LDOS

What You Should Know

Leidos Holdings is a US technology-services company serving primarily US government customers across Defense (combat support, mission systems, cyber operations, command-and-control systems), Civilian (border security, public health, Federal Aviation Administration air-traffic-control modernization), Health (Defense Health Agency, Veterans Affairs), and Intelligence (mission-software, geospatial, signals intelligence) reporting segments. The services include software development, systems integration, cybersecurity, data analytics, and engineering services. The technology-services business is permissible at the activity level — Leidos provides general-purpose IT, cyber, software, and engineering services rather than manufacturing weapons or munitions. Most Sharia advisory boards classify defense IT-services contractors as halal on the qualitative screen because the services are general-purpose IT and software, distinguishing them from prime defense contractors that manufacture weapons systems. Muslim investors should verify the qualitative screen against their preferred Sharia advisory board's methodology — some stricter boards apply defense-end-market screens that exclude government contractors with significant defense revenue. The financial screen has trended favorably; Leidos carries term-loan debt from prior acquisitions (notably the 2016 IS&GS deal and the 2020 Dynetics and L3 acquisitions) and the debt-to-market-cap ratio has historically been near or below the 33% Sharia threshold.