How does Leidos Holdings (LDOS) make money?

Leidos Holdings (LDOS) generates revenue primarily from National Security Solutions, which accounted for 52.9% of total revenue in TTM through Q2 2026. The company reported $17.3B in revenue and converted 8.2% of it into net profit, equivalent to roughly $1.42B in net income — what's left after the cost of revenue, operating expenses, interest, and income taxes.

What is the gross profit margin of Leidos Holdings (LDOS)?

Leidos Holdings (LDOS) reported a gross profit margin of 17.5% in TTM through Q2 2026, equivalent to $3.04B in gross profit on $17.3B in revenue. Gross margin measures how much of each dollar of revenue remains after the direct cost of producing or delivering the product — a higher figure typically signals pricing power, scale, or a less capital-intensive business model.

What is the operating profit margin of Leidos Holdings (LDOS)?

Leidos Holdings (LDOS) reported an operating profit margin of 12% in TTM through Q2 2026, equivalent to $2.09B in operating income. Operating margin captures profitability after research & development, sales & marketing, and general & administrative expenses — but before interest, taxes, and one-off items — and is the cleanest single read on the underlying business's efficiency.

What is the net profit margin of Leidos Holdings (LDOS)?

Leidos Holdings (LDOS) reported a net profit margin of 8.2% in TTM through Q2 2026, equivalent to $1.42B in net income. Net margin is the bottom-line share of revenue that survives every expense — operating costs, interest, and income taxes — and is the figure that flows directly into earnings per share.

Is Leidos Holdings (LDOS) profitable?

Yes. Leidos Holdings (LDOS) reported $1.42B in net income for TTM through Q2 2026, with a net profit margin of 8.2%. The company earned more from its operations than it paid out in costs, interest, and income taxes, leaving positive earnings on the bottom line.

How much does Leidos Holdings (LDOS) spend on capital expenditures?

Leidos Holdings (LDOS) spent $134M on capital expenditures (CapEx) during TTM through Q2 2026, roughly 0.8% of total revenue. CapEx represents long-lived investment in property, equipment, data centres, and other physical infrastructure, and is subtracted from operating cash flow to arrive at free cash flow.

How much free cash flow does Leidos Holdings (LDOS) generate?

Leidos Holdings (LDOS) generated $1.86B in free cash flow during TTM through Q2 2026, a free-cash-flow margin of 10.7%. Free cash flow is the cash left after capital expenditures and represents the discretionary pool the company can use to pay dividends, repurchase shares, repay debt, or fund acquisitions without raising external capital.

What is the effective tax rate of Leidos Holdings (LDOS)?

Leidos Holdings (LDOS) had an effective tax rate of 22.8% in TTM through Q2 2026. The effective rate is the actual share of pre-tax income paid as income taxes and can differ materially from the statutory rate due to foreign earnings mix, tax credits (such as R&D), share-based compensation deductions, and one-off discrete items.

What are the main business segments of Leidos Holdings (LDOS)?

Leidos Holdings (LDOS) reports revenue across 4 reportable product segments, led by National Security Solutions at 52.9% of total revenue in TTM through Q2 2026. See the revenue-by-segment table on this page for the full breakdown and how each segment feeds into the income-statement waterfall above.

How Leidos Holdings Makes Money: 2026 Visual Revenue Map

Leidos Holdings (LDOS) Income Statement Flow — TTM through Q2 2026

Calculated from the four most recent reported quarters, ending April 3, 2026 (reported May 5, 2026).

Leidos Holdings discloses geographic revenue only in annual filings. to view the full breakdown.

Leidos Holdings (LDOS) Revenue by Product Segment — TTM through Q2 2026

Aggregated from the four quarterly disclosures behind this TTM. Minor differences vs the company's annual filing can occur if reported segments changed mid-year.

Revenue contribution by product segment for Leidos Holdings (LDOS), TTM through Q2 2026.
Segment	Revenue (USD)	% of total
National Security Solutions	$9.17B	52.9%
Civil Segment	$4.64B	26.8%
Defense Solution Segment	$2.06B	11.9%
Health Segment	$1.46B	8.4%
Total	$17.3B	100%

National Security Solutions$9.17B
Civil Segment$4.64B
Defense Solution Segment$2.06B
Health Segment$1.46B
Total$17.3B

Revenue Breakdown — TTM through Q2 2026

In TTM through Q2 2026, Leidos Holdings (LDOS) reports revenue across 4 reportable product segments; the largest segment was National Security Solutions at 52.9%, followed by Civil Segment (26.8%) and Defense Solution Segment (11.9%).

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