Leidos Holdings Inc. (NYSE:LDOS) stock rose Wednesday after the company secured a contract to modernize the U.S. Air Force’s Cloud One platform to accelerate the secure deployment of cloud capabilities.
Leidos To Modernize Air Force Cloud One Platform
Leidos has secured a $454.9 million contract to modernize the Air Force’s Cloud One multi-cloud environment, working alongside Amazon.com, Inc.’s (NASDAQ:AMZN) Amazon Web Services, Microsoft Corp.’s (NASDAQ:MSFT) Azure, Alphabet Inc.’s (NASDAQ:GOOG) Google Cloud Platform, and Oracle Corp. (NYSE:ORCL) Oracle Cloud Infrastructure.
The initiative aims to strengthen security, increase automation, reduce costs, and simplify cloud operations, making it easier for Air Force units worldwide to adopt and scale cloud services. The upgraded platform will also serve as a repeatable cloud foundation that the broader Department of War can deploy.
The effort aligns with Leidos’ NorthStar 2030 strategy, reinforcing its focus on large-scale federal technology and cybersecurity modernization.
AI Cybersecurity Partnership
Recently, Leidos partnered with Dropzone AI to help U.S. federal agencies tackle alert fatigue in security operations centers (SOCs) using agentic AI. Dropzone’s AI agents automate routine cyber investigations, allowing human analysts to focus on more complex threats.
Second Front Systems’ Game Warden platform is accelerating deployment by fast-tracking commercial AI software into secure government environments. As part of the collaboration, Leidos has also made a strategic investment in Dropzone AI.
Dropzone says its AI agents have already automated more than 160 years of manual analyst work across 300+ commercial organizations, cutting response times by up to 90%.
Technical Analysis
The stock is currently trading 1.4% below its 20-day simple moving average (SMA) and 7.5% below its 100-day SMA, indicating some short-term weakness. Over the past 12 months, the stock has gained 28.95% and is currently trading closer to its 52-week high than its low.
The RSI is at 43.48, which is considered neutral territory. Meanwhile, MACD is at -2.2394, above its signal line at -2.8515, indicating bullish momentum. The combination of neutral RSI and bullish MACD suggests mixed momentum.
- Key Resistance: $196.50
- Key Support: $161.00
Analyst Consensus & Recent Actions
The stock carries a Buy Rating with an average price target of $186.77. Recent analyst moves include:
- RBC Capital: Outperform (Lowers Target to $215.00) (Feb. 18)
- Stifel: Hold (Lowers Target to $205.00) (Feb. 18)
- Baird: Neutral (Lowers Target to $195.00) (Feb. 18)
Top ETFs Exposure
- First Trust NASDAQ Cybersecurity ETF (NASDAQ:CIBR): 4.35% Weight
- SPDR S&P Kensho New Economies Composite ETF (NYSE:KOMP): 0.79% Weight
Significance: Because LDOS carries significant weight in these funds, any significant inflows or outflows will likely trigger automatic buying or selling of the stock.
LDOS Price Action: Leidos Holdings shares were up 1.68% at $175.40 at the time of publication on Wednesday, according to Benzinga Pro data.
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