Leidos Holdings, Inc. (LDOS): History, Ownership, Mission, How It Works & Makes Money

When you look at Leidos Holdings, Inc. (LDOS), a critical player in the US national security and digital modernization landscape, do you really grasp the scale of their impact? This technology, engineering, and science giant is currently projecting fiscal year 2025 revenue between $17.00 billion and $17.25 billion, backed by a massive total backlog of around $47.7 billion in Q3 2025 alone. As a seasoned analyst, I see a business model deeply embedded in mission-critical solutions for defense, intelligence, civil, and health markets, which is why its current market capitalization sits near $24.1 billion. Let's dig into how a company of this magnitude, with over 75% of its stock owned by institutional investors, keeps the machine running and where the real opportunities lie.

Leidos Holdings, Inc. (LDOS) History

You need to understand a company's past to gauge its future trajectory, and Leidos Holdings, Inc. (LDOS) is a prime example of a firm shaped by deliberate, transformative splits and mergers. What started as a small scientific consulting firm is now a global technology leader with a full-year 2025 revenue guidance of up to $17.25 billion. The company's history is a story of applying deep scientific expertise to complex, mission-critical government problems, constantly evolving its structure to stay ahead of market dynamics.

Given Company's Founding Timeline

Year established

The company was effectively established in 1969, originally under the name Science Applications Incorporated (SAI).

Original location

The original location was La Jolla, a neighborhood in San Diego, California.

Founding team members

The company was founded by Dr. J. Robert 'Bob' Beyster, a nuclear physicist who envisioned an employee-owned scientific consulting firm.

Initial capital/funding

Dr. Beyster started the firm with an initial investment of approximately $50,000 of personal funds, using his home as collateral for a bank loan. Honestly, that's a tiny seed for a company that now reports quarterly revenues in the billions.

Given Company's Evolution Milestones

Given Company's Transformative Moments

The company's journey to its current form-a technology powerhouse-was defined by a few high-stakes, structural decisions. The core idea was always to align the company's structure with its mission-critical government customer base.

• The 2013 Split: The decision to separate the original SAIC into two entities, Leidos and the new SAIC, was a direct response to organizational conflicts of interest (OCI) concerns in the federal market. This allowed Leidos to pursue large, complex integration contracts without OCI restrictions, focusing on its core strengths in national security and health IT.
• The Lockheed Martin IS&GS Merger: Completed in 2016, this was a massive consolidation play, instantly scaling Leidos' defense IT services and making it a dominant force. It was a clear signal that the company was prioritizing scale and deep domain expertise in government services.
• Strategic Acquisitions in Advanced Tech: The $1.65 billion acquisition of Dynetics in 2020 and the $291 million acquisition of Kudu Dynamics in 2025 are defintely key. These moves weren't about adding revenue; they were about acquiring cutting-edge capabilities in areas like hypersonics, defense research, and artificial intelligence-enabled cyber solutions.
• Navigating 2025 Headwinds: Even with strong Q3 2025 results, the company faced significant near-term risks, including being placed on China's export control list in March 2025 and the termination of a $2.4 billion Department of Homeland Security (DHS) cybersecurity services contract in May 2025. This shows the constant political and contractual risks inherent in its business model. For a deeper dive into how the company manages these financial pressures, check out Breaking Down Leidos Holdings, Inc. (LDOS) Financial Health: Key Insights for Investors.

Here's the quick math: The 2016 merger added a massive chunk of scale, and the 2020-2025 acquisitions added high-margin, next-generation capabilities. That's how they got to a 2025 revenue forecast of over $17 billion.

Leidos Holdings, Inc. (LDOS) Ownership Structure

Leidos Holdings, Inc. is a publicly traded company, and its ownership structure is heavily weighted toward institutional investors, which is typical for a defense and IT services firm of this scale.

This institutional control means that major strategic decisions are often influenced by the perspectives of large asset managers like Vanguard and BlackRock, who collectively hold significant voting power.

Leidos Holdings, Inc.'s Current Status

Leidos Holdings, Inc. (LDOS) is a major public entity, trading on the New York Stock Exchange (NYSE:LDOS), not a private company.

As of November 2025, the company commands a market capitalization (market cap) of approximately $23.81 Billion USD, reflecting its standing as a key player in the national security, health, and engineering solutions sectors.

The company operates under the scrutiny of the U.S. Securities and Exchange Commission (SEC), with its governance structure designed to manage a diverse base of public shareholders. You can review the company's strategic direction, including its core principles, by examining its Mission Statement, Vision, & Core Values of Leidos Holdings, Inc. (LDOS).

Leidos Holdings, Inc.'s Ownership Breakdown

The majority of Leidos Holdings, Inc.'s stock is held by institutional investors, a common structure for large-cap defense contractors where stability and long-term contracts are key. Honestly, this high institutional ownership, at over three-quarters of the shares, provides a strong base for the stock.

Here's the quick math on who controls the company's outstanding shares as of the most recent filings:

Leidos Holdings, Inc.'s Leadership

The company is steered by a seasoned executive team, with Tom Bell serving as the Chief Executive Officer (CEO), leading the company's strategy across its diverse markets.

This leadership structure is organized around key functional roles and five distinct operational sectors, ensuring specialized focus across its government and commercial contracts.

The core executive team as of November 2025 includes:

• Tom Bell: Chief Executive Officer
• Chris Cage: Chief Financial Officer (CFO)
• Jim Carlini: Chief Technology Officer (CTO)
• Dan Antal: General Counsel
• Jason Albanese: Chief Growth Officer
• Leslie Fautsch: Chief Human Resources Officer

The Presidents of the five operational sectors, which drive the company's $4.47 billion in quarterly revenue as reported in November 2025, are also central to the decision-making process:

• Liz Porter: President, Health & Civil Sector
• Steve Hull: President, Digital Modernization Sector
• Vicki Schmanske: President, Commercial & International Sector
• Roy Stevens: President, National Security Sector
• Cindy Gruensfelder: President, Defense Systems Sector

The governance framework is defintely robust, with this team balancing shareholder returns-evidenced by the recent increase in the quarterly cash dividend to $0.43 per share-with long-term strategic investments.

Leidos Holdings, Inc. (LDOS) Mission and Values

Leidos Holdings, Inc.'s core purpose extends well beyond its estimated $16.7 billion in annual revenue for the fiscal year ended January 3, 2025, focusing instead on applying advanced technology to solve the world's most complex challenges in national security, health, and engineering. This commitment is anchored by six non-negotiable core values that shape every decision, from securing a $69 billion pipeline of near-term opportunities to setting the FY2025 earnings per share (EPS) guidance between $11.45 and $11.75.

Leidos Holdings, Inc.'s Core Purpose

You're not just investing in a defense and IT services provider; you're backing a company whose cultural DNA is built on a clear, five-part commitment to all stakeholders. This is how they define success, not just profit. Honesty, to be fair, is what keeps the whole system running.

Official Mission Statement

While Leidos Holdings, Inc. does not publish a single, formal mission statement, its operating principles define its mission as applying technology, engineering, and science to make the world safer, healthier, and more efficient. This mission is realized through a commitment to five key deliverables:

• Mission success for all customers.
• Endless opportunities for employees.
• Superior returns for shareholders.
• Growth and prosperity for the company.
• Healthy investments in communities.

Vision Statement

The company's vision is to be a global leader by integrating information technology (IT), engineering, and science to deliver comprehensive, smarter solutions across the defense, intelligence, civil, and health markets. This long-term view drives their investment in areas like cybersecurity and artificial intelligence (AI), ensuring they stay ahead of the curve. You can see more about who is betting on this vision at Exploring Leidos Holdings, Inc. (LDOS) Investor Profile: Who's Buying and Why?

Their vision is supported by six core values that act as the internal compass for their approximately 47,000 global employees:

• Integrity: Making tough ethical decisions and being transparent.
• Inclusion: Fostering a sense of belonging and welcoming diverse perspectives.
• Innovation: Acting as a catalyst for continuous learning and creative problem-solving.
• Agility: Being flexible, creative, and resilient to think and act small.
• Collaboration: Proactively engaging as a team to meet shared objectives.
• Commitment: Operating with a sense of urgency and taking ownership.

Leidos Holdings, Inc. Slogan/Tagline

The company's most concise and action-oriented tagline, often used in their branding, cuts straight to their value proposition: 'Making Smart Smarter.' It's defintely a clean one-liner.

Leidos Holdings, Inc. (LDOS) How It Works

Leidos Holdings, Inc. operates as a technology and engineering powerhouse, primarily serving the U.S. government by integrating complex systems and digital solutions to solve mission-critical problems in defense, intelligence, civil, and health sectors.

The company essentially acts as a highly specialized systems integrator and service provider, using its deep technical expertise-especially in artificial intelligence (AI) and cyber operations-to secure long-term contracts and deliver high-margin, mission-essential outcomes for its customers.

Leidos Holdings, Inc.'s Product/Service Portfolio

Leidos structures its value delivery across four main segments, blending sophisticated technology with specialized human capital to meet the unique needs of its diverse clientele.

Leidos Holdings, Inc.'s Operational Framework

The company's operational strength comes from its ability to manage massive, multi-year government contracts while driving efficiency through digital transformation internally and for customers.

Here's the quick math: Leidos's full-year 2025 revenue is projected to be between $\mathbf{\$17.0}$ billion and $\mathbf{\$17.3}$ billion, which is anchored by a massive total backlog of $\mathbf{\$47.7}$ billion as of October 3, 2025.

• Secure Long-Term Contracts: Win large, multi-year, mission-critical contracts, often sole-source, with U.S. government agencies, which accounted for approximately 87% of fiscal 2024 revenues.
• Integrate Core Capabilities: Apply seven core technical capabilities-like cyber operations and mission software systems-across all segments to create tailored solutions.
• Focus on Digital Efficiency: Implement tools like AI-driven logistics platforms (e.g., Catēna) to manage supply chain complexity, offsetting industry headwinds like labor shortages and supply chain bottlenecks.
• Strategic Capital Deployment: Use strong cash flow from operations, which hit $\mathbf{\$711}$ million in Q3 2025, to fund strategic acquisitions, such as the May 2025 purchase of Kudu Dynamics for $\mathbf{\$291}$ million, to accelerate AI-enabled cyber capabilities.
• Maintain High Book-to-Bill: Consistently book new business that outpaces revenue recognized; Q3 2025 saw a 1.3x book-to-bill ratio, ensuring a clear line of sight to future revenue.

This operational model, guided by the long-term NorthStar 2030 strategy, is what allows them to deliver on their reaffirmed 2025 non-GAAP diluted earnings per share (EPS) guidance of $\mathbf{\$11.45}$ to $\mathbf{\$11.75}$.

Leidos Holdings, Inc.'s Strategic Advantages

Leidos's competitive edge isn't just about technology; it's about its unique positioning and deep, trusted relationships with the most demanding customers.

• Mission-Critical Embeddedness: The company's work is often deemed mission-essential, meaning its contracts are relatively resilient to budget fluctuations or government shutdowns, providing a defintely stable revenue base.
• Technological Leadership: Significant and continuous investment in Research & Development (R&D) maintains a lead in high-demand areas like AI, cyber, and digital modernization, positioning them as a go-to provider for advanced solutions.
• Massive, Funded Backlog: The sheer scale of its contract backlog, with $\mathbf{\$9.1}$ billion of the $\mathbf{\$47.7}$ billion total being funded as of October 3, 2025, provides predictable, long-term revenue stability that few competitors can match.
• Diversified Portfolio: Revenue is spread across four major, non-cyclical sectors (Defense, Intelligence, Health, Civil), which reduces reliance on any single customer or market, leading to financial resilience.

If you want to dive deeper into the core principles driving this business, you should check out the Mission Statement, Vision, & Core Values of Leidos Holdings, Inc. (LDOS).

The company's ability to generate strong free cash flow, which was $\mathbf{\$680}$ million in Q3 2025, gives it the financial flexibility to invest in growth and return capital to shareholders, including a recently increased quarterly dividend of $\mathbf{\$0.43}$ per share.

Leidos Holdings, Inc. (LDOS) How It Makes Money

Leidos Holdings, Inc. (LDOS) makes money primarily by acting as a mission-critical partner to the U.S. government, delivering complex, high-technology solutions across defense, intelligence, civil, and health sectors. They generate revenue by executing long-term, multi-billion-dollar contracts for services ranging from digital modernization and cybersecurity to advanced defense systems and air traffic control technology.

The company's revenue engine is built on a massive, sticky backlog of contracted work, which stood at a robust $47.7 billion as of the third quarter of 2025. That's a powerful revenue buffer. To be fair, only $9.1 billion of that is currently funded, but it still provides a clear line of sight into future earnings.

Leidos Holdings, Inc.'s Revenue Breakdown

Looking at the second quarter of the 2025 fiscal year, which reported $4.253 billion in revenue, the business is clearly diversified across four key segments. This breakdown shows where the capital is flowing, and the growth trends from the third quarter of 2025 highlight where the company is accelerating.

The National Security & Digital segment is the clear revenue leader, contributing nearly half of the total, and it's seeing strong organic growth, up 8% year-over-year in Q3 2025. But honestly, the Defense Systems segment, which grew 11% year-over-year in Q3 2025, is the one showing the most impressive acceleration right now.

Business Economics

The core of Leidos Holdings, Inc.'s economic model is its position as a prime contractor for the U.S. government, which means predictable, recurring revenue. Most of their work falls under either cost-plus contracts, where they are reimbursed for allowable costs plus a fee, or fixed-price contracts, where they take on more risk but can earn higher profits through efficiency.

The key to their long-term value is the high barrier to entry in their market-you need deep domain expertise, security clearances, and years of trust to win these massive government contracts. Plus, the company has successfully maintained a book-to-bill ratio of 1.3x in Q3 2025, meaning they booked $1.30 in new business for every dollar of revenue recognized, which is defintely a healthy indicator of future growth.

• Contract Structure: Dominantly government contracts, which provide stability but often have tightly controlled margins.
• Pricing Power: Pricing is largely determined by competitive bids, but their specialized technology in areas like artificial intelligence (AI) and cyber gives them a competitive edge.
• Scalability: The business scales by winning larger, longer-duration contracts and expanding existing programs, often with minimal incremental infrastructure cost.
• Strategic Focus: They are actively aligning with major government spending priorities, such as digital modernization, space, and energy infrastructure, which are set for sustained funding.

What this estimate hides is the risk of government funding delays or a continuing resolution (CR) environment, which can temporarily slow new contract starts and impact cash flow timing, even if the work is mission-essential.

Leidos Holdings, Inc.'s Financial Performance

Leidos Holdings, Inc.'s financial health as of November 2025 shows a focus on margin expansion and strong cash generation, even as they navigate a complex government environment. The company has raised its full-year guidance for 2025 twice, a sign of confidence in their operational efficiency.

• Revenue Guidance: The full-year 2025 revenue guidance is projected to be between $17.0 billion and $17.25 billion.
• Profitability: The company is targeting an Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) margin in the high 13% range for the full year 2025, indicating a strong focus on operational efficiency.
• Earnings Power: Non-GAAP diluted Earnings Per Share (EPS) guidance for 2025 was raised to a range of $11.45 to $11.75, a significant increase that outpaces revenue growth.
• Cash Flow Strength: Operating cash flow guidance for 2025 is approximately $1.65 billion, highlighting the company's ability to convert earnings into cash.
• Capital Allocation: In Q3 2025 alone, the company paid down $450 million of debt and returned $153 million to shareholders through dividends and share repurchases.

Here's the quick math: The robust backlog and high book-to-bill ratio mean the revenue pipeline is full, and the rising EPS guidance shows they are getting more profitable on that revenue. For a deeper dive into the metrics that matter most, you should read Breaking Down Leidos Holdings, Inc. (LDOS) Financial Health: Key Insights for Investors.

Finance: Monitor the Q4 2025 earnings release for final confirmation of the $17.0 billion to $17.25 billion revenue range.

Leidos Holdings, Inc. (LDOS) Market Position & Future Outlook

Leidos Holdings, Inc. is positioned as the largest pure-play government information technology (IT) provider, with a clear path to sustained growth driven by its massive, mission-critical backlog and strategic pivot toward next-generation defense and intelligence technologies. The company's financial outlook for fiscal year 2025 is strong, with revenue projected to be between $17.0 billion and $17.25 billion, supported by a total backlog of $47.7 billion as of the third quarter.

Competitive Landscape

In the highly specialized federal services market, Leidos competes directly with other top-tier systems integrators, primarily differentiating itself through technological scale and its diverse portfolio across defense, civil, and health sectors. The table below visualizes its relative standing among its closest peers in the federal IT services space, based on their proportional revenue scale in this segment.

Opportunities & Challenges

The company's future performance hinges on successfully executing its North Star 2030 strategy, which focuses on aligning its capabilities with the U.S. government's highest-priority, best-funded initiatives. This is defintely where the real money is made.

Industry Position

Leidos maintains a top-tier industry standing, primarily due to its scale and its shift toward a higher-margin, technology-driven portfolio. Its position as the largest government IT provider gives it a structural advantage when bidding on multi-billion-dollar, multi-year, complex contracts, especially those requiring high-level security clearances.

• Financial Health: The company raised its fiscal year 2025 Adjusted EPS guidance to a range of $11.45 to $11.75, demonstrating confidence in margin expansion despite external headwinds.
• Technology Focus: Strategic investments are concentrated in areas like AI-driven cybersecurity, electronic warfare, and digital modernization, moving the company beyond traditional IT services.
• Resilience: A highly diversified backlog of $47.7 billion across defense, intelligence, and civil segments provides significant revenue visibility and a buffer against sector-specific volatility.

For a deeper dive into the company's fundamentals and balance sheet strength, you should check out Breaking Down Leidos Holdings, Inc. (LDOS) Financial Health: Key Insights for Investors. Your next step should be mapping the company's contract win announcements against their stated North Star 2030 pillars to confirm their execution is on track.