Leidos Holdings, Inc. announced that the U.S. Air Force has officially designated its Small Cruise Missile as the AGM‑190A. The designation, made on February 26, 2026, marks the first formal naming of the platform by the Department of Defense and signals that the missile is now a candidate for operational procurement.
The AGM‑190A is a 200‑pound class, mission‑adaptable weapon that demonstrated a standoff range of more than 400 nautical miles during flight tests from a C‑130 aircraft. Its modular hardware and open‑system software allow the platform to evolve rapidly to meet changing mission requirements, giving the Air Force a flexible, cost‑effective stand‑off strike capability.
The designation is a key milestone for Leidos, adding a new revenue stream in the growing cruise missile market and reinforcing the company’s strategic positioning within the U.S. military’s modernization efforts. The AGM‑190A aligns with Leidos’ NorthStar 2030 strategy, which emphasizes scalable, software‑driven solutions, and supports the company’s focus on space and maritime, energy infrastructure, digital modernization and cyber, mission software, and managed health services.
Leidos’ Q4 2025 results provide context for the significance of the designation. The company reported fourth‑quarter revenue of $4.21 billion, a 4 % decline year‑over‑year, largely attributable to a six‑week government shutdown and an extra work week in the prior year. Despite the revenue dip, adjusted earnings per share of $2.76 beat analyst expectations of $2.57, a $0.19 or 7.4 % beat, driven by margin expansion from 11.6 % to 13.2 % and disciplined cost management. Full‑year 2025 revenue rose 3 % to $17.17 billion, and adjusted EBITDA margin climbed to 14.1 % from 12.9 %. Cash flow remained strong, with operating cash flow of $495 million in Q4 and $1.75 billion for the year, and free cash flow of $1.63 billion. Leidos also announced the acquisition of Entrust for approximately $2.4 billion, expected to close in the first half of fiscal 2026.
Cindy Gruensfelder, Leidos Defense Sector President, said, "This capability will provide warfighters with the operational flexibility they need for today's missions, and help them counter emerging threats in the future." She added, "The Air Force's designation of the AGM‑190A underscores its confidence in Leidos as a provider of proven, affordable stand‑off strike solutions." CEO Tom Bell noted, "Our performance this quarter and throughout the year underscores the incredible resilience of our team and the power of our strategy in action. In a dynamic market environment, we delivered solid top‑line growth, outstanding earnings power, and robust cash generation, which provide a strong foundation for future investment. This success is not accidental; we are acting with urgency to advance our customers' most critical national security priorities and proactively shaping our portfolio towards our strategic Growth Pillars—in space and maritime, energy infrastructure, digital modernization and cyber, mission software, and managed health services."
The AGM‑190A designation comes amid a broader industry push toward affordable, mass‑produced munitions. Competitors such as L3Harris are developing similar small cruise missiles, including the Red Wolf for SOCOM’s Armed Overwatch program. The missile’s modular design and open‑system software position Leidos to respond quickly to evolving customer needs, while the designation signals confidence from the Air Force and may accelerate procurement timelines. Investors and analysts view the designation as a positive development that could offset earlier concerns from the Q4 earnings miss and reinforce Leidos’ trajectory toward higher‑margin, software‑driven defense solutions.
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