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Leidos Holdings Gears Up to Report Q2 Earnings: What's in the Cards?
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Key Takeaways
Leidos expects Q2 revenues of $4.36 billion, up 2.6%, and earnings of $2.90 per share, down 9.7%.
ENTRUST, recent contract awards and Kudu Dynamics may support Homeland and Intelligence & Digital growth.
Defense demand, program wins and cost controls may aid results, while higher interest expenses weigh.
Leidos Holdings, Inc. (LDOS - Free Report) is scheduled to release second-quarter 2026 results on Aug. 4, before market open. The company delivered an earnings surprise of 8.68% in the last reported quarter.
Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.
Factors Likely to Influence LDOS’ Q2 Results
Leidos Holdings' Homeland segment is likely to have benefited from the $2.4 billion acquisition of ENTRUST. This strategic addition expanded the company's energy infrastructure capabilities, strengthened its presence in the utility engineering market and enhanced its service offerings, supporting the segment's top-line performance in the quarter to be reported.
Leidos Holdings' Intelligence & Digital segment is likely to have witnessed strength in the quarter to be reported, driven by recent contract awards, higher demand for Intelligence Community mission support and continued contributions from Kudu Dynamics.
Net write-ups on certain programs within the managed health services are likely to have supported the Health segment’s top-line performance.
Robust program wins and increased sales volumes, supported by growing geopolitical tensions globally and strong growth in integrated air defense systems, may have boosted the Defense segment’s top line.
Strong revenue growth, supported by disciplined program execution and cost-control initiatives, is likely to have favorably impacted the company's bottom-line performance. However, higher interest expenses are expected to have tempered some of the benefits in the quarter to be reported.
Q2 Expectations for LDOS
The Zacks Consensus Estimate for revenues is pegged at $4.36 billion, indicating an increase of 2.6% from the year-ago level.
The consensus estimate for earnings is pegged at $2.90 per share, calling for a decline of 9.7% from the figure recorded a year ago.
What the Zacks Model Unveils for LDOS
Our proven model predicts an earnings beat for LDOS this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here, as you will see below.
Below, we have mentioned players from the same sector that also have the right combination of elements to beat on earnings in the upcoming releases.
CDW Corporation (CDW - Free Report) is scheduled to report its second-quarter 2026 results on Aug. 5, before market open. It has an Earnings ESP of +0.95% and a Zacks Rank of 3 at present.
The Zacks Consensus Estimate for sales is pegged at $6.26 billion, which indicates a 4.7% rise from the year-ago quarter’s figure. The consensus estimate for earnings stands at $2.80 per share, which calls for a 7.7% improvement from the year-ago quarter’s figure.
Applied Materials (AMAT - Free Report) is slated to report its third-quarter fiscal 2026 results on Aug. 13, after market close. It has an Earnings ESP of +1.52% and a Zacks Rank of 2 at present.
The Zacks Consensus Estimate for sales is pegged at $9 billion, which calls for a 23.3% improvement from the year-ago quarter’s figure. The consensus estimate for earnings stands at $3.36 per share, which suggests a massive 35.5% increase from the year-ago quarter’s figure.
Analog Devices, Inc. (ADI - Free Report) is expected to report its third-quarter fiscal 2026 results on Aug. 19, before market open. It has an Earnings ESP of +2.37% and a Zacks Rank of 2 at present.
The Zacks Consensus Estimate for sales is pegged at $3.92 billion, which implies a 36.3% increase from the year-ago quarter’s figure. The consensus estimate for earnings is pegged at $3.33 per share, indicating a year-over-year surge of 62.4%.
View the Zacks #1 Rank List
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Leidos Holdings Gears Up to Report Q2 Earnings: What's in the Cards?
Key Takeaways
Leidos Holdings, Inc. (LDOS - Free Report) is scheduled to release second-quarter 2026 results on Aug. 4, before market open. The company delivered an earnings surprise of 8.68% in the last reported quarter.
Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.
Factors Likely to Influence LDOS’ Q2 Results
Leidos Holdings' Homeland segment is likely to have benefited from the $2.4 billion acquisition of ENTRUST. This strategic addition expanded the company's energy infrastructure capabilities, strengthened its presence in the utility engineering market and enhanced its service offerings, supporting the segment's top-line performance in the quarter to be reported.
Leidos Holdings' Intelligence & Digital segment is likely to have witnessed strength in the quarter to be reported, driven by recent contract awards, higher demand for Intelligence Community mission support and continued contributions from Kudu Dynamics.
Net write-ups on certain programs within the managed health services are likely to have supported the Health segment’s top-line performance.
Robust program wins and increased sales volumes, supported by growing geopolitical tensions globally and strong growth in integrated air defense systems, may have boosted the Defense segment’s top line.
Strong revenue growth, supported by disciplined program execution and cost-control initiatives, is likely to have favorably impacted the company's bottom-line performance. However, higher interest expenses are expected to have tempered some of the benefits in the quarter to be reported.
Q2 Expectations for LDOS
The Zacks Consensus Estimate for revenues is pegged at $4.36 billion, indicating an increase of 2.6% from the year-ago level.
The consensus estimate for earnings is pegged at $2.90 per share, calling for a decline of 9.7% from the figure recorded a year ago.
What the Zacks Model Unveils for LDOS
Our proven model predicts an earnings beat for LDOS this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here, as you will see below.
Leidos Holdings, Inc. Price and EPS Surprise
Leidos Holdings, Inc. price-eps-surprise | Leidos Holdings, Inc. Quote
Earnings ESP: LDOS has an Earnings ESP of +0.55%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Currently, Leidos Holdings carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Other Stocks to Consider
Below, we have mentioned players from the same sector that also have the right combination of elements to beat on earnings in the upcoming releases.
CDW Corporation (CDW - Free Report) is scheduled to report its second-quarter 2026 results on Aug. 5, before market open. It has an Earnings ESP of +0.95% and a Zacks Rank of 3 at present.
The Zacks Consensus Estimate for sales is pegged at $6.26 billion, which indicates a 4.7% rise from the year-ago quarter’s figure. The consensus estimate for earnings stands at $2.80 per share, which calls for a 7.7% improvement from the year-ago quarter’s figure.
Applied Materials (AMAT - Free Report) is slated to report its third-quarter fiscal 2026 results on Aug. 13, after market close. It has an Earnings ESP of +1.52% and a Zacks Rank of 2 at present.
The Zacks Consensus Estimate for sales is pegged at $9 billion, which calls for a 23.3% improvement from the year-ago quarter’s figure. The consensus estimate for earnings stands at $3.36 per share, which suggests a massive 35.5% increase from the year-ago quarter’s figure.
Analog Devices, Inc. (ADI - Free Report) is expected to report its third-quarter fiscal 2026 results on Aug. 19, before market open. It has an Earnings ESP of +2.37% and a Zacks Rank of 2 at present.
The Zacks Consensus Estimate for sales is pegged at $3.92 billion, which implies a 36.3% increase from the year-ago quarter’s figure. The consensus estimate for earnings is pegged at $3.33 per share, indicating a year-over-year surge of 62.4%.