LDOS · 10-Q · 2026Q3 · Full report

Acquisitions and Divestitures

Leidos Holdings, Inc. · 2026-08-04 · Importance 71 · Surprise 60 · In source text

Leidos recognized $141 million of Homeland revenue from the Entrust acquisition during the three months ended July 3, 2026, and $152 million during the six-month period. The Entrust acquisition added $371 million of backlog to Homeland as of the March 27, 2026 acquisition date. Leidos paid $2.338 billion, net of cash acquired, for Entrust during the six months ended July 3, 2026, and funded part of the consideration with $1.4 billion of senior notes issued in March 2026. Kudu Dynamics contributed $27 million of six-month Intelligence & Digital revenue, while the prior-year period included $285 million of net cash paid for that acquisition.

Key facts

• As of March 27, 2026 (the acquisition date), Entrust had $371 million of backlog that was included within the Homeland reportable segment. source
• Homeland revenues for the three months ended July 3, 2026 increased in part due to $141 million recognized from the acquisition of Entrust. source
• Homeland revenues for the six months ended July 3, 2026 included $152 million recognized from the acquisition of Entrust. source
• The proceeds from the March 2026 notes were used to fund a portion of the consideration payable in connection with the acquisition of Entrust and for general corporate purposes. source
• Intelligence & Digital recognized $27 million of increased revenues from the acquisition of Savanna Industries, Inc. ("Kudu Dynamics") during the six months ended July 3, 2026. source

Impact estimates