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Leidos builds and runs software, computer networks and other systems that government agencies use to carry out their work. National security software, cybersecurity and IT modernization form its largest business; health and civil services, including medical examinations and air-traffic-control systems, are the next largest. It also supplies defense systems, security-screening equipment and energy-infrastructure services. Foreign governments and commercial customers provide a smaller share of revenue.
U.S. agencies pay Leidos directly when it leads a contract, or through another contractor when Leidos performs part of the work. Some contracts reimburse costs plus a fee; others pay a fixed price or agreed hourly rates. On fixed-price work, Leidos keeps the benefit of cost savings but bears cost overruns. Some fees depend on meeting customer performance targets.
The business relies heavily on U.S. government spending, particularly defense and intelligence work. Contracts often run for several years but receive funding annually, so continued work depends on appropriations, contract renewals and winning bids. The government can also terminate contracts for convenience. Leidos must meet federal contracting and cybersecurity requirements, including third-party security assessments to qualify for certain defense awards; conflict-of-interest rules can prevent it from competing for some work.
The risk section is the longest, dullest part of the filing. This keeps only what can really hurt you: where it hits, how hard, when it plays out.
Every company claims an edge. Each one is checked against hard numbers like margins and returns: which hold, and which line gives way first.
Leidos’ results hinge on federal mission and technology spending and contract wins, including against privately held Peraton and ManTech, which are absent from this list.
SAIC and Leidos vie for federal agencies’ spending on IT upgrades, connecting systems, engineering and mission services. SAIC’s federal IT contract wins show where agencies are placing work that both companies pursue.
CACI INTERNATIONAL CLA competes with Leidos for government spending on software, data analysis, cybersecurity, engineering and mission support. Its national-security technology contract wins and repeat business are worth watching for pressure on Leidos’ federal work.
Booz Allen Hamilton and Leidos compete to help federal agencies modernize digital systems and deliver cybersecurity, AI, engineering and national-security technology. Watch Booz Allen’s Veterans Affairs business: VA is also a Leidos customer and was Booz Allen’s largest civil government customer in fiscal 2026.
Amentum Holdings, Inc. competes with Leidos for government intelligence, defense and civilian engineering work, including cybersecurity and digital upgrades. Its awards for developing, connecting and operating government systems help track competition across several Leidos businesses.
KBR, Inc.’s Mission Technology Solutions business competes with Leidos to provide defense, intelligence, space, aviation and technical support to government customers in the U.S., UK and Australia. That business’s awards and revenue are the closer comparison, rather than KBR’s separate process-technology licensing business.
Parsons competes with Leidos through Federal Solutions, supplying government customers with national-security technology, cybersecurity and connected systems. Focus on that segment’s results: it supplied 51% of Parsons’ fiscal 2025 revenue, while its infrastructure business makes the overall company a less direct comparison.
General Dynamics competes with Leidos for federal IT and mission-systems contracts through GDIT and Mission Systems. Watch those businesses rather than the parent’s overall results, which also reflect substantial business aviation and shipbuilding operations.
MAXIMUS, Inc. competes with Leidos for federal clinical services, technology and health-program operations contracts. Its U.S. Federal Services results offer a read on this competition, particularly work delivering clinical services and running health programs for government agencies.
ICF International, Inc. competes with Leidos to provide government technology services and support health, environmental and energy programs. Its government awards in those areas are more relevant to Leidos than ICF’s broader consulting work for commercial customers.
V2X, Inc. competes with Leidos to supply defense customers with logistics, network management, mission support and airborne platform services. Watch its aircraft maintenance and support awards for a view of competition in keeping defense platforms ready for use.
L3Harris Technologies competes with Leidos for defense customers’ mission technology and systems used to gather intelligence, monitor activity and conduct reconnaissance.
Northrop Grumman and Leidos compete to develop and support defense, intelligence, mission and space systems, principally for U.S. defense and intelligence customers. Northrop’s greater concentration in major hardware programs makes its mission- and space-systems awards more useful to watch than treating the whole company as a close Leidos match.
Lockheed Martin competes with Leidos to provide defense mission systems, space, intelligence and cybersecurity capabilities to government customers, chiefly U.S. agencies and allies. Its aircraft and weapons businesses make it a less direct peer; mission-systems and space awards are the more relevant news for Leidos holders.
AeroVironment’s expanded cyber, space and mission-solutions business competes with Leidos, alongside its autonomous defense systems sold mainly under U.S. government contracts. Following the BlueHalo acquisition, watch its Space, Cyber and Directed Energy segment for the part of its business most relevant to this overlap.
Northrop Grumman Corp. earningsNOC
CACI’s national-security technology wins and repeat work will show how much software, data and cybersecurity work agencies are awarding in areas where it competes with Leidos.
Look at new and repeat awards for CACI’s national-security technology work alongside related revenue. Growth in both would show agencies are still buying these services and that Leidos faces active competition for federal technology work; weakness in both could ease that pressure, though a single report may reflect award timing.
Lockheed Martin Corp. earningsLMT
Northrop Grumman’s mission- and space-systems awards will show how defense and intelligence customers are placing work in hardware programs where it competes with Leidos.
Look at Northrop Grumman’s new mission- and space-systems awards alongside related revenue. Growth in both would show defense and intelligence customers are still buying these systems and that Leidos’s Defense Systems business must compete for similar government work; weakness could reflect lower buying or award timing, not prove what Leidos itself will win.
Booz Allen Hamilton Holding Corporation earningsBAH
Booz Allen’s Veterans Affairs business will show whether work is growing or slowing at a federal customer that also buys from Leidos.
Look at Booz Allen’s Veterans Affairs awards and revenue. Growth in both would show that this shared government customer is continuing related work, though it would not mean Leidos will win the same projects; weakness in both could point to softer demand in this area or a change in contract timing.
Leidos Holdings, Inc. earningsThis company
Leidos earns most of its revenue from U.S. government contracts, and this report will show whether federal program work can grow while the company protects its operating margin.
Read revenue from National Security & Digital and Health & Civil alongside operating margin, then check whether new awards are keeping pace with revenue. Growth in both businesses with a steady margin would show government work turning into profitable revenue; falling revenue or margin, or awards trailing revenue, could mean completed programs, funding delays or cost overruns are outweighing new work.
JOLTs Job Openings (Sep)
Job openings track employers’ demand for workers; for Leidos, a company that relies on skilled technical and professional staff to deliver U.S. government contracts, that demand can affect hiring costs and its ability to staff work.
Expected7.0MLast release7.079M
If it comes in above expectations
More openings than expected could intensify competition for Leidos’s skilled staff, raising hiring costs or making it harder to staff contracts and potentially disrupting performance or growth.
If it comes in below expectations
If the reading is below the 7.0M estimate, it is below the previous 7.079M. Fewer openings than expected could ease competition for Leidos’s skilled staff, helping contain hiring costs and making it easier to staff contracts.
Non Farm Payrolls (Oct)
The monthly jobs report counts jobs added or lost across the economy; for Leidos, which relies on skilled technical and professional employees to deliver U.S. government contracts, labor-market strength can affect hiring costs and staffing.
Stronger job growth could make skilled staff harder or costlier for Leidos to hire for contract work; weaker growth could ease that pressure, with either outcome affecting its ability to staff and perform contracts.
MAXIMUS, Inc. earningsMMS
MAXIMUS’s U.S. Federal Services results will show how much clinical and health-program work agencies are awarding to a competitor of Leidos’s Health & Civil business.
Read new awards for MAXIMUS’s U.S. Federal Services business alongside its revenue. More awards with rising revenue would show government health work is flowing through and that Leidos faces stronger competition in clinical services and program operations; weakness in both could ease that pressure or reflect contract-award and start-up timing.
