Shares of Leidos Holdings (LDOS) are soaring 5.04% in Tuesday's trading session following the release of its impressive first-quarter 2025 financial results. The defense contractor significantly outperformed Wall Street's expectations, buoyed by strong demand for weapon systems and effective cost management.

Leidos reported adjusted earnings of $2.97 per share for Q1, handily beating the analyst consensus estimate of $2.50. This represents a substantial 29.69% increase from the $2.29 per share earned in the same period last year. Revenue for the quarter came in at $4.25 billion, surpassing the expected $4.10 billion and marking a 6.79% year-over-year growth.

The company's robust performance was attributed to increased demand across customer segments, particularly in weapon systems. Leidos CEO Tom Bell highlighted the team's ability to execute in a dynamic environment that demands agility and innovation. The strong results also reflect the success of Leidos' NorthStar 2030 strategy, which focuses on enhancing customer outcomes through innovative technologies. With this positive momentum, Leidos has reaffirmed its full-year 2025 guidance, projecting revenues between $16.90 billion and $17.30 billion, and adjusted earnings per share between $10.35 and $10.75.