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Leidos Q1 Beats Estimates, AI & Margins in Focus
Description
Leidos Q1 earnings surpassed expectations with $4.4 billion revenue, 3.7% YoY growth, and $3.13 EPS, driven by strong demand in intelligence, digital infrastructure, and defense gear. However, defense profits were impacted by early development costs and fixed-price contract squeezes, keeping operating margins flat. Despite beating estimates, shares dropped due to investor concerns about portfolio complexity. Leidos is focusing on core products, integrating Entrust, and aiming to scale AI across health, energy, and other sectors. The company raised full-year revenue and EPS guidance, signaling potential turnaround.
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