(Reuters) -Defense contractor Leidos Holdings raised its full-year adjusted profit forecast on Tuesday, as demand for its technical services and munitions remains robust amid simmering geopolitical tensions.

Shares of the company were up 4% in premarket in trading.

Rising tensions around the world in the wake of a protracted Russia-Ukraine war and tensions in the Middle East have boosted the market for arms, benefiting defense contractors.

The company has followed peer Northrop Grumman in lifting its 2025 profit forecast. Leidos now expects its annual adjusted profit at between $11.15 and $11.45 per share, compared with its prior forecast of $10.35 to $10.75.

However, the Reston, Virginia-based company trimmed its full-year revenue forecast range and now expects it to be between $17 billion and $17.25 billion, from $16.9 billion and $17.3 billion previously.

Leidos provides technology services to government agencies as well as commercial clients and is also a maker of drones and aerial defense systems. It also provides services in the areas of health, environmental sciences and transportation.

It posted a second-quarter adjusted profit of $3.21 per share.

Analysts on average had anticipated a quarterly profit of $2.66 per share, according to data compiled by LSEG.

Its revenue rose about 3% to $4.25 billion, edging past estimates of $4.24 billion.