income: $335 million, or $2.56 per diluted share.
- Non-GAAP EPS: $3.13, up 5%.
- Adjusted EBITDA: $614 million, with a 14.0% margin.
- New 2026 revenue guidance: $18.00 billion to $18.40 billion, up from $17.50 billion to $17.90 billion.
Institution angle
Management linked the raise to confidence in NorthStar 2030 execution, the Entrust acquisition and a security-products joint venture. Investors will test whether those moves can accelerate growth beyond one strong quarter.