Leidos Holdings, Inc. and Quadridox today announced a partnership to create a next‑generation checked‑baggage screening platform that blends Leidos’ Examiner 3DX computed‑tomography (CT) system with Quadridox’s DELPHI X‑ray diffraction imaging (XRDI) technology. The integrated solution is designed to raise threat‑detection rates, cut false positives, and accelerate throughput at airports, helping airlines keep flights on schedule.
Leidos’ Q3 2025 earnings report, released earlier this month, showed a strong performance that exceeded expectations. Revenue rose to $4.47 billion, beating the consensus estimate of $4.28 billion, while non‑GAAP earnings per share reached $3.05 versus the expected $2.71. The beat was driven by robust demand in the National Security & Digital and Health & Civil segments, which grew 6.2% and 4.5% respectively, offsetting modest pressure in the Defense segment. Management credited disciplined cost control and a favorable mix of high‑margin commercial contracts for the earnings outperformance and raised its full‑year 2025 EPS guidance to $11.45‑$11.75 from $11.15‑$11.45.
The partnership aligns with Leidos’ “North Star 2030” strategy to deepen its presence in the commercial security market. “Separately, these technologies provide high levels of threat detection. When integrated, we aim to deliver a powerful and more comprehensive security screening solution to help keep air travel safe,” said Nik Karnik, Vice President of Leidos’ Commercial & International security products. Joel Greenberg, President and CEO of Quadridox, added, “By combining XRDI and CT technologies with state‑of‑the‑art AI‑based algorithms, we are opening a new era of threat detection that will keep pace with evolving security standards.”
Analysts have responded positively to the partnership and Leidos’ recent earnings. Jefferies lifted its price target for Leidos from $215 to $230, citing the company’s strong earnings beat, upgraded guidance, and the strategic value of the new screening platform. The partnership is expected to position Leidos ahead of competitors that rely solely on CT or X‑ray imaging, giving it a differentiated product line in a market projected to reach $38.1 billion by 2035.
The advanced baggage‑screening system taps into a growing market driven by rising passenger volumes and heightened security requirements. Industry estimates project the airport security market to grow to $23.6 billion by 2033 at a 5.5% CAGR, and the partnership’s AI‑enhanced detection capabilities could capture a significant share of that expansion. By combining proven CT hardware with XRDI’s material‑identification strengths, Leidos and Quadridox aim to deliver a solution that meets current TSA standards while anticipating next‑generation regulatory demands.
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