Leidos Faces Contract Expirations on Multiple Major U.S. Federal Programs

Leidos (NYSE: LDOS) is navigating a wave of imminent federal contract expirations, with numerous programs valued in the hundreds of millions set to expire in the coming weeks. This development raises strategic questions for the company as it approaches a critical recompete period.

Surge in Near‑Term Contract Recompetes

According to recent federal procurement data, Leidos currently holds 28 contracts approaching the end of their performance periods within the next 18 months, collectively valued at approximately $10.2 billion. Among the most pressing are Department of Defense and other agency contracts expiring between late August and late September 2026, including a $235 million Army systems‑design services contract ended August 25, a $152.9 million Army services contract ending September 23, and a $117.3 million Air Force IT facilities contract ending August 31. A nearly $3.13 billion National Science Foundation facilities‑support contract also expires on September 30. These large-scale recompetes could represent both a challenge and opportunity for Leidos depending on re‑award outcomes.

Data from USAspending.gov compiled by RebidRadar underscores the volume and scope of these expirations, positioning Leidos at significant risk of performance gaps if awards are not secured in time.

Wide-Ranging Federal Exposure

Beyond Department of Defense work, Leidos faces recompete exposure across civilian agencies. Its $3.1 billion NSF facilities contract, alongside other major agreements with entities like the GSA, SSA, and DHS, are also nearing expiration, signaling a critical phase in defense and governmental IT services procurement.

Implications for LDOS Investors

Investors should monitor the outcomes of these recompetes closely. Retention of the majority of these contracts would steady Leidos’ revenue outlook, while notable losses could dampen forward visibility and growth expectations. At the same time, securing new or expanded awards under competitive processes may offer upside potential, demonstrating Leidos’ execution strength in high-stakes procurement environments.

Given the timing of the expirations, key contract awards could be announced from now through late fall 2026. Any meaningful wins—or losses—should be transparently reflected in future earnings reports and guidance revisions.

Closing Thoughts

Leidos’ current portfolio includes significant contracts on the cusp of recompete, with aggregate values in the billions. The company’s ability to defend and renew these government awards will play a pivotal role in sustaining its defense and IT services momentum. Stakeholders will be watching closely as industry competitors and awarding agencies make decisions in the months ahead.

LDOS stock snapshot: Trading at $129.55 as of September 10, 2026, with a 0.73% daily gain.