Defense contractor Leidos raises 2026 forecast on strong demand

May 5 (Reuters) - Defense ‌contractor Leidos ​Holdings ​raised its profit and revenue forecast for 2026 on Tuesday, betting on ‌strong demand for its IT and military ⁠intelligence services.

Efforts by the Pentagon to replenish weapons ‌stockpile, strained by operations ‌linked to Iran and the long-drawn Russia-Ukraine conflict, have boosted demand for military equipment ​and services.

Sales in Leidos' intelligence and digital business, which provides military software, as well ⁠as intelligence analysis and global logistics services, rose 7% to $1.51 ​billion.

Last week, the company bagged a $869 million army contract to build AI-enabled systems ​to enhance military decision-making ‌by turning large volumes of data into actionable insights.

Defense supplier L3Harris also ⁠said last week production in its intelligence, surveillance and reconnaissance systems business for classified and international ⁠aircraft programs has increased.

Reston, Virginia-based Leidos posted an adjusted ​profit of $3.13 per share for the first quarter, up from $2.97 a year earlier.

It expects full-year adjusted profit ‌to be between $12.10 and $12.50 per share, compared with $12.05 to $12.45 forecast previously.

The company ‌also raised its 2026 revenue forecast to $18 ⁠billion to $18.4 billion, from ‌its earlier ​range of $17.5 billion to $17.9 billion.

(Reporting by Aishwarya Jain in Bengaluru; Editing by Shilpi ‌Majumdar)

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