Leidos Holdings, Inc.

Company History

Leidos’ evolution reflects the transformation of U.S. defense and technology industries over five decades.

• 1969: Founded in La Jolla, California, by Dr. J. Robert Beyster as Science Applications Incorporated (SAI). It was structured as an employee-owned firm focused on scientific and engineering research for government agencies.
  
  
• 1970s–1980s: Grew rapidly by providing services to defense, energy, and intelligence communities, becoming a trusted government contractor.
  
  
• 1990s: Renamed Science Applications International Corporation (SAIC), expanding into IT, logistics, and advanced engineering solutions. By the late 1990s, SAIC had become one of the largest employee-owned companies in the U.S.
  
  
• 2000s: SAIC acquired key technology companies, diversifying into mission IT, network defense, and healthcare informatics. It played a major role in government programs such as electronic health records, air traffic management, and counterterrorism systems.
  
  
• 2013: SAIC split into two publicly traded companies: the technical services arm (which retained the SAIC name) and the solutions-focused business, rebranded as Leidos. The name is derived from “kaleidoscope,” symbolizing innovation and diverse solutions.
  
  
• 2016: Leidos acquired Lockheed Martin’s Information Systems & Global Solutions (IS&GS) division, nearly doubling its size and positioning it as a top-tier federal IT and defense services provider.
  
  
• 2020s: Expanded into autonomous maritime systems, advanced cyber operations, and artificial intelligence, cementing its position as a global defense technology leader.
  
  

Today, Leidos is a Fortune 500 company and consistently ranks among the Top 20 global defense contractors.

Corporate & Financial Overview

• Company Type: Public.
  
  
• Stock Exchange: New York Stock Exchange (NYSE: LDOS).
  
  
• Industry Classification: Aerospace & Defense, IT Services, Engineering.
  
  
• Founded: 1969 (as SAIC); rebranded as Leidos in 2013.
  
  
• Headquarters: Reston, Virginia, United States.
  
  
• Areas Served: United States, NATO, allied governments in Europe, Asia-Pacific, and the Middle East.
  
  
• Employees: ~47,000 (2024).
  
  

Key Executives (2025):

• Thomas A. Bell – Chair & Chief Executive Officer.
  
  
• Christopher Cage – Chief Financial Officer.
  
  
• Vicki Schmanske – President, Health Group.
  
  
• Gerry Fasano – President, Defense Group.
  
  

Financials (FY2023):

• Revenue: $15.4 billion.
  
  
• Operating Income: $1.2 billion.
  
  
• Net Income: $890 million.
  
  
• Total Assets: $19.7 billion.
  
  
• Equity: $6.3 billion.
  
  

Leidos maintains a balanced revenue stream across defense (~55%), civil (~25%), and health (~20%) sectors, demonstrating resilience against market fluctuations.

Main Divisions

Leidos organizes its global operations into four core business segments:

1. Defense Solutions – Focused on C4ISR, autonomy, mission IT, and logistics for defense customers.
   
   
2. Civil Solutions – Encompassing air traffic management, infrastructure security, and national civil programs.
   
   
3. Health Solutions – Providing defense health IT, biomedical research support, and federal healthcare system management.
   
   
4. Digital & Cyber Engineering – Delivering advanced cyber defense, AI, and data analytics to support digital modernization.
   
   

This diversified structure allows Leidos to span multiple mission domains while ensuring integration across technology platforms.

Key Products & Services

Defense Solutions

C4ISR Systems

• Overview: Integrated command, control, communications, computers, intelligence, surveillance, and reconnaissance systems.
  
  
• Capabilities:
  
  
  • Multi-domain data fusion.
    
    
  • Real-time decision support.
    
    
  • Secure, resilient communication architectures.
    
    
• Applications: Battlefield awareness, joint operations, border defense, and maritime domain awareness.
  
  
• Strategic Impact: Supports the U.S. military’s transition to Joint All-Domain Command and Control (JADC2).
  
  

Unmanned Systems & Autonomy

• Platforms: Autonomous undersea vehicles (AUVs), surface drones, and airborne unmanned ISR systems.
  
  
• Capabilities: Mine countermeasures, persistent surveillance, logistics, and oceanographic mapping.
  
  
• Relevance: Enhances U.S. Navy distributed maritime operations by extending reach into contested environments without risk to personnel.
  
  

Mission IT & Logistics

• Scope: Mission-critical IT, global supply chain, sustainment, and readiness support.
  
  
• Examples: IT services for U.S. Air Force bases, logistics for deployed operations, and sustainment packages for intelligence networks.
  
  
• Value: Ensures that deployed forces maintain operational readiness with secure infrastructure.
  
  

Civil Solutions

Air Traffic Management (ATM) Systems

• Overview: Provides automation, surveillance, and data integration for the Federal Aviation Administration (FAA) and international aviation authorities.
  
  
• Features:
  
  
  • NextGen ATM modernization.
    
    
  • Digital control towers.
    
    
  • Surveillance radars and communication systems.
    
    
• Global Reach: Solutions deployed across more than 30 nations.
  
  

Transportation Infrastructure

• Scope: Security and digital management systems for airports, seaports, and transit.
  
  
• Capabilities: Integrated surveillance, cargo screening, and operational control.
  
  
• Strategic Role: Enhances resilience of national infrastructure and critical transportation nodes.
  
  

Health Solutions

Defense Health IT

• Overview: Designs and manages electronic health record (EHR) systems for the Department of Defense.
  
  
• Key Program: Defense Health Agency’s GENESIS EHR modernization.
  
  
• Impact: Supports over 9.5 million service members and dependents with integrated healthcare IT.
  
  

Biomedical Research Support

• Services: Data analytics, IT, and cybersecurity for federal health research agencies.
  
  
• Applications: Infectious disease modeling, vaccine research, diagnostics, and bioinformatics.
  
  
• Strategic Role: Strengthens national biosecurity and global health research infrastructure.
  
  

Digital & Cyber Engineering

Cybersecurity Solutions

• Capabilities: Cyber defense, vulnerability testing, secure cloud migration, and zero-trust network integration.
  
  
• Customers: U.S. Department of Defense, Department of Homeland Security, and allied governments.
  
  
• Strategic Importance: Protects sensitive military and civil infrastructure from cyberattacks by peer and non-state adversaries.
  
  

AI & Data Analytics

• Applications: Predictive maintenance, threat detection, mission planning, and decision support.
  
  
• Tools: Machine learning models, digital twins, and operational optimization algorithms.
  
  
• Relevance: Supports modernization initiatives by leveraging big data to enhance readiness and reduce costs.
  
  

Strategic Analysis

Market Position
Leidos is a Tier 1 systems integrator in the U.S. defense industrial base, competing alongside Booz Allen Hamilton, CACI, Raytheon Technologies, and Northrop Grumman in IT, integration, and cyber. Unlike primes that focus on hardware, Leidos emphasizes services, integration, and digital systems, giving it a unique position in the defense market.

Innovation Strategies

• Heavy investment in AI-driven decision support and digital twins.
  
  
• Autonomous maritime and aerial platforms aligned with the Navy’s future fleet concepts.
  
  
• Strong push into health IT modernization, making Leidos a leader in defense medical informatics.
  
  
• Partnerships with primes such as Lockheed Martin, Boeing, and BAE Systems to integrate mission systems.
  
  

Competitor Comparison

• Leidos vs. Booz Allen: Both strong in services; Leidos differentiates with ISR and unmanned platforms.
  
  
• Leidos vs. Northrop Grumman: Northrop builds platforms, while Leidos integrates them with C4ISR and IT infrastructure.
  
  
• Leidos vs. Raytheon: Raytheon dominates hardware-based C4ISR, while Leidos provides software, services, and lifecycle management.
  
  

Global Impact

• U.S. National Security: Provides IT backbone and digital integration for the Pentagon and intelligence community.
  
  
• Allied Partnerships: Works with NATO and allied governments to modernize air traffic control, cyber defense, and ISR systems.
  
  
• Healthcare Modernization: Manages electronic health records and IT systems for millions of military personnel and veterans.
  
  
• Civil Infrastructure: Enhances global transportation safety and resilience, from U.S. airports to international seaports.
  
  

Unique & Critical Facts

• Employee-Owned Roots: Originally founded as a majority employee-owned firm, reflecting its culture of technical innovation.
  
  
• Landmark Acquisition: The 2016 purchase of Lockheed Martin’s IS&GS division expanded Leidos into one of the largest government services firms.
  
  
• Defense Health IT Leadership: Prime contractor for the DoD’s GENESIS EHR program, one of the largest health IT transformations in history.
  
  
• Unmanned Maritime Innovation: Developed long-endurance autonomous undersea vehicles for mine warfare and surveillance.
  
  
• Recognition: Consistently ranked in the Fortune 500 and among the top U.S. defense contractors by Defense News.
  
  

FAQ

Q: What are Leidos’ core expertise areas?
A: C4ISR systems, mission IT, cyber defense, unmanned platforms, digital modernization, and defense health IT.

Q: How does Leidos support allied forces?
A: Through interoperable C4ISR platforms, logistics support, IT services, and cyber defense systems tailored for joint and coalition missions.

Q: What role does innovation play in Leidos’ programs?
A: Leidos invests heavily in AI, machine learning, and digital engineering to drive predictive analytics, mission readiness, and cyber resilience.

Q: Does Leidos provide lifecycle services?
A: Yes—sustainment, IT lifecycle management, training, and modernization services across defense, civil, and health domains.

Q: What standards guide Leidos’ work?
A: AS9100 aerospace quality standards, NIST cyber frameworks, ISO certifications, and compliance with ITAR/EAR export controls.