Leidos reported a record third-quarter revenue of $4.47 billion for fiscal year 2025, marking a 7 percent increase from the previous year. Strong customer demand for innovative products supporting critical defense and national security missions drove this impressive performance.
The company also announced Q3 net income of $369 million, representing a 2 percent year-over-year jump. Non-GAAP diluted earnings per share reached $3.05, up 4 percent from the prior period. Leidos ended the quarter with a total backlog of $47.7 billion and secured $5.9 billion in net bookings, resulting in a robust book-to-bill ratio of 1.3.
CEO Thomas Bell confirmed the company continues to deliver strong results, attributing the success to its mission-critical programs and the innovation and discipline of its workforce. Despite recent operational challenges, the company raised its 2025 earnings and margin guidance while reaffirming its revenue and cash forecasts, expressing confidence in its strategic alignment with the administration’s priorities.
Defense Systems Drive Revenue Growth
The defense systems segment delivered an outstanding performance, posting 11 percent revenue growth in the third quarter. Bell emphasized the segment’s strong outlook, revealing that Leidos currently tracks about ten distinct franchise programs, expecting them to generate approximately $15 billion in potential value over the next five years.
These critical programs encompass air and base defense systems, counter-unmanned aerial systems (C-UAS), hypersonic missiles, the Black Arrow small cruise missile, and nonkinetic effects for C-UAS areas. This sector momentum highlights the company’s commitment to supplying high-demand technology to secure national interests.
Positioning for the Golden Dome Initiative
Leidos maintains a key position in the Golden Dome next-generation missile defense shield initiative. Bell confirmed the Department of Defense (DoD) is currently finalizing the program’s reference architecture and evaluating proposals for the $150 billion SHIELD IDIQ procurement. The company anticipates vigorous government reengagement on this subject soon.
Leidos is leveraging ongoing customer conversations to highlight its unique capabilities that will play a critical role in Golden Dome, specifically advanced radar surveillance systems and interceptor modernization.
Refining Strategic Growth with NorthStar 2030
Addressing the company’s approach to mergers and acquisitions (M&A), Bell reiterated a “shareholder-friendly” philosophy for capital deployment. While historically prioritizing organic growth and share repurchases, Leidos has now refined its focus areas for potential acquisitions through its NorthStar 2030 strategy.
This strategy identifies five core growth pillars: space and maritime; energy infrastructure; digital modernization and cyber; highly customized critical mission software; and managed health services. The recent Kudu acquisition exemplifies this new, defined approach, signaling that inorganic growth will become a more integral part of the company’s future playbook.
