Leidos Secures $2.7 Billion Army Contract for Hypersonic Weapons
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 12 2026
0mins
Source: PRnewswire
- Significant Contract Value: Leidos has been awarded a $2.7 billion U.S. Army contract aimed at advancing hypersonic weapons from prototyping to production, showcasing the company's robust capabilities in the defense sector.
- Efficiency Through Integration: This contract unifies the Thermal Protection Shield (TPS) and Common Hypersonic Glide Body (CHGB) programs to accelerate development and delivery, aligning with Army acquisition reform initiatives to enhance operational efficiency.
- Technological Leadership: Leidos' expertise in guidance systems, sensor technologies, and precision munitions integration will bolster the nation's hypersonic capabilities and strengthen integrated air and missile defense, ensuring operational demands are met.
- Strategic Alignment for the Future: The contract aligns with Leidos' NorthStar 2030 strategy, emphasizing a commitment to innovation in defense and national security, positioning the company to establish future military capabilities as a key pillar of its long-term corporate vision.
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Analyst Views on LDOS
Wall Street analysts forecast LDOS stock price to rise
11 Analyst Rating
7 Buy
4 Hold
0 Sell
Moderate Buy
Current: 131.590
Low
178.00
Averages
219.70
High
235.00
Current: 131.590
Low
178.00
Averages
219.70
High
235.00
About LDOS
Leidos Holdings, Inc. is a holding company, which operates through its wholly owned subsidiary, Leidos, Inc. (Leidos). The Company's segments include National Security & Digital, Health & Civil, Commercial & International and Defense Systems. Its National Security & Digital business provides technologically advanced services, solutions and products, as well as mission software capabilities for defense and intelligence customers in the areas of cyber, logistics, security operations and decision analytics. Its Health & Civil business provides services and solutions to federal and commercial customers in the areas of public health, care coordination, life and environmental sciences and transportation. Its Commercial & International business delivers a portfolio of products, services, and solutions aimed at securing national assets, modernizing energy and critical infrastructure, and enhancing mission outcomes. The Company serves government and commercial customers.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Market Underestimation: Despite Leidos trading at a low P/E ratio of 11.5, indicating market undervaluation, the company's stock buybacks and steady business growth, combined with potential developments in hypersonic technology, suggest it could be a “hidden gem” for investors.
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- Technical Support: Leidos will focus on cloud and data center services, application development, network and telecommunications services, and customer support, aiming to enhance the State Department's cybersecurity, modernize applications and infrastructure, and ensure the security of diplomatic operations.
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See More
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- Testing and Evaluation Plan: The agreements outline an experimentation campaign set to begin in mid-2026, with test missiles acquired from participating companies, and the results will inform formal military assessments that will influence full-scale procurement decisions, ensuring alignment with military demand.
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