LDOS · 10-Q · 2026Q4 · Full report

Liquidity and Debt Position

Leidos Holdings, Inc. · 2026-11-03 · Importance 78 · Surprise 74 · Matches filing data

Leidos had $630 million of cash and cash equivalents and $6.0 billion of outstanding debt at October 2, 2026, compared with $4.6 billion of debt at January 2, 2026. In March 2026, it issued $600 million of 4.10% notes due 2029 and $800 million of 5.00% notes due 2036; proceeds partly funded the Entrust acquisition. The company had no borrowings under its $1.5 billion revolving credit facility and no commercial paper outstanding, and it was in compliance with all financial covenants. The $1.4 billion increase in debt was accompanied by higher interest expense, contributing to non-operating expense increases of 39.2% for the quarter and 36.5% for the nine-month period.

Key facts

• Outstanding debt was $6.0 billion at October 2, 2026, compared with $4.6 billion at January 2, 2026. source
• In March 2026, Leidos issued $600 million of 4.10% senior unsecured notes due March 2029 and $800 million of 5.00% senior unsecured notes due March 2036; proceeds funded part of the Entrust acquisition consideration and general corporate purposes. source
• Leidos's revolving credit facility and commercial paper program each provide up to $1.5 billion of borrowing or issuance capacity; neither had outstanding borrowings or commercial paper notes as of October 2, 2026. source
• Nine-month financing cash flow increased $1,209 million year over year, primarily due to a $1,391 million net increase in cash inflows from debt activity, partly offset by $166 million more in stock repurchases and $13 million in shares withheld for tax obligations. source
• Leidos invested $18 million in an investment fund as a limited partner during the nine months ended October 2, 2026, and committed to invest an additional $82 million before February 2031, expected to be funded with cash on hand and operating cash generation. source
• For the next 12 months and beyond, Leidos expects to meet liquidity needs, including debt service, through operating cash generation, available cash and commercial paper borrowings, with receivable sales or revolving-credit borrowings also available if needed. source
• Nine-month non-operating expense was $213 million in 2026 versus $156 million in 2025; the increase included a $23 million UK pension-plan settlement loss and higher interest expense related to termination of the bridge loan facility and issuance of $600 million and $800 million senior notes. source
• Leidos had $630 million in cash and cash equivalents as of October 2, 2026. source

Impact estimates