Leidos Holdings, Inc. reported financial results for the third quarter of fiscal 2026, with revenues of $4.63 billion, representing a 4% increase compared to the same period in the prior year. The company reported net income of $413 million, or $3.28 per diluted share, and non-GAAP diluted earnings per share of $3.62, which increased 19% year-over-year. Adjusted EBITDA was $644 million, with a margin of 13.9%.
Leidos generated $523 million in cash from operations and $476 million in non-GAAP free cash flow for the quarter. The company returned $556 million to shareholders through share repurchases and a cash dividend. On October 30, 2026, the Board of Directors declared a cash dividend of $0.45 per share, a 4.7% increase over the prior quarter.
During the quarter, Leidos secured $5.5 billion in new business awards, resulting in a book-to-bill ratio of 1.2. The backlog at the end of the quarter was $49.6 billion. Key awards included a $717 million contract with the U.S. Air Force for ISR operations, a $672 million contract with the Transportation Security Administration for security equipment deployment, and a $318 million contract with the Defense Health Agency for the MHS GENESIS bridge.
On October 5, 2026, Leidos contributed its Security Enterprise Solutions and Industrial Automation (SES) businesses to a joint venture with Altaris. As a result of this transaction, the company is adjusting its fiscal year 2026 guidance. The new range for revenues is $18.00 billion to $18.20 billion, with non-GAAP diluted EPS expected to be between $12.50 and $12.70.
