Leidos, RegScale to improve digital security for Department of War and federal agencies

Rhea-AI Summary

Leidos (NYSE: LDOS) and RegScale announced an integration of Leidos' UpHold Armor with RegScale's Continuous Controls Monitoring platform to strengthen cybersecurity for the Department of War, the U.S. Air Force and other federal agencies. The collaboration aims to automate risk management, enable continuous ATO readiness, reduce manual audit work, and improve security for modern and legacy systems as part of Leidos' NorthStar 2030 digital modernization focus.

Positive

• Initial deployment to the U.S. Air Force and other War Department agencies
• Continuous ATO capability turning periodic authorization into ongoing authorization readiness
• Automation of controls and evidence collection to reduce manual audit effort and speed approvals
• Improved security visibility and protection for modern and legacy systems via integrated platforms

Negative

• None.

Key Figures

Press release date: Feb. 5, 2026 NIST standard: NIST SP 800-53 Strategy horizon: 2030 +1 more

4 metrics

Press release date Feb. 5, 2026 Announcement of Leidos–RegScale digital security partnership

NIST standard NIST SP 800-53 Federal cybersecurity and authorization requirements referenced in the release

Strategy horizon 2030 NorthStar 2030 digital modernization strategic focus referenced in the partnership

Current share price $188.44 Pre-news price vs. 52-week range for LDOS

Market Reality Check

Price: $188.44 Vol: Volume 876,764 vs 20-day ...

normal vol

$188.44 Last Close

Volume Volume 876,764 vs 20-day average 931,759 (relative volume 0.94). normal

Technical Price 188.44 is trading above 200-day MA at 175.2, near upper 52-week range.

Peers on Argus

LDOS slipped 0.71% while key IT services peers like CTSH (+4.92%), GIB (+4.47%) ...

LDOS slipped 0.71% while key IT services peers like CTSH (+4.92%), GIB (+4.47%) and CDW (+3.43%) moved higher, pointing to stock-specific dynamics rather than a sector-wide move.

Historical Context

5 past events · Latest: Jan 27 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Jan 27	Acquisition detail	Positive	-1.2%	Neuberger Berman exits ENTRUST via sale to Leidos for <b>$2.4 billion</b>.
Jan 26	Acquisition agreement	Positive	-0.9%	Kohlberg agrees to sell ENTRUST to Leidos for about <b>$2.4 billion</b>.
Jan 26	Major acquisition	Positive	-0.9%	Leidos announces ENTRUST acquisition, aiming to double energy infrastructure unit.
Jan 22	AI partnership	Positive	+0.7%	Leidos and OpenAI partner to deploy generative AI across federal workloads.
Jan 13	Earnings scheduling	Neutral	+0.2%	Company schedules Q4 and full-year 2025 earnings call for Feb. 17, 2026.

Pattern Detected

Recent strategic and M&A announcements, including the ENTRUST acquisition and AI partnerships, often saw modest or negative next-day price moves despite generally positive strategic framing.

Recent Company History

Over the last month, LDOS announced several strategic initiatives. On Jan. 26–27, multiple releases detailed the planned $2.4 billion ENTRUST acquisition, aimed at doubling its energy infrastructure unit, yet the stock fell about 1% on each release. A NorthStar 2030‑aligned AI partnership with OpenAI on Jan. 22 coincided with a small gain. An earnings call scheduling notice on Jan. 13 had a minimal impact. Today’s digital security partnership continues this modernization theme.

Market Pulse Summary

This announcement highlights Leidos’ push to automate cybersecurity and compliance across federal ag...

Analysis

This announcement highlights Leidos’ push to automate cybersecurity and compliance across federal agencies by integrating its UpHold Armor with RegScale’s continuous controls monitoring platform. It fits within the NorthStar 2030 digital modernization strategy and complements recent AI and infrastructure moves. Key aspects to watch include adoption across the Air Force and other agencies, alignment with standards like NIST SP 800-53 and FedRAMP, and how management frames its impact on operations during upcoming earnings discussions.

Key Terms

continuous controls monitoring, authorization to operate, nist sp 800-53, fedramp

4 terms

continuous controls monitoring technical

"RegScale's Continuous Controls Monitoring (CCM) platform capabilities to boost digital security"

Continuous controls monitoring is the automated, around‑the‑clock checking of a company’s internal safeguards—like approvals, access limits, and transaction rules—to catch errors, fraud, or compliance lapses as they happen. For investors, it matters because it lowers the chance of surprise accounting problems or regulatory fines by making financial operations more reliable and audits faster, similar to a security camera that alerts you immediately when something goes wrong.

authorization to operate regulatory

"support ongoing system authorization to operate (ATO) and meet federal cybersecurity standards"

Authorization to operate is an official regulatory or agency approval that allows a product, system, or service to be legally used, sold, or run within a specific setting. It signals that required safety, security, or compliance checks have been met; for investors this often unlocks revenue, lowers legal and development risk, and can materially change a company’s near-term prospects. Think of it like a driver’s license that lets a car legally take passengers on public roads.

nist sp 800-53 regulatory

"meet federal cybersecurity standards and authorization requirements such as NIST SP 800-53, and FedRAMP"

NIST SP 800-53 is a U.S. government publication that lists recommended security and privacy protections organizations should use to safeguard information systems. Investors care because adherence signals that a company is proactively managing cyber and data risks—like using a checklist to lock doors and alarms—which can reduce the chance of costly breaches, regulatory fines, and interruptions to business operations.

fedramp regulatory

"meet federal cybersecurity standards and authorization requirements such as NIST SP 800-53, and FedRAMP"

FedRAMP (Federal Risk and Authorization Management Program) is a U.S. government initiative that sets security standards for cloud computing services used by federal agencies. It ensures that these online platforms protect sensitive information, similar to how a security system safeguards a building. For investors, FedRAMP indicates that a cloud service meets strict security requirements, which can influence its reliability and trustworthiness in handling data.

AI-generated analysis. Not financial advice.

RESTON, Va., Feb. 5, 2026 /PRNewswire/ -- With computing systems in the Department of War and other federal agencies under constant threat, Leidos (NYSE: LDOS) and RegScale are integrating Leidos' UpHold Armor and RegScale's Continuous Controls Monitoring (CCM) platform capabilities to boost digital security while keeping critical systems operational.

This joint approach to automating security is designed to strengthen cyber defenses, reduce operational risk and streamline time-consuming, often manual and staff-intensive work, helping federal agencies focus on their top priorities.

"Security and risk management should enable the mission, not get in the way," said Leidos Digital Modernization President Steve Hull. "By partnering with RegScale, we're helping our customers move faster and stay secure while remaining focused on mission outcomes."

The Leidos UpHold Armor solution, supported by RegScale, will initially be deployed to support the U.S. Air Force as well as other War Department and federal organizations seeking to strengthen cybersecurity, lower risk and modernize security operations.

UpHold Armor embeds automated risk management into daily operations across modern and legacy systems, while the RegScale CCM platform continuously tracks security controls and automatically collects the evidence agencies need to support ongoing system authorization to operate (ATO) and meet federal cybersecurity standards and authorization requirements such as NIST SP 800-53, and FedRAMP. Leidos and RegScale are offering a practical path to demonstrating compliance in real time, not just at audit time.

"Leidos knows that government agencies need to accelerate and become more agile," said Travis Howerton, co-founder and CEO of RegScale. "Together, we're turning ATO into a continuous capability—so agencies can move at the speed of innovation and stay focused on securely delivering their mission."

By automating compliance and embedding it into everyday operations, agencies can move from periodic, manual audits to continuous readiness, minimizing the need for additional staff or increasing complexity. The technology is designed to improve security visibility, reduce cyber risk and strengthen protection for legacy systems while also helping agencies obtain faster approvals for system deployment and contributing to reduced time, effort and cost of audits.

This partnership is part of Leidos' NorthStar 2030 strategic focus on digital modernization.

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 ending January 3, 2025. For more information, visit www.Leidos.com.

About RegScale:

RegScale is a Continuous Controls Monitoring (CCM) platform designed to be the operational risk tool for the CISO. Built on a compliance as code foundation, RegScale enables extreme automation with an API-first strategy, self-updating paperwork, and powerful AI agents that all but eliminate manual labor and make GRC programs more proactive. Customers save money, accelerate time to market, and reduce risk in their operational environments with RegScale. Heavily regulated organizations, including Fortune 500 enterprises and the federal government, use RegScale and report achieving compliance certifications 90% faster and trimming audit preparation efforts by 60%, strengthening security and reducing costs. Learn more at www.regscale.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 December 29, 2023, 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:

Elizabeth Torres
(571) 732-6875
elizabeth.torres-3@leidos.com

 

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SOURCE Leidos Holdings, Inc.

FAQ

What did Leidos (LDOS) and RegScale announce on February 5, 2026 regarding federal cybersecurity?

They announced an integration of Leidos' UpHold Armor with RegScale's Continuous Controls Monitoring platform to strengthen federal cybersecurity. According to the company, the integration automates controls monitoring and evidence collection to support continuous authorization and reduce manual audit work across agencies.

How will the Leidos and RegScale partnership affect U.S. Air Force system authorizations (ATO)?

The partnership aims to make ATO a continuous capability rather than a periodic event. According to the company, RegScale's CCM will continuously track controls and collect evidence to support ongoing authorization and faster approvals for system deployments.

What operational benefits does the UpHold Armor and RegScale integration offer federal agencies and LDOS shareholders?

The integration is designed to reduce operational risk and lower time spent on manual compliance tasks. According to the company, automating controls monitoring improves security visibility, decreases audit time and helps agencies focus staff on mission priorities.

Will the Leidos (LDOS) and RegScale solution support legacy federal systems and compliance standards?

Yes, the solution is designed to protect both modern and legacy systems while supporting federal standards like NIST SP 800-53 and FedRAMP. According to the company, RegScale automates evidence collection needed to meet those authorization requirements.

How does this LDOS partnership relate to Leidos' NorthStar 2030 strategy?

The collaboration aligns with Leidos' NorthStar 2030 emphasis on digital modernization and security-driven mission enablement. According to the company, integrating UpHold Armor with RegScale advances automated risk management as a core modernization priority.