Is LDOS (Leidos Holdings, Inc.) Halal or Haram?

Based on our AAOIFI-standard shariah screening, LDOS is Halal and considered permissible for Muslim investors. It passed all 4 of 4 compliance screens including business activity review, debt-to-market-cap ratio (32.10% vs ≤33% threshold), interest income ratio (0.00% vs ≤5% threshold), and cash & securities ratio (6.52% vs ≤33% threshold).

Leidos Holdings, Inc. is a major technology and engineering firm that provides vital services to the defense, intelligence, civil, and health markets. Operating primarily in the U.S. and internationally, the company develops systems for air, land, sea, space, and cyberspace, serving key clients like the Department of Defense and NASA. For Muslim investors, Leidos Holdings (LDOS) is currently classified as a Halal investment option. The stock successfully passes all four AAOIFI screening criteria, meaning its core business activities and financial structures align with Islamic finance principles. From a financial perspective, Leidos maintains an interest income ratio of 0.00%, which is excellent for shariah compliance. However, its debt-to-market cap ratio is currently at 32.1%, which is very close to the strict 33% AAOIFI limit and requires careful monitoring by halal investors. While the company's defense and IT contracts are generally permissible, investors should keep a close eye on its debt levels in upcoming earnings reports. Any significant increase in borrowing or drop in market capitalization could push Leidos over the 33% debt threshold, potentially changing its halal status. Leidos Holdings, Inc. operates in the Technology sector under the Information Technology Services industry and is headquartered in Reston, VA, US. The company is led by CEO Thomas A. Bell and employs approximately 47,000 people.

LDOS was screened using AAOIFI-based shariah compliance criteria. Four tests are applied: (1) Business Activity — the company's core business must not derive primary income from haram (prohibited) activities such as alcohol, gambling, tobacco, or interest-based finance. (2) Debt-to-Market-Cap — total debt must not exceed 33% of market capitalization. (3) Interest Income — interest income must not exceed 5% of total revenue. (4) Cash & Securities — cash and interest-bearing securities must not exceed 33% of market cap. LDOS passed 4 of these 4 screens.

LDOS has negligible interest income, so purification may not be necessary. However, it is always advisable to consult a qualified scholar regarding your specific investment situation.

LDOS was last screened on 2026-04-29. Shariah compliance status can change as companies report new financial data, acquire new businesses, or shift revenue streams. We recommend checking back periodically for the most up-to-date screening results.