Leidos (LDOS) official guidance

We're now expecting CapEx to be closer to $250 million for the year, so the implied free cash flow guidance is up about $150 million.

In fact, on an organic basis, we expect the rest of Leidos to grow approximately 7% in revenues and 19% in adjusted EBITDA in 2026.

We're maintaining our adjusted EBITDA margin guidance of mid-13s%.

We see health segment sustaining revenues around Q2 levels for the rest of the year with non-GAAP OI margins around 20%.

In fact, on an organic basis, we expect the rest of Leidos to grow approximately 7% in revenues and 19% in adjusted EBITDA in 2026.

Conversely, defense growth will accelerate and post high single-digit growth for the year.

If you exclude the airborne ISR business, which is in a transition phase, defense will grow double digits in 2026, which is a better indicator of its launch point heading into 2027.

| Non-GAAP Diluted EPS | $12.20 - $12.50 | $12.10 - $12.50 |

| Cash Flows Provided by Operating Activities (B) | Approximately $1.85 | Approximately $1.80 |

| Revenues (B) | $18.20 - $18.40 | $18.00 - $18.40 |

I mean, beyond VBA, which is a very well-run part of the business. I mean, the team has evidenced by the Military OneSource takeaway and looking ahead to $6 billion in expected submits over Q2 and Q3 have a lot of other avenues to scale this business up.

Second, we see Q2 as the likely low point this year in revenue growth and margin.

As we've gone through all of our planning activity, really see the step function on growth, you know, building in the third quarter and fourth quarter, and with that, you'll see the high margin rates that we've come to demonstrate time and time again.

As we've gone through all of our planning activity, really see the step function on growth, you know, building in the third quarter and fourth quarter, and with that, you'll see the high margin rates that we've come to demonstrate time and time again.

Second, we see Q2 as the likely low point this year in revenue growth and margin.

As we've gone through all of our planning activity, really see the step function on growth, you know, building in the third quarter and fourth quarter, and with that, you'll see the high margin rates that we've come to demonstrate time and time again.

As we've gone through all of our planning activity, really see the step function on growth, you know, building in the third quarter and fourth quarter, and with that, you'll see the high margin rates that we've come to demonstrate time and time again.

Raising our adjusted EBITDA margin guidance from mid-13s to high 13s.

Raising our non-GAAP diluted EPS guidance by $0.30 at the midpoint for a new range of $11.45-$11.75.

We're reaffirming our operating cash flow guidance of approximately $1.65 billion.