Canadian Halal Investor.

NYSE Shariah screener · October 2026

Is Leidos Holdings, Inc. (LDOS) Halal?

FAIL

Leidos Holdings, Inc. · NYSE: LDOS · Industrials

The short answer

Leidos fails the Shariah debt screen: interest-bearing debt of $6,031M at July 3, 2026 is 38.96% of its ~$15.48 billion market cap, over the 33% ceiling (debt jumped after $1.4B of notes issued for the Entrust acquisition). Its business passes (defense/IT services contractor, no alcohol/tobacco/gambling/pork/interest-lending lines; defense not counted as haram here) and interest income of about 0.01% of revenue is under the 5% ceiling. Overall result: FAIL.

Gate 1 — Business activity: PASS

Gate 1 — business activity: PASS. Leidos Holdings, Inc., founded in 1969 by physicist Dr. Robert Beyster and headquartered in Reston, Virginia, is an industry and technology leader serving government and commercial customers with digital and mission innovations. Per its FY2025 Form 10-K (fiscal year ended January 2, 2026; Note 1), with about 47,000 global employees it pursues growth across five pillars: space and maritime; energy infrastructure; digital modernization and cyber; mission software; and managed health services. Its customers include the U.S. Department of War, the Intelligence Community, DHS, the FAA and the VA — approximately 87% of FY2025 revenue came from U.S. government contracts, as prime contractor or subcontractor.

FY2025 reportable segments were National Security & Digital, Health & Civil, Commercial & International, and Defense Systems (realigned in fiscal 2026 to Intelligence & Digital, Health, Homeland, and Defense). The company is not an interest-based lender and is not involved in tobacco, gambling, pork or alcohol. Defense work (defense tech products, munitions, hypersonic weapons support, missile warning payloads) is disclosed for transparency but is not counted as a haram line under this screener, which checks only alcohol, tobacco, gambling, pork and interest-based lending. The business passes gate 1.

Gate 2 — Debt and cash: FAIL

Gate 2 — interest-bearing debt: FAIL (38.96%, ceiling 33%). Per Leidos's unaudited condensed consolidated balance sheet at July 3, 2026 (published with its August 4, 2026 Q2 2026 earnings release), interest-bearing debt was $6,031 million: $22 million current portion of long-term debt plus $6,009 million long-term debt, net of current portion. Operating lease liabilities ($547 million) are excluded — they are not interest-bearing debt; finance leases remain embedded in the long-term debt line consistent with the 10-K debt-note presentation. Debt jumped from $4,648 million at January 2, 2026 after Leidos issued $1.4 billion of senior notes ($600 million 4.10% due 2029 and $800 million 5.00% due 2036, net proceeds ~$1,387 million) to help fund the $2.4 billion cash acquisition of Entrust (KENE Parent, Inc.), closed March 27, 2026.

$6,031 million of interest-bearing debt against a market capitalization of about $15.48 billion (Finnhub, October 2, 2026) is 38.96%, over the 33% ceiling. Cash and cash equivalents of $748 million at July 3, 2026 represent about 4.8% of market cap.

Gate 3 — Non-compliant income: PASS

Gate 3 — non-compliant income: PASS (0.01%, ceiling 5%). Leidos's consolidated statements of operations report only "Interest expense, net" ($203 million in FY2025) — no separate interest income line. However, the FY2025 Form 10-K notes do separately disclose interest income: the lessor note reports "Interest income on lease receivables" of $2 million in fiscal 2025 ($5 million in fiscal 2024, $9 million in fiscal 2023), presented within Revenues.

FY2025 interest income of $2 million against FY2025 total revenue of $17,174 million is about 0.01%, far under the 5% ceiling. Note: the Q2 2026 condensed income statement does not separately break out interest income, so the verified FY2025 figure from the 10-K is used for this gate.

Key figures used

Frequently asked questions

What does Leidos do?

Leidos Holdings, Inc. (NYSE: LDOS) is a technology and services company founded in 1969 by physicist Dr. Robert Beyster and headquartered in Reston, Virginia, with about 47,000 global employees in FY2025. Per its FY2025 Form 10-K, it pursues strategic growth across five pillars - space and maritime; energy infrastructure; digital modernization and cyber; mission software; and managed health services - serving the U.S. Department of War, the Intelligence Community, the Department of Homeland Security, the FAA, the Department of Veterans Affairs and other government and commercial customers. About 87% of FY2025 revenue came from U.S. government contracts. Its four FY2025 reportable segments were National Security & Digital, Health & Civil, Commercial & International, and Defense Systems (realigned in fiscal 2026 to Intelligence & Digital, Health, Homeland, and Defense).

Is Leidos's business Shariah compliant?

Leidos is a defense, intelligence, health and civil technology contractor - not an interest-based lender, and it is not involved in alcohol, tobacco, gambling or pork production. Roughly 87% of its FY2025 revenue came from U.S. government contracts across defense, intelligence, health and civil markets. Defense work (defense tech products, munitions, hypersonic weapons support, missile warning payloads) is a material line, but this screener does not count defense as a haram line - only alcohol, tobacco, gambling, pork and interest-based lending are checked - so the business passes gate 1. This is an assessment of the business activity only; defense exposure is disclosed here for transparency.

How much interest-bearing debt does Leidos have?

Leidos's interest-bearing debt was $6,031 million at July 3, 2026: $22 million current portion of long-term debt plus $6,009 million long-term debt, net of current portion, per the unaudited condensed consolidated balance sheet published with its August 4, 2026 Q2 earnings release. Operating lease liabilities ($547 million) are excluded as they are not interest-bearing debt; finance leases are embedded in the long-term debt line as in the 10-K debt-note presentation. Debt rose sharply from $4,648 million at January 2, 2026 after the company issued $1.4 billion of senior notes ($600 million 4.10% due 2029 and $800 million 5.00% due 2036) to help fund the $2.4 billion Entrust acquisition. $6,031 million against a market cap of about $15.48 billion is 38.96%, over the 33% ceiling.

How much interest income does Leidos earn?

Leidos's FY2025 Form 10-K does not show a separate interest income line on the income statement - it reports only 'Interest expense, net' of $203 million. The notes do separately disclose one interest income figure: 'Interest income on lease receivables' of $2 million in fiscal 2025 ($5 million in fiscal 2024, $9 million in fiscal 2023) in the lessor note. $2 million against FY2025 total revenue of $17,174 million is about 0.01% - far under the 5% non-compliant income ceiling. The Q2 2026 condensed income statement does not separately break out interest income, so the verified FY2025 figure is used.

What do third-party Shariah screeners say about Leidos?

Zoya publishes a Leidos (LDOS) page and currently flags the stock as not Shariah-compliant, though the FAQ text on its page is internally contradictory about interest income (stating both 'interest income of $0' and 'no separate interest income disclosed'), so treat its published reasoning with caution. I could not verify a Musaffa rating page for LDOS or a ShariaPortfolio rating from public sources. Third-party screeners apply different assumptions and update on different schedules, and their results can change when new financial statements are published - always check the latest screening before investing.

Sources

Screened 2026-10-02 from published company figures and market data. Figures change; this page is educational, not financial advice and not a religious ruling.

Screened with our two-gate Shariah screening methodology (business-activity gate, then AAOIFI-style financial ratios).