Leidos Holdings (LDOS) Company Report

Leidos was awarded a $454.9 million contract to modernize the U.S. Air Force’s Cloud One platform, collaborating with AWS, Azure, Google Cloud, and Oracle Cloud.
The program is designed to boost security, increase automation, reduce costs, and accelerate cloud adoption across Air Force units worldwide.
This initiative aligns with Leidos’ NorthStar 2030 strategy, emphasizing large-scale technology and cybersecurity innovation for federal agencies.
Leidos, headquartered in Reston, Virginia, employs 47,000 people globally and reported $17.2 billion in revenues for the fiscal year ended January 2, 2026.

1 day ago

Press Release

Leidos partners with Dropzone AI to accelerate federal cyber responses

LDOS

New Projects/Investments

Leidos is collaborating with Dropzone AI to deploy agentic AI in federal security operations centers, aiming to speed up threat response and reduce analyst fatigue.
The partnership leverages Second Front Systems’ Game Warden platform to streamline secure adoption of commercial AI SOC capabilities in both classified and unclassified government environments.
Dropzone AI’s agents have automated the equivalent of 160 years of manual analyst work across 300 organizations, enabling threat responses up to 90% faster.
Leidos has made a strategic investment in Dropzone AI to strengthen its portfolio of mission-ready cyber solutions for federal agencies.
For the fiscal year ended January 2, 2026, Leidos reported $17.2 billion in revenues and 47,000 employees worldwide.

2 days ago

Press Release

Leidos issues $1.4 billion in senior notes to finance Entrust acquisition

LDOS

Debt Issuance

M&A

On March 2, 2026, Leidos, Inc., a wholly owned subsidiary of Leidos Holdings, Inc., issued $600 million of 4.100% senior notes due 2029 and $800 million of 5.000% senior notes due 2036 under its Form S-3 shelf.
Net proceeds are estimated at $1.387 billion after underwriting discounts, intended to fund the acquisition of KENE Parent, Inc. (ENTRUST), with temporary use for general corporate purposes or liquid investments.
The notes are senior unsecured obligations guaranteed by Leidos Holdings, with semi-annual interest payments on March 15 and September 15, and maturities on March 15, 2029 and March 15, 2036.
They feature make-whole optional redemption provisions and a special mandatory redemption at 101% of principal if the Entrust acquisition is not completed by August 14, 2026 (or extended date) or is terminated.

Mar 2, 2026, 10:54 PM

8-K

Leidos' small cruise missile designated AGM-190A by U.S. Air Force

LDOS

Product Launch

The Leidos Small Cruise Missile (SCM) has been officially designated AGM-190A by the U.S. Air Force to address stand-off strike requirements.
The 200-pound class weapon demonstrated a standoff range of over 400 nautical miles during C-130 testing, underscoring its long-range capability.
Its modular hardware design and open system software enable rapid evolution to meet changing mission requirements.
This designation aligns with Leidos’ NorthStar 2030 strategic focus and follows $17.2 billion in annual revenues for the fiscal year ended January 2, 2026.

Feb 26, 2026, 9:30 PM

Press Release

Leidos outlines strategy and AI-first transformation at Citi conference

LDOS

M&A

New Projects/Investments

Leidos is a $17.5 billion–$18 billion company with 48,000 employees, organized into five sectors—Digital Modernization, Defense, Homeland, Health and Intelligence—each with a dedicated growth pillar to drive top-line expansion.
The company expects elevated U.S. defense spending (potentially exceeding $1 trillion in FY 2027) and agency tailwinds from the 2025 reconciliation package—such as TSA and FAA modernization—and plans to leverage growth in the intelligence community and digital modernization via AI.
Leidos has adopted an AI-first strategy: deploying OpenAI on most desktops, and launching an Enterprise Transformation Office to combine AI and business-process reengineering, aiming to compress back-office costs and redeploy talent to customer-facing roles.
Internal R&D investment rose from 17 percent to 24 percent of revenue, while capital expenditures grew threefold year-over-year, supporting development of proprietary technologies and secured SCIF infrastructure for sensitive work.
Through acquisitions—Kudu (cybersecurity) already closed and the upcoming EnTrust deal—Leidos is expanding its cybersecurity and energy engineering offerings; the EnTrust integration will form a $1.3 billion energy business, ranking among the top three in the U.S..

Feb 18, 2026, 6:00 PM

Transcript

Leidos outlines five‐sector strategy and AI‐first transformation

LDOS

M&A

Leidos reorganized into five sectors—Digital Modernization, Defense, Homeland, Health and Intelligence—to align clear growth pillars with market tailwinds.
The company closed 2025 with record earnings, cash and revenue, setting a foundation for continued growth under its clarified strategy.
Internal R&D investment rose from 17% to 24% of revenue and CapEx tripled to support advanced technology development and secure facilities.
Adopted an AI-first approach by deploying OpenAI enterprise-wide and establishing an Enterprise Transformation Office to streamline Leidos’ operations before offering solutions to customers.
Advanced its M&A strategy by integrating the Kudu cybersecurity deal and announcing the EnTrust acquisition to create a $1.3 billion energy infrastructure business.

Feb 18, 2026, 6:00 PM

Transcript

Leidos outlines 2026 growth strategy at Citi conference

LDOS

M&A

New Projects/Investments

Leidos reported record 2025 earnings, cash, profit, and revenue and reorganized into five focused sectors—Digital Modernization, Defense, Homeland, Health, and Intelligence—to clarify its growth strategy.
The company identified key growth pillars: maritime and space for Defense; energy for Homeland; digital modernization leveraging AI; Health services for veterans and active-duty personnel; and focused Intelligence solutions, all underpinned by anticipated increases in U.S. government budgets.
Internal R&D investment rose from 17% to 24% of revenue, while capex tripled year-over-year to develop secure facilities and programs of record. Recent acquisitions (Kudu and the upcoming $1.3 billion EnTrust deal) will expand its cyber and energy engineering capabilities.
Positioned as an AI-first company, Leidos deployed OpenAI to most desktops and established an Enterprise Transformation Office to reengineer back-office processes, aiming to improve efficiency and package AI-driven tools for government clients.
CEO Tom Bell expressed optimism for 2026, citing strong contract execution (“write-ups vs. write-downs”) and continued momentum from government modernization and framework agreement opportunities.

Feb 18, 2026, 6:00 PM

Transcript

Leidos amends and restates credit facility with $1.5 B revolving commitments

LDOS

Debt Issuance

Leidos Holdings, Inc. and its subsidiary Leidos, Inc. entered into an Amendment and Restatement Agreement effective February 12, 2026, to amend and restate their Existing Credit Agreement dated March 10, 2023.
The restated facility replaces the prior revolver and establishes $1.5 billion in new revolving commitments.
Citibank, N.A. remains Administrative Agent, alongside syndicated Lenders, Arrangers and Documentation Agents under the restated agreement.
All existing Guarantors reaffirm their obligations under the credit agreement as of the Restatement Effective Date.

Feb 17, 2026, 10:18 PM

8-K

Leidos announces Q4 and full‐year 2025 results

LDOS

Earnings

Guidance Update

M&A

Q4 revenues of $4.2 billion (–3.6% YoY) and FY revenues of $17.2 billion (+3.1%), with Q4 adjusted EBITDA margin 13.2% and FY 14.1%, and non-GAAP EPS of $2.76 (Q4) and $11.99 (FY; +17%).
2026 guidance: revenues $17.5–17.9 billion, adjusted EBITDA margin in the mid-13% range, non-GAAP EPS $12.05–12.45, CapEx $350 million, and operating cash flow $1.75 billion.
Strategic M&A: acquired Kudu Dynamics to enhance cyber capabilities, divested energy asset Varac, and agreed to acquire Entrust Solutions Group for $2.4 billion—funded via cash, commercial paper, and bonds; pro forma gross leverage ~2.6×.
Q4 capital deployment: repurchased $305 million of shares, paid $55 million in dividends; generated free cash flow of $452 million (127% of non-GAAP net income) and ended with $1.1 billion cash.

Feb 17, 2026, 1:00 PM

Transcript

Leidos reports Q4 2025 results and 2026 guidance

LDOS

Earnings

Guidance Update

M&A

Q4 revenue of $4.2 billion, down 3.6% year-over-year; full-year 2025 revenue of $17.2 billion (+3.1%). Q4 adjusted EBITDA margin was 13.2% and non-GAAP diluted EPS was $2.76 (FY 2025 EPS $11.99).
Record operating cash flow of $495 million in Q4 and $1.75 billion for FY 2025; Q4 free cash flow conversion was 127% of non-GAAP net income. Repurchased $305 million of shares, paid $55 million in dividends, and ended the year with a 1.9x gross debt/EBITDA leverage ratio.
2026 guidance: revenue of $17.5–17.9 billion (up to 4% growth), mid-13% adjusted EBITDA margin, non-GAAP EPS of $12.05–12.45, and CapEx of $350 million.
Continued M&A execution: acquired Kudu Dynamics in May and agreed to acquire Entrust Solutions for $2.4 billion in cash, expected to close in Q2 2026 with pro forma leverage of 2.6x.