Leidos Secures $617 Million Army Contract for Air Defense System
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 23 2026
0mins
Should l Buy LDOS?
Source: NASDAQ.COM
- Significant Contract Value: Leidos Holdings, Inc. announced it has secured a $617 million contract from the U.S. Army to build and deliver additional launchers for the Indirect Fire Protection Capability Increment 2 (IFPC Inc 2) system, further solidifying its market position in defense.
- Total Contract Value Approaching $1.2 Billion: Combined with the $356 million awarded in July and September 2025, Leidos now has nearly $1.2 billion in production contracts with the U.S. Army, indicating strong demand and growth potential in the defense contracting market.
- Commitment to Deliver Over 100 Launchers: Leidos has committed to delivering more than 100 launchers, with the contracts supporting production as well as ongoing research, development, and testing, ensuring a continuous revenue stream for the company in the coming years.
- Future Order Potential: These contracts pave the way for potential future orders through 2029, reflecting Leidos' long-term strategic planning and intent to expand its footprint in the defense sector.
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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: 131.260
Low
178.00
Averages
219.70
High
235.00
Current: 131.260
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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- Hackathon Participation: Palantir announced its participation in an upcoming U.S. Army hackathon, aiming to showcase its technical capabilities and compete with other defense firms, potentially opening new avenues for government sales growth.
- Growth Concerns: Despite achieving an 85% year-over-year growth rate last quarter, Palantir's slower new contract growth has resulted in a book-to-bill ratio below 1.0, leading to cautious investor sentiment regarding future sales growth.
- Government vs. Commercial Sales: According to S&P Global Market Intelligence, Palantir's government sales grew only 76%, significantly lower than the 95% growth in commercial sales, highlighting both challenges and opportunities in the government market.
See More
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- Significant Revenue Growth: The company's latest quarter saw its intelligence and digital segment revenue reach $1.51 billion, a 7% increase year-over-year, demonstrating sustained demand in information technology and military intelligence services.
- Major Contract Award: Leidos recently secured an $869 million contract with the U.S. Army to develop AI-driven tools for converting large data sets into operational insights, further solidifying its market position in the defense sector.
- Positive Industry Trends: Amid ongoing geopolitical tensions, spending on defense systems, software, and analytics continues to rise, with Leidos and peers like L3Harris reporting significant production increases, reflecting an overall positive trend in the industry.
See More
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- Profitability Improvement: Adjusted EBITDA reached $614 million, yielding a 14% EBITDA margin, indicating significant progress in cost control and operational efficiency, which strengthens the foundation for future investments.
- Outlook Enhancement: The company raised its 2026 revenue guidance by $500 million to a range of $18 billion to $18.4 billion, while also increasing non-GAAP diluted EPS guidance by $0.05, reflecting the positive integration effects of the Entrust acquisition.
- Capital Expenditure Plans: Leidos plans to increase capital expenditures to $350 million, although management indicated that spending will be adjusted based on actual needs, demonstrating a cautious approach to business expansion.
See More
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- Profit Forecast Increase: Leidos expects its adjusted profit per share for 2026 to range between $12.10 and $12.50, an increase from the previous forecast of $12.05 to $12.45, reflecting confidence in its future profitability.
- Revenue Projection Boost: The company raised its 2026 revenue forecast to between $18 billion and $18.4 billion, up from the earlier range of $17.5 billion to $17.9 billion, indicating strong anticipated demand for IT and military intelligence services.
- Military Contract Awarded: Last week, Leidos secured an $869 million army contract to develop AI-enabled systems aimed at enhancing military decision-making by converting large data volumes into actionable insights, further solidifying its market position in defense.
- Strong Business Growth: Leidos reported a 7% increase in sales for its intelligence and digital business, reaching $1.51 billion, indicating sustained demand in military software and global logistics services, driven by the Pentagon's efforts to replenish its weapons stockpile.
See More
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- Adjusted Income Growth: The adjusted net income rose to $401 million from $389 million, with adjusted earnings per share increasing from $2.97 to $3.13, showcasing robust growth in the company's core business segments.
- Revenue and EBITDA Performance: Revenue increased to $4.40 billion from $4.25 billion year-over-year, while adjusted EBITDA jumped to $614 million from $601 million, reflecting improvements in operational efficiency and cost management.
- 2026 Outlook Upgrade: Leidos raised its full-year 2026 revenue guidance to a range of $18.00 billion to $18.40 billion, up from the previous forecast of $17.50 billion to $17.90 billion, demonstrating strong confidence in future growth prospects.
See More
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- Net Income Performance: The net income stood at $335 million, translating to diluted earnings per share of $2.56, reflecting an 8% year-over-year decline; however, adjusted non-GAAP net income rose 4% to $408 million, showcasing effective cost management.
- Strong Cash Flow: The company generated $301 million in cash flows from operating activities and $270 million in free cash flow during Q1, reflecting robust EBITDA and collections performance, which supports future investments and shareholder returns.
- New Business Awards: Leidos secured $3.3 billion in new bookings this quarter, resulting in a total backlog of $48.4 billion, underscoring the company's strong market position in defense and security sectors.
See More
