Leidos

Making the world safer, healthier, & more efficient by becoming the indispensable partner for critical government missions.

Leidos SWOT Analysis

Updated: October 5, 2025 • 2025-Q4 Analysis

How to Use This Analysis

This analysis for Leidos was created using Alignment.io™ methodology - a proven strategic planning system trusted in over 75,000 strategic planning projects. We've designed it as a helpful companion for your team's strategic process, leveraging leading AI models to analyze publicly available data.

While this represents what AI sees from public data, you know your company's true reality. That's why we recommend using Alignment.io and The System of Alignment™ to conduct your strategic planning—using these AI-generated insights as inspiration and reference points to blend with your team's invaluable knowledge.

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The Leidos SWOT analysis reveals a powerful incumbent at a critical inflection point. Its formidable strengths—a $37B backlog and deep-rooted government trust—provide a stable foundation. However, this stability is challenged by internal weaknesses in margin performance and innovation agility, and external threats from budget instability and a fierce talent war. The primary opportunity is to pivot from a services-led model to a technology-driven one, particularly in AI and cyber. The strategic imperative is clear: Leidos must leverage its access and trust to become the indispensable technology leader, not just a reliable contractor. This requires a cultural and operational shift toward higher-margin, IP-led solutions to fund the innovation needed to outpace both traditional and new-tech competitors, ensuring long-term growth and mission impact.

Booz Allen Hamilton CACI International General Dynamics SAIC Accenture

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Mission & Vision SWOT Analysis OKR Plan Retrospective AI Strategy Data Acquisition

Making the world safer, healthier, & more efficient by becoming the indispensable partner for critical government missions.

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Strengths

BACKLOG: Massive $37B backlog provides unmatched revenue visibility.
RELATIONSHIPS: Decades-long, embedded trust with key gov't agencies.
SCALE: Diversified portfolio across defense, intel, health, & civil.
CLEARANCES: Vast workforce with high-level clearances is a key moat.
ACQUISITIONS: Proven ability to acquire and integrate new capabilities.

Weaknesses

MARGINS: Profitability lags commercial tech, limiting R&D investment.
INNOVATION: Slower innovation cycles compared to agile tech competitors.
DEPENDENCE: Heavy reliance on a few large government contract vehicles.
BRAND: Lacks 'cool factor' to attract top non-cleared tech talent.
COMPLEXITY: Managing the immense scale and integration of acquisitions.

Opportunities

AI/ML: Government RFPs increasingly mandate advanced AI capabilities.
CYBERSECURITY: Heightened global cyber threats driving massive spending.
SPACE: Commercialization and militarization of space creates new market.
HEALTH IT: Modernization of VA and HHS is a major, funded growth area.
INTERNATIONAL: Allied nations increasing defense spend on US technology.

Threats

BUDGETS: Congressional gridlock and continuing resolutions delay awards.
COMPETITION: Increased pressure from traditional and new tech players.
TALENT: Critical shortage of cleared personnel with AI & cyber skills.
REGULATION: Evolving procurement rules (CMMC) add complexity and cost.
SUPPLY CHAIN: Geopolitical risks impacting critical hardware components.

Key Priorities

AI DOMINANCE: Win flagship gov't AI contracts by leveraging agency trust.
TALENT MAGNET: Become the top destination for cleared AI & cyber talent.
MARGIN EXPANSION: Systematically grow margins via high-value offerings.
CYBER LEADERSHIP: Solidify position as the premier cybersecurity provider.

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Leidos OKR

Updated: October 5, 2025 • 2025-Q4 Analysis

The Leidos OKR plan is a focused, powerful blueprint for transformation. It rightly centers on the four pillars crucial for future dominance: AI, talent, profitability, and cyber. By translating strategic priorities into measurable outcomes, it provides clarity and alignment. The objectives are aspirational yet grounded, moving the company from a services provider to a tech-led mission partner. This plan directly confronts the core weaknesses of margin pressure and the talent war, while seizing the immense AI and cyber opportunities. Executed with relentless focus, this Leidos OKR framework will not only drive growth but will fundamentally strengthen the company's competitive moat as the indispensable partner for the nation's most critical missions.

Booz Allen Hamilton CACI International General Dynamics SAIC Accenture

No past cycles

Mission & Vision SWOT Analysis OKR Plan Retrospective AI Strategy Data Acquisition

Making the world safer, healthier, & more efficient by becoming the indispensable partner for critical government missions.

WIN WITH AI

Become the undisputed AI leader in our core markets.

PROPOSALS: Win 3 of 5 flagship AI-centric government contracts we bid on by the end of the year.
PIPELINE: Increase the qualified AI and machine learning services pipeline value by 40% to show demand.
PARTNERSHIPS: Launch strategic AI partnerships with two leading commercial tech platform providers.
SOLUTIONS: Deploy 5 new repeatable, AI-powered solutions across our defense and intelligence offerings.

ATTRACT THE BEST

Be the #1 employer for cleared tech talent.

RETENTION: Decrease voluntary attrition for critical AI & cyber roles by 15% from the company average.
HIRING: Reduce the average time-to-fill for cleared technical positions from 90 days to under 65 days.
REFERRALS: Increase new hires from employee referrals for cleared technical roles by 25% this year.
BRANDING: Achieve a top-3 employer ranking in key industry surveys for cleared technology professionals.

GROW PROFITABLY

Shift our portfolio to higher-value offerings.

MIX: Increase the total revenue derived from non-cost-plus contracts by 10% to improve margin profile.
IP: Generate $50M in new revenue from proprietary, intellectual property-led software and solutions.
EFFICIENCY: Implement AI-driven automation to reduce program operating costs by 5% on key contracts.
PRICING: Achieve a 50 basis point improvement in overall company adjusted EBITDA margin year-over-year.

SECURE THE MISSION

Be the go-to partner for complex cyber challenges.

WINS: Secure two new enterprise-level cybersecurity prime contracts valued at over $100 million each.
LEADERSHIP: Publish four influential white papers on emerging cyber threats that shape customer thinking.
CAPABILITIES: Achieve the highest level of CMMC certification across all relevant business divisions.
NPS: Achieve a Net Promoter Score of 50+ with our top 20 strategic cybersecurity program clients.

METRICS

Net Bookings: $18B
Adjusted EBITDA Margin: 11.0%
Voluntary Attrition (Critical Roles): <8%

VALUES

Integrity
Innovation
Agility
Collaboration
Commitment

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Leidos Retrospective

AI-Powered Insights

Claude

Gemini

GPT

Leidos Q4 2023 Earnings Report and Transcript
Leidos 2023 10-K SEC Filing
Leidos Investor Day Presentations
Leidos Official Website (About Us, Leadership)
Reputable financial news sources (Bloomberg, Reuters)

Booz Allen Hamilton CACI International General Dynamics SAIC Accenture

No past cycles

Mission & Vision SWOT Analysis OKR Plan Retrospective AI Strategy Data Acquisition

Making the world safer, healthier, & more efficient by becoming the indispensable partner for critical government missions.

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What Went Well

REVENUE: Strong top-line growth consistently beating analyst expectations.
BOOKINGS: Excellent net bookings, driving book-to-bill ratio above 1.25x.
CASH FLOW: Solid and consistent free cash flow generation from operations.
DEFENSE: Key strategic wins in the defense solutions and intel segments.
HEALTH: Continued market leadership and growth in the federal health IT.

Not So Well

MARGINS: Adjusted EBITDA margins remain a key focus area for improvement.
CIVIL: Softer performance in the civil segment compared to other groups.
HIRING: The competitive market for cleared technical talent remains a drag.
RECOMPETES: Lost a couple of notable recompetes, indicating pressure.
GUIDANCE: Initial guidance can be conservative, creating some volatility.

Learnings

DIVERSIFICATION: The diversified portfolio provides resilience and stability.
EXECUTION: Strong program execution remains the key to winning follow-ons.
PRICING: Must continue shifting to value-based, tech-led pricing models.
TECHNOLOGY: Differentiated tech, especially in AI, is a key win factor.
AGILITY: The need to accelerate decision-making and solution deployment.

Action Items

MARGINS: Double down on Leidos NEXT strategy for higher-margin solutions.
TALENT: Accelerate hiring and retention programs for critical AI skills.
CIVIL: Refocus business development efforts on key civil opportunities.
AI: Increase internal R&D investment and strategic AI partnerships.
COMMUNICATION: Clearly articulate the value of tech differentiators.

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Organization	SWOT Analysis	OKR Plan	Top 6	Retrospective

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Leidos Market

AI-Powered Insights

Claude

Gemini

GPT

Leidos Q4 2023 Earnings Report and Transcript
Leidos 2023 10-K SEC Filing
Leidos Investor Day Presentations
Leidos Official Website (About Us, Leadership)
Reputable financial news sources (Bloomberg, Reuters)

Founded: 1969 (as SAIC), spun off in 2013
Market Share: Top 5 player in the US federal technology services market
Customer Base: U.S. government agencies, allied foreign governments
Category:
Aerospace, Defense
SIC Code: 7373 Computer Integrated Systems Design
NAICS Code: 541715 Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
Location: Reston, Virginia
Zip Code: 20190
Congressional District: VA-11 FAIRFAX
Employees: 47000

Competitors

Booz Allen Hamilton View Analysis

CACI International View Analysis

General Dynamics View Analysis

SAIC Request Analysis

Accenture View Analysis

Products & Services

No products or services data available

Distribution Channels

Leidos Business Model Analysis

AI-Powered Insights

Claude

Gemini

GPT

Leidos Q4 2023 Earnings Report and Transcript
Leidos 2023 10-K SEC Filing
Leidos Investor Day Presentations
Leidos Official Website (About Us, Leadership)
Reputable financial news sources (Bloomberg, Reuters)

Problem

National security threats are complex & evolving
Government infrastructure is aging and inefficient
Massive datasets are underutilized for insights
Critical citizen services need modernization

Solution

Integrated systems for defense & intelligence
Digital modernization and cloud migration
AI/ML-powered data analytics platforms
Secure health IT and logistics solutions

Key Metrics

Net bookings and book-to-bill ratio
Revenue growth and adjusted EBITDA margin
Contract win rates and recompete success
Employee retention in critical skill areas

Unique

Deeply embedded, trusted mission knowledge
Massive scale and breadth of capabilities
Vast, cleared workforce for classified work
Ability to integrate complex, large systems

Advantage

High barriers to entry (clearances, trust)
Decades of past performance history
Unique access to mission-critical data
Long-term, stable contract backlog

Channels

Direct business development with agencies
Government contract vehicles (e.g., GSA)
Prime contractor and subcontractor roles
Industry partnerships and alliances

Customer Segments

U.S. Department of Defense (all branches)
U.S. Intelligence Community agencies
Federal Civil agencies (FAA, NASA, etc.)
Federal Health agencies (VA, HHS, etc.)

Costs

Labor costs for 47,000+ employees
R&D for new technologies and solutions
Facilities and security infrastructure
Business development and proposal costs

Leidos Product Market Fit Analysis

Updated: October 5, 2025

Leidos is the indispensable technology partner for critical government missions. It transforms agency operations by securely integrating advanced AI, modernizing legacy systems, and providing resilient cyber defenses. This empowers faster, smarter decisions that make the world safer, healthier, and more efficient, ensuring mission success when it matters most.

Accelerating critical mission decisions with trusted AI and data.

Securing national assets with resilient, full-spectrum cyber.

Modernizing systems for greater efficiency and mission success.

Before State

Fragmented, stove-piped agency data
Legacy systems vulnerable to threats
Reactive, manual decision-making
Inefficient operational processes

After State

Integrated, AI-ready data fabric
Modern, resilient digital infrastructure
Predictive, data-driven insights
Automated and optimized operations

Negative Impacts

Slow intelligence analysis cycles
Increased national security risks
Suboptimal mission outcomes
Wasted taxpayer dollars and resources

Positive Outcomes

Faster, more accurate decisions
Enhanced security and mission assurance
Improved citizen services and health
Maximized operational efficiency

Key Metrics

Customer Retention Rates

Extremely high due to multi-year contracts

Net Promoter Score (NPS)

Not publicly disclosed; contract wins are proxy

User Growth Rate

Driven by new contract awards and program expansions

Customer Feedback/Reviews

Primarily through official CPARS ratings

Repeat Purchase Rates

High, strong record of winning recompetes

Requirements

Deep understanding of mission context
Cleared personnel and secure facilities
Expertise in systems integration
Trusted, long-term partnerships

Why Leidos

Deploying digital modernization teams
Embedding AI into mission software
Providing full-spectrum cyber defense
Leveraging agile development at scale

Leidos Competitive Advantage

Decades of embedded customer knowledge
Scale to tackle largest gov't programs
Unique access to mission-critical data
Ability to integrate new tech securely

Proof Points

$37 billion contract backlog
Prime on major defense AI programs
Key partner in VA health modernization
Long history of successful recompetes

Leidos Market Positioning

AI-Powered Insights

Claude

Gemini

GPT

Leidos Q4 2023 Earnings Report and Transcript
Leidos 2023 10-K SEC Filing
Leidos Investor Day Presentations
Leidos Official Website (About Us, Leadership)
Reputable financial news sources (Bloomberg, Reuters)

Strategic pillars derived from our vision-focused SWOT analysis

Lead with differentiated AI/ML solutions.

Win the war for cleared technical talent.

Shift portfolio to high-margin offerings.

Secure the nation's most critical assets.

What You Do

Tech, engineering, and science solutions for vital missions.

Target Market

Defense, intelligence, civil, and health government agencies.

Differentiation

Deep mission domain expertise
Vast cleared workforce
Long-term trusted relationships

Revenue Streams

Fixed-price contracts
Time & materials contracts
Cost-plus contracts

Leidos Operations and Technology

AI-Powered Insights

Claude

Gemini

GPT

Leidos Q4 2023 Earnings Report and Transcript
Leidos 2023 10-K SEC Filing
Leidos Investor Day Presentations
Leidos Official Website (About Us, Leadership)
Reputable financial news sources (Bloomberg, Reuters)

Company Operations

Organizational Structure: Matrixed, organized by customer-facing groups.
Supply Chain: Manages complex global supply chains for government programs.
Tech Patents: Portfolio of patents in areas like analytics and cybersecurity.
Website: https://www.leidos.com

Top Clients

Board Members

Leidos Competitive Forces

Threat of New Entry

Medium: High barriers for large-scale contracts (clearances, past performance), but lower barriers for niche tech firms and startups.

Supplier Power

Low-Medium: For commodity hardware/software, power is low. For niche technologies and highly specialized talent, supplier power increases.

Buyer Power

Very High: The U.S. Government acts as a monopsony buyer, dictating terms, pricing, and compliance, giving it immense power.

Threat of Substitution

Low: Complex, integrated mission-critical services are difficult to substitute with in-house government efforts or simple products.

Competitive Rivalry

High: Intense rivalry among large, established players like Booz Allen, CACI, and GDIT for multi-billion dollar government contracts.

Analysis of AI Strategy

Updated: October 5, 2025 • 2025-Q4 Analysis

The Leidos AI SWOT analysis underscores a unique, powerful advantage: the fusion of unparalleled data access with deep mission expertise. This is Leidos's uncopyable edge against commercial tech giants. The company is positioned not just to use AI, but to shape how it's applied to national security and public welfare. However, this potential is constrained by a critical shortage of cleared AI talent and the challenge of integrating with legacy systems. The strategic path forward is not to out-innovate pure AI firms in algorithms, but to dominate in application. Leidos must focus relentlessly on embedding AI into its core contracts, creating a flywheel where mission data improves AI, and AI improves mission outcomes. Building a trusted, ethical AI framework will be paramount to navigating regulatory and public concerns, solidifying its role as the government's indispensable partner in the AI era.

Booz Allen Hamilton CACI International General Dynamics SAIC Accenture

No past cycles

Mission & Vision SWOT Analysis OKR Plan Retrospective AI Strategy Data Acquisition

Making the world safer, healthier, & more efficient by becoming the indispensable partner for critical government missions.

Strengths

DATA: Unparalleled access to proprietary government mission data sets.
EXPERTISE: Deep domain knowledge of applying AI in mission contexts.
SECURITY: Cleared personnel & secure infra for classified AI work.
TRUST: Existing customer relationships to pilot and deploy AI.

Weaknesses

LEGACY: Difficulty integrating modern AI into aging IT infrastructure.
TALENT: Significant gap between demand and supply of cleared AI talent.
INVESTMENT: Lower R&D spend as a % of revenue vs pure-play AI firms.
SPEED: Slower development and ATO cycles than commercial counterparts.

Opportunities

GENERATIVE AI: Apply GenAI for intelligence analysis & code generation.
AUTONOMY: Huge demand for autonomous systems in defense and logistics.
PREDICTIVE: Use AI for threat analysis, predictive maintenance & health.
EFFICIENCY: Automate internal processes like proposal writing & coding.

Threats

ADVERSARIAL AI: Nation-states developing AI to counter US systems.
ETHICS: Public and government scrutiny over AI bias and accountability.
COMMERCIAL: Big tech offering powerful, cheaper, off-the-shelf AI.
DATA RIGHTS: Unclear government policies on data rights for AI training.

Key Priorities

MISSION AI: Embed AI into core offerings to solve high-value problems.
AI TALENT: Build a robust pipeline of cleared AI/ML engineering talent.
GENAI ACCELERATION: Pilot and scale GenAI solutions for key use cases.
ETHICAL AI: Establish a market-leading ethical AI framework for trust.

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Leidos Financial Performance

AI-Powered Insights

Claude

Gemini

GPT

Leidos Q4 2023 Earnings Report and Transcript
Leidos 2023 10-K SEC Filing
Leidos Investor Day Presentations
Leidos Official Website (About Us, Leadership)
Reputable financial news sources (Bloomberg, Reuters)

Profit: $753 million (Net Income, FY 2023)

Market Cap: $18.5 billion (as of late 2024)

Stock Performance

Annual Report: Available on Leidos Investor Relations site

Debt: $4.98 billion (Total Debt, FY 2023)

ROI Impact: Metrics focus on contract win rates and profitability.

SWOT Index

Composite strategic assessment with 10-year outlook

/ 100

Market Leader

ICM Index

STRATEGIC ADVISOR ASSESSMENT

Leidos scores as a strong Market Leader due to its societal-level ambition and high AI leverage potential from unique data access. Its growth is constrained by incumbent status in a mature market (TAM factor) and high buyer power, which limits margin expansion. The OKRs are solid but not world-shaping, reflecting a focus on category leadership. The final multiplier reflects steady, defensible growth rather than exponential disruption.

SWOT Factors

Upside: 85.0 Risk: 70.0

OKR Impact

AI Leverage

Top 3 Strategic Levers

ACCELERATE AI: Win flagship AI contracts to prove tech leadership.

WIN TALENT WAR: Become the undisputed #1 destination for cleared tech.

BOOST MARGINS: Aggressively shift revenue to high-margin IP.

AI Disclosure

This report was created using the Alignment Method—our proprietary process for guiding AI to reveal how it interprets your business and industry. These insights are for informational purposes only and do not constitute financial, legal, tax, or investment advice.

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