(Reuters) - Defense contractor Leidos ( LDOS ) beat expectations for fourth-quarter earnings on Tuesday, aided by increased military spending and robust weapons demand amid rising geopolitical tensions.

Shares of the company rose about 5% in premarket trade.

Surging demand for weapons due to inventory restocking as a result of the Russia-Ukraine war and conflicts in the Middle East have bolstered defense contractors such as Leidos ( LDOS ), which counts the U.S. Pentagon as a primary customer.

The Reston, Virginia-based company reported an adjusted profit per share of $2.37 in the quarter ended January 3, surpassing analysts' average estimate of $2.27 according to data compiled by LSEG.

Its revenue in the quarter grew about 10% from a year earlier to $4.37 billion, also beating Wall Street expectations of $4.13 billion.

The company forecast its adjusted 2025 profit per share to be between $10.35 and $10.75, the midpoint of which is largely in line with expectations.