New York, Feb 11, 2026, 19:03 ET — After-hours
- Leidos dropped roughly 11%, closing at $173 on Wednesday, and saw minimal movement in after-hours trading.
- The defense and IT services firm is set to release its earnings before the bell on Feb. 17.
- Investors are closely monitoring management’s remarks about the planned $2.4 billion ENTRUST deal along with recent federal contract wins.
Leidos Holdings Inc shares dipped on Wednesday and held steady after hours, closing at $173 following a steep drop from Tuesday’s close. Trading ranged from $172.57 to $195.99, with roughly 1.5 million shares exchanging hands.
This announcement comes just days ahead of Leidos’ fourth-quarter and full-year 2025 earnings report, scheduled for release before the market opens on Feb. 17. On that day, company executives are set to hold a conference call as well.
Leidos flagged new federal work on Feb. 9, announcing a $142 million contract tied to the Defense Information Systems Agency’s Compartmented Enterprise Services Office. The project includes “AI-driven” features and a move toward “Zero Trust” security—a framework that assumes breaches and continuously verifies users and devices. “This modernization effort strengthens the digital backbone that supports our nation’s defense and intelligence operations,” said Paul Welch, a Leidos senior vice president, in the announcement. PR Newswire
Leidos is on the acquisition trail. On Jan. 26, it announced plans to buy power design firm ENTRUST Solutions Group from private equity firm Kohlberg for roughly $2.4 billion. The move aims to boost its utility engineering division, with the deal expected to close by the end of Q2 2026. Leidos plans to finance the all-cash transaction through a combination of new debt, cash reserves, and commercial paper.
Leidos plans to have CEO Tom Bell address investors once more next week. Bell is set to join a fireside chat at Citi’s 2026 Global Industrial Tech and Mobility Conference on Feb. 18, which will be broadcast via live audio webcast.
Wall Street’s main indexes closed almost unchanged Wednesday despite a stronger-than-expected U.S. jobs report. Traders pulled back on bets for near-term Fed rate cuts. Attention now shifts to the January Consumer Price Index report, set for Friday, Feb. 13.
Leidos is now focusing on its margins, bookings, and cash flow—and how it intends to manage the balance sheet as the ENTRUST deal nears completion.
Wall Street analysts are forecasting Leidos to report quarterly earnings of $2.57 per share, alongside revenue around $4.25 billion, based on the latest consensus preview.
Government services stocks often face headline risk. Leidos pointed out in its filings that U.S. government clients can cancel contracts—something that always hangs over companies dependent on federal work.
Coming next: Thursday’s session following the selloff, Friday’s CPI release on Feb. 13, Leidos reporting earnings on Feb. 17, and Bell’s investor event on Feb. 18.
