Leidos Holdings Inc

Leidos provides science, engineering and technology services, plus some specialized hardware, mostly to the U.S. government. It is based in Reston, Virginia, was once called SAIC, Inc., and has about 47,000 employees. In fiscal 2025 (the year ended January 2, 2026), 87% of its $17.2 billion in revenue came from U.S. government contracts. Some of that work was as the main (prime) contractor and some as a subcontractor. Customers include the Department of War, intelligence agencies and the Department of Homeland Security.

National Security & Digital, the largest segment at 44% of fiscal 2025 revenue, modernizes government IT, builds AI-assisted mission software and runs cyber and intelligence work. Health & Civil (30%) performs disability exams for Veterans Affairs (VA), builds air traffic control systems for the Federal Aviation Administration and delivers one electronic health record used by military and VA hospitals. Commercial & International (13%) supplies airport and border security scanners, serves utilities and works for the UK and Australian governments. Defense Systems (13%) builds air and missile defense systems, radar, space-based sensors and unmanned vessels.

About 8% of revenue came from outside the United States. Operating margin, the share of sales left as profit after running costs, was 12.3% in fiscal 2025. Revenue grew 3.1% that year and about 6.9% a year from fiscal 2020 to fiscal 2025.

• In Q2 FY2026 (ended Jul 3, 2026), revenue was $4.56B, up 7.2% from a year earlier, and net income was $354.0M (-9.5%).
• For fiscal 2025, revenue was $17.17B (+3.1% year over year; +6.9% a year from FY2020 to FY2025) with a 8.4% net margin.

• Over FY2021–FY2025: $1.71B in buybacks and $1.02B in dividends.
• Regular dividend per share increased 7 years in a row.
• Regular dividends per share grew +3.7% a year over 5 years (FY2020–FY2025).
• Dividends took 14.6% of earnings and 13% of free cash flow in the latest fiscal year.
• Shares outstanding changed -10.6% from Oct 25, 2021 to Jul 28, 2026.

Rank among 1514 US companies

Market value at each year end

Leidos Holdings’s market value went from $7.69B at the end of 2016 to $18.09B on Nov 2, 2026, about 2.4 times as much; since the end of 2025 it is down 22%.

Form 4 filings from 2025-10-29 to 2026-10-29 (25 read): 0 open-market purchases and 3 sales ($1.5M).

Large shareholders (13G filings)

ETFs with the most weight in LDOS

1. One customer brings in most revenue. About 87% of fiscal 2025 revenue came from U.S. government contracts. If Leidos's reputation or relationships with federal agencies were harmed, revenue and growth could suffer, with few other customers to fill the gap.
2. A security scanner that misses a threat. Leidos supplies screening equipment for airports, ports and borders. If its systems fail to detect bombs, weapons or contraband, it could face large liabilities and bad publicity, and insurance may not cover everything.
3. Budget cuts and late spending bills. Lower federal budgets, shifting priorities or delays in passing annual spending bills can slow or shrink contract awards. Leidos has little control over how Congress and agencies fund the programs it works on.
4. Contracts can be cut short. The government can cancel, shrink or change contracts before they finish, or renew them on worse terms. So the backlog, the value of work already won, may not all become revenue.
5. Tough bidding and contract protests. Contracts are won in competitive bids against many rivals, and losing bidders are likely to protest, which can delay or reverse awards. Conflict-of-interest rules can also keep Leidos out of some bids.
6. Rule breaches could mean a federal ban. Government contractors face complex procurement rules, audits and investigations. Violations, or misconduct by employees or partners, could bring penalties, lost contracts, or suspension or debarment, meaning a ban from future federal work.

• Oct 5, 2026 Major agreement signed; Investor presentation or announcement
• Oct 1, 2026 Executive or board change
• Aug 4, 2026 Quarterly results released
• May 6, 2026 Executive or board change; Shareholder vote results
• May 5, 2026 Quarterly results released
• Apr 15, 2026 Major agreement signed; Investor presentation or announcement
• Mar 30, 2026 Acquisition or sale of assets completed; Investor presentation or announcement
• Mar 3, 2026 Major agreement signed; New debt or financial obligation
• Feb 17, 2026 Major agreement signed; New debt or financial obligation
• Feb 17, 2026 Quarterly results released; Investor presentation or announcement

Leidos pays a small, growing dividend. It raised its regular dividend for seven straight fiscal years through fiscal 2025, reaching $1.63 a share, up from $1.36 in fiscal 2020. Dividends used about 15% of fiscal 2025 earnings and 13% of free cash flow (cash left after running and investing in the business). The yield was 1.23% as of October 28, 2026. Buybacks matter more: $1.7 billion over fiscal 2021 to 2025, versus $1.0 billion in dividends, and the share count fell about 11% from October 2021 to July 2026.

Past downturns were mixed. The stock fell 41% in the 2020 COVID crash and took about 47 months to regain its peak. In the 2008 financial crisis it fell 21% and needed about 80 months. In the 2022 bear market it ended roughly flat. In the year to October 28, 2026, the share price fell 24.8%, with a peak-to-trough drop of 49.5%. Single stocks carry more risk than diversified funds.