# Entrust Solutions acquisition contributes $142 million to Leidos' third-quarter revenue Leidos' revenue rose 4%, with 0.6% organic growth, while Homeland expanded and higher-margin Health contracted. A new joint venture figures in revised full-year guidance. Published 2026-11-03 by TGOs. Canonical: https://tgos.io/news/2026/11/03/entrust-solutions-acquisition-contributes-142-million-to-leidos-third/ Leidos' acquisition of ENTRUST Solutions supplied $142 million of revenue in the fiscal third quarter, which ended Oct. 2, 2026.[1] Total revenue rose 4% to $4.63 billion.[1] Organic revenue grew 0.6%.[1] Leidos' organic measure excludes revenue from acquisitions within the last 12 months and divestitures within the current and year-ago periods.[1] Homeland, which includes Entrust Solutions, grew revenue 32%, or 14.8% organically.[1] Leidos attributed growth to demand for air traffic management and electric power distribution engineering solutions, alongside the acquisition.[1] **Also announced** On Oct. 5, 2026, Leidos closed a transaction contributing its Security Enterprise Solutions and Industrial Automation businesses to a newly formed joint venture with Altaris.[1] Leidos lowered fiscal 2026 revenue guidance to $18.00 billion–$18.20 billion.[1] Its prior revenue guidance for that fiscal year was $18.20 billion–$18.40 billion.[1] The revised guidance adjusts for the joint venture and reflects year-to-date performance and the current outlook; the guidance section does not quantify the venture's share of the revenue reduction.[1] The company raised fiscal 2026 non-GAAP diluted earnings per share guidance to $12.50–$12.70.[1] It also raised operating cash flow guidance for that fiscal year to approximately $1.90 billion.[1] ## Why it matters Health revenue fell 12%, with Leidos attributing the declines in revenue and margins to expected program shifts and reduced volumes on managed health services programs.[1] Its operating margin narrowed to 22.5% from 26.8% a year earlier.[1] Health's operating margin remained above Homeland's 7.9%, putting the revenue expansion in the lower-margin segment of this pair.[1] ## Sources 1. Leidos Exhibit 99.1, third-quarter 2026 results release (SEC)