Leidos Holdings, Inc.

Leidos Holdings, Inc. is a global technology, engineering, and science company headquartered in Reston, Virginia. The company's core business involves providing scientific, engineering, systems integration, and technical services and solutions. Leidos is dedicated to addressing complex challenges in national security, health, and critical infrastructure, focusing on digital and mission innovations for its government and commercial customers.

The company operates across key market segments including National Security & Digital, Health & Civil, Commercial & International, and Defense Systems. Its extensive portfolio of products and services encompasses digital modernization, advanced analytics, cybersecurity, artificial intelligence (AI), mission-critical systems, mission software, and managed health services. Leidos also provides solutions in energy infrastructure, aviation security, air traffic management, border protection, and space integration.

Led by CEO Thomas Bell, who was appointed in May 2023, Leidos maintains a strong market position as a critical player in the government and defense sectors. Recent notable activities include securing an $869 million U.S. Army contract in April 2026 for its MACRO II program, focused on accelerating military decision-making through AI and advanced networking. In the same month, Leidos received a $617 million award from the U.S. Army for additional launchers for the Indirect Fire Protection Capability Increment 2 (IFPC Inc 2) system and partnered with Havoc to integrate unmanned systems for maritime and air autonomy. Additionally, in January 2026, Leidos agreed to acquire utility consulting and engineering services platform Entrust Solutions Group for approximately $2.4 billion. Leidos is a Fortune 500 company, reflecting its significant presence and influence in its operating markets.

Latest updates

Leidos Raises 2026 Guidance After Strong Q1, Entrust Acquisition

Event summary

  • Leidos reported Q1 2026 revenues of $4.4B, up 4% YoY, with net income of $335M ($2.56 per diluted share).
  • Non-GAAP diluted EPS rose 5% YoY to $3.13, and adjusted EBITDA margin was 14.0%.
  • The company completed the acquisition of Entrust and signed a joint venture with Analogic Corporation.
  • New business awards included a $869M contract with the U.S. Army and a $335M contract with the NSA.
  • Leidos raised its full-year 2026 guidance for revenue, earnings, and cash flow.

The big picture

Leidos' strong Q1 performance and raised guidance reflect its strategic focus on digital modernization and mission-critical solutions for government customers. The Entrust acquisition and joint venture with Analogic Corporation align with its NorthStar 2030 strategy, positioning the company to capitalize on increasing demand for cybersecurity and AI-enabled systems. The company's ability to execute these initiatives will be crucial in maintaining its competitive edge in the defense and technology sectors.

What we're watching

Execution Risk
How Leidos will integrate Entrust and execute its NorthStar 2030 strategy.
Government Spending
Whether U.S. defense and non-defense budget priorities will support Leidos' growth.
Market Position
The pace at which Leidos can sustain its multiyear growth acceleration.

Leidos Secures $869M Army Contract for AI-Driven Battlefield Insights

Event summary

  • Leidos was awarded a five-year, $869 million contract by the U.S. Army.
  • The contract, named MACRO II, focuses on developing systems to accelerate military decision-making across multiple domains (land, sea, air, space, cyber).
  • The project leverages artificial intelligence, advanced networking, and modular open architecture.
  • The work aligns with Leidos' NorthStar 2030 strategy, emphasizing digital modernization and mission software development.
  • Leidos reported $17.2 billion in annual revenue as of January 2, 2026.

The big picture

This contract underscores the increasing reliance on AI and data analytics within the U.S. military's modernization efforts. The $869 million award represents a significant win for Leidos, reinforcing its position as a key provider of mission-critical software and systems to the Department of Defense. The focus on 'multi-domain operations' highlights the Army's shift towards a more integrated and technologically advanced approach to warfare.

What we're watching

Execution Risk
Successfully integrating AI and advanced networking into battlefield systems presents significant technical and logistical challenges, and delays could impact future contract awards.
Competitive Landscape
The competitive bidding process for MACRO II suggests other firms are vying for similar defense technology contracts, potentially putting pressure on Leidos' margins.
Joint Force Adoption
The ultimate value of the contract hinges on the U.S. Army's and other joint forces' willingness to adopt and integrate Leidos' systems into existing workflows, which may require significant training and process changes.

Leidos Secures $456M Military OneSource Contract

Event summary

  • Leidos won a four-year, $456 million contract from the General Services Administration to manage Military OneSource.
  • Military OneSource serves approximately 4.7 million service members and their families.
  • The program provides services including counseling, tax assistance, and spouse employment support.
  • Leidos' Health President, Liz Porter, is a military spouse.

The big picture

This $456 million award underscores Leidos’ established position as a key provider of health and support services to the U.S. military. The contract’s four-year duration provides revenue visibility and reinforces Leidos’ alignment with government priorities around service member well-being. The size of the contract, combined with Leidos’ existing health services portfolio, suggests a strategic focus on expanding within the managed health services sector.

What we're watching

Program Performance
The success of this contract hinges on Leidos’ ability to effectively manage and scale Military OneSource’s services while maintaining confidentiality and user satisfaction, which could impact future government contracts.
NorthStar 2030
How this contract contributes to Leidos’ broader NorthStar 2030 strategy and whether it signals further expansion into managed health services will be a key indicator of the company’s growth trajectory.
Competition
The competitive landscape for government health services contracts remains intense; monitoring Leidos’ ability to retain and win similar contracts will be crucial for assessing its market position.

Leidos Secures $1.2 Billion in Army Air Defense Contracts

Event summary

  • Leidos received a $617 million award from the U.S. Army for IFPC Inc 2 air defense launchers.
  • This award, combined with prior contracts totaling $356 million, brings Leidos' total production contracts for IFPC Inc 2 to nearly $1.2 billion.
  • The contracts extend through 2029 and support continued research, development, and testing.
  • Leidos delivered the first IFPC Inc 2 launcher two months ahead of schedule.

The big picture

This substantial contract award underscores the U.S. Army's commitment to modernizing its air defense capabilities and signals a significant revenue stream for Leidos. The IFPC Inc 2 system's modular design and open architecture position it to adapt to future threats, but Leidos' ability to execute on the production commitments and manage the supply chain will be critical to realizing the full value of this investment. The $1.2 billion in contracts represents a meaningful contribution to Leidos’ $17.2 billion annual revenue.

What we're watching

Production Scaling
The ability of Leidos to scale production to meet the Army's demands, given the commitment to over 100 launchers, will be a key indicator of future contract flow and profitability.
Technology Integration
How effectively Leidos integrates new effectors and technologies into the IFPC Inc 2 system will determine its long-term relevance and competitiveness against evolving threats.
Supply Chain
The success of Leidos' efforts to build resiliency and capacity across the supply chain will be crucial for sustained production and avoiding delays, especially given geopolitical uncertainties.
CID: 2595