Strong Financial Performance: Leidos reported robust Q2 results with revenues of $4.25 billion, a 3% increase year-over-year, and a remarkable 15.2% adjusted EBITDA margin, up 170 basis points YOY. Non-GAAP diluted EPS surged by 22% to $3.21, indicating solid profitability amidst a challenging market environment.

Full-Year Guidance Increased: The company raised its 2025 revenue guidance by $100 million, now estimating a range of $17 billion to $17.25 billion. Adjusted EBITDA margin guidance was also elevated to the mid-13% range. This confidence is bolstered by improved customer engagement and a robust pipeline of opportunities, particularly due to funding from the recently passed reconciliation bill.

Strategic Growth Areas: Leidos' North Star 2030 strategy highlights five main growth pillars: space and maritime, energy infrastructure, digital modernization and cyber, mission software, and managed health services. Notable opportunities include significant funding for FAA modernization, the TSA's screening system upgrades, and growth in durable health services specifically targeting veterans.