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Leidos$LDOS · filed: grew revenue 3.1% in FY2026 to $17.2BNew shipTrillion Score 421Fall Risk LowNext year $16.2B–$18.6B sealedCheck ▾Close ▴
What Leidos filed
Grew revenue 3.1% in FY2026 to $17.2 billion, operating margin 12.3% against a 6.6% median for computer integrated systems design, equity 36.4% of assets, and dividend per share up 7 years running. Every figure links to the filing it came from on Leidos’s card. New ship: no warning signs. Trillion Score 421, #258 of 311 in its field; Fall Risk Low (how it is measured).
What the house said in advance
Revenue for the fiscal year after 2026-01-02 between $16.2B and $18.6B, an 80% range sealed on 27 Sept 2026 · receipt #0f51ce · graded in public by the revenue in Leidos’s next annual report.
Figures as filed with the SEC. Ranges, scores and boats are statistical descriptions of past filings, not ratings or recommendations. Reporting, not advice.
In plain words
Leidos spent **$2.4B** to own the grid-AI integration layer; backlog says compute bottlenecks now price like defense work.
$2.4 billion
all-cash acquisition of ENTRUST Solutions on the second day…
1,200
grid infrastructure engineers to a defense contractor that already…
$39 billion
in backlog
500 megawatts
of compute next to a transmission node built for
Leidos Holdings completed its $2.4 billion all-cash acquisition of ENTRUST Solutions on the second day of April, adding 1,200 grid infrastructure engineers to a defense contractor that already held $39 billion in backlog. The transaction closed eleven weeks after announcement, no antitrust delay, no revision. ENTRUST specializes in substation automation, grid modernization software, and utility cybersecurity — the exact stack required when a hyperscaler drops 500 megawatts of compute next to a transmission node built for 80.
The deal thesis is cleanly numerical. U.S. data center power demand is projected to grow 160% by 2030, according to McKinsey. Existing grid infrastructure was designed for 1-2% annual load growth. ENTRUST's revenue mix is 68% recurring contracts with Tier 1 utilities, 19% federal energy agencies, 13% independent power producers. Leidos already holds contracts with the Department of Energy's grid modernization office and fourteen of the largest U.S. utilities. The combined entity can now bid on turnkey projects: site assessment, substation upgrade, AI workload orchestration, and operational technology security under one prime contractor. That integration capability did not exist at scale in the U.S. market before April second.
This is not a defense play pretending to understand infrastructure. Leidos runs the IT backbone for eight of the ten largest U.S. airports, manages the FAA's air traffic control data systems, and operates the back-office ERP for the Department of Veterans Affairs — 22 million patient records, zero downtime tolerance. ENTRUST adds domain expertise in real-time grid balancing, the kind of sub-second latency work that maps directly to AI inference infrastructure. When a 200-megawatt training cluster in northern Virginia needs to draw power without destabilizing the PJM Interconnection, the operator needs a firm that understands both the silicon and the substation. Leidos now has 1,200 engineers who've done exactly that work for thirty years.
The forward multiple compresses the thesis. Leidos trades at 13.2x forward earnings, a 28% discount to industrials, a 41% discount to pure software infrastructure. The ENTRUST acquisition adds an estimated $680 million in annual revenue at 14% EBITDA margins, accretive in year one. Management guided $180-200 million in cost synergies by the end of fiscal 2026, primarily from consolidated back-office and overlapping federal sales teams. The company's net debt sits at $4.1 billion post-close, 1.8x trailing EBITDA, investment-grade comfortable. Free cash flow for fiscal 2024 came in at $1.26 billion, 6.8% yield on enterprise value. The discount exists because the market still sees a government IT contractor, not a critical infrastructure integrator with AI tailwinds.
Operators should watch Leidos' upcoming federal contract awards in the grid modernization space, expected to accelerate in Q3 2025 as Department of Energy funding from the Infrastructure Investment and Jobs Act begins flowing to utilities. ENTRUST's client concentration — four utilities represent 52% of revenue — creates both risk and trackable signal. If those Tier 1 utilities begin expanding substation automation budgets by 20%+ in the next six months, it confirms the AI data center thesis is moving from PowerPoint to purchase order. The company reports Q1 earnings on May 6; guidance on ENTRUST revenue run-rate and integration costs will clarify whether 14% EBITDA margins hold or compress.
The tell is already visible in backlog composition. Leidos added $12 billion in new bookings in Q4 2024, $3.2 billion of which came from infrastructure and civil agencies, up 47% year-over-year. Grid work is migrating from utility CapEx to national security CapEx, which means procurement timelines shorten and pricing power improves. When critical infrastructure becomes a bottleneck to compute expansion, the firms that can deliver both the engineering and the clearance will re-rate.
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For the principal
Track Department of Energy grid modernization contract awards in Q3; utility CapEx shifting to federal procurement changes infrastructure pricing power.
For the operator
Watch ENTRUST client concentration — four utilities at 52% revenue — for budget expansion signals confirming AI data center demand translates to orders.
For the house
Initiating coverage on Leidos equity; 13.2x forward multiple misprices critical infrastructure scarcity as compute expansion accelerates through 2026.
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