BofA Downgrades Leidos Amid Healthcare Pressures
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 17 2026
0mins
Source: seekingalpha
Leidos Holdings Inc. shares fell to a 52-week low of $113.28 following a downgrade from Bank of America, which shifted its rating from Buy to Neutral. This downgrade was primarily due to pressures in Leidos' healthcare business and uncertainty regarding the company's overall portfolio transformation, which analysts believe will negatively impact stock performance. Additionally, challenges in the managed healthcare operations and the upcoming recompete of the MDE contract may further weaken Leidos' market share and pricing power, raising concerns about future growth prospects.
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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: 107.180
Low
178.00
Averages
219.70
High
235.00
Current: 107.180
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.
Leidos Schedules Q2 2026 Earnings Call on August 4
- Earnings Call Announcement: Leidos has scheduled a conference call for August 4, 2026, at 8 a.m. ET to announce its Q2 2026 financial results, reflecting the company's commitment to transparency and investor communication.
- Pre-Call Financial Release: The company plans to issue its quarterly earnings press release before the call, ensuring investors receive timely updates on financial performance, which could enhance market confidence in the company's results.
- Live Broadcast and Replay: Leidos offers both telephone and web broadcast options for the conference call, allowing investors to access related materials and replays via the investor relations website, demonstrating the company's dedication to investor service.
- Company Overview: Headquartered in Reston, Virginia, Leidos employs approximately 50,000 people and reported annual revenues of about $17.2 billion for the fiscal year ending January 2, 2026, highlighting its leadership in serving government and commercial customers.
See More
Leidos Partners with Rune to Enhance Military Logistics Capabilities
- Enhanced Logistics Partnership: Leidos and Rune Technologies are collaborating to leverage AI predictive capabilities to help military organizations anticipate logistics requirements, thereby improving resource availability and mission readiness, particularly in the complex operational environments of the Indo-Pacific region.
- Integration of Technologies: This partnership combines Rune's AI-enabled predictive logistics software with Leidos' decision advantage and course-of-action generation capabilities, providing commanders with enhanced sustainment insight and decision support in contested environments, thereby increasing operational efficiency.
- Addressing Complex Challenges: A Leidos executive emphasized that sustaining forces across the vast distances of the Indo-Pacific requires understanding logistics demand before it impacts mission execution, and the collaboration aims to enhance logistics visibility and readiness in complex operational scenarios through data connectivity.
- Strategic Alignment: This partnership reflects Leidos' NorthStar 2030 strategy, focusing on AI decision advantage and mission software, enabling commanders to anticipate sustainment requirements before they become mission challenges, thus ensuring military effectiveness.
See More
Leidos Partners with Rune Technologies to Enhance Military Logistics
- Strategic Partnership: Leidos and Rune Technologies have partnered to enhance military logistics through AI-enabled predictive sustainment capabilities, aimed at helping military organizations anticipate logistics requirements and improve resource availability, particularly in the complex operational environments of the Indo-Pacific region.
- Technology Integration: This collaboration combines Rune's AI predictive logistics software with Leidos' decision advantage and course-of-action generation capabilities, providing commanders with enhanced sustainment insight and decision support to maintain an edge in rapidly changing battlefield conditions.
- Improved Mission Readiness: Leidos Senior VP Jason McCarthy emphasized that understanding logistics demand is crucial for sustaining forces across the vast distances of the Indo-Pacific, and this partnership will enable commanders to gain necessary logistics visibility before mission execution, thereby enhancing overall readiness.
- Future Development Focus: The partnership aligns with Leidos' NorthStar 2030 strategy, emphasizing AI-driven decision advantage and mission software, aiming to connect data across planning, decision-making, and execution to enhance military organizations' logistics capabilities in complex environments.
See More
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- Strategic Partnership: Leidos has partnered with The Modern Data Company to integrate the latter's DataOS platform into its HeadWay Mission OS, aiming to assist federal agencies in connecting data across legacy systems and supporting AI and analytics initiatives, thereby modernizing government technology infrastructure.
- Enhanced Data Access: By combining the two platforms, customers will be able to access data stored across cloud and on-premise environments through a unified layer designed to improve data availability for AI applications, helping agencies organize fragmented data into reusable products.
- Reduced Implementation Time: The integrated offering is built on open standards and is designed to shorten implementation times by leveraging existing infrastructure rather than replacing it, providing government agencies with a faster path to deploying AI capabilities while minimizing costs and disruptions associated with technology upgrades.
- Data Quality Issues: According to The Modern Data Report 2026, 68% of data practitioners reported their data was not reliable enough for AI use cases, while 89% indicated that locating relevant data remained one of their most time-consuming tasks, highlighting the ongoing challenges that Leidos aims to address through this partnership.
See More
Leidos Partners with Modern Data Company to Enhance Data Access
- Partnership Context: Leidos collaborates with The Modern Data Company to assist federal agencies in connecting and organizing fragmented data without major system overhauls, thereby accelerating insights and governance capabilities.
- Technology Integration: By embedding Modern Data's AI-native data operating system, DataOS®, into Leidos' HeadWay Mission OS™, customers can securely link data between cloud and on-premise systems, ensuring consistent and reliable data access.
- Market Demand: According to the 2026 Modern Data Report, 68% of data practitioners find their data unreliable for AI use cases, and 89% say finding the right data is their most time-consuming task, highlighting the need for this partnership to address these challenges.
- Strategic Implications: This collaboration advances Leidos' NorthStar 2030 strategy, aiming to deliver secure and scalable digital modernization solutions for government and commercial customers, enabling them to apply AI at scale without replacing existing infrastructure.
See More
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- Market Shockwaves: SpaceX's IPO has transformed the market into a multitrillion-dollar giant, creating a temporary liquidity vacuum, yet this historic debut validates the immense scale of the modern space economy.
- Investment Opportunities: Rocket Lab generated $200 million in revenue in Q1, up over 63% year-over-year, with a backlog of $2.2 billion, showcasing its immense potential as a rapidly growing player and making it an ideal choice for investors.
- Rocket Boost: The upcoming Neutron rocket will enhance Rocket Lab's payload capacity to 13,000 kilograms, allowing it to compete directly for high-margin national security and deep-space missions, further solidifying its market position.
- Infrastructure Demand: Leidos' $2.5 billion, 10-year contract with NASA to manage telecommunications and cybersecurity infrastructure connecting all NASA centers highlights its significant financial footprint in space operations, making it a focal point for investors.
See More
Leidos Schedules Q2 2026 Earnings Call on August 4
- Earnings Call Announcement: Leidos has scheduled a conference call for August 4, 2026, at 8 a.m. ET to announce its Q2 2026 financial results, reflecting the company's commitment to transparency and investor communication.
- Pre-Call Financial Release: The company plans to issue its quarterly earnings press release before the call, ensuring investors receive timely updates on financial performance, which could enhance market confidence in the company's results.
- Live Broadcast and Replay: Leidos offers both telephone and web broadcast options for the conference call, allowing investors to access related materials and replays via the investor relations website, demonstrating the company's dedication to investor service.
- Company Overview: Headquartered in Reston, Virginia, Leidos employs approximately 50,000 people and reported annual revenues of about $17.2 billion for the fiscal year ending January 2, 2026, highlighting its leadership in serving government and commercial customers.
See More
Leidos Partners with Rune to Enhance Military Logistics Capabilities
- Enhanced Logistics Partnership: Leidos and Rune Technologies are collaborating to leverage AI predictive capabilities to help military organizations anticipate logistics requirements, thereby improving resource availability and mission readiness, particularly in the complex operational environments of the Indo-Pacific region.
- Integration of Technologies: This partnership combines Rune's AI-enabled predictive logistics software with Leidos' decision advantage and course-of-action generation capabilities, providing commanders with enhanced sustainment insight and decision support in contested environments, thereby increasing operational efficiency.
- Addressing Complex Challenges: A Leidos executive emphasized that sustaining forces across the vast distances of the Indo-Pacific requires understanding logistics demand before it impacts mission execution, and the collaboration aims to enhance logistics visibility and readiness in complex operational scenarios through data connectivity.
- Strategic Alignment: This partnership reflects Leidos' NorthStar 2030 strategy, focusing on AI decision advantage and mission software, enabling commanders to anticipate sustainment requirements before they become mission challenges, thus ensuring military effectiveness.
See More
Leidos Partners with Rune Technologies to Enhance Military Logistics
- Strategic Partnership: Leidos and Rune Technologies have partnered to enhance military logistics through AI-enabled predictive sustainment capabilities, aimed at helping military organizations anticipate logistics requirements and improve resource availability, particularly in the complex operational environments of the Indo-Pacific region.
- Technology Integration: This collaboration combines Rune's AI predictive logistics software with Leidos' decision advantage and course-of-action generation capabilities, providing commanders with enhanced sustainment insight and decision support to maintain an edge in rapidly changing battlefield conditions.
- Improved Mission Readiness: Leidos Senior VP Jason McCarthy emphasized that understanding logistics demand is crucial for sustaining forces across the vast distances of the Indo-Pacific, and this partnership will enable commanders to gain necessary logistics visibility before mission execution, thereby enhancing overall readiness.
- Future Development Focus: The partnership aligns with Leidos' NorthStar 2030 strategy, emphasizing AI-driven decision advantage and mission software, aiming to connect data across planning, decision-making, and execution to enhance military organizations' logistics capabilities in complex environments.
See More
Leidos Partners with Modern Data Company to Enhance AI Capabilities
- Strategic Partnership: Leidos has partnered with The Modern Data Company to integrate the latter's DataOS platform into its HeadWay Mission OS, aiming to assist federal agencies in connecting data across legacy systems and supporting AI and analytics initiatives, thereby modernizing government technology infrastructure.
- Enhanced Data Access: By combining the two platforms, customers will be able to access data stored across cloud and on-premise environments through a unified layer designed to improve data availability for AI applications, helping agencies organize fragmented data into reusable products.
- Reduced Implementation Time: The integrated offering is built on open standards and is designed to shorten implementation times by leveraging existing infrastructure rather than replacing it, providing government agencies with a faster path to deploying AI capabilities while minimizing costs and disruptions associated with technology upgrades.
- Data Quality Issues: According to The Modern Data Report 2026, 68% of data practitioners reported their data was not reliable enough for AI use cases, while 89% indicated that locating relevant data remained one of their most time-consuming tasks, highlighting the ongoing challenges that Leidos aims to address through this partnership.
See More
Leidos Partners with Modern Data Company to Enhance Data Access
- Partnership Context: Leidos collaborates with The Modern Data Company to assist federal agencies in connecting and organizing fragmented data without major system overhauls, thereby accelerating insights and governance capabilities.
- Technology Integration: By embedding Modern Data's AI-native data operating system, DataOS®, into Leidos' HeadWay Mission OS™, customers can securely link data between cloud and on-premise systems, ensuring consistent and reliable data access.
- Market Demand: According to the 2026 Modern Data Report, 68% of data practitioners find their data unreliable for AI use cases, and 89% say finding the right data is their most time-consuming task, highlighting the need for this partnership to address these challenges.
- Strategic Implications: This collaboration advances Leidos' NorthStar 2030 strategy, aiming to deliver secure and scalable digital modernization solutions for government and commercial customers, enabling them to apply AI at scale without replacing existing infrastructure.
See More
SpaceX IPO Shakes Market, Rocket Lab and Leidos Emerge as New Investment Favorites
- Market Shockwaves: SpaceX's IPO has transformed the market into a multitrillion-dollar giant, creating a temporary liquidity vacuum, yet this historic debut validates the immense scale of the modern space economy.
- Investment Opportunities: Rocket Lab generated $200 million in revenue in Q1, up over 63% year-over-year, with a backlog of $2.2 billion, showcasing its immense potential as a rapidly growing player and making it an ideal choice for investors.
- Rocket Boost: The upcoming Neutron rocket will enhance Rocket Lab's payload capacity to 13,000 kilograms, allowing it to compete directly for high-margin national security and deep-space missions, further solidifying its market position.
- Infrastructure Demand: Leidos' $2.5 billion, 10-year contract with NASA to manage telecommunications and cybersecurity infrastructure connecting all NASA centers highlights its significant financial footprint in space operations, making it a focal point for investors.
See More
