Leidos Secures $1B Contract to Modernize U.S. Diplomatic IT Systems
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 21 2026
0mins
Leidos is set to help modernize IT systems used by U.S. diplomats worldwide through four awards under the U.S. Department of State's Evolve contract. This includes strengthening cybersecurity, modernizing applications and infrastructure and improving the reliability of IT services across a network of embassies and consulates. Leidos received awards in four functional categories: cloud and data center services; application development services; network and telecommunications services; and customer and end user support. Evolve is a multiple award, indefinite delivery indefinite quantity contract that includes a one-year base period and six option years, with a total ceiling of $10B.
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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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- 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.
- New Industry Participation Model: Some participating companies are expected to reach production scale through private capital investment rather than direct government funding, marking a shift in defense procurement models aimed at accelerating weapons development and procurement processes.
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