Leidos Holdings raised its 2026 profit and revenue forecasts amid surging demand for military intelligence and IT services. The company attributed the growth to the Pentagon’s efforts to replenish weapon stockpiles strained by global conflicts.
Sales in the intelligence and digital business rose 7% to $1.51 billion during the first quarter. Leidos now expects full-year adjusted profit between $12.10 and $12.50 per share, up from the previous range of $12.05 to $12.45.
The company increased its 2026 revenue forecast to a range of $18 billion to $18.4 billion. This replaces the earlier guidance of $17.5 billion to $17.9 billion.
This outlook reflects broader momentum in the defense sector. Industry peers also report increased production for intelligence, surveillance, and reconnaissance systems.