Leidos Bundle
Who are Leidos's customers?
Understanding customer demographics and target markets is paramount for any company's strategic planning and sustained market success. For a global science and technology solutions company, this understanding is crucial for navigating complex government contracts and specialized commercial needs.
A pivotal moment, such as the successful deployment of MHS GENESIS across over 4,000 global locations, serving more than 9.5 million beneficiaries and 200,000 medical providers in 2024, underscores the profound impact its solutions have on its customer base.
What is Customer Demographics and Target Market of Leidos Company?
Leidos's origins trace back to 1969, with its first client being the U.S. government. This foundational focus on government services has largely shaped its trajectory. Today, the company serves a diverse portfolio of government and commercial customers worldwide, with core capabilities in digital modernization, engineering, and advanced analytics. This evolution necessitates a continuous and deep exploration into who its customers are, where they operate, and what their critical needs entail. The company's offerings, such as those analyzed in the Leidos BCG Matrix, reflect this broad customer engagement.
Who Are Leidos’s Main Customers?
Leidos primarily serves government agencies and select commercial clients globally, focusing on their organizational needs rather than traditional consumer demographics. The company's customer base is segmented by sector and technological requirements, reflecting its B2B operational model.
National Security and Digital Segment
This segment, crucial for Defense and Intelligence, generated $7.2 billion in revenue in 2023, a 7% increase. It caters to clients with complex, mission-critical needs in cybersecurity and digital transformation.
Health and Civil Segment
Achieving $5.02 billion in full-year 2024 revenues, this segment saw 18% growth driven by managed health services. Clients include the Department of Veterans Affairs and the National Institutes of Health.
Defense Systems Segment
This segment reported $2.03 billion in full-year 2024 revenues, an 8% increase. It supports the Department of Defense with advanced aerial intelligence, surveillance, and reconnaissance systems.
Commercial and International Segment
This segment generated $2.25 billion in full-year revenues, up 6%. Growth was fueled by security products and increased volumes in commercial energy and Australian IT businesses.
The company's strategic focus, as outlined in its NorthStar 2030 strategy launched in 2024, emphasizes IT modernization, transformational warfighting capabilities, and increased privatization. This strategy realigned operating groups into five sectors: Defense Systems, Digital Modernization, Health and Civil, National Security, and Commercial and International, demonstrating a proactive adaptation to evolving government priorities and technological advancements. The U.S. market remains dominant, accounting for 91.43% of total revenue in fiscal year 2024, with international markets contributing 8.17%.
Leidos Key Customer Groups and Market Focus
Leidos's customer profile is defined by its engagement with major government entities and its strategic expansion into international markets. The company's market segmentation reflects a commitment to supporting national security, advancing healthcare, and modernizing digital infrastructure.
- U.S. Federal Government: Defense, Intelligence, Civil, and Health agencies form the core customer base.
- Department of Veterans Affairs: Significant partner in healthcare transformation, improving veteran throughput by over 300%.
- Department of Defense: Key client for advanced aerial intelligence, surveillance, and reconnaissance systems.
- National Institutes of Health (NIH): Supported in modernizing grants management systems.
- International Markets: Growing presence in Australia, the U.K., and Israel, with a focus on expanding business development.
- Commercial Sector: Engaged in areas like commercial energy and IT solutions.
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What Do Leidos’s Customers Want?
Leidos's customer base is primarily composed of government entities and large corporations, who prioritize security, efficiency, reliability, and advanced technology to achieve their objectives. These clients often navigate complex procurement processes and adhere to strict regulations, requiring specialized and integrated solutions.
Digital Modernization & Cybersecurity
Government agencies demand robust cybersecurity and updated IT infrastructure to combat threats and boost operational efficiency. Leidos provides these advanced solutions, as seen in its work with the U.S. Air Force.
Mission-Critical Systems & Analytics
Defense and intelligence sectors require dependable systems for complex operations. Leidos enhances intelligence, surveillance, and reconnaissance systems for the U.S. Army, focusing on AI and mission-critical applications.
Efficiency and Cost Savings
Customers seek operational efficiencies and cost reductions. Leidos's solutions, like the Disability Case Processing System for the Social Security Administration, significantly improved processing times and reduced backlogs.
Managed Health Services
There's a growing need for managed health services, particularly in the Health and Civil segment, which saw a 16% revenue increase in Q4 2024. Leidos successfully deployed MHS GENESIS, the world's largest EHR system.
Agile and Innovative Solutions
Clients look for partners who can quickly adapt and integrate new technologies. Leidos's contract with the FBI for the Next Generation Identification system showcases its agile software development and emerging tech integration.
Strategic Alignment
Leidos aligns its offerings with U.S. government priorities, such as IT modernization and advanced warfighting capabilities. This includes investing in technologies like quantum solutions to counter GPS jamming.
Key Customer Needs and Preferences
Leidos's customer needs and preferences are shaped by the critical requirements of government agencies and large enterprises. These clients demand solutions that enhance security, improve operational efficiency, ensure reliability, and leverage advanced technological capabilities to meet their specific mission objectives. The company's approach to understanding and meeting these demands is a key aspect of its Marketing Strategy of Leidos.
- Digital Modernization and Cybersecurity: A persistent need for robust cybersecurity and updated IT infrastructure to protect data and enhance operations. Leidos's acquisition of Kudu Dynamics in May 2025 bolstered its AI-enabled cyber capabilities for defense and intelligence sectors.
- Mission-Critical Systems and Advanced Analytics: The requirement for highly reliable systems for complex operations, particularly in defense and intelligence, driving demand for advanced analytics and AI.
- Improved Efficiency and Cost Savings: A focus on achieving greater efficiency and reducing costs in government operations, exemplified by Leidos's work with the Social Security Administration and the Department of Veterans Affairs.
- Managed Health Services: A growing demand for comprehensive health services, with Leidos demonstrating capability through the large-scale deployment of the MHS GENESIS electronic health record system.
- Agile and Innovative Solutions: The preference for partners who can rapidly adapt to emerging challenges and integrate new technologies, supported by Leidos's agile development practices and strategic focus on innovation.
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Where does Leidos operate?
Leidos has a significant global footprint, with its operations predominantly centered within the United States. The company's headquarters are located in Reston, Virginia, and it employs approximately 48,000 individuals worldwide.
United States Market Dominance
The U.S. market represents the largest portion of Leidos's revenue, accounting for 91.43% of its total income. The company is a key contractor for major U.S. government bodies, including the Department of Defense, Department of Homeland Security, and the Intelligence Community. Recent contract awards in 2024-2025, such as the $738 million Air Force cybersecurity and IT contract and the $631 million DIABLO Program contract for the U.S. Army, underscore this strong domestic focus.
International Market Engagement
International markets, while contributing a smaller 8.17% to total revenue, are a strategic area for growth. Leidos is actively expanding its business development efforts in countries like Australia, the U.K., and Israel.
Australian Growth
In Australia, increased activity within the IT sector contributed to a 12% growth in Leidos's commercial and international business segment during Q4 2024.
United Kingdom Market
Despite a rebaselining of certain contracts in fiscal year 2024 that impacted profitability, Leidos anticipates improved and stabilized margins in the U.K. market moving forward.
Middle East Operations
Leidos secured a contract for General Electronic Test Station equipment and services across Saudi Arabia, Switzerland, Kuwait, Qatar, and the United Arab Emirates, with an estimated completion date of December 31, 2029. The company also entered into an agreement in May 2025 to collaborate with Saudi Arabia's National Security Services Company (SAFE) on security screening technology.
Strategic Localization
Leidos tailors its offerings and partnerships to effectively serve diverse global markets. An example is its collaboration with NATO to enhance capabilities through cloud modernization. Strategic acquisitions, such as the Special Mission aviation business of Cobham in Australia, further bolster its international presence in defense aviation.
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How Does Leidos Win & Keep Customers?
Leidos employs a strategic approach to customer acquisition and retention, focusing on deep mission understanding and proven technological delivery. The company's success is built on long-term relationships and a strong track record within both government and commercial sectors.
Strategic Business Development
Leidos excels in government services through a 'Best in Class' business development process. This involves collaborative pursuit of large, complex opportunities, leading to significant contract wins.
Alignment with Government Priorities
The company's 'NorthStar 2030' strategy ensures alignment with key U.S. government objectives like IT modernization and transformational warfighting capabilities.
Demonstrated Performance and Innovation
A history of successful project execution, such as the MHS GENESIS EHR system and the Enduring Shield system test in 2024, builds trust and secures new business.
Customer Relationships and Partnerships
Maintaining strong relationships with government agencies and prime contractors is key. Leidos also actively partners with small businesses, awarding $2.8 billion in contracts to them in FY 2024.
Investment in Growth Pillars
Leidos focuses on five key growth areas: Space and Maritime, Energy Infrastructure, Digital Modernization and Cyber, critical Mission Software, and Managed Health Services.
Employee Expertise and Culture
A talented workforce and a culture of collaboration are central to delivering innovative solutions and maintaining customer satisfaction.
Financial Performance Indicators
The company's robust customer acquisition and retention strategies are reflected in its financial results, including $7.6 billion in net bookings in Q4 2024 and a total backlog of $43.6 billion at the end of FY 2024.
Understanding the Competitors Landscape of Leidos is also crucial for grasping its market positioning. The company's approach to securing contracts, such as the $738 million Air Force Cybersecurity and IT Contract in 2024 and the $128 million FBI contract in July 2025, demonstrates its ability to win and retain significant government business.
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