Leidos secures $128 million FBI contract for biometric system upgrade

RESTON, Va. - Leidos (NYSE:LDOS), a prominent player in the Professional Services industry with a market capitalization of $20.7 billion, has been awarded a $128 million task order by the FBI to enhance and modernize the bureau’s Next Generation Identification (NGI) system, according to a press release statement issued Tuesday.

The contract covers agile software development and modernization for the NGI system, which serves as the FBI’s repository for biometric and criminal history information. The agreement includes a one-year base period with four additional option years. According to InvestingPro analysis, Leidos maintains strong financial health with liquid assets exceeding short-term obligations and operates with moderate debt levels.

Under the task order, Leidos will develop mobile applications, implement biometric algorithms, conduct automated testing, and integrate emerging technologies into the system.

The NGI system, administered by the FBI’s Criminal Justice Information Services (CJIS) division, provides investigative capabilities for law enforcement and intelligence agencies. Leidos has previously worked with the FBI to improve the system’s fingerprint identification accuracy to more than 99.6 percent.

"Leidos has long partnered with the FBI to deliver mission-critical biometric systems, including NGI," said Roy Stevens, Leidos National Security Sector president, in the statement.

Leidos, headquartered in Reston, Virginia, employs approximately 47,000 people globally and reported annual revenues of about $16.7 billion for the fiscal year ended January 3, 2025. Trading at a P/E ratio of 16x, the stock currently appears undervalued according to InvestingPro Fair Value metrics, with 8 additional ProTips available to subscribers.

The NGI system enables the identification of individuals through biometric data, supporting criminal investigations and intelligence operations across multiple agencies.

In other recent news, Leidos Inc. has been awarded a significant $51.2 million contract by the U.S. Department of Defense to support psychological health and readiness research for the Naval Health Research Center. Additionally, Leidos has secured a $22.9 million contract modification from the U.S. Navy for the installation of AN/SQQ-89 combat systems. In a move to enhance data transfer capabilities, Leidos has also won a five-year, $35 million contract to modernize data-sharing tools for the Defense Information Systems Agency. Analyst firm Jefferies has raised its price target for Leidos Holdings to $185 from $160 while maintaining a Hold rating, with expectations for the company to report second-quarter earnings in early August. This comes as Jefferies forecasts adjusted earnings per share of $2.58, aligning closely with consensus estimates of $2.64. Meanwhile, ScanTech AI Systems Inc. has announced the appointment of Brad Buswell as its new Chairman of the Board of Directors, succeeding Karl Brenza. The company is looking to leverage Buswell’s expertise as it aims to expand its market presence.

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