LDOS · 8-K · 20260804PR000243

Operating Expense Trends

Leidos Holdings, Inc. · 2026-08-04 · Importance 66 · Surprise 74 · No source text

Selling, general and administrative expense increased 30% year over year to $283 million from $217 million, rising from approximately 5.1% to 6.2% of revenue. Acquisition, integration, and restructuring costs increased to $27 million from $2 million. Second-quarter net income included $29 million of costs associated with the Entrust acquisition, the pending Analogic joint venture, and the NorthStar 2030 realignment. Corporate operating costs increased to $58 million from $9 million, contributing to the decline in consolidated operating income.

Key facts

• Three months ended July 3, 2026 cost of revenues was $3,741 million and selling, general and administrative expenses were $283 million source
• Beginning fiscal 2026, Leidos completed a realignment of reporting structure resulting in four reportable segments: Intelligence & Digital, Health, Homeland and Defense source
• Acquisition, integration and restructuring costs of $27 million were recorded in three months ended July 3, 2026 source
• Leidos' non-GAAP reconciliation shows acquisition, integration and restructuring costs of $29 million were excluded from adjusted EBITDA calculation for the three months ended July 3, 2026 source
• Leidos used $38 million in investing activities for the quarter, including $32 million in property, equipment and software payments source
• Income tax expense for the three months ended July 3, 2026 was $95 million source

Impact estimates