Leidos

Leidos Holdings, Inc.
Company type	Public
Industry	Defense, Aviation, Information Technology, Biomedical Research
Predecessor	Science Applications International Corporation (SAIC)
Founded	January 1, 1969; 57 years ago in La Jolla, California, U.S.
Founder	J. Robert "Bob" Beyster
Headquarters	Reston, Virginia, United States
Area served	United States and select commercial markets
Key people	Thomas Bell (CEO as of May 3, 2023)
Products	Scientific, engineering, systems integration, and technical services
Revenue	$15.4 billion (2023)
Number of employees	47,000 (2023)
Website	www.leidos.com

Leidos Holdings, Inc. is a U.S.-based enterprise specializing in defense, aviation, information technology, and biomedical research, with its main office located in Reston, Virginia. The company provides a wide range of scientific, engineering, systems integration, and technical services. Initially established as Science Applications International Corporation (SAIC), Leidos expanded significantly after merging with Lockheed Martin's Information Systems & Global Solutions (IS&GS) division in August 2016. This union created the largest IT services provider within the defense industry and represented a major consolidation in the sector. Leidos maintains substantial contracts with the United States Department of Defense, Department of Homeland Security, Intelligence Community, various other U.S. government bodies, and select commercial markets.

During the SAIC Era

Science Applications Incorporated (SAI) was founded in 1969 by entrepreneur J. Robert "Bob" Beyster in La Jolla, San Diego, California. The company initially concentrated on technology projects for the U.S. government related to nuclear power and weapons effects. Beyster, a nuclear physicist with prior roles at Westinghouse Atomic Power Division and Los Alamos National Laboratory, secured startup funding by selling stock from General Atomics and involving initial employees as shareholders.

As the company broadened its scope, it was renamed Science Applications International Corporation (SAIC). Under Beyster’s leadership, SAIC executed significant projects such as radiation therapy research at Los Alamos, technical assistance for cruise missile development during the 1970s, environmental remediation efforts at Three Mile Island and Love Canal, as well as pioneering designs including the Stars & Stripes 87 yacht that won the America’s Cup and advanced luggage screening technologies developed after the Pan Am Flight 103 bombing.

SAIC’s unique approach to business emphasized employee ownership, granting staff shared accountability and autonomy in driving business growth. This model helped retain skilled personnel and supported diversification efforts. Following Beyster’s retirement in 2003, SAIC went public on October 17, 2006, generating $1.245 billion by issuing over 86 million shares at $15 each. Despite becoming publicly traded, employee-held shares retained superior voting rights to maintain internal control.

In September 2009, SAIC moved its headquarters to Tysons Corner in Fairfax County, Virginia, to be closer to its primary government clients.

In 2012, SAIC agreed to pay $550 million to settle allegations of overbilling related to the CityTime contract with New York City. Later in 2014, individuals involved in managing CityTime were convicted for fraud and bribery connected to this contract.

Transition to Leidos

In August 2012, SAIC announced a plan to divide into two independent publicly traded companies. This separation resulted in a $4 billion annual government services firm concentrating on systems engineering, technical support, financial analysis, and program management. The other entity became a $7 billion annual IT-focused company specializing in technology solutions for national security, healthcare, and engineering sectors. Tony Moraco led the smaller services-focused company while John P. Jumper headed the larger IT organization. The split allowed both companies to pursue business opportunities without conflicts of interest. By February 2013, the smaller company retained the name "Science Applications International Corporation" along with its headquarters; meanwhile, the larger firm adopted the name Leidos and relocated its headquarters to Reston, Virginia. Legally, Leidos is recognized as the successor of the original SAIC entity and continues its historical stock price and corporate records.

Prior to this division, Leidos employed approximately 39,600 individuals and reported revenues of $11.17 billion alongside $525 million in net income for fiscal year 2013, securing the 240th position on the Fortune 500 list. Revenue stood at $5.06 billion by 2014.

The August 2016 acquisition of Lockheed Martin’s Information Systems & Global Solutions (IS&GS) unit more than doubled Leidos’ scale and established it as the largest federal technology firm within the global defense market.

In January 2020, Leidos expanded further by acquiring defense contractor Dynetics for around $1.65 billion, enhancing its technical expertise and service offerings. Subsequently in May 2020, it purchased L3Harris’s Security Detection and Automation Systems division known for airport screening technologies.

As of December 2023, Leidos employed roughly 47,000 staff members and generated $15.4 billion in revenue, ranking it 266th on the Fortune 500 list for 2024.

On March 4, 2025, China’s Ministry of Commerce included Leidos among fifteen U.S.-based companies subject to export controls limiting dual-use goods shipments. In May 2025, the U.S. Department of Homeland Security terminated a $2.4 billion cybersecurity contract with Leidos citing convenience reasons.

Structure

Leidos is organized into four principal segments: Civil, Health, Advanced Solutions, and Defense & Intelligence. The Civil segment focuses on integrating aviation technologies, securing transportation networks, updating IT infrastructures, and promoting energy-efficient engineering solutions. The Health segment enhances healthcare operations, safeguards confidential health information, and streamlines data acquisition processes. Advanced Solutions specializes in data analytics, the integration of defense and intelligence systems, and the improvement of surveillance technologies. The Defense & Intelligence segment delivers air service platforms, geospatial intelligence, cybersecurity measures, intelligence support services, and operational assistance.

Management

In 2012, retired Air Force General John P. Jumper assumed the role of CEO, guiding SAIC through its transformation into SAIC and Leidos. On July 1, 2014, Roger Krone succeeded him as CEO. More recently, in February 2023, Leidos announced that Thomas Bell would take over as CEO starting May 3, 2023.

Subsidiaries

Dynetics, Inc., acquired in January 2020
Leidos Biomedical Research, Inc., responsible for managing the Frederick National Laboratory for Cancer Research
Gibbs & Cox, acquired in May 2021
MEDPROTECT, LLC, providing support to US government health-payer programs
Reveal, creators of dual-energy X-ray computed tomography technology for detecting explosives
CloudShield Technologies, experts in cybersecurity solutions
Varec, Inc., specializing in petroleum asset management
Leidos Health
Leidos Canada, collaborating with Canadian governmental bodies
Leidos Australia (Leidos Pty Ltd), focusing on document management technologies and cybersecurity; developers of TeraText software
Leidos UK (Leidos Innovations UK Ltd and affiliates), delivering managed IT services and custom software products such as the Chroma Airport Suite; supports the UK Ministry of Defence’s supply chain operations
Leidos Engineering, LLC (previously SAIC Energy, Environment & Infrastructure LLC), incorporating engineering expertise from Benham Investment Holdings, R. W. Beck Group, and Patrick Energy Services
Leidos QTC Health Services (formerly QTC Management), acquired through the Lockheed Martin IS&GS merger
Systems Made Simple (SMS), also obtained via the Lockheed Martin IS&GS merger

Former subsidiaries

AMSEC LLC was a joint venture between SAIC and Northrop Grumman Newport News Shipbuilding that was divested in July 2007. Network Solutions was purchased by SAIC in 1995 but later sold to VeriSign for $21 billion. Leidos Cyber, Inc., formerly Lockheed Martin Industrial Defender before its merger with Lockheed Martin IS&GS, was sold to Capgemini in 2018.

Under SAIC

SAIC's leadership and board featured notable former government officials including Melvin Laird, William Perry, John Deutch, Admiral Bobby Ray Inman, and David Kay. In 2022, out of 38 lobbyists representing Leidos Inc., 30 had previous government experience.

In 2001, SAIC secured a $122 million contract from the FBI to develop the Virtual Case File (VCF) software intended to improve information sharing capabilities. The project ultimately failed due to significant shortcomings; by delivery in 2003, FBI Director Robert Mueller identified more than 400 defects. Arnold L. Punaro, SAIC’s Executive Vice President at the time, attributed these issues to frequent leadership changes within the FBI and excessive design alterations—highlighting that there were 19 government managers overseeing the project along with 36 contract modifications over a span of 15 months.

During the federal election cycle of 2011–2012, then-SAIC contributed over $1.2 million to political candidates and parties at the federal level, with Barack Obama receiving the largest share.

As Leidos

A report issued in January 2018 by the Department of Defense Inspector General revealed that a Leidos supervisor directed inappropriate sexual and racial remarks toward a female contractor. After she raised concerns about a hostile work environment, Leidos retaliated by barring her from participating in future contracts. The report suggested that the Secretary of Defense consider compensation actions against Leidos, highlighting insufficient proof supporting the company's assertion of poor performance.

In 2018, Leidos contributed to Senator Cindy Hyde-Smith’s campaign but distanced itself following her controversial comments regarding "public hangings." Nevertheless, the company made additional donations during her 2020 re-election campaign.

Leidos is currently subject to two criminal investigations concerning potential foreign bribery and antitrust breaches. In August 2023, the Justice Department’s antitrust division issued a subpoena related to three government contracts awarded between 2021 and 2022 amid heightened regulatory scrutiny. Subsequently, in September 2023, another subpoena was served addressing possible violations of the Foreign Corrupt Practices Act connected to the company's international activities. Leidos is cooperating fully and undertaking internal audits.

After internal documents were leaked due to a cyberattack on Diligent Corp., a third-party service provider, Leidos’ stock declined more than 4% during after-hours trading. The breach did not compromise Leidos’ own network or sensitive client information. This incident traces back to a 2022 cyberattack impacting fewer than 15 customers, including Leidos, with Diligent implementing remedial measures.

Leidos has come under examination for its management of sexual assault and harassment cases at U.S. Antarctic Program sites. A bipartisan letter from the House Science Committee criticized the company for insufficient responses and alleged underreporting of incidents. Between May 2017 and April 2022, Leidos disclosed five sexual harassment claims but reported no assaults; committee members challenged these figures based on earlier documentation. In response, the National Science Foundation has strengthened prevention initiatives through its SAHPR program. Advocacy organizations continue to urge more robust protections in these isolated workplace environments.

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