Leidos Holdings announced on February 12, 2026 that it will accelerate the migration of eight additional Defense Agencies and Field Activities to DODNet, the Defense Information Systems Agency’s modern network environment. The move builds on the successful transition of five agencies earlier this year and is part of an $11.5 billion, 10‑year Defense Enclave Services program.
The company expects to transition more than 100,000 users over the next 18 months, including the Defense Finance and Accounting Service, Defense Logistics Agency, Defense Manpower Data Center, Defense Media Activity, Defense Threat Reduction Agency, and Missile Defense Agency. The expansion is intended to enhance user experience, advance Zero‑Trust compliance, and strengthen mission readiness across the Department of Defense.
Leidos’ leadership highlighted that the accelerated effort will deliver greater savings and efficiencies through enterprise IT consolidation, reinforcing the company’s strategic focus on digital modernization and cyber solutions within its NorthStar 2030 growth plan. The announcement underscores Leidos’ role as a key integrator for large‑scale defense IT transformations and signals continued demand for its services in the federal sector.
Financially, Leidos reported fiscal‑year 2024 revenue of $16.7 billion, up 8% from the prior year, and a backlog of $43.6 billion, up 18% YoY. Q1 2025 revenue was $4.2 billion, up 7% YoY. Investors reacted positively to the announcement, reflecting confidence in Leidos’ ability to deliver on the long‑term contract.
Management emphasized the strategic importance of the migration. Heidi VanNoy, vice president and division manager, said, "Launching the next phase of transformation means executing faster, more seamless migrations to DODNet and advancing the Department of War's goal to achieve greater savings and efficiencies through enterprise IT consolidation." She added, "This accelerated effort will help defense agencies realize the full potential of a unified and resilient network, strengthening security, data access and mission outcomes." Steve Hull, Leidos digital modernization sector president, noted, "As one of DISA's largest IT service providers, Leidos is focused on leveraging our innovation, speed, and agility to deliver an exceptional user experience and establish a strong foundation of operations and maintenance support to expand the DoDNet user community." He further explained, "By delivering the standardized DoDNet, our goal is to enable more efficient service delivery and support across DAFAs to advance the mission of our nation's warfighters."
The accelerated migration not only expands Leidos’ footprint within the Department of Defense but also reinforces its NorthStar 2030 vision of becoming a leading provider of digital modernization and cyber solutions. The expansion is expected to generate significant cost savings, improve network security, and enhance operational efficiency for the agencies involved, positioning Leidos for continued growth in the federal IT services market.
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