Leidos Lifts Profit Guidance as Global Defence Spending Strengthens

Post by : Bianca Suleiman

Leidos Holdings, a major U.S. defence contractor, has lifted its full-year profit guidance, pointing to heightened global demand for munitions and defence services. The news pushed the company's shares up roughly 2.7% in pre-market trading.

For the year, Leidos now anticipates diluted earnings of $11.45 to $11.75 per share, an upward revision from its earlier range of $11.15 to $11.45. Revenue forecasts remain unchanged at $17 billion to $17.25 billion, signalling steady performance in its government and defence contract portfolio.

The firm posted a strong third quarter, with adjusted earnings per share of $3.05, beating analysts' consensus of $2.71. Revenue increased 6.7% to $4.47 billion, topping Wall Street estimates of $4.28 billion.

Based in Reston, Virginia, Leidos specialises in cybersecurity, government IT management services and advanced drone and aerial systems. Its results reflect a broader uptick in defence budgets worldwide amid ongoing conflicts such as the Russia-Ukraine war and sustained tensions in the Middle East.

The higher guidance highlights how prolonged government investment in security and technology is benefiting defence contractors, positioning companies like Leidos to capture growing demand for both munitions and high-tech solutions.