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In early February 2026, Leidos announced new partnerships with RegScale and Trustible to integrate automated cybersecurity controls and AI governance for U.S. federal agencies, including the Air Force.
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By embedding continuous compliance and governance directly into operational and AI workflows, these collaborations seek to turn traditionally manual oversight into real-time, automated risk management for mission-critical systems.
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Next, we’ll explore how this push toward automated, real-time cyber and AI governance could influence Leidos’ broader investment narrative.
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For Leidos, the core belief you’d need as a shareholder is that a large, complex government IT and defense contractor can still steadily compound value through disciplined execution, contract wins and disciplined capital returns, even if headline growth is modest. The stock has already outperformed the market over the past year, yet still trades below consensus fair value estimates and at a discount to peers on earnings multiples, which frames the current setup as more about durability than dramatic expansion. The new partnerships with RegScale and Trustible fit that story: they reinforce Leidos’ positioning in cyber and AI, but are unlikely to be immediate, needle‑moving revenue catalysts. Instead, they slightly tilt the near term focus toward how well Leidos converts this AI and automation push into higher margin, stickier work while managing its high debt load and relatively new management team.
However, investors should also be aware of how Leidos’ high debt amplifies execution risk. Despite retreating, Leidos Holdings’ shares might still be trading 39% above their fair value. Discover the potential downside here.
Five Simply Wall St Community fair values for Leidos span roughly US$152.74 to about US$303.52, underlining just how differently private investors model its prospects. Some are clearly pricing in stronger upside from AI led cyber and governance work, while others appear more cautious about contract risk and leverage, so it is worth weighing these contrasting views against your own expectations for how quickly those new partnerships might translate into more resilient performance.
Explore 5 other fair value estimates on Leidos Holdings – why the stock might be worth as much as 63% more than the current price!
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