Leidos faces risks from government investigations and reviews, potentially impacting profitability and cash flow due to reliance on government contracts. Ongoing audits by the Defense Contract Audit Agency could lead to unfavorable adjustments. A self-reported internal investigation regarding potential FCPA violations and a Federal Grand Jury Subpoena add further uncertainty. Changes in international trade policies, like tariffs, may increase procurement costs.

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Leidos experienced revenue growth of 6.9% and 7.3% in the three and nine-month periods, respectively. Strong bookings and backlog, estimated at $8.1 billion and $15.8 billion for the three and nine-month periods, respectively, suggest future revenue potential. Improved program execution and segment wins contribute to positive operating income trends. Increased cash balances lead to lower interest expense.

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