• In mid-April 2026, Leidos and investment firm Altaris announced a joint venture that combines Leidos’ Security Enterprise Solutions business with Altaris-owned Analogic to form a U.S.-based security screening enterprise focused on airports, borders, and critical infrastructure worldwide.
• This move shifts roughly 1,500 employees and an expected US$625 million in 2026 revenue into a privately held company under the Analogic brand, allowing Leidos to concentrate capital on areas prioritized in its NorthStar 2030 plan while retaining a meaningful ownership stake.
• We’ll now examine how transferring the Security Enterprise Solutions unit into the Altaris-led joint venture could reshape Leidos’ longer-term investment narrative.

Find 60 companies with promising cash flow potential yet trading below their fair value.

Leidos Holdings Investment Narrative Recap

To own Leidos, you need to be comfortable with a federally focused contractor that is trying to tilt more toward higher margin, technology driven work. The Altaris joint venture looks incremental rather than transformational in the very near term, with the key short term catalyst still tied to executing large cloud and AI modernization contracts, while the biggest risk remains heavy exposure to shifting U.S. government spending priorities.

The Altaris Analogic joint venture matters most because it lines up with Leidos’ NorthStar 2030 focus on digital modernization and security tech, effectively moving lower growth hardware centric screening into a separate vehicle while preserving a minority stake. That context sits alongside the ENTRUST acquisition, which is aimed at deepening Leidos’ role in cybersecurity and digital identity, both central to the contract pipeline investors are watching.

Yet even with these moves, Leidos’ dependence on U.S. federal budgets still leaves investors exposed to...

Leidos Holdings’ narrative projects $20.3 billion revenue and $1.7 billion earnings by 2029.

Uncover how Leidos Holdings' forecasts yield a $203.86 fair value, a 31% upside to its current price.

Exploring Other Perspectives

Four members of the Simply Wall St Community currently see Leidos’ fair value between US$181 and US$306, underscoring how far opinions can spread on the same stock. Set against that range, the concentration of revenue in U.S. government contracts means changes in funding priorities could matter more than any single valuation model, so it is worth weighing several viewpoints before forming your own.

Explore 4 other fair value estimates on Leidos Holdings - why the stock might be worth just $181.35!

Form Your Own Verdict

Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts.

• A great starting point for your Leidos Holdings research is our analysis highlighting 5 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Leidos Holdings research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Leidos Holdings' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.