Home / Business and Economy / Leidos Boosts 2026 Forecast on Defense Demand
Leidos Boosts 2026 Forecast on Defense Demand
5 May
Summary
- Leidos raised its 2026 profit and revenue forecasts.
- Demand for military services is strong due to global conflicts.
- The company secured an $869 million contract for AI systems.
Defense contractor Leidos Holdings is projecting increased profitability and revenue for 2026, buoyed by strong demand for its information technology and military intelligence services. The company's confidence stems from the Pentagon's ongoing efforts to replenish weapons stockpiles, a necessity exacerbated by operations linked to Iran and the prolonged Russia-Ukraine conflict.
Leidos' intelligence and digital sector, which offers crucial military software, intelligence analysis, and global logistics, reported a 7% sales increase to $1.51 billion. This segment's growth aligns with broader industry trends, as seen with defense supplier L3Harris also reporting increased production in its intelligence and surveillance systems business.
Further bolstering its future outlook, Leidos recently secured an $869 million army contract to develop AI-enabled systems. These systems are designed to transform vast amounts of data into actionable insights, thereby enhancing military decision-making capabilities. The company has updated its full-year adjusted profit expectation to a range of $12.10 to $12.50 per share and anticipates 2026 revenue to be between $18 billion and $18.4 billion.
