AcquisitionsMay 5, 2026, 11:01 AM
Leidos Acquires Entrust for $2.4B; Q1 Revenue $4.4B, EPS $2.56
AI Summary
Leidos Holdings, Inc. completed the acquisition of Entrust for $2.4 billion in cash, significantly expanding its energy infrastructure capabilities within the Homeland segment. For the first quarter of 2026, the company reported a 3.65% increase in revenues to $4.4 billion. However, net income declined by 8.22% to $335 million, and diluted EPS fell by 7.58% to $2.56, partly due to $35 million in acquisition and integration costs. Operating cash flow saw a substantial improvement, rising to $301 million from $58 million in the prior year period.
Key Highlights
- Leidos acquired Entrust for $2.4 billion in cash on March 27, 2026, enhancing energy infrastructure capabilities.
- Q1 2026 revenues increased 3.65% to $4.4 billion from $4.245 billion in Q1 2025.
- Q1 2026 net income decreased 8.22% to $335 million from $365 million in Q1 2025.
- Q1 2026 diluted EPS decreased 7.58% to $2.56 from $2.77 in Q1 2025.
- Net cash provided by operating activities significantly increased to $301 million from $58 million year-over-year.
- Issued $1.4 billion in senior notes to fund a portion of the Entrust acquisition and for general corporate purposes.
- Goodwill increased to $8.094 billion as of April 3, 2026, from $6.342 billion at January 2, 2026, primarily due to Entrust.
- Homeland segment revenue grew 5.98% to $815 million; Intelligence & Digital revenue grew 7.16% to $1.497 billion.