Leidos Holdings, Inc. (LDOS)

In the past six months, Leidos has reported strong financial results and announced new contracts, which have positively impacted its stock. In Q1 2025, Leidos posted strong first-quarter results and reaffirmed its full-year guidance. In May 2025, Leidos announced a major agreement with Saudi Arabia's National Security Services Company to modernize security screening across the kingdom's airports and ports. In June 2025, Leidos announced collaborations with global partners to boost NATO capabilities through cloud modernization and to deliver seamless, secure data sharing across Department of Defense mission networks. In February 2025, Leidos secured a contract to deliver a new meteorological and oceanographic (MetOc) service for the UK's Ministry of Defense. Also in January 2025, Leidos announced a contract with NHS Supply Chain to provide cybersecurity services in England and Wales. Leidos initiated a $0.40 per share dividend in June 2025, following strong quarterly performance. In February 2025, Leidos initiated a $500 million share buyback program. The company's backlog has shown consistent growth, reaching $46.30 billion in Q1 2025. Analysts have maintained a "Moderate Buy" consensus for Leidos, with price targets ranging from $155.00 to $200.00 in the last six months.

Leidos tends to generate less revenue from its labor services during the fourth quarter due to the holiday season. Customer demand for its products and solutions remains strong, and its programs are generally well-insulated from significant budgetary risks. The company's focus on long-term government contracts suggests a relatively stable demand, though subject to government funding environments and potential resolutions.

Leidos Holdings, Inc. is a Fortune 500 science, engineering, and information technology company headquartered in Reston, Virginia. It provides scientific, engineering, systems integration, and technical services and solutions primarily to various government entities and highly regulated industries, including the U.S. Department of Defense (DoD), the Intelligence Community, the Department of Homeland Security, and the National Aeronautics and Space Administration (NASA), as well as select commercial markets. Leidos operates through three main reportable segments: Defense Solutions, Civil, and Health. The Defense Solutions segment offers national security solutions and systems for air, land, sea, space, and cyberspace. The Civil segment focuses on integrating aviation systems, securing transportation measures, modernizing IT infrastructure, and engineering energy efficiently. The Health segment provides solutions to federal and commercial customers responsible for health and well-being, including health information management, managed health, digital transformation, and life sciences research and development services. Major products and services include integrated systems, digital transformation, cyber operations, digital modernization, transportation solutions, space systems, mission software systems, maritime solutions, security detection and automation solutions, healthcare information management services, logistics services, intelligent analysis, mission support, and research and development services.

Leidos has a global presence with over 400 locations in 30 countries, aiming to strengthen its international relationships. While a significant portion of its revenue is generated from U.S. Government contracts, Leidos is expanding into international government and broader commercial markets. Key international operations include the UK & Europe, which plays a central role in its growth strategy with over 1,200 employees, and Australia, with more than 2,000 employees, which is of strategic importance for the company.

Leidos generally maintains a strong brand reputation, particularly in the government services and IT sectors, known for delivering complex, mission-critical solutions and long-term relationships with key government clients. The company's consistent revenue growth and strategic focus on high-growth areas like cyber and digital modernization contribute to its positive standing. On March 4, 2025, the Chinese Ministry of Commerce placed 15 U.S. entities, including Leidos, on its export control list, barring the export of dual-use commodities to those businesses. In May 2025, the Department of Homeland Security terminated for convenience its $2.4 billion cybersecurity services contract with Leidos. Leidos faces risks due to its heavy dependence on U.S. government spending and ongoing investigations by the Department of Justice and SEC.

Leidos Holdings, Inc. is primarily owned by institutional shareholders (75.70%), with 5.65% owned by Leidos insiders and 18.65% by retail investors. Major institutional owners include Vanguard Group Inc., Blackrock Inc., State Street Corp., Geode Capital Management LLC, JPMorgan Chase & Co., First Trust Advisors LP, Boston Partners, Invesco Ltd., Massachusetts Financial Services Co, and Van Eck Associates Corp. The largest individual shareholder is Kenneth C. Dahlberg, owning 0.85% of the company's shares.