Leidos Holdings Inc. shares are trading higher on Tuesday after the company reported better-than-expected third-quarter results and raised its full-year EPS guidance.

Details

The company reported quarterly revenue growth of 7% year over year (Y/Y) to $4.47 billion, beating the analyst consensus estimate of $4.28 billion.

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Revenues grew year-over-year due to increased demand across primarily for innovative products and solutions for national security and defense missions.

The company’s adjusted EPS was $3.05, up 4% Y/Y, beating the analyst consensus estimate of $2.71.

Adjusted EBITDA was $616 million, up 3% Y/Y; however, the margin of 13.8% declined from 14.2% a year ago. 

Net bookings totaled $5.9 billion for the quarter, representing a book-to-bill ratio of 1.3. 

As a result, the backlog at the end of the quarter was $47.7 billion (up 5% Y/Y), of which $9.1 billion was funded. 

Leidos ( LDOS ) held $974 million in cash and equivalents as of October 3, 2025.

Outlook Boost

Leidos ( LDOS ) raised FY25 adjusted EPS guidance to $11.45–$11.75 (from $11.15–$11.45) vs consensus of $11.56.

Meanwhile, the company maintained full-year sales guidance at $17.0 billion–$17.25 billion vs the street view of $17.179 billion.

Leidos CEO Tom Bell commented, “Despite the government shutdown, we are raising our 2025 earnings and margin guidance and holding firm on our 2025 revenue and cash guidance.”

Dividend Raised

On October 31, 2025, Leidos ( LDOS ) declared a quarterly cash dividend of $0.43 per share, up 7.5% from the prior quarter, payable on December 31 to shareholders of record on December 15, 2025.

Price Action: Leidos ( LDOS ) shares are trading higher by 5.93% at $204.50 at last check on Tuesday.

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