Leidos enhancing information sharing, decision making across U.S. security agencies

Rhea-AI Summary

Leidos (NYSE: LDOS) on Feb. 9, 2026 received a $142 million award to modernize IT operations for the Compartmented Enterprise Services Office (CESO) at the Defense Information Systems Agency. The work provides integrated engineering, software development, operations and cybersecurity to optimize secure web applications across the Department of War and intelligence community. The program includes scalable, AI-driven capabilities and Zero Trust improvements to enhance secure information sharing, decision making, user experience and mission readiness, and aligns with Leidos' NorthStar 2030 modernization strategy.

Positive

• Secures a $142 million contract to modernize CESO IT operations
• Delivers integrated engineering, software development, operations and cybersecurity services
• Implements scalable, AI-driven capabilities to streamline secure information access
• Advances Zero Trust compliance to support classified-access resilience and mission readiness
• Aligns work with Leidos' NorthStar 2030 strategic modernization goals

Negative

• None.

Key Figures

CESO IT award value: $142 million Current price: $192.99 52-week high: $205.77 +5 more

8 metrics

CESO IT award value $142 million Contract to modernize CESO operations for DISA and DoW

Current price $192.99 Pre-news market context for LDOS

52-week high $205.77 LDOS trading below prior 52-week high

52-week low $123.62 LDOS well above 52-week low

ENTRUST purchase price $2,400,000,000 Cash consideration per 8-K stock purchase agreement

Bridge facility $1.4 billion 364-day bridge credit commitment to fund ENTRUST acquisition

Short percent of float 1.78% Reported short interest as share of float

Insider sale 3,000 shares at $192.2117 Sector President sale on Jan 20, 2026 under Rule 10b5-1 plan

Market Reality Check

Price: $192.99 Vol: Volume 729,961 is below t...

normal vol

$192.99 Last Close

Volume Volume 729,961 is below the 20-day average of 869,562, suggesting no outsized trading reaction pre‑announcement. normal

Technical Price 192.99 is trading above the 200-day MA at 175.69, reflecting a pre‑existing upward trend into this contract win.

Peers on Argus

LDOS was up 3.71% while key peers were mixed: GIB +0.25%, CDW +1.47%, BR -6.13%,...

LDOS was up 3.71% while key peers were mixed: GIB +0.25%, CDW +1.47%, BR -6.13%, WIT -0.40%, CTSH -0.25%, pointing to a stock-specific driver rather than a broad sector move.

Historical Context

5 past events · Latest: Feb 05 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Feb 05	Cybersecurity partnership	Positive	-1.3%	Integration of UpHold Armor with RegScale to enhance federal cybersecurity.
Feb 04	AI governance partnership	Positive	-0.7%	Trustible collaboration to automate and scale AI governance for agencies.
Jan 27	Acquisition detail	Positive	-1.2%	Neuberger Berman exit details as LDOS buys ENTRUST for about $2.4B.
Jan 26	Acquisition announcement	Positive	-0.9%	Kohlberg sale of ENTRUST to LDOS for about $2.4B in cash.
Jan 26	Strategic acquisition	Positive	-0.9%	LDOS to acquire ENTRUST, doubling $600M energy unit and expanding utilities.

Pattern Detected

Recent positive strategic and M&A announcements have been followed by modest negative next-day moves, indicating a tendency toward short-term selloffs on good news.

Recent Company History

Over the past few weeks, LDOS has issued several positive strategic updates. On Jan 26 and Jan 27, the company announced a roughly $2.4 billion acquisition of ENTRUST, expected to be accretive to revenue growth, adjusted EBITDA margin and non‑GAAP EPS, yet shares fell modestly after each headline. Early February brought cybersecurity and AI governance partnerships aligned with the NorthStar 2030 strategy, again followed by small declines. Today’s CESO IT modernization award continues this defense-focused, modernization narrative.

Market Pulse Summary

This announcement highlights a $142 million award to modernize CESO’s secure IT environment, reinfor...

Analysis

This announcement highlights a $142 million award to modernize CESO’s secure IT environment, reinforcing LDOS’s role in mission-critical defense and intelligence infrastructure and aligning with its NorthStar 2030 strategy. In recent months, the company also pursued the $2.4 billion ENTRUST acquisition and multiple AI and cybersecurity partnerships. Investors may watch contract execution, integration of ENTRUST, financing terms, and the pipeline of similar defense IT awards as key metrics going forward.

Key Terms

zero trust, rule 10b5-1 trading plan, form 4, form 3, +3 more

7 terms

zero trust technical

"advance Zero Trust compliance. This is aimed at enhancing decision making"

Zero trust is a security approach that assumes no one, whether inside or outside an organization, should be automatically trusted. Instead, every access request is carefully verified before being granted, much like checking ID at every door rather than trusting someone just because they are known. For investors, it emphasizes the importance of protecting digital assets and data from potential breaches, reducing overall risk.

rule 10b5-1 trading plan regulatory

"The sale was executed under a pre-arranged Rule 10b5-1 trading plan"

A Rule 10b5-1 trading plan is a pre-arranged schedule that allows company insiders to buy or sell stock at specific times, even if they have inside information. It helps prevent accusations of unfair trading by making these transactions look planned and transparent, rather than sneaky or illegal.

form 4 regulatory

"title": "[Form 4] Leidos Holdings, Inc. Insider Trading Activity""

Form 4 is a official document that company insiders, such as executives or major shareholders, file with regulators whenever they buy or sell company shares. It provides transparency about how those with inside knowledge are trading, helping investors see if insiders are confident in the company's prospects or may be selling for personal reasons. This information can influence investor decisions by revealing insiders' perspectives on the company's value.

form 3 regulatory

"title": "[Form 3] Leidos Holdings, Inc. Initial Statement of Beneficial Ownership""

Form 3 is the initial public filing that officers, directors and large shareholders must submit to report their ownership of a company’s securities when they become insiders. It acts like an opening inventory sheet that gives investors a starting point to see who holds significant stakes and to spot later trades or potential conflicts of interest, helping assess insider confidence and transparency.

form 144 regulatory

"title": "[144] Leidos Holdings, Inc. SEC Filing""

Form 144 is a document that investors must file with the government when they plan to sell a large number of shares of a company's stock. It helps ensure transparency so everyone knows how many shares are being sold and when, which can impact the stock's price.

hart-scott-rodino act regulatory

"conditioned on antitrust clearance under the Hart-Scott-Rodino Act, accuracy"

A U.S. antitrust law that requires parties to large mergers and acquisitions to notify federal regulators and wait a set period before closing the deal, so authorities can check whether the transaction would unfairly reduce competition. For investors, the process is like notifying a referee before a major team trade: it can reveal objections, trigger investigations, delay or block a deal, and therefore affect transaction timing, value and deal risk.

term sofr financial

"facility would bear interest at Term SOFR plus a ratings-based margin"

Term SOFR is a benchmark interest rate that reflects the cost of borrowing money over a specific period, based on actual transactions in the financial markets. It is used by lenders and borrowers to set the interest rates on loans and financial contracts, helping to ensure rates are fair and transparent. For investors, understanding term SOFR helps gauge borrowing costs and the overall direction of interest rates in the economy.

AI-generated analysis. Not financial advice.

RESTON, Va., Feb. 9, 2026 /PRNewswire/ -- Leidos (NYSE: LDOS) is modernizing the IT operations of the Compartmented Enterprise Services Office (CESO) within the Defense Information Systems Agency (DISA) to enable more efficient information sharing across the Department of War (DoW) and intelligence community.

Under the $142 million award, Leidos is expected to provide integrated engineering, software development, operations and cybersecurity services to optimize CESO's secure web applications. The effort includes scalable, AI-driven capabilities designed to help streamline operations, improve secure information access and advance Zero Trust compliance. This is aimed at enhancing decision making, user experience and mission readiness.

"This modernization effort strengthens the digital backbone that supports our nation's defense and intelligence operations," said Paul Welch, senior vice president with the digital modernization sector at Leidos. "By delivering secure, unified access to classified information, Leidos is enabling faster decision making, more effective operations and the resilience needed to maintain mission superiority."

This work underscores Leidos' role in operating, sustaining, and defending the DoW's most critical networks, supporting U.S. defense missions globally.

Leidos' commitment to innovation, resilience and customer success aligns with its NorthStar 2030 strategy, driving mission-focused modernization for its customers.

About Leidos

Leidos is an industry and technology leader serving government and commercial customers with smarter, more efficient digital and mission innovations. Headquartered in Reston, Virginia, with 47,000 global employees, Leidos reported annual revenues of approximately $16.7 billion for the fiscal year ended January 3, 2025. For more information, visit www.leidos.com.

Certain statements in this announcement constitute "forward-looking statements" within the meaning of the rules and regulations of the U.S. Securities and Exchange Commission (SEC). These statements are based on management's current beliefs and expectations and are subject to significant risks and uncertainties. These statements are not guarantees of future results or occurrences. A number of factors could cause our actual results, performance, achievements, or industry results to be different from the results, performance, or achievements expressed or implied by such forward-looking statements. These factors include, but are not limited to, the "Risk Factors" set forth in Leidos' Annual Report on Form 10-K for the fiscal year ended January 3, 2025, and other such filings that Leidos makes with the SEC from time to time. Readers are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date hereof. Leidos does not undertake to update forward-looking statements to reflect the impact of circumstances or events that arise after the date the forward-looking statements were made.

Media Contact:

Brandon Ver Velde
(571) 526-6257
Brandon.p.vervelde@leidos.com

View original content to download multimedia:https://www.prnewswire.com/news-releases/leidos-enhancing-information-sharing-decision-making-across-us-security-agencies-302681601.html

SOURCE Leidos Holdings, Inc.

FAQ

What is the value and purpose of Leidos' Feb. 9, 2026 CESO contract (LDOS)?

The contract is worth $142 million and funds modernization of CESO IT operations. According to the company, work includes engineering, software development, operations and cybersecurity to optimize secure web applications for defense and intelligence users.

How will the LDOS CESO award improve secure information sharing for defense agencies?

The program adds scalable, AI-driven tools and Zero Trust measures to improve secure access and data flow. According to the company, these capabilities are intended to streamline operations, speed decision making and enhance mission readiness across agencies.

Which Leidos services are included in the CESO modernization contract (LDOS)?

Services include integrated engineering, software development, operations and cybersecurity for secure web applications. According to the company, the effort focuses on unified access to classified information and resilience of critical defense networks.

How does the CESO work relate to Leidos' NorthStar 2030 strategy (LDOS)?

The CESO engagement supports mission-focused modernization under NorthStar 2030 by delivering secure, resilient IT capabilities. According to the company, the award advances its strategic aim of driving digital modernization for defense and intelligence customers.

What operational benefits does Leidos expect from the CESO modernization contract (LDOS)?

Expected benefits include faster decision making, improved user experience and stronger mission readiness through enhanced cybersecurity. According to the company, unified, secure access to classified data underpins more effective operations across defense and intelligence communities.