Leidos: Tech Powerhouse With A Massive Market Opportunity


  • Leidos is a leading IT, Tech and Cybersecurity service provider.
  • The business generated strong financial results for the second quarter of 2022, beating both top and bottom line growth estimates.
  • The company is poised to benefit from the secular growth in defense spending, Cybersecurity and IT.

Leidos (NYSE:NYSE:LDOS) is a technology powerhouse that provides mission-critical security and IT services to large organizations. The company is poised to benefit from the growth across at least three secular trends. The first is the Aerospace and Defense industry which is forecasted to grow at a solid 8.5% Compounded Annual Growth Rate [CAGR] to over one trillion by 2026. This growth is expected to be driven by increased geopolitical uncertainty from the Russia-Ukraine War and the rise of China as a major superpower.

The second secular trend is the growth in the cybersecurity market which is expected to expand by over 13.33% CAGR and reach nearly $300 million by 2027. This trend is driven by the rise of hybrid working and the increasing number of cybersecurity attacks globally.

The third trend is the growth in IT spending which is forecasted to grow at a 7.1% CAGR and reach over $1.5 trillion by 2027.