LDOS · 8-K · 20260804PR000243

Income Tax Rate Changes

Leidos Holdings, Inc. · 2026-08-04 · Importance 30 · Surprise 30

Second-quarter income tax expense decreased 24% year over year to $95 million from $125 million, despite $451 million of pretax income. The implied GAAP effective tax rate declined to approximately 21.1% from 24.1% in the prior-year quarter. Six-month tax expense declined to $189 million from $238 million, while pretax income decreased to $880 million from $996 million. The lower quarterly tax expense partially offset the year-over-year decline in operating income and contributed to reported net income of $356 million.