Leidos stock broke out above an entry Tuesday after the defense and aerospace technology company topped estimates for Q2 results.
Leidos reported a 22% increase in earnings to a record $3.21 per share adjusted. Revenue climbed 3% to $4.25 billion.
Analysts polled by FactSet expected earnings of $2.66 per share on $4.23 billion in sales.
The company noted that demand grew across all customer segments, particularly for its defense systems unit.
Leidos recorded $3.9 billion in net bookings during the quarter, bringing the total backlog to $46.2 billion. Of the backlog, $7.1 billion in contract awards are funded.
The company's adjusted EBITDA margin increased to a record 15.2%, while its net income margin rose to 9.2%.
Leidos noted that it was awarded two significant classified awards for the intelligence community. The first is a 10-year contract valued at $1.3 billion, while the second is a six-year, $390 million recompete contract.
The company also received a $350 million subcontract from Huntington Ingalls Industries to provide electronic warfare engineering and hardware solutions for Huntington Ingalls and the Air Force.
The Federal Bureau of Investigation awarded Leidos a $128 million task order to provide software development and modernize the bureau's biometric and criminal history repository, known as the Next Generation Identification system.
The NATO Communications and Information Agency awarded Leidos a contract valued up to $87 million to support IT and cybersecurity modernization efforts.
Leidos raised its 2025 guidance with results. The company now expects revenue to range from $17 billion to $17.25 billion, narrowed from its prior forecast for $16.90 billion to $17.30 billion. Earnings are expected to range from $11.15 per share adjusted to $11.45 per share. Leidos previously anticipated earnings between $10.35 and $10.75 per share adjusted.
The midpoint of the earnings outlook is ahead of FactSet views for $10.96 per share. The midpoint of the revenue forecast is slightly below analyst expectations for $17.17 billion.
Leidos Stock
Leidos stock popped 7.5% to 172.94 Tuesday, clearing a 165.97 buy point from a tight pattern forged above the 50-day and 200-day lines.
Shares on the move are rebounding from 10-week support and snapping a downtrend line.
LDOS stock has jumped almost 20% this year.
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