LDOS · 10-Q · 2026Q3 · Full report

End-Market Demand Trends

Leidos Holdings, Inc. · 2026-08-04 · Importance 49 · Surprise 32

Leidos generated approximately 83% of second-quarter and 85% of year-to-date revenue from U.S. government contracts, with demand tied primarily to national security, homeland security and intelligence spending. Intelligence & Digital revenue increased 6.5% in the quarter and 7.0% year to date, driven primarily by program wins, while Defense revenue rose 6.2% in the quarter and 3.4% year to date from program wins and higher volumes on existing contracts. Homeland was the strongest growth area, with revenue up 32.0% in the quarter and 19.0% year to date from higher volumes, program wins and the Entrust business, whereas Health revenue declined 7.6% in the quarter and 3.8% year to date because of a net decrease in volumes.