Leidos Holdings 2025 Q2 Earnings Strong Performance as Net Income Rises 21.3%

Leidos Holdings (LDOS) reported robust Q2 2025 earnings, surpassing expectations with a significant increase in net income and EPS. The company raised its full-year guidance, citing sustained profitability and improved macroeconomic visibility.

Revenue for Leidos Holdings in Q2 2025 increased by 2.9% to $4.25 billion, reflecting solid demand across customer segments. This follows the company’s consistent performance and strategic execution.

Earnings per share (EPS) surged 26.8% year-over-year to $3.03, while net income rose to $393 million—a 21.3% improvement compared to $324 million in the prior-year period. The company has maintained profitability for over 20 years in the same quarter, highlighting strong operational resilience. This substantial EPS growth underscores the company’s effective cost management and program execution.

The stock price of Leidos Holdings has risen across multiple timeframes, gaining 2.93% on the latest trading day, 7.08% for the week, and 5.09% month-to-date. A post-earnings trading strategy based on revenue growth has historically yielded strong returns, achieving a 45.25% return over three years. The strategy outperformed the benchmark, with a CAGR of 13.75%, although it carried moderate volatility and a Sharpe ratio of 0.55.

A historical analysis of post-earnings price action shows that a strategy of purchasing shares following revenue growth and holding for 30 days has historically delivered strong returns. Over the past three years, the approach achieved a 45.25% return, significantly outpacing the benchmark. Despite a Sharpe ratio of 0.55 and a volatility of 25.23%, the strategy offered a maximum drawdown of 0.00% and a CAGR of 13.75%, making it a compelling option for moderate-risk investors.

CEO Tom Bell attributed the company's performance to strong demand, particularly in the Defense Systems segment, improved margins, and strategic cost management. He also cited a $25 million insurance reimbursement and the acquisition of Kudu Dynamics as key contributors. Bell expressed confidence in the company's NorthStar 2030 strategy and highlighted the decision to raise full-year guidance following two quarters of strong performance and enhanced macroeconomic clarity.

On the same day as the earnings release, Leidos published a transcript of its Q2 2025 earnings call. The transcript provides further insight into the company’s financial performance and strategic outlook. Investors are encouraged to enable JavaScript and cookies for full access. The earnings call offered additional context on the company’s operational and strategic priorities, reinforcing the strong performance highlighted in the earnings report.