Leidos Holdings, Inc. (Leidos), together with its subsidiaries, provides services and solutions for government and commercial customers in the United States and internationally.
The company brings domain-specific capabilities, technologies, and insights to customers in each of these markets by leveraging seven technical core capabilities: trusted mission artificial intelligence, cyber operations, digital modernization, mission software systems, integrated systems, mission operations, and rapid...
Leidos Holdings, Inc. (Leidos), together with its subsidiaries, provides services and solutions for government and commercial customers in the United States and internationally.
The company brings domain-specific capabilities, technologies, and insights to customers in each of these markets by leveraging seven technical core capabilities: trusted mission artificial intelligence, cyber operations, digital modernization, mission software systems, integrated systems, mission operations, and rapid prototyping, and manufacturing. The company’s customers include the U.S. Department of Defense (‘DoD’), the U.S. Intelligence Community, the U.S. Department of Homeland Security, the Federal Aviation Administration, the Department of Veterans Affairs, National Aeronautics and Space Administration (‘NASA’) and many other U.S. civilian, state and local government agencies, foreign government agencies and commercial businesses. Approximately 8% of its revenues are generated by entities located outside of the United States.
Business Segments
The company operates through four reportable segments: National Security & Digital, Health & Civil, Commercial & International, and Defense Systems. The company’s operations and reportable segments are organized around the customers and markets the company serves. The company provides a wide array of scientific, engineering and technical services and solutions across these reportable segments. Approximately 8% of the company’s revenues are generated by entities located outside of the United States.
National Security & Digital segment
This segment provides leading-edge and 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. It also delivers IT operations and digital transformation programs across all U.S. federal government customers. Its advanced capabilities include the delivery of technology-enabled services, mission software capabilities and IT modernization services. Its capabilities allow the company to provide innovative technology solutions in software development, engineering & design, modeling & simulation, analytics, cyber security, intelligence analysis, linguistics, and mission operations.
Mission Software – The company delivers trusted national security software for defense, intelligence, and homeland security customers. Its mission software aims to provide the decision advantage for protecting the homeland, securing critical infrastructure, enabling logistics and conducting multi-domain operations.
Multi-Domain Solutions – The company provides services by using artificial intelligence and machine learning to coordinate sea, ground, air and space rapidly and securely, helping its warfighters have the right information at the right time to take action with decision advantage. It applies an open architecture approach to digitally connect the joint force across air, land, sea, cyber and space domains in support of the DoD’s multi-domain operations through innovative solutions, essential services and enriched data management tools facilitating critical decision making.
Cyber Operations – The company provides full-spectrum cyber solutions to include offensive, defensive, and physical cyber operations. It drives new advances for its customers in the areas of Zero Trust, Cognitive Cyber, Quantum Cryptography, Identity, Credential and Access Management. It delivers global-scale cryptographic management solutions to protect its customers’ most critical information and assets.
Intelligence Analysis, Mission Support, and Global Logistics Services – The company provides intelligence analysis, operational support, logistics operations, security, linguistics, force production, biometrics, Chemical, Biological, Radiological, Nuclear, and Explosives, energetics, and training. In addition, it delivers tailored IT services and solutions to its customers. The company offers product support and lifecycle sustainment services to its customers, including planning and managing the cost and performance across the product’s lifecycle. It offers reverse engineering, classified manufacturing and design, and threat exploitation services to U.S. Intelligence Community customers. The company uses predictive analytics and AI to securely deliver transformational logistics to its customers. The company provides a wide range of integrated logistics systems, including rapid procurement, inventory and facility management, and distribution systems.
Digital Modernization – The company provides worldwide digital support for its nation’s largest and most critical infrastructure. It designs, develops, implements, and maintains IT environments to provide stability and flexibility to mission needs. Its cybersecurity solutions help detect and manage the most sophisticated cyber threats.
Digital Transformation – The company delivers secure, user-centric IT solutions in cloud computing, mobility, application modernization, DevOps, data center and network modernization, asset management, help desk operations, and digital workplace enablement. It helps its customers achieve their missions and business goals by delivering purpose-built solutions, cybersecurity as a standard, efficient project delivery and end-user satisfaction. It accelerates enterprise transformation using customizable roadmaps and repeatable processes, enabling customers to effectively use their resources and advance their objectives. Using its cyber expertise, the company continually enhance its techniques and processes to build systems that operate resiliently in the face of evolving cyber threats. Leidos is modernizing enterprise IT in classified and unclassified environments, including programs with the FAA, NASA, U.S. Department of Justice, Internal Revenue Service, U.S. MINT, U.S. Department of Commerce, U.S. Federal Trade Commission, and U.S. Department of Housing and Urban Development.
National Security & Digital segment represented 44% of total revenues for fiscal 2024.
Health & Civil segment
This segment provides services and solutions to federal and commercial customers in the areas of public health, care coordination, life and environmental sciences and transportation. The company is dedicated to delivering effective and affordable solutions that are responsible for the health and well-being of people, including service members and veterans. Its core capabilities include health information management services, managed health services, systems and infrastructure modernization, and life sciences research and development. It help customers achieve their missions and take on the connected world with data-driven insights, improved efficiencies and technological advantages. Health & Civil segment represented 30% of total revenues for fiscal 2024.
Transportation Solutions – Leidos is a trusted systems developer, service provider and integrator serving Air Navigation Service Providers around the world, including the FAA. The company provides air traffic control systems that help manage the world's most complex airspace. The company delivers many of the FAA's key automation systems and services, including the En Route Automation Modernization (‘ERAM’), Advanced Technologies and Oceanic Procedures (‘ATOP’), Time Based Flow Management, Terminal Flight Data Manager, Enterprise-Information Display System, Geo-7 and Future Flight Services. Leidos received 10+ year extensions to the ERAM and ATOP contracts for continued delivery of the evolving National Airspace System needs. In addition, under the Mode S Beacon Replacement Systems contract, Leidos is supporting the replacement of the FAA's Mode S Beacon Systems, which are secondary surveillance radar capable of providing surveillance and specific aircraft information necessary to support Air Traffic Control automation in all traffic environments. The company also provides key air traffic control systems around the world, including New Zealand and South Korea.
Health Mission Software – Leidos employs holistic-systems thinking in fielding applied technology solutions across the entire continuum of healthcare. In the company’s work delivering a single, common electronic health record to both DoD and VA hospitals and treatment facilities worldwide, its responsibilities range from integrating software for the electronic healthcare record vendor and dental record vendors to integrating picture archiving and communications software and more. The company supports cybersecurity across all integrated systems. The company also provides enterprise IT solutions to the VA, National Institutes of Health (‘NIH’), DoD and other federal health customers to help operate mission critical infrastructure reliably and at a reasonable cost.
Managed Health Services – The company deploys a national footprint of health clinics and health providers to support care delivery services, including medical disability and behavioral health examinations for the VA, as well as serving other independent medical exam markets. The company has developed unique capabilities in behavioral health management through many decades of experience with a special emphasis on substance abuse services and non-medical counseling. These capabilities can be expanded into other clinical adjacencies. The company’s managed health services activities leverage its IT and mission enablement capabilities, which underpin solutions the company offers to its customers across all of its served markets.
Climate, Energy and Environment – The company is trusted by government agencies and commercial customers with substantial environmental and sustainability driven-missions. The company’s reputation across climate science, environmental management and operations, nuclear security, power grid engineering, energy efficiency, infrastructure management, mission support and IT modernization provides the applicable expertise needed to transform operations while modernizing aging infrastructure and maintaining environmental stewardship. The company supports the critical missions of the Department of Energy (‘DoE’), National Nuclear Security Administration, National Science Foundation, utilities, energy investors and developers, energy efficiency administrators and commercial industrial customers. At the DoE Hanford site, the company provides site-wide infrastructure management and operation, including oversight of land and logistics, public works, information technology, fleet transportation, environmental sustainability, and compliance, first responder services and future project planning. At the National Energy Technology Laboratory, the company actively conducts and supports fundamental and applied research efforts, including providing product and logistical support comprising strategic business development, technology transfer and agreements and education and outreach support for the effective and efficient execution of research programs.
Life Sciences Research & Development – The company provides life science research and development support to the NIH, Center for Disease Control, Army Medical Research community and commercial biotech companies. Most notably, on behalf of the U.S. government and the public trust, the company operates the Frederick National Laboratory for Cancer Research, where the company employs thousands of scientists, technicians, administrators and support staff. The company’s professionals operate a wide range of leading-edge research and development laboratories in the areas of genetics and genomics, proteins and proteomics, advanced biomedical computing and information technology, biopharmaceutical development and manufacturing, nanotechnology characterization and clinical trials management.
From the biomedical sciences to implementing and optimizing electronic health records and enabling providers to perform care coordination and population health management, Leidos is pioneering the use of the depth and breadth of systems integration principles, processes and technologies to transform the health industry’s evolution towards better quality and more efficient and effective care.
Commercial & International segment
This segment delivers a portfolio of products, services, and solutions aimed at securing national assets, modernizing energy and critical infrastructure, and enhancing mission outcomes. Its key customers include Investor-Owned Utilities, government agencies in the United Kingdom and Australia, the Transportation Security Administration, U.S. Customs & Border Protection (‘CBP’), as well as airports and ports and borders authorities. It offers a broad range of capabilities, including design and engineering services, security products and solutions, digital modernization, mission software, logistics, and airborne solutions. Commercial & International segment represented 14% of total revenues for fiscal 2024.
Energy Infrastructure – Leidos partners with utilities seeking reliable energy modernization solutions, demonstrated by its strong relationships and collaboration with over 75 investor-owned utilities. its project portfolio spans large-scale energy initiatives across the United States, serving electric utilities, generation owners, and industrial clients. The company supports utilities and industrial customers in modernizing power delivery systems for enhanced reliability, implementing energy management strategies, advancing vehicle electrification, transforming digital infrastructure, and optimizing operational efficiency to meet evolving energy demands and market expectations. Its expertise spans power grid engineering and design, grid modernization, utility planning and consulting, energy management and efficiency, technical and financial consulting, and technology-driven innovation, including software and application development.
Global Security Products and Services – Leidos is a global leader in fully integrated security detection solutions, enhancing the safety of screening and checkpoints for aviation, ports, borders, and critical infrastructure worldwide. With over 30,000 products deployed across more than 120 countries, it leads the aviation screening equipment sector, including people scanners, computed tomography carry-on baggage scanners, checked baggage scanners, and explosive trace detectors. Leidos is also the primary supplier of mobile, non-intrusive inspection systems to CBP and other international customers. The company’s Ports & Borders solutions secure the flow of travel and trade by effectively detecting and mitigating threats across cargo, vehicles, and individuals. Its digital solution features a secure and scalable open-architecture platform that transforms airport security by integrating disparate devices and technologies into a unified management system. This holistic approach provides real-time data and automated controls, improving throughput and operational efficiency.
International – Leidos delivers a wide range of mission-focused services across multiple domains to address critical threats and provide innovative solutions to government agencies in the UK and Australia. Its core areas of expertise include Digital Modernization, Mission Software, Logistics, and Airborne Solutions. In the UK, the company is a trusted partner of the Ministry of Defense, delivering logistics and transformation solutions, developing advanced biometric and smart border protection systems to enhance national security, and leading IT service management and transformation programs. In Australia, the company provides secure, resilient, and innovative technology solutions that support the Defense sector’s modern warfighting capabilities. It also conducts aerial border surveillance and search-and-rescue operations, covering Australia’s exclusive economic zone and search-and-rescue region.
Defense Systems segment
This segment addresses threats facing its nation by rapidly prototyping and delivering advanced hardware, software, and integrated systems solutions for the U.S. Department of Defense, Army, Navy, Air Force, Space Force, Marine Corps, United States Special Operations Command, NASA, Defense Advanced Research Projects Agency, intelligence agencies, and international customers. It is heavily engaged in the top defense Research Development Test and Evaluation priorities that are driven by critical evolving threat-driven needs. Defense Systems provides services in the air, land, sea, space and cyberspace environments. The Defense Systems business is dedicated to delivering cost-effective solutions in the space, airborne, land, maritime and cyber domains and supporting critical missions worldwide. Defense Systems represented 12% of total revenues for fiscal 2024.
Airborne Systems – Leidos develops and integrates mission-enhancing airborne solutions, equipping government and Leidos-owned fixed-wing, rotary-wing, and unmanned aircraft with advanced sensors and processing systems. It execute airborne training, intelligence, surveillance, and reconnaissance missions as a service for the DoD, the U.S. Intelligence Community, and military services worldwide. The company’s key served markets include aircraft integration and operations, sensor and autonomous systems, and Multi-Domain Operation enablers, addressing diverse missions such as target identification, border security, and counter-narcotics operations. The company designs and integrates open-architecture sensing systems powered by advanced sensors, algorithms, and processing capabilities to meet complex mission requirements. Beyond integration, the company delivers high-end solutions and services globally, providing intelligence analysis, operational support, and logistics. Leidos airborne also designs and manufactures low-cost, high-impact airborne effectors, including guided munitions (e.g. GBU-69), cruise missiles (e.g. Black Arrow), and components for air-to-air and air-to-ground missions. In the realm of autonomous systems, it develops innovative software and hardware solutions for unmanned aerial systems and autonomous platforms. Its unique autonomy algorithms enhance system capabilities, decision-making, alleviate the burden on warfighters, and enable seamless coordination between manned and autonomous platforms, ensuring mission success in dynamic environments.
Land Systems – The company develops Integrated Air and Missile Defense systems, including the US Army Enduring Indirect Fire Protection Capability and AirShield systems. Enduring Shield is a ground-based, mobile system that defends against cruise missiles and unmanned aircraft systems. The system protects and defends critical civilian and military infrastructure, bridging the gap between tactical short range air defense and strategic systems. The company is delivering systems for Initial Operational Test & Evaluation, and the company is under contract to deliver systems in support of Guam Defense. AirShield delivers robust air defense while on the move, providing capabilities among the most advanced in the industry. The system employs advanced threat assessment along with kinetic and non-kinetic effectors that is designed to provide air defense against unmanned aerial vehicles, particularly in dynamic operational environments. It designs and manufactures persistent surveillance radar systems, advanced sensors, and radio frequency seekers, including the associated advanced algorithms that accompany them. The company uses this expertise to provide military sensor and electronic system R&D services for its customers.
Maritime Systems – On and under the sea, the company offers a wide range of capabilities. It continues to enhance its surface and subsurface autonomous and unmanned technologies to help make maritime operations safer and more efficient for government and industry by providing innovative platforms, software solutions for vessel control and autonomous behaviors, leading sensor systems, signal processing, communications hardware and software to support these vital missions. The company is a market leader in submarine data collection technologies and anti-submarine warfare system installation and maintenance and are expanding its capabilities in these areas to meet market demand for this growing threat. The company also provides prototyping and research and development support services to a wide variety of DoD customers from concept analysis to classified manufacturing. Its naval architecture services span the entire ship’s lifetime, from early-stage concept designs through detailed design, shipyard construction support, full lifecycle and sustainment support, ship alterations, service life extensions, and disposal. Its marine engineering involves a wide range of activities, beginning with concept and feasibility design and continues through land-based test sites, cyber and shock hardening of key components, detailed design, construction support, life-cycle support and into ship-alt design for service-life extensions.
Aerospace Systems – The company provides expertise in the design, manufacturing, and integration of space-based electro-optic infrared system, multi/hyperspectral, electronic warfare and signals intelligence, and communications payloads. In space it provides sensor, algorithm development and integrated payload capabilities to identify and track threats and cue defensive systems. The company has developed and delivered full integrated small satellite systems and are under contract for payload deliveries on the Space Development Agency Wide Field of View Tranches 0, 1, and 2 programs. The company manufactures structures and thermal protection systems for hypersonic boost-glide missiles, and it provides testing services for hypersonic vehicles.
Cyber and Threat Systems - The company provides reverse engineering, classified manufacturing and design, and threat exploitation services to a wide breadth of U.S. Intelligence Community customers. The company models, simulates, and analyses cyber and electro-magnetic threats, develop threat emulators for range testing, and develop cyber-physical solutions.
Divestitures
On October 20, 2023, the company disposed of an immaterial business within its Defense Solutions reportable segment.
Key Customers
The majority of the company’s revenues are generated in the United States. The company’s consolidated revenues are largely attributable to prime contracts or to subcontracts with other contractors engaged in work for the U.S. government, with the remaining attributable to international customers, including the U.K. Ministry of Defence and Australian Ministry of Defence, and customers across a variety of commercial markets. Within the U.S. government, the company’s revenues are diversified across many agencies, including various intelligence agencies, the U.S. Army, Navy and Air Force, the U.S. Space Force, DHS, DISA, FAA, Transportation Security Administration, CBP, DHA, VA, Department of Health and Human Services, NASA, National Science Foundation, DoE, the Environmental Protection Agency and research agencies, such as Defense Advanced Research Projects Agency.
Research and Development
The company-funded research and development expense was $150 million for the year ended January 3, 2025.
Seasonality
The company tends to generate less revenue from its labor services during the fourth quarter (year ended January 3, 2025) as a result of the holiday season.
Regulation
The company provides services and products to numerous U.S. government agencies and entities, including to the DoD, the U.S. Intelligence Community and the DHS. Some significant laws and regulations that affect the company include:
The Federal Acquisition Regulation (‘FAR’) and supplements, including the DoD Federal Acquisition Regulation Supplement (‘DFARS’), which regulate the formation, administration and performance of the U.S. government contracts;
The Truth in Negotiations Act, which requires certification and disclosure of cost and pricing data in connection with certain contract negotiations;
The Procurement Integrity Act, which regulates access to competitor bid and proposal information and government source selection information and the company’s ability to provide compensation to certain former government officials;
The Civil False Claims Act, which provides for substantial civil penalties for violations, including for submission of a false or fraudulent claim to the U.S. government for payment or approval;
The False Statements Act, which imposes civil and criminal liability for making false statements to the U.S. government; and
The U.S. government Cost Accounting Standards (‘CAS’), which imposes accounting requirements that govern the company’s right to reimbursement under certain cost-based U.S. government contracts.
Data Privacy and Security Laws
Some of the company’s operations and service offerings involve access to and use by the company of personal information and/or protected health information. These activities are regulated by extensive federal, state and international data privacy and security laws requiring organizations to, among other things, provide certain privacy protections and security safeguards for such information. For example, among others:
The European Union's (‘EU’s’) General Data Protection Regulation (‘GDPR’), which imposes compliance obligations for companies that process personal data of EU data subjects, necessitating investment into ongoing data protection activities and documentation requirements, and creates the potential for significant fines for noncompliance;
The United Kingdom’s (‘U.K.’s’) General Data Protection Regulation, (‘U.K. GDPR’),which creates similar compliance obligations for companies that process personal data of the U.K. data subjects as are imposed by the GDPR;
The California Consumer Privacy Act, as amended by the California Privacy Rights Act (collectively, ‘CCPA’), which broadly defines personal information and provides expanded consumer privacy rights to natural persons residing in California, such as affording them the right to access and request deletion of their information and to opt out of certain sharing and sales of personal information; and
The Health Insurance Portability and Accountability Act, as amended by the Health Information Technology for Economic and Clinical Health Act, which establishes privacy and security compliance obligations with respect to the processing of protected health information by covered entities and business associates, necessitating investment in technical and organizational compliance measures and creates the potential for substantial fines for noncompliance.
Competition
The company’s principal competitors include the following companies: Accenture Federal Systems, Amentum Services Inc., BAE Systems, Booz Allen Hamilton Inc., CACI International Inc., Deloitte, General Dynamics Corporation, GovCIO, IBM, KBR Inc., L3Harris, Lockheed Martin Corporation, ManTech, Northrop Grumman Corporation, Optum, Parsons Corp, Peraton, Raytheon Technologies Corporation, and SAIC.
History
The company was founded in 1969. It was formerly known as SAIC, Inc. and changed its name to Leidos Holdings, Inc. in 2013.
