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    Did Leidos' (LDOS) AI Border-Security Tie-Up With CargoSeer Just Reframe Its Digital Strategy?

    Simply Wall St·12/11/2025 21:32:53
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    • Earlier this month, Leidos announced a collaboration with CargoSeer to integrate its advanced AI trade-analysis algorithms into the Mezzo™ Enterprise Software Platform, aiming to enhance non-intrusive inspection and border security by giving customs and border agencies instant, unified intelligence on goods crossing international borders.
    • This pairing of Leidos’ inspection software with CargoSeer’s analytics highlights how digital intelligence is becoming central to balancing security enforcement with efficient trade flows at global ports of entry.
    • Next, we’ll explore how this AI-driven border security integration could influence Leidos’ investment narrative, particularly its push into higher-margin digital solutions.

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    Leidos Holdings Investment Narrative Recap

    To own Leidos, you need to believe in its ability to convert government demand for secure, AI-enabled defense and civil systems into steady cash generation and disciplined capital returns. The CargoSeer collaboration reinforces the digital border-security story but does not materially alter the near term catalyst, which still centers on winning and executing higher margin, software rich contracts. The biggest risk remains heavy reliance on U.S. federal budgets for defense, homeland security, and civil agencies.

    Among recent announcements, the new three year, US$127 million Hawaiʻi Energy contract is particularly relevant, because it underscores how Leidos pairs technical expertise with long running public programs. Together with the CargoSeer integration, it illustrates how the company is leaning into outcomes focused, software and services heavy work that aligns with its margin improvement efforts. Both developments sit against a backdrop of rising competition for AI driven, outcome based contracts.

    Yet while these opportunities are attractive, investors should also be aware that concentrated exposure to shifting U.S. funding priorities could...

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

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

    Uncover how Leidos Holdings' forecasts yield a $218.08 fair value, a 16% upside to its current price.

    Exploring Other Perspectives

    LDOS 1-Year Stock Price Chart
    LDOS 1-Year Stock Price Chart

    Six fair value estimates from the Simply Wall St Community span roughly US$153 to US$300 per share, showing how far opinions can stretch. You can set those views against the thesis that Leidos’ push into AI powered border and civil solutions could matter most in a world where government spending priorities remain...

    Explore 6 other fair value estimates on Leidos Holdings - why the stock might be worth as much as 59% 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.

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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.