LDOS
NYSE · Technology · Information Technology Services · US
Research · Nov 3, 2026
Defense Contracting Expands Owned Product Lines Through OTA Buying
Parsons (PSN) and V2X (VVX) say OTA and other rapid defense buying is growing their owned product lines, which Parsons says earn about twice its services margins.
Research · Sep 3, 2026
[LDOS] Leidos Thesis 2026: Federal IT Services Tested by DOGE Spending Review
Leidos Holdings Inc. FY2025 revenue ~$16.5-17.0B (+4-7%) with adj. EPS ~$10.40-10.80 reflecting continued Federal IT services growth + selected DoD modernization + selected Intelligence + selected Civil + Health segment growth + selected operational excellence offset by selected DOGE/Trump federal IT spending review (~$300-500M revenue at-risk) under continued CEO Tom Bell. Leading US Federal IT services firm focused on Defense (~50% revenue) + Intelligence + Civil + Health end markets; formed September 2013 via spin-off from SAIC (selected SAIC split into SAIC + Leidos September 2013); SAIC predecessor founded 1969 by J. Robert Beyster in San Diego (originally as Science Applications International Corporation; selected ~56+ year heritage); selected post-August 2016 Lockheed Martin IS&GS spin-combine merger created selected combined Federal IT services scale (Lockheed IS&GS contributed ~$5B+ revenue). Headquartered in Reston Virginia; ~48,000+ employees; ~$16.5-17.0B revenue; ~$80B+ contract backlog (~5x annual revenue). 4 segments: Defense Systems 50% ($8.5B — DoD enterprise IT + selected DoD modernization + selected weapons systems integration; ~10-12% segment margin) + Intelligence 17% ($2.8B — selected Intelligence Community contracts CIA + NSA + DIA + NRO + NGA + selected; selected classified IT; ~10-12% margin) + Civil 17% ($2.8B — selected FAA + DHS + selected DOT + DOI + selected federal civilian agencies; selected post-DOGE review impact; ~7-9% margin) + Health 12% ($2.0B — VA disability medical exams + selected DHA Defense Health Agency + selected HHS + Medicare; ~10-12% margin) + Other 3% ($0.5B). CEO Tom Bell since May 3, 2023 (succeeded Roger Krone CEO 2014-May 2023 retired; Bell ex-Rolls-Royce North America CEO 2014-2023 + ex-General Electric various roles + ~30-year aerospace/defense executive career). Selected DOGE/Trump federal IT spending review impact ~$300-500M revenue at-risk (~2-3% of total revenue); selected concentrated in Civil + Health segments. Capital return: dividend $1.52-1.60/share annual (selected continued increases ~5% annually) + buybacks $0.5-1B (selected modest); investment-grade Baa3/BBB- credit rating; net debt $4-5B. FY2026 thesis: Federal IT services growth + DOGE navigation + DoD modernization + capital return. Risks: DOGE/Trump federal IT review, Federal contract competitive intensity (Booz Allen + SAIC + Accenture Federal), GenAI commoditization, contract execution.
Research · Apr 10, 2026
U.S. Missile Defense AI Spending: PLTR, LMT, RTX Lead $14B Race