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1. Accenture for the U.S. government.

2. Bechtel for high-tech government systems and services.

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Leidos (LDOS) Major Products and Services

• IT Modernization and Digital Transformation: Leidos provides services for cloud adoption, artificial intelligence, data analytics, and software development to enhance government and enterprise systems.
• Cybersecurity Solutions: The company offers services to protect networks, systems, and data from cyber threats, including cyber defense, threat intelligence, and secure operations.
• National Security and Mission Support: Leidos delivers comprehensive support for defense, intelligence, and homeland security operations, encompassing C4ISR, aviation, logistics, and intelligence analysis.
• Health Information Technology (Health IT): Developing and implementing technology solutions for healthcare providers and agencies, including electronic health records, public health initiatives, and life sciences research support.
• Science and Engineering Services: Leidos performs advanced research, development, and engineering across various domains, such as environmental solutions, space exploration support, and advanced materials.

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Leidos (symbol: LDOS) primarily sells its services and solutions to government agencies, making the United States Government its largest customer. As such, it does not primarily sell to other private or public companies as its major customers, nor does it sell to individuals.

Leidos's major customers are various departments and agencies within the U.S. government. Key customer organizations include:

• The U.S. Department of Defense (DoD), including the Army, Navy, Air Force, Marine Corps, and various defense agencies (e.g., DISA, DARPA, NGA).
• Various agencies within the U.S. Intelligence Community.
• The U.S. Department of Homeland Security (DHS), including components like Customs and Border Protection (CBP) and the Transportation Security Administration (TSA).
• The U.S. Department of Justice (DoJ).
• The U.S. Department of Veterans Affairs (VA).
• The Federal Aviation Administration (FAA).
• The U.S. Department of Health and Human Services (HHS).

While Leidos does have a commercial segment, its revenue from these customers is significantly smaller compared to its government contracts, and no single commercial company is typically identified as a major customer contributing comparable revenue to the government entities.

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Thomas Bell, Chief Executive Officer

Thomas Bell assumed the role of Chief Executive Officer at Leidos in May 2023. He has an extensive background spanning nearly 40 years in the aerospace and defense industries. Before joining Leidos, Bell held significant leadership positions at Rolls-Royce, where he served as President of Defense and Chairman & CEO of Rolls-Royce North America, Inc. His career also includes roles at Lockheed Martin and The Boeing Company, where he was the Senior Vice President of Global Sales & Marketing for Defense, Space & Security. Bell's expertise is in defense and aerospace, guiding Leidos' strategic vision and operational excellence.

Chris Cage, Executive Vice President and Chief Financial Officer

Chris Cage is the Executive Vice President and Chief Financial Officer of Leidos, overseeing all financial activities including accounting, financial reporting, treasury, tax, planning and analysis, and investor relations. He joined Leidos (formerly SAIC) in 1996 and has held various finance and management roles within the company. Prior to becoming CFO in July 2021, he led the global accounting and shared services organization. Cage also served as Senior Vice President of Operations Finance, where he played a key role in the finance integration of the $5 billion acquisition of Lockheed Martin's IS&GS business. He also helped implement the company's financial planning organization and processes to support its transition to a publicly traded company through an IPO in 2006. He is a licensed CPA (inactive) and holds an MBA from San Diego State University.

Liz Porter, President, Health & Civil Sector

Liz Porter serves as the President of Leidos' Health & Civil Sector. In this role, she is responsible for delivering customer solutions in public health, care coordination, life and environmental sciences, and transportation.

Steve Hull, President, Digital Modernization Sector

Steve Hull is the President of the Digital Modernization Sector at Leidos. He drives innovation and sector-specific initiatives within digital modernization.

Gerry Fasano, Chief Growth Officer

Gerry Fasano is the Chief Growth Officer at Leidos. In this position, he is responsible for integrating corporate strategy, marketing, sales, government affairs, and communications to drive business development. Prior to this role, Fasano was the President of the Defense Group.

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Leidos (LDOS) faces several key risks to its business operations, primarily due to its significant reliance on government contracts and the highly competitive and regulated nature of its operating environment.

1. Dependence on Government Contracts: A substantial portion of Leidos' revenue is derived from contracts with the U.S. government, including the Department of Defense and other federal agencies. This heavy reliance makes the company vulnerable to fluctuations in government spending, budget cuts, shifts in policy, or the loss of key contracts, which can directly impact its revenue and financial performance. For example, changes in budget priorities or fiscal problems can lead to reduced or delayed financing for contracts.

2. Competitive Market Pressures: Leidos operates in highly competitive technology and defense sectors. This intense competition can result in pressure to innovate and provide cost-effective solutions, potentially leading to price pressures, reduced margins, and the risk of losing significant contracts in a tough bidding environment. Sustaining market share requires continuous investment in research and development to maintain a technological edge.

3. Regulatory and Compliance Risks: Operating as a major government contractor exposes Leidos to a complex web of stringent regulations and compliance requirements. The company's international operations, in particular, subject it to various laws and regulations, including the U.S. Foreign Corrupt Practices Act. Any failure to comply with these regulations could lead to severe legal repercussions, significant fines, damage to the company's reputation, and even restrictions on its ability to compete for future work.

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The increasing role of hyperscale cloud providers (e.g., Amazon Web Services, Microsoft Azure, Google Cloud) directly as prime contractors and comprehensive solution providers for government agencies. These companies are not only offering infrastructure but also platforms, AI/ML capabilities, and integrated services directly to federal clients, potentially reducing the scope and need for traditional system integrators like Leidos in certain areas. This parallels Netflix delivering content directly to consumers, bypassing Blockbuster's distribution model, and YouTube providing content directly to viewers, bypassing traditional cable distribution.

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Leidos (LDOS) operates in diverse markets, providing scientific, engineering, and information technology services and solutions primarily to government agencies. The addressable markets for its main products and services are substantial:

• Defense & National Security Solutions:
  • The global defense IT spending market was valued at approximately USD 96.3 billion in 2024 and is projected to reach USD 177.1 billion by 2035, growing at a compound annual growth rate (CAGR) of 5.7% from 2025 to 2035.
  • North America held the largest share of the defense IT spending market in 2024.
  • Leidos is positioned to capture growth in the defense AI market, which is projected to reach USD 35.78 billion by 2034 with a CAGR of 13.4%.
• Health Information Technology (Health IT):
  • The global healthcare IT market size was estimated at USD 663.0 billion in 2023 and is projected to reach USD 1,834.3 billion by 2030, with a CAGR of 15.8% from 2024 to 2030.
  • North America was the largest market for healthcare IT in 2023 and 2024. The U.S. healthcare IT market was USD 160.52 billion in 2024 and is expected to reach approximately USD 566.48 billion by 2034, growing at a CAGR of 13.44% from 2025 to 2034.
• Civil & Government IT Services (Digital Modernization, Enterprise IT):
  • Federal spending on contractor-supplied Information Technology (IT) products and services in the U.S. is forecasted to grow from USD 116.4 billion in fiscal year 2023 to USD 137.5 billion in fiscal year 2027.
  • The global IT spending in the public sector market was valued at USD 32.5 billion in 2023 and is projected to reach USD 90.13 billion by 2031, growing at a CAGR of 17%.
  • The overall United States IT spending market (including all sectors) attained a value of USD 1.30 trillion in 2024 and is expected to reach USD 1.89 trillion by 2034.
• Cybersecurity:
  • The global government cybersecurity market was valued at USD 12.8 billion in 2023 and is anticipated to reach USD 40.5 billion by 2033. Another estimate projects the global Cybersecurity in Government Market size to be USD 190.2 billion in 2023, reaching USD 356.7 billion by 2030.
  • The global Government and Public Sector Cybersecurity Market is estimated at USD 75.14 billion in 2025 and is expected to reach USD 137.59 billion by 2030.
  • North America is a dominant region in the government cybersecurity market. The U.S. federal cybersecurity market is expected to remain above USD 20 billion.

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Leidos Holdings, Inc. (LDOS) is positioned for future revenue growth over the next 2-3 years, driven by several strategic areas:

1. Robust Demand and Contract Awards in National Security and Defense Missions: Leidos anticipates continued revenue growth from increased customer demand for innovative products and solutions within national security and defense missions. This is evidenced by significant growth in its Defense Systems and National Security & Digital segments. The company also benefits from a substantial backlog of $47.7 billion and a pipeline of near-term opportunities totaling $69 billion, including $24 billion in bids awaiting adjudication, indicating strong future revenue streams.
2. Strategic Investments in Artificial Intelligence (AI) and Advanced Technologies, particularly within Energy Infrastructure: Leidos is actively pursuing strategic initiatives in AI and other advanced defense technologies. Its proprietary Skywire AI platform has been pivotal in reducing project costs by 30% within the energy infrastructure business, which itself has demonstrated double-digit compound annual growth rates (CAGRs) and is a key growth pillar.
3. Growth in Digital Modernization and Cybersecurity Solutions: As part of its North Star 2030 strategy, Leidos has identified digital modernization and cybersecurity as critical growth pillars. The National Security & Digital segment has shown strong revenue growth, fueled by new contract awards and expanded defense IT and intelligence community mission support.
4. Expansion of Managed Health Services: Continued strong demand in Leidos' managed health business, another core growth pillar in the North Star 2030 strategy, is expected to drive future revenue and income growth. The Health & Civil segment has also reported consistent revenue increases.

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Share Repurchases

• In February 2022, Leidos's Board of Directors authorized a share repurchase program of up to 20 million shares of outstanding common stock.
• Leidos executed an Accelerated Share Repurchase (ASR) agreement for $500 million in fiscal year 2022, receiving 4.8 million shares. An additional $500 million ASR was initiated in February 2025.
• The company made open market repurchases of common stock for an aggregate of $237 million in fiscal 2021 and $225 million in fiscal 2023. Additionally, Leidos returned approximately $820 million to shareholders through repurchases in fiscal 2024 and $100 million in open-market repurchases in Q3 2025.

Outbound Investments

• In 2021, Leidos acquired IT, cloud, and cyber firm 1901 Group for $214 million and naval architecture and marine engineering firm Gibbs & Cox for $380 million.
• In 2022, Leidos acquired Cobham Aviation Services Australia's Special Mission business, a provider of airborne border surveillance and search and rescue services.
• In May 2025, Leidos acquired Kudu Dynamics LLC for $300 million to enhance its artificial intelligence-enabled offensive cyber and electronic warfare capabilities.

Capital Expenditures

• Capital expenditures primarily consisted of payments for property, equipment, and software.
• Leidos reported $78 million in capital expenditures for fiscal year 2023.
• The company's investing activities included $103 million in property, equipment, and software payments in fiscal year 2021, and $23 million in both Q2 and Q3 of fiscal year 2024.