Leidos Holdings, Inc. has recently released its 10-K report, revealing its financial performance and operations for the year ended January 2, 2026. The company, headquartered in Reston, Virginia, provides services and solutions for government and commercial customers in the United States and internationally. Leidos operates under four reportable segments: National Security & Digital, Health & Civil, Commercial & International, and Defense Systems, with approximately 8% of its revenues generated outside the United States.
In fiscal 2025, Leidos reported a revenue increase of $0.5 billion, or 3%, compared to fiscal 2024. The operating margin for fiscal 2025 was 12%, compared to 11% for fiscal 2024, with operating income reaching $2,109 million, a $282 million increase compared to fiscal 2024. The company's significant initiatives include achieving annual revenue growth guided by its NorthStar 2030 strategy, continual improvements in business processes driven by its enterprise transformation office, and disciplined deployment of cash resources and capital structure to enhance shareholder value.
The U.S. government remains a key market for Leidos, with approximately 87% of total revenues generated from contracts with the U.S. government in fiscal 2025 and 2024. The company's business performance is affected by the overall level of U.S. government spending, especially national security, homeland security, and intelligence spending. Additionally, Leidos reported that sales to customers in international markets represented approximately 8% of total revenues for fiscal 2025 and 2024.
In terms of segment performance, the National Security & Digital segment reported revenues of $7,611 million, with an operating income of $760 million and an operating margin of 10.0%. The Health & Civil segment had revenues of $5,069 million, operating income of $1,202 million, and an operating margin of 23.7%. The Commercial & International segment reported revenues of $2,315 million, with an operating income of $166 million and an operating margin of 7.2%. Meanwhile, the Defense Systems segment had revenues of $2,179 million, operating income of $156 million, and an operating margin of 7.2%. The Corporate segment reported an operating loss of $175 million, an improvement from the $186 million loss in fiscal 2024.
Leidos also provided insight into its bookings and backlog, reporting net bookings of $17.5 billion in fiscal 2025, a decrease from $23.2 billion in fiscal 2024. The company's backlog, including both funded and negotiated unfunded backlog, amounted to $49.03 billion as of January 2, 2026, compared to $48.39 billion as of January 3, 2025.
As a result of these announcements, the company's shares have moved 0.69% on the market, and are now trading at a price of $194.70. For more information, read the company's full 10-K submission here.
