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Leidos Holdings: $500 Million Guidance Raise Puts Entrust Synergies In Focus!

Leidos Holdings, Inc. reported a solid first quarter in 2026 with revenues of $4.4 billion, reflecting a 4% year-over-year increase, including 3% organic growth. The company’s adjusted EBITDA margin stood at 14%, producing $614 million in adjusted EBITDA, up 2% year-over-year. Non-GAAP diluted earnings per share rose 5% to $3.13, supported by higher adjusted EBITDA, reduced share count, and a lower tax rate. The company’s operating cash flow was robust at $301 million, generating $270 million in free cash flow, while days sales outstanding remained steady at 59 days after adjustments for acquisitions. Leidos ended the quarter with $6.3 billion in debt and $457 million in cash, maintaining a gross leverage ratio of 2.6x. Leidos raised its 2026 guidance, increasing revenue projections by $500 million to a range of $18 billion to $18.4 billion, non-GAAP diluted EPS by $0.05 to a range of $12.10 to $12.