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Can Navy Network Modernization Support Leidos' Growth Outlook?
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Key Takeaways
Leidos secured an $875M extension to modernize networks serving 650,000 Navy and Marine Corps personnel.
The deal covers NMCI, ONE-Net and MCEN, enhancing secure connectivity across global military locations.
LDOS sees secure networks, cloud and cyber demand supporting mission IT growth.
Leidos Holdings (LDOS - Free Report) is strengthening its position in defense IT and cybersecurity as the U.S. Navy and Marine Corps continue to modernize their digital infrastructure. The company secured an $875 million contract extension to support and modernize networks serving more than 650,000 Navy and Marine Corps personnel worldwide.
The agreement covers network services and infrastructure supporting the Navy Marine Corps Intranet (NMCI), ONE-Net and Marine Corps Enterprise Network (MCEN). The work will help enhance secure connectivity and support the digital infrastructure required for military operations across global locations.
The contract strengthens Leidos’ presence in long-running defense IT programs and highlights the company’s ability to provide large-scale network management and modernization services. Growing reliance on secure communications, cloud technologies and cyber capabilities across the U.S. military should support continued demand for Leidos’ mission IT solutions.
The award also aligns with the company’s NorthStar 2030 strategy, which focuses on digital modernization, cybersecurity and mission-critical technology solutions. Continued investments in secure networks and advanced IT infrastructure should create opportunities for Leidos to expand its defense technology business.
With a large customer base, established relationships with U.S. defense agencies and growing demand for secure digital infrastructure, Leidos is well-positioned to benefit from continued modernization of military networks. The latest contract extension should provide additional revenue visibility while reinforcing its role in supporting critical defense IT programs.
Defense Stocks to Keep on the Radar
Other defense companies benefiting from rising demand for secure networks and digital modernization are discussed below:
Lockheed Martin (LMT - Free Report) : Lockheed Martin provides advanced command, control, communications, intelligence and cybersecurity solutions to defense customers. Its digital and mission systems capabilities support the modernization of military networks and operations.
RTX Corporation (RTX - Free Report) : RTX develops advanced communications, sensing, cybersecurity and mission systems for military customers. Its connected defense technologies support secure data sharing and decision-making across air, land, sea and space domains.
The Zacks Rundown for LDOS
Shares of LDOS have lost 29.7% in the past year compared with the industry’s 17.7% decline.
Image Source: Zacks Investment Research
The company’s shares are trading at a discount on a relative basis, with its forward 12-month Price/Sales being 0.86X compared with its industry’s average of 12.23X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for LDOS’ 2026 and 2027 earnings has moved south over the past 60 days.
Image Source: Zacks Investment Research
LDOS stock currently carries a Zacks Rank #3 (Hold).
View the Zacks #1 Rank List
Image: Bigstock
Can Navy Network Modernization Support Leidos' Growth Outlook?
Key Takeaways
Leidos Holdings (LDOS - Free Report) is strengthening its position in defense IT and cybersecurity as the U.S. Navy and Marine Corps continue to modernize their digital infrastructure. The company secured an $875 million contract extension to support and modernize networks serving more than 650,000 Navy and Marine Corps personnel worldwide.
The agreement covers network services and infrastructure supporting the Navy Marine Corps Intranet (NMCI), ONE-Net and Marine Corps Enterprise Network (MCEN). The work will help enhance secure connectivity and support the digital infrastructure required for military operations across global locations.
The contract strengthens Leidos’ presence in long-running defense IT programs and highlights the company’s ability to provide large-scale network management and modernization services. Growing reliance on secure communications, cloud technologies and cyber capabilities across the U.S. military should support continued demand for Leidos’ mission IT solutions.
The award also aligns with the company’s NorthStar 2030 strategy, which focuses on digital modernization, cybersecurity and mission-critical technology solutions. Continued investments in secure networks and advanced IT infrastructure should create opportunities for Leidos to expand its defense technology business.
With a large customer base, established relationships with U.S. defense agencies and growing demand for secure digital infrastructure, Leidos is well-positioned to benefit from continued modernization of military networks. The latest contract extension should provide additional revenue visibility while reinforcing its role in supporting critical defense IT programs.
Defense Stocks to Keep on the Radar
Other defense companies benefiting from rising demand for secure networks and digital modernization are discussed below:
Lockheed Martin (LMT - Free Report) : Lockheed Martin provides advanced command, control, communications, intelligence and cybersecurity solutions to defense customers. Its digital and mission systems capabilities support the modernization of military networks and operations.
RTX Corporation (RTX - Free Report) : RTX develops advanced communications, sensing, cybersecurity and mission systems for military customers. Its connected defense technologies support secure data sharing and decision-making across air, land, sea and space domains.
The Zacks Rundown for LDOS
Shares of LDOS have lost 29.7% in the past year compared with the industry’s 17.7% decline.
Image Source: Zacks Investment Research
The company’s shares are trading at a discount on a relative basis, with its forward 12-month Price/Sales being 0.86X compared with its industry’s average of 12.23X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for LDOS’ 2026 and 2027 earnings has moved south over the past 60 days.
Image Source: Zacks Investment Research
LDOS stock currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.