LDOS · 10-Q · 2026Q4 · Full report

Market Demand Trends

Leidos Holdings, Inc. · 2026-11-03 · Importance 47 · Surprise 48

Intelligence & Digital revenue increased 5.0% for the nine months, driven primarily by program wins, while net volume decreases and completed contracts partly offset growth. Health revenue declined 6.5% for the nine months and 11.7% for the quarter, reflecting reduced volumes in managed health services programs and lower related incentive fees in the second half of fiscal 2026. Homeland revenue grew 23.4% for the nine months, with net volume increases and program wins partly offset by completed contracts. Defense revenue increased 3.4% for the nine months as program wins and higher volumes on existing contracts offset completed contracts.

Key facts

• Leidos expects to recover certain portions of higher tariff costs through contractual measures and currently does not expect higher tariffs to have a significant effect on its business. source