Leidos Holdings, Inc.
Leidos Holdings, Inc. (LDOS) is a US-based technology and engineering company that provides defence, intelligence, civil and health solutions to government and commercial clients. Its work spans systems integration, cybersecurity, cloud services, sensor systems and mission-critical engineering, often delivered through multi-year government contracts. With a market capitalisation around $24.8 billion, Leidos offers exposure to government spending and technology-driven defence programmes. Investors should note the revenue visibility that contract backlogs can provide, but also the sensitivity to budget cycles, contract awards and execution risks. Competition, programme delays and cost overruns are material considerations. Leidos has pursued growth via technology investment and selective acquisitions, helping diversify service lines. This summary is for general, educational purposes only and not personal financial advice; suitability depends on your circumstances and objectives, and returns are not guaranteed.
Why It's Moving
Leidos sharpens focus on high-growth defense tech by divesting non-core Varec unit.
Leidos announced a definitive agreement to sell its wholly-owned subsidiary Varec, a provider of automated fuel management solutions, as part of its NorthStar 2030 strategy to optimize its portfolio. This move allows the company to concentrate resources on strategic growth areas in defense and IT, while analysts maintain strong buy ratings amid rising earnings optimism.
- Supports NorthStar 2030 portfolio optimization by removing automated fuel management from Leidos' offerings, enabling sharper focus on core pillars.
- Transaction expected to close in Q4 2025, subject to customary conditions, with leadership stating it maximizes long-term value for both parties.
- Wall Street's average brokerage recommendation of 1.87 (Strong Buy territory) and upward EPS revisions to $11.72 signal growing analyst confidence.
Leidos sharpens focus on high-growth defense tech by divesting non-core Varec unit.
Leidos announced a definitive agreement to sell its wholly-owned subsidiary Varec, a provider of automated fuel management solutions, as part of its NorthStar 2030 strategy to optimize its portfolio. This move allows the company to concentrate resources on strategic growth areas in defense and IT, while analysts maintain strong buy ratings amid rising earnings optimism.
- Supports NorthStar 2030 portfolio optimization by removing automated fuel management from Leidos' offerings, enabling sharper focus on core pillars.
- Transaction expected to close in Q4 2025, subject to customary conditions, with leadership stating it maximizes long-term value for both parties.
- Wall Street's average brokerage recommendation of 1.87 (Strong Buy territory) and upward EPS revisions to $11.72 signal growing analyst confidence.
Stock Performance Snapshot
Analyst Rating
Analysts recommend buying Leidos stock, indicating confidence in its future growth potential.
Financial Health
Leidos Holdings is performing well, with strong revenue and cash flow, although profit margins are modest.
Dividend
Leidos Holdings offers a below-average dividend yield of 0.84%, which may not appeal to dividend-focused investors. If you invested $1000, you would be paid $8.40 a year in dividends (based on the last 12 months).
View more stocks by downloading the app for FREE
It only takes 60 seconds.
Baskets Featuring LDOS
The Pentagon's Software Pivot
The U.S. Army's $10 billion enterprise agreement with Palantir signals a major shift in defense procurement toward consolidated software contracts. This new model creates opportunities for other large technology firms capable of providing streamlined, large-scale IT and AI solutions to the military.
Published: August 4, 2025
Explore BasketPentagon's Software Overhaul
Palantir's new $10 billion agreement with the U.S. Army signals a major shift in defense procurement toward large-scale software contracts. This creates an investment opportunity in companies that provide data analytics, AI, and other critical software solutions to the government and defense sectors.
Published: August 3, 2025
Explore BasketDefense Tech's Digital Overhaul
The US Army has awarded Palantir a landmark $10 billion contract to streamline its software procurement. This move highlights a broader trend of military modernization, creating opportunities for technology firms that support defense-related data infrastructure and digital services.
Published: August 1, 2025
Explore BasketPalantir's AI Ascent
This carefully curated group of stocks represents the backbone of today's AI revolution. Selected by professional analysts, these companies provide the essential hardware, infrastructure, and software that power AI growth across government and commercial sectors.
Published: July 14, 2025
Explore BasketAI & Big Data for Government
These carefully selected companies are leading the digital transformation within federal agencies. Analysts are watching this space closely as government spending on AI and data technology continues to grow, potentially creating long-term investment opportunities.
Published: July 1, 2025
Explore BasketSatellite-Edge Backbone
A new communications infrastructure is being built in low Earth orbit, creating a blanket of high-speed connectivity around our planet. This collection features carefully selected companies positioned to benefit from the entire satellite-to-ground ecosystem powering our next generation of global data services.
Published: June 17, 2025
Explore BasketSpace-Based Solar Power
Discover companies pioneering the capture of solar energy from orbit. These carefully selected stocks represent leaders in orbital solar farm technology and wireless energy transmission, working toward a future of continuous clean power beamed directly to Earth.
Published: June 17, 2025
Explore BasketOff-Planet Builders
Looking beyond rockets to the companies building space's essential infrastructure. These carefully selected stocks represent the firms creating the backbone of our off-world future—from satellite manufacturing and servicing to the communication networks making space business possible.
Published: June 17, 2025
Explore BasketBig Brother Basket
This carefully curated collection of stocks gives you access to companies building the future of surveillance and security technology. Our expert analysts have selected leaders in digital monitoring, data intelligence, and cybersecurity poised to benefit from growing government and corporate spending.
Published: June 17, 2025
Explore BasketDefence Stocks
These carefully selected defence companies are positioned to benefit from increasing global tensions and military spending. Our professional analysts have identified stocks with potential growth from long-term government contracts and enhanced defence initiatives.
Published: May 28, 2025
Explore BasketWhy You’ll Want to Watch This Stock
Contract Backlog Strength
Multi-year government contracts can provide revenue visibility and support cash flow, though outcomes depend on renewals and budget cycles.
Diverse End-Markets
Operations span defence, intelligence, civil and health sectors, which helps diversification but leaves revenue linked to public spending patterns.
Tech & Cyber Focus
Investment in cybersecurity, cloud and systems integration underpins growth potential, while competition and execution remain important risks.
Compare Leidos with other stocks
Ciena vs Leidos
Ciena vs Leidos: A comparison of strategies
CyberArk vs Leidos
CyberArk vs Leidos
Zoom vs Leidos
Zoom vs Leidos: A neutral comparison
Why invest with Nemo?
Zero Commission
Trade stocks, ETFs, and more with zero commission. Keep more of your returns.
Trusted & Regulated
Part of Exinity Group 2015, serving over a million customers globally.
6% Interest on Cash
Earn 6% AER on uninvested cash with daily interest payments.
Discover More Opportunities
Accenture plc
Provides consulting and technology services.
Adobe Systems Inc.
Develops software and cloud-based solutions for digital media and digital marketing.
Automatic Data Processing, Inc.
Provides business process outsourcing and technology services.
