Leidos Holdings, Inc.

Leidos Holdings, Inc. is an American government technology services and defense solutions company that provides digital modernization, mission software, managed health services, energy infrastructure engineering, and defense hardware to the U.S. government and allied nations, generating $17.2 billion in revenue in fiscal 2025. Headquartered in Reston, Virginia, the company employs approximately 47,000 people and derives roughly 87% of its revenues from U.S. government contracts, with the balance from international government and commercial customers. It is the largest pure-play government technology services provider in the United States by revenue.

This is a story about an incumbent federal franchise using its cash-generating services base to fund an accelerating push into defense hardware products — munitions, autonomous maritime vehicles, and integrated air-defense sensors. The file turns on a single question: whether the defense-technology product portfolio reaches production scale before the core services business encounters a budgetary or competitive reset that crimps the funding engine. The Entrust acquisition, closed in March 2026, adds a second growth vector in energy infrastructure engineering, broadening the bet but also raising the integration complexity. Leidos enters its 2026 fiscal year with record backlog, a freshly articulated NorthStar 2030 strategy, and the balance-sheet capacity to keep buying growth — and with the customary risks of a business whose customer can cancel contracts for convenience.