Defense IT Stocks Plunge 7% Despite Strong Earnings Outlook

Leidos Holdings Inc. (NYSE: LDOS) shares plunged 6.93% on the New York Stock Exchange on the 5th, closing at $138.50.

In a single day, approximately $1.13 billion in market capitalization—around ₩1.6 trillion—was erased, and trading volume topped 1.34 million shares.

On the same day, the company reported strong first-quarter results for fiscal 2026, with revenue rising 4% year-over-year to $4.4 billion and net income of $335 million, and it raised its full-year revenue and earnings guidance. (investors.leidos.com)

In late April, Leidos secured up to an $869 million contract from the U.S. Army for an artificial-intelligence–based command-and-control system, broadening its defense IT project pipeline. (prnewswire.com)

Headquartered in Virginia, Leidos provides defense and government IT services—system integration, cybersecurity, and data-analytics solutions—to the Department of Defense, intelligence agencies, and civil aviation and space customers. (en.wikipedia.org)

Founded in 1969 and grown through multiple mergers and acquisitions, Leidos is now one of the largest U.S. defense-sector firms in IT and software. (en.wikipedia.org)