LDOS · 10-Q · 2026Q3 · Full report
Operating Cash Flow Trends
Leidos Holdings, Inc. · 2026-08-04 · Importance 38 · Surprise 24 · In source text
Net cash provided by operating activities increased $307 million in the quarter and $550 million for the six months ended July 3, 2026, versus the comparable 2025 periods. The improvement primarily reflected favorable working-capital changes, excess tax payments made in the prior year and the timing of payroll and employee-benefit payments. Net cash used in investing activities increased $2.061 billion year to date, primarily because of the $2.338 billion net cash payment for Entrust. Financing cash inflows increased $1.163 billion year to date, driven by a $941 million net increase from debt activity and a $234 million reduction in stock-repurchase cash outlays.
Key facts
- Net cash used in investing activities increased $2,061 million for the six months ended July 3, 2026, compared to the prior year, primarily due to $2,338 million of cash paid in connection with the acquisition of Entrust, net of cash acquired. source
- Net cash used in investing activities decreased $276 million for the three months ended July 3, 2026, compared to the prior year quarter primarily due to $285 million of net cash paid related to the acquisition of Kudu Dynamics in the prior year quarter. source
- Net cash used in financing activities increased $340 million for the three months ended July 3, 2026, compared to the prior year quarter, primarily due to a $300 million repayment on the commercial paper program. source
- Net cash provided by financing activities increased $1,163 million for the six months ended July 3, 2026, compared to the prior year, primarily due to a net increase of $941 million in cash inflows from debt activity and a $234 million net decrease in stock repurchases. source
- Net cash provided by operating activities increased $307 million and $550 million for the three and six months ended July 3, 2026, respectively, compared to the prior year periods. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| cash | negative | realized | -15.0% | Net cash used in investing activities increased $2,061 million for the six months ended July 3, 2026, compared to the prior year,… |
| cash | positive | realized | +7.4% | Net cash provided by financing activities increased $1,163 million for the six months ended July 3, 2026, compared to the prior year,… |
| liability | negative | realized | -6.0% | Net cash provided by financing activities increased $1,163 million for the six months ended July 3, 2026, compared to the prior year,… |
| cash | negative | realized | -2.2% | Net cash used in financing activities increased $340 million for the three months ended July 3, 2026, compared to the prior year quarter,… |
| cash | positive | realized | +1.8% | Net cash used in investing activities decreased $276 million for the three months ended July 3, 2026, compared to the prior year quarter… |