Core Insights - Leidos Holdings Inc. (LDOS) has announced a strategic partnership with OpenAI to implement advanced AI solutions for government and high assurance customers, focusing on enhancing efficiency and effectiveness in mission-critical environments [1][9] Company Strategy - The partnership aims to integrate OpenAI's generative and agentic AI capabilities into Leidos' core workflows across various markets, including digital modernization, health services, national security, infrastructure, and defense, aligning with Leidos' NorthStar 2030 growth strategy [2][3] Operational Impact - The collaboration will embed AI as a core capability within operational systems, enhancing complex knowledge-based activities such as threat analysis and supply-chain monitoring while ensuring high security and reliability standards for government and defense clients [3][4] Internal Efficiency - The use of OpenAI platforms is expected to improve Leidos' internal operations by enhancing automation, streamlining workflows, and accelerating product design and delivery, thereby increasing productivity and fostering innovation [4] Industry Trends - The AI market is rapidly expanding, driven by advancements in machine learning and computer vision, with a forecasted compound annual growth rate of over 41.95% for the global AI market from 2026 to 2031 [5][6]

The collaboration aims to improve how the agencies operate, boosting productivity and accelerating product development, said Leidos' Chief Technology Officer Ted Tanner. ...

RESTON, Va., Jan. 22, 2026 /PRNewswire/ -- Leidos (NYSE: LDOS) and OpenAI are partnering to deploy artificial intelligence in support of national priorities, including boosting the efficiency and effectiveness of government agencies. The companies plan on integrating Open AI-powered generative and agentic AI into the core workflows of customers in strategic markets including digital modernization, health services, national security and infrastructure, and defense. Those are the foundations of Leidos' North ...

Core Insights - Lockheed Martin is ramping up production of its PAC-3 MSE missile defense system to 2,000 units per year, supported by a projected $1.5 trillion defense budget, indicating a focus on expensive military hardware [1] - The company delivered a record 191 F-35 Lightning II aircraft in 2025, showcasing its capability to handle increased production of complex designs [2] - Lockheed Martin remains a leader in U.S. defense contracting and is expected to benefit significantly from the anticipated increase in defense spending [3] Group 1: Lockheed Martin - Lockheed Martin has a backlog of nearly $180 billion, making it an attractive investment for both income and stock price appreciation [1] - The company trades at 21 times forward earnings, which is lower than many of its large-cap peers, and has a dividend yield of 2.37% [6] - Lockheed's shares have surged over 20% in early 2026, with technical indicators showing bullish momentum [7] Group 2: Boeing - Boeing is expected to deliver 52 737 MAX aircraft per month by the end of 2026, indicating a recovery in its production capabilities [8] - The company has a backlog exceeding $600 billion, including $76 billion in the defense segment, and reported narrower-than-expected losses in Q3 2025 [9] - Boeing's stock shows bullish technical signals, although it still faces challenges with cash flow and a suspended dividend [10] Group 3: Leidos Holdings - Leidos Holdings is positioned as a value play in the defense sector, focusing on high-margin products for a modernized Pentagon [12] - The company has secured a $455 million contract with the Air Force for cloud computing, aligning with key Pentagon initiatives [14] - Leidos trades at 18 times forward earnings and has shown bullish signals despite market volatility [15]

Company Overview - Leidos Holdings, Inc. (LDOS) is a technology and defense contractor providing scientific, engineering, IT, and systems integration services to government and commercial clients globally, with a focus on defense, intelligence, civil, and health markets. The company is headquartered in Reston, Virginia, and has a market capitalization of approximately $25 billion [1]. Earnings Expectations - The company is set to announce its fiscal fourth-quarter earnings for 2025 on February 17, with analysts predicting a profit of $2.54 per share on a diluted basis, reflecting a 7.2% increase from $2.37 per share in the same quarter last year. Leidos has consistently exceeded Wall Street's EPS estimates in the last four quarters [2]. - For the full fiscal year, analysts anticipate an EPS of $11.74, which is a 15% increase from $10.21 in fiscal 2024, and a further rise to $12.27 in fiscal 2026, representing a 4.5% year-over-year growth [3]. Stock Performance - Over the past 52 weeks, LDOS shares have increased by 25.5%, outperforming the S&P 500 Index's 16.9% gains but slightly underperforming the State Street Technology Select Sector SPDR ETF's 26.4% gains during the same period [4]. Operational Performance - Leidos has reported a record revenue of $4.5 billion for the third quarter of fiscal year 2025, marking a 7% year-over-year increase, and ended the quarter with a total backlog of approximately $47.7 billion. This strong operational performance is attributed to robust revenue growth and an increasing backlog from federal contracts [5][6]. Analyst Ratings - The consensus opinion among analysts on LDOS is generally positive, with a "Moderate Buy" rating overall. Out of 16 analysts, eight recommend a "Strong Buy," one suggests a "Moderate Buy," and seven advise a "Hold." The average analyst price target is $218.78, indicating a potential upside of 12.4% from current levels [7].

Core Viewpoint - Leidos Holdings, Inc. is a significant entity in the technology and defense sectors, with upcoming financial results expected to provide insights into its performance and market position [1] Group 1: Analyst Ratings and Price Targets - Citigroup maintains a "Buy" rating for Leidos, raising its price target from $218 to $232, reflecting confidence in the company's future performance [2][6] - Stifel Nicolaus analyst Jonathan Siegmann sets a price target of $220 for Leidos but downgrades the stock from "Buy" to "Hold," indicating a more cautious outlook [3][6] Group 2: Financial Metrics - Leidos has a price-to-earnings (P/E) ratio of approximately 17.21, suggesting a moderate valuation of its earnings [4][6] - The price-to-sales ratio is about 1.39, indicating investor willingness to pay per dollar of sales [4] - The enterprise value to sales ratio stands at around 1.64, reflecting the company's total valuation relative to its sales [4] Group 3: Financial Health Indicators - Leidos has a debt-to-equity ratio of approximately 1.07, indicating a balanced approach to financing through debt and equity [5][6] - The current ratio of around 1.62 suggests that Leidos is well-positioned to cover its short-term liabilities with its short-term assets [5] - An earnings yield of about 5.81% provides a comprehensive view of Leidos' financial health and investment potential [5]

Company Overview - Leidos Holdings, Inc. operates in the Computers - IT Services sector, providing technology and engineering services across industries such as defense, aviation, and healthcare, and competes with firms like ServiceNow [1] Stock Performance - As of January 7, 2026, Leidos' stock was trading at $196.61, with a price target set at $220 by Jonathan Siegmann from Stifel Nicolaus, indicating a potential upside of approximately 11.9% [2][6] - The stock experienced a slight decrease of 0.45% or $0.89, with fluctuations between $196.15 and $202.23 on that day, and a 52-week high of $205.77 and a low of $123.62 [4] Analyst Ratings - Leidos holds a Zacks Rank of 2 (Buy), indicating a more favorable outlook compared to ServiceNow's 3 (Hold), driven by impressive earnings estimate revisions [3][6] Market Metrics - The market capitalization of Leidos is approximately $25.14 billion, with a trading volume of 1,145,193 shares on the NYSE, highlighting its significant presence in the industry [5][6]

Core Insights - The AI-driven bull run of 2023 and 2024 has continued into 2025, with significant interest in old economy stocks from sectors such as industrials, finance, auto, materials, and construction [1][2] Company Summaries Wells Fargo & Co. (WFC) - Wells Fargo has consistently surpassed earnings estimates in the last four quarters, benefiting from the Federal Reserve's removal of a $1.95 trillion asset cap, which allows for growth in deposits, loans, and fee-based services [6][7] - The bank's expected revenue and earnings growth rates for the current year are 5.4% and 11.7%, respectively, with a 0.7% improvement in the Zacks Consensus Estimate for earnings over the last 30 days [8] MasTec Inc. (MTZ) - MasTec is positioned to benefit from a surge in infrastructure spending related to AI data centers and electrification trends, with an expected revenue growth rate of 8.4% and earnings growth rate of 28.3% for the current year [11][13] - The company operates in four segments: Communications, Power Delivery, Pipeline Infrastructure, and Clean Energy and Infrastructure, all of which are experiencing growth due to increased infrastructure spending [12][13] Curtiss-Wright Corp. (CW) - Curtiss-Wright is benefiting from the global shift towards alternative energy, particularly in nuclear power, and has an expected revenue growth rate of 6.9% and earnings growth rate of 11.6% for the current year [14][16] - The company plays a significant role in the construction of new nuclear power plants, which is expected to drive long-term growth in commercial nuclear energy [15] Leidos Holdings Inc. (LDOS) - Leidos Holdings has a solid backlog of $47.66 billion, driven by increased orders from the Pentagon and other U.S. allies, which enhances its revenue-generation prospects [17] - The expected revenue and earnings growth rates for the current year are 3.4% and 4.8%, respectively, with a slight improvement in the Zacks Consensus Estimate for earnings over the last 30 days [19] Parker-Hannifin Corp. (PH) - Parker-Hannifin is experiencing steady demand in both commercial and military markets, with its Aerospace Systems segment revenues increasing approximately 13.3% year over year in the first quarter of fiscal 2026 [20][21] - The expected revenue and earnings growth rates for the current year are 6.1% and 10.6%, respectively, with a minor improvement in the Zacks Consensus Estimate for earnings over the last 30 days [23]

Core Viewpoint - The White House is planning to issue an executive order that will restrict defense contractors with delayed and over-budget projects from paying dividends, conducting stock buybacks, and issuing executive compensation [1][2] Group 1: Executive Order Details - The proposed order will require defense companies to tie executive compensation more closely to the overall performance of delivering specific weapon systems [2] - The exact wording of the executive order may still change, and it is unclear how the order will enforce any restrictions on defense companies [1][2] Group 2: Industry Context - The Trump administration has long complained about the high costs and slow progress of the defense industry, promising extensive reforms to accelerate the production of weapons and related technologies [2] - Last month, the Secretary of Defense, Lloyd Austin, announced a reform plan for the Pentagon's weapon procurement aimed at speeding up procurement processes and eliminating bureaucratic inefficiencies [2] Group 3: Market Reaction - Defense contractors' stock prices saw a slight decline in pre-market trading, with Lockheed Martin (LMT.US) down 1.5%, L3 Harris Technologies (LHX.US) down 1.4%, Leidos (LDOS.US) down 0.4%, Northrop Grumman (NOC.US) down 1.2%, General Dynamics (GD.US) unchanged, and Raytheon Technologies (RTX.US) down 0.8% [2]

Group 1: Citigroup Inc. (NYSE:C) - Joseph M. Terranova, senior managing director for Virtus Investment Partners, expressed a positive outlook on Citigroup [1] - JPMorgan analyst Vivek Juneja upgraded Citigroup from Neutral to Overweight and raised the price target from $107 to $124 [1] - Citigroup shares gained 0.9% to close at $112.80 on Monday [3] Group 2: Leidos Holdings, Inc. (NYSE:LDOS) - Leidos appointed Theodore "Ted" Tanner Jr. as its new chief technology officer, indicating a focus on AI [2] - Citigroup analyst John Godyn initiated coverage on Leidos Holdings with a Buy rating and set a price target of $218 [2] - Leidos shares dipped 1.8% to settle at $185.95 during the session [3] Group 3: iShares U.S. Industrials ETF (NYSE:IYJ) - Shannon Saccocia, chief investment officer of NB Private Wealth, named iShares U.S. Industrials ETF as her final trade [2] - iShares U.S. Industrials ETF rose slightly by 0.02% during the session [3]