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Leidos to keep 650,000 Navy and Marine Corps personnel securely connected worldwide

A new $875 million option-year award extends Leidos’ role operating and modernizing core U.S. Navy and Marine Corps networks worldwide.

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Leidos (LDOS) received an $875 million award from the U.S. Department of the Navy for the second option year of the Next Generation Enterprise Network Service Management, Integration and Transport contract.

The company will continue supporting secure connectivity for more than 650,000 Navy and Marine Corps personnel by managing over 425,000 devices across more than 2,500 sites worldwide. Leidos is responsible for user support, operations and IT transformation on the NMCI, ONE-Net and MCEN networks.

Since the original 2020 award, Leidos has introduced automation that delivers patches to network devices 93% faster and accelerates patching across the enterprise by 94%, which the company says improves network resilience and reduces potential disruptions. The award aligns with its NorthStar 2030 focus on digital modernization, cyber and mission software.

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Positive

  • $875 million awarded for second option year of NGEN SMIT contract
  • Support scope covers 650,000 personnel, 425,000 devices at 2,500+ sites
  • Automation delivers device patches 93% faster and enterprise patching 94% faster

Negative

  • None.

Market Context

$875 million award followed Leidos' $301 million cyber-networks contract on Aug 24, which had a -2.0...
Analysis

$875 million award followed Leidos' $301 million cyber-networks contract on Aug 24, which had a -2.06% 24-hour reaction; both announcements involved military network modernization, though the earlier market response diverged from the positive contract disclosure.

Key Figures

Contract award: $875 million Personnel supported: More than 650,000 personnel Devices managed: More than 425,000 devices +3 more
Contract award
$875 million
Second option year of the Next Generation Enterprise Network Service Management, Integration and Transport contract
Personnel supported
More than 650,000 personnel
U.S. Navy and Marine Corps networks
Devices managed
More than 425,000 devices
Across Navy and Marine Corps networks
Sites supported
More than 2,500 sites
Worldwide network operations
Patch delivery acceleration
93% faster
Network device patch delivery
Enterprise patching acceleration
94%
Acceleration across the enterprise

Historical Context

1 past event · Latest: Aug 24
1 event
  1. Aug 24

    Contract award

    24h Move
    -2.1%

    Five-year cyber operations contract supported military network modernization and NorthStar 2030 strategy

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

option year
1 terms
option year financial
"awarded Leidos $875 million for the second option year"
A contract clause that allows one or both parties to extend the agreement for an additional year under pre-set terms, often exercised by giving notice rather than renegotiating. Think of it like a one-year subscription renewal built into a deal; it matters to investors because exercising or losing an option year changes future revenue, costs, and the length of business relationships, affecting cash flow certainty and valuation.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Department of Navy awards $875 million for second option year on contract to secure and maintain critical networks worldwide

RESTON, Va., Sept. 14, 2026 /PRNewswire/ -- Leidos (NYSE: LDOS) will continue helping keep more than 650,000 U.S. Navy and Marine Corps personnel securely connected by managing more than 425,000 devices at more than 2,500 sites around the world.

Leidos is a Fortune 500 (r) innovation company. (PRNewsFoto/Leidos)

The Navy recently awarded Leidos $875 million for the second option year of the Next Generation Enterprise Network Service Management, Integration and Transport contract. The company is responsible for all aspects of user support, operations and IT transformational activities on the Navy Marine Corps Intranet (NMCI), Outside the Continental United States Navy Enterprise Network (ONE-Net) and Marine Corps Enterprise Network (MCEN).

"Military and civilian personnel rely on these networks to communicate, make decisions and carry out missions that protect our nation and its allies," said Steve Hull, president of Leidos Digital. "We're supporting the technology they depend on so it remains secure, resilient and ready when they need it."

Since being awarded the contract in 2020, Leidos has helped the Navy and Marine Corps modernize their IT environments while improving network resilience. The company has introduced automation that delivers patches to network devices 93% faster and accelerates patching across the enterprise by 94%, addressing vulnerabilities sooner and reducing potential disruptions for personnel who rely on these networks.

"During my time in the Navy, I learned that when technology works seamlessly in the background, you're free to give the mission your full attention. These results reflect our team's 24/7 dedication to making that possible," said DJ LeGoff, a retired Navy captain and the Navy and Marine Corps portfolio leader at Leidos.

This award supports Leidos' NorthStar 2030 strategy and its focus on digital modernization, cyber capabilities and mission software.

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 50,000 global employees, Leidos reported annual revenues of approximately $17.2 billion for the fiscal year ended January 2, 2026. 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 2, 2026, 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

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/leidos-to-keep-650-000-navy-and-marine-corps-personnel-securely-connected-worldwide-302878038.html

SOURCE Leidos Holdings, Inc.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What networks does Leidos operate under this Navy contract?

Leidos is responsible for user support, operations and IT transformational activities on the Navy Marine Corps Intranet (NMCI), the Outside the Continental United States Navy Enterprise Network (ONE-Net) and the Marine Corps Enterprise Network (MCEN).

Since when has Leidos been working on this Next Generation Enterprise Network contract?

Leidos has been working on the Next Generation Enterprise Network Service Management, Integration and Transport contract since 2020, during which time the company has helped the Navy and Marine Corps modernize their IT environments and improve network resilience.

How does this award fit into Leidos' broader strategy?

The company states that this option-year award supports its NorthStar 2030 strategy, particularly its focus on digital modernization, cyber capabilities and mission software.

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