Leidos Holdings reported fourth-quarter revenue of $4.21 billion, falling short of analysts' estimates of $4.31 billion. The shortfall stems directly from the six-week U.S. government shutdown that ended in November, which severely disrupted federal operations and crippled demand for contractors like Leidos, which provides IT, weapons, and other services to federal agencies. Results were further hurt by a 9.3% decline in sales within its health and civil segment, which supplies electronic health record systems to the Department of Defense and VA hospitals. Leidos forecast 2026 adjusted profit between $12.05 and $12.45 per share, the midpoint 4 cents below analysts' estimates of $12.29. Government contractors face prolonged uncertainty due to political gridlock, impacting their revenue stability and investor confidence.