Leidos Holdings, Inc. (LDOS)

Leidos Holdings, Inc., a Delaware holding company founded in 1969 and headquartered in Reston, Virginia, operates through its principal subsidiary Leidos, Inc. as a technology and science-driven company serving government and commercial customers with digital and mission-critical solutions. With approximately 47,000 global employees, Leidos generated 87% of fiscal 2025 revenue from U.S. government contracts (as prime or subcontractor) and about 8% from international operations, serving major customers including the Department of War, Intelligence Community, DHS, FAA, and VA, alongside foreign governments and commercial clients. The company operates across four reportable segments: National Security & Digital (44% of fiscal 2025 revenue), which provides digital modernization, mission software, cyber operations, and intelligence support; Health & Civil (30%), covering managed health services, transportation solutions like air traffic control systems, health IT, and life sciences research; Commercial & International (13%), focused on energy infrastructure modernization, security detection products, and international services in the UK and Australia; and Defense Systems (13%), delivering maritime, aerospace, land, and airborne systems for defense and intelligence agencies.

In fiscal 2025, Leidos acquired Savanna Industries (Kudu Dynamics) and completed minor divestitures within Commercial & International, following a prior immaterial disposition in Defense Systems in fiscal 2023. The company invested $187 million in company-funded research and development in fiscal 2025 (1.1% of revenue), up from $150 million in fiscal 2024 and $128 million in fiscal 2023. Leidos competes against major firms such as Booz Allen Hamilton, Lockheed Martin, Northrop Grumman, General Dynamics, SAIC, CACI, L3Harris, and others, differentiating itself through technical expertise, security-cleared personnel, cybersecurity capabilities, and AI integration.

Its business relies heavily on U.S. government contracting mechanisms including definitive award contracts, IDIQ contracts, GSA Schedule contracts, and Other Transaction Authority agreements, with revenue derived from cost-reimbursement, fixed-price-incentive-fee, time-and-materials, fixed-price-level-of-effort, and firm-fixed-price contract types. The company emphasizes a culture built on six core values—integrity, inclusion, innovation, agility, collaboration, and commitment—supported by extensive employee development, veteran outreach, and well-being programs, and was named one of the World's Most Ethical Companies by the Ethisphere Institute for the eighth consecutive year in 2025.