What Leidos Holdings (LDOS)'s Purple Sky Joint Venture Means For Its Government Technology Strategy

• Leidos and Sky Solutions recently formed a joint venture called Purple Sky, LLC, aiming to deliver advanced digital services and modern technology solutions for federal health agencies.
• This collaboration combines Leidos’ experience in large-scale technology deployments with Sky Solutions’ expertise in low-code/no-code platforms to help agencies achieve stronger outcomes in health, human services, and benefits delivery.
• We'll explore how the launch of Purple Sky could influence Leidos' positioning in government digital modernization initiatives and its overall investment narrative.

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Leidos Holdings Investment Narrative Recap

Being a shareholder in Leidos means believing in the company's ability to capitalize on multi-year government investments in digital modernization, AI-enabled services, and recurring software-driven revenues. While the launch of Purple Sky, LLC with Sky Solutions speaks to Leidos’ ongoing push into mission-critical health-tech partnerships, it does not materially change the most important short-term catalyst, execution on large federal technology contracts, or diminish the core risk of exposure to shifting government funding priorities.

One of the most relevant recent developments is Leidos securing a $128 million task order from the FBI to support agile software development and modernization efforts. Like the Purple Sky venture, this underscores the company’s emphasis on complex, digital-centric service delivery contracts, reinforcing its position amid rising competition for outcome-based government IT projects.

By contrast, investors should also be aware of how dependent Leidos remains on federal funding trends, particularly as...

Read the full narrative on Leidos Holdings (it's free!)

Leidos Holdings' narrative projects $18.6 billion in revenue and $1.5 billion in earnings by 2028. This requires 3.0% yearly revenue growth and a $0.1 billion increase in earnings from the current $1.4 billion.

Uncover how Leidos Holdings' forecasts yield a $192.66 fair value, a 4% upside to its current price.

Exploring Other Perspectives

Eight members of the Simply Wall St Community provided fair value estimates for Leidos ranging from US$102 to US$305.10 per share. As you consider these opposing outlooks, remember that accelerating customer demand for digital modernization and AI solutions could still bring substantial changes to Leidos’ future growth potential, explore the wide range of opinions for new insight.

Explore 8 other fair value estimates on Leidos Holdings - why the stock might be worth as much as 65% more than the current price!

Build Your Own Leidos Holdings Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Leidos Holdings research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Leidos Holdings research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Leidos Holdings' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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