The global cyber warfare market is projected to grow from USD 14.99 billion in 2026 to USD 28.75 billion by 2031, with a CAGR of 14.1%. Growth is driven by increasing cyber threats to military networks, AI-driven defense solutions, space-based security demands, and defensive cyber operations. The Middle East is positioned for the second-highest regional growth rate.

Leidos stock fell 1.56% on October 13, 2026, underperforming the broader market. The security and engineering company has declined 8.45% over the past month, significantly lagging its sector's 3.58% gain. However, analysts project modest growth with Q3 EPS expected at $3.09 (up 1.31% YoY) and full-year earnings of $12.39 per share (up 3.34% YoY). The stock trades at a Forward P/E of 9.82, below its industry average of 13.43, and holds a Zacks Rank of #3 (Hold).

Leidos Holdings (LDOS), a global science and technology leader serving defense, intelligence, civil and health markets, is highlighted as a potential growth investment. The company holds a #3 (Hold) Zacks Rank with an A VGM Score and A Growth Style Score, forecasting 3.3% year-over-year earnings growth for the current fiscal year. One analyst recently revised earnings estimates upward, with the consensus estimate increasing to $12.39 per share and an average earnings surprise of +11.3%.

Leidos Holdings (LDOS), a defense and technology company, receives a #3 (Hold) rating from Zacks with a VGM Score of A and Value Style Score of A. The company features an attractive forward P/E ratio of 9.63, with two analysts revising fiscal 2026 earnings estimates upward by $0.01 to $12.39 per share, and an average earnings surprise of +11.3%.

FXL is a smart beta technology ETF managed by First Trust Advisors with $2.94 billion in assets. It tracks the StrataQuant Technology Index using an equal-dollar weighted strategy to identify stocks with positive alpha potential. With a 0.60% expense ratio, 111 holdings, and a beta of 1.26, FXL has returned 36.95% year-to-date and 34.07% over the past year. The fund is heavily concentrated in Information Technology (86.9%) with top holdings including Cognizant Technology Solutions, EPAM Systems, and Leidos Holdings.

Leidos stock declined 2.31% to $116.69, underperforming the broader market which gained 0.58%. The security and engineering company has lost 10.22% over the past month. While quarterly revenue is expected to grow 5.52% year-over-year to $4.72 billion, EPS is projected to fall 1.64%. The stock carries a Zacks Rank of #4 (Sell) with a Forward P/E of 9.73, trading at a discount to its industry average.

Leidos (LDOS) closed at $121.83, down 1.03%, underperforming the S&P 500. The security and engineering company has declined 11.55% over the past month. While revenue is projected to grow 5.52% next quarter and 6.52% for the full year, EPS is expected to decline 1.64% quarterly. The stock trades at a Forward P/E of 10.03, below the industry average of 12.4, and holds a Zacks Rank #3 (Hold) rating with a recent 0.86% downward revision in consensus EPS estimates.

Leidos stock declined 2.5% to $127.69, underperforming the broader market's gains. The company faces a predicted EPS decline of 1.64% for the upcoming quarter, though revenue is expected to grow 5.52%. With a Zacks Rank of #3 (Hold) and recent downward estimate revisions of 0.9%, the stock trades at a Forward P/E of 10.67, below its industry average.

Leidos completed a $2.4 billion acquisition of ENTRUST Solutions Group, doubling its energy infrastructure business and positioning itself as a major player in grid modernization. With strong Q3 results showing 7% revenue growth, $5 billion in new contracts, and raised 2026 guidance, the company is well-positioned to capitalize on growing power demand from AI data centers. However, near-term margin pressure from integration costs presents a near-term risk.

The article provides an in-depth analysis of the First Trust Technology AlphaDEX ETF (FXL), a passively managed technology sector ETF with $2.73 billion in assets. FXL has gained 25.61% year-to-date and 26.16% over the past year, with a 0.6% expense ratio. The fund holds 111 stocks with heavy allocation to Information Technology (85.3%), and is compared to alternatives like State Street's XLK and Vanguard's VGT, which offer lower expense ratios of 0.08% and 0.09% respectively.

Leidos Holdings is advancing its role in U.S. hypersonic weapons programs, including the Thermal Protection Shield (TPS) and Common Hypersonic Glide Body (CHGB) programs, as these capabilities transition from development to production. The company's expertise in guidance systems, sensors, and precision munitions positions it to benefit from rising U.S. investment in hypersonic technologies and growing geopolitical demand for advanced defense systems.

Leidos reported Q2 2026 non-GAAP earnings of $3.26 per share, beating estimates by 12.4%, with revenues of $4.56 billion up 7.2% year-over-year. The company raised its 2026 revenue and earnings guidance. However, operating margins contracted and estimates have been trending downward in the past month. The stock received a Zacks Rank #3 (Hold) rating with an aggregate VGM Score of A.