Dependence on U.S. government contracts
Most revenue comes from federal customers, so budget cuts, delays, or procurement changes can reduce demand quickly.
- Scope
- 87% of fiscal 2024 revenue came from U.S. government contracts
- Materiality
- high
Leidos Holdings, Inc.
Leidos Holdings, Inc. is a U.S.-based government and commercial services company that designs and delivers digital, mission, and systems solutions for complex operational environments. Its work spans defense, intelligence, homeland security, health, civil infrastructure, and selected commercial markets, with most revenue tied to U.S. government contracts.
14,0 %
18,0 %
8,4 %
+3,1 %
1.70
1.58
| % | |
|---|---|
| National Security & Digital | 34% Cyber, intelligence, digital modernization, and mission software services for national security customers. |
| Health & Civil | 28% IT, operations, and mission support for federal health and civil agencies. |
| Commercial & International | 15% Solutions for commercial customers and non-U.S. government clients, including energy and other infrastructure work. |
| Defense Systems | 23% Hardware, systems integration, and mission support for defense and security programs. |
Leidos primarily serves U.S. federal agencies, especially the Department of Defense, Intelligence Community, DHS, FAA,...
- U.S. defense and intelligence agenciesprimary
Buys cyber, mission software, systems integration, and operational support for national security missions.
- U.S. civilian federal agenciesprimary
Buys IT modernization, health, aviation, and administrative mission support services.
- Defense systems and program officesprimary
Buys integrated systems, manufacturing, and technical services for defense platforms and programs.
- Utilities and industrial customerssecondary
Buys grid modernization, energy management, and consulting to improve reliability and efficiency.
- Foreign government and commercial customerssecondary
Buys niche digital, mission, and systems solutions where Leidos has domain expertise.
Leidos is headquartered in Reston, Virginia and operates globally, but its business is heavily concentrated in the...
- •Headquartered in Reston, Virginia
- •U.S. government contracts drive the majority of revenue
- •About 8% of revenue comes from outside the United States
- •Global employee base supports delivery across defense and civil programs
- •International exposure is smaller than domestic federal exposure
Leidos is focused on growing revenue by cross-selling capabilities across its four reportable segments and investing in...
01
Cross-sell and integrate capabilities across segmentsshort-term
Leidos wants to win larger, more complex programs by combining cyber, digital, mission, and systems capabilities.
02
Invest in profitable growth marketsmedium-term
Management is directing resources toward areas with better growth and margin potential to improve operating performance.
03
Operational efficiency and back-office modernizationmedium-term
Better processes and infrastructure should improve execution, reduce overhead friction, and support margin expansion.
04
Disciplined capital allocationshort-term
The company aims to balance shareholder returns, debt management, and flexibility for acquisitions or program investment.
Leidos depends heavily on competitive government contracting, so pricing pressure, bid losses, program execution...
Competitive contract bidding and pricing pressure
Leidos competes against large defense, IT, and consulting firms, which can reduce win rates and margins.
- Scope
- Government and commercial contract awards
- Materiality
- high
Program execution and contract performance risk
Complex long-term contracts can suffer from cost overruns, delays, or performance issues that hurt profitability and reputation.
- Scope
- Mission-critical systems and technical services
- Materiality
- high
AI and technology adoption risk
The company uses artificial intelligence and must keep pace with competitors while managing legal, ethical, and operational exposure.
- Scope
- Trusted mission AI and digital modernization offerings
- Materiality
- medium
Goodwill and impairment risk
Past impairment charges show that acquired assets and reporting units can be written down if performance weakens.
- Scope
- Goodwill and acquired businesses
- Materiality
- medium
Reputational and ESG compliance risk
Negative stakeholder views or non-compliance with evolving ESG expectations could affect hiring, customer trust, and investor sentiment.
- Scope
- Public-sector and sensitive mission work
- Materiality
- medium
Revenue recognition on long-term contracts
Can shift revenue and margin between periods
Backlog and unfunded backlog estimates
Affects visibility into future sales
Goodwill impairment
Can materially reduce earnings and equity
Restructuring and facility rationalization charges
Distorts operating income in affected periods
Performance guarantees and contingencies
Can affect accrued liabilities and cash needs
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: 11/08/2026