Leidos to support extended ARTEMIS airborne ISR mission for U.S. Army

A new U.S. Army award of up to $127 million extends Leidos’ ARTEMIS ISR operations in Europe through summer 2027 with added option years.

Rhea-AI Summary

Leidos (LDOS) received a U.S. Army contract valued at up to $127 million to continue operating the ARTEMIS airborne intelligence, surveillance, and reconnaissance (ISR) system. The award extends ARTEMIS ISR operations in the U.S. European Command area of responsibility through the summer of 2027 and includes two additional option years.

Leidos has supported ARTEMIS since 2020, providing real-time intelligence to help commanders detect threats and improve situational awareness. The company delivers a contractor-owned, contractor-operated ISR capability built on a modified Bombardier Challenger 650, supplying the aircraft, mission systems, flight operations, and support services. The award advances Leidos' NorthStar 2030 strategy by expanding its Defense Tech and Mission & Digital Solutions portfolio and was issued under the Army's Common Hardware Systems-6 (CHS-6) contract vehicle.

Positive

• Contract value up to $127 million for continued ARTEMIS ISR support
• Operations extended through summer 2027 plus two additional option years
• Supports NorthStar 2030 strategy by expanding Defense Tech and Mission & Digital Solutions portfolio

Negative

• None.

Market Context

The Sep 14 $926 million Navy option-year award was followed by a -2.64% 24-hour reaction, providing ...

Analysis

The Sep 14 $926 million Navy option-year award was followed by a -2.64% 24-hour reaction, providing a comparable recent price-response reference for this ARTEMIS government contract.

Key Figures

Contract value: Up to $127 million Operational period: Through summer 2027 Option years: Two additional option years

Contract value

Up to $127 million

ARTEMIS ISR contract award

Operational period

Through summer 2027

U.S. European Command area of responsibility

Option years

Two additional option years

ARTEMIS ISR contract

Historical Context

3 past events · Latest: Sep 14

3 events

1. Sep 14

   Navy contract award

   24h Move

   -2.6%

   Received $926 million second option-year award on U.S. Navy network contract.

2. Aug 25

   Health research contract

   24h Move

   -2.8%

   Won a 66-month, $56 million Naval Health Research Center contract.

3. Aug 24

   Army cyber contract

   24h Move

   -2.1%

   Received a $301 million, five-year follow-on U.S. Army cyber contract.

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

Key Terms

isr, c5isr, contractor-owned, contractor-operated

3 terms

isr technical

"airborne intelligence, surveillance, and reconnaissance (ISR) capabilities"

ISR stands for socially responsible investing (from the French phrase Investissement Socialement Responsable) and means choosing stocks, bonds or funds based on environmental, social and governance criteria in addition to financial return. Like picking a brand that matches your values, ISR matters to investors because it helps align portfolios with personal or institutional priorities, can reduce exposure to companies with regulatory or reputational risks, and can influence demand and valuation for firms deemed more sustainable.

c5isr technical

"rapid procurement of C5ISR hardware solutions and services"

C5ISR stands for Command, Control, Communications, Computers, Cyber, Intelligence, Surveillance and Reconnaissance — a bundle of technologies and services that let militaries and governments collect information, protect networks, and make fast decisions. Think of it as a city’s emergency response system that links cameras, radios, maps and analysts so responders see what’s happening and act quickly. For investors, C5ISR work often means large, long-term government contracts, steady technology spending, and exposure to defense budget shifts and export rules.

contractor-owned, contractor-operated technical

"Contractor-Owned, Contractor-Operated (CO/CO) ISR capability"

A contractor-owned, contractor-operated arrangement means a private company both owns the physical assets (like a plant or equipment) and runs the operations under a contract with another party, often a government or large customer. For investors, it signals that the contractor bears the capital cost, operational responsibility, and most business risks tied to the facility—similar to renting out a fully furnished, privately owned storefront while also running the shop for a client.

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

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RESTON, Va., Sept. 22, 2026 /PRNewswire/ -- In today's rapidly evolving security environment, military commanders rely on timely, high-quality intelligence to make critical decisions. Under a recent U.S. Army contract, Leidos (NYSE: LDOS) will continue providing the Airborne Reconnaissance and Targeting Exploitation Multi-Mission Intelligence System (ARTEMIS), delivering rapidly deployable airborne intelligence, surveillance, and reconnaissance (ISR) capabilities across Europe and, when needed, other regions around the world.

Valued at up to $127 million, the award extends ARTEMIS ISR operations within the U.S. European Command area of responsibility through the summer of 2027 with two additional option years. Leidos has supported the mission since 2020, helping provide commanders with the real-time intelligence needed to detect threats, maintain situational awareness, and make faster, more informed operational decisions.

"ARTEMIS combines the flexibility of commercial aircraft with military-grade sensing to deliver timely intelligence wherever commanders need it," said Jason McCarthy, Leidos senior vice president, Airborne & Mission Solutions. "As threats continue to evolve, we're providing the Army with a proven, rapidly deployable ISR capability that helps commanders stay ahead of the fight and make decisions with greater confidence."

Leidos provides a comprehensive Contractor-Owned, Contractor-Operated (CO/CO) ISR capability built around a modified Bombardier Challenger 650 aircraft. The company provides the aircraft, mission systems, flight operations, and support services. Originally fielded as a technology demonstrator, ARTEMIS has evolved into a globally deployable, high-altitude ISR platform that strengthens the Army's intelligence collection capabilities while providing the flexibility to support operations across multiple theaters.

This award advances Leidos' NorthStar 2030 strategy by expanding the company's Defense Tech and Mission & Digital Solutions portfolio. Through mission-critical sensing, airborne ISR, and decision advantage capabilities, Leidos continues to help defense customers maintain operational readiness and respond to increasingly complex security challenges.

The contract was awarded through the Army's Common Hardware Systems-6 (CHS) next-generation prime contract for the rapid procurement of C5ISR hardware solutions and services. CHS-6 provides the U.S. Army, all U.S. military service branches, and federal agencies with a rapid tactical and operational equipment and service procurement experience.

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 approximately 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. Several 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:

Philip Carder
(571) 526-6458
philip.carder@leidos.com 

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SOURCE Leidos Holdings, Inc.

FAQ

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

What is the ARTEMIS system that Leidos operates for the U.S. Army?

ARTEMIS (Airborne Reconnaissance and Targeting Exploitation Multi-Mission Intelligence System) is a high-altitude, globally deployable airborne ISR platform. It was originally fielded as a technology demonstrator and has evolved into a capability that strengthens the Army's intelligence collection while supporting operations across multiple theaters.

What does contractor-owned, contractor-operated (CO/CO) ISR capability mean in this contract?

Leidos provides a contractor-owned, contractor-operated ISR capability, which means the company supplies and operates the modified Bombardier Challenger 650 aircraft, the mission systems, flight operations, and support services rather than the military owning and operating the platform directly.

Through which contract vehicle was this ARTEMIS award issued?

The ARTEMIS award was issued through the U.S. Army's Common Hardware Systems-6 (CHS-6) next-generation prime contract, which is used for rapid procurement of C5ISR hardware solutions and services for the Army, other U.S. military branches, and federal agencies.