Leidos Holdings, Inc.

OVERVIEW OF LIQUIDITY

As of October 2, 2026, we had $630 million in cash and cash equivalents. We have a senior unsecured revolving credit facility which can provide up to $1.5 billion in additional borrowing, if required, and a commercial paper program under which we may issue short-term unsecured commercial paper notes ("Commercial Paper Notes") not to exceed $1.5 billion, with maturities of up to 397 days from the date of issuance. As of October 2, 2026, and January 2, 2026, there were no borrowings outstanding under the revolving credit facility and no Commercial Paper Notes outstanding.

We had outstanding debt of $6.0 billion and $4.6 billion at October 2, 2026, and January 2, 2026, respectively. In March 2026, we issued and sold $600 million 4.10% and $800 million 5.00% senior unsecured notes maturing in March 2029 and March 2036, respectively. The annual interest rate is payable on a semi-annual basis. The proceeds from the notes were used to fund a portion of the consideration payable in connection with the acquisition of Entrust and for general corporate purposes.

We made $5 million and $15 million principal payments on our long-term debt during the three and nine months ended October 2, 2026, respectively, and $455 million and $1,014 million during the three and nine months ended October 3, 2025, respectively. The activity for the three and nine months ended October 3, 2025, included a prepayment on our senior unsecured term loan of $450 million and the activity for the nine months ended October 3, 2025, also included a $500 million payment to discharge the $500 million notes due May 2025.

Our senior unsecured revolving credit facility, Commercial Paper Notes, senior unsecured term loan and notes outstanding as of October 2, 2026, contain financial covenants and customary restrictive covenants. We were in compliance with all financial covenants as of October 2, 2026.

We paid dividends of $52 million and $162 million during the three and nine months ended October 2, 2026, respectively, and $51 million and $156 million for the three andnine months ended October 3, 2025, respectively.

We may from time to time seek to retire or purchase our outstanding debt through cash purchases in the open market, privately negotiated transactions or otherwise. Such repurchases, if any, will depend on prevailing market conditions, our liquidity requirements, contractual restrictions and other factors. The amounts involved may be material.

Stock repurchases of Leidos common stock may be made on the open market or in privately negotiated transactions with third parties including through accelerated share repurchase agreements. Whether repurchases are made and the timing and actual number of shares repurchased depends on a variety of factors including price, corporate capital requirements, other market conditions and regulatory requirements. The repurchase program may be accelerated, suspended, delayed or discontinued at any time.

We made open market repurchases of our common stock for an aggregate purchase price of $500 million and $766 million during the three and nine months ended October 2, 2026, respectively, and $100 million for both the three and nine months ended October 3, 2025. Additionally, we repurchased $500 million of shares under an accelerated share repurchase agreement during the nine months ended October 3, 2025.

During the nine months ended October 2, 2026, we invested $18 million in an investment fund as a limited partner. No investment was made during the three months ended October 2, 2026. In connection with this investment, we have

committed to invest an additional $82 million before February 2031. We expect to fund this investment with cash on hand and cash generated through our operations.

For the next 12 months and beyond, we expect to meet our liquidity needs, including servicing our debt, through cash generated from operations, available cash balances and borrowings from our commercial paper program. If needed, we may also sell accounts receivable or borrow under our revolving credit facility.

SUMMARY OF CASH FLOWS

The following table summarizes cash flow information for the periods presented:

Net cash provided by operating activities decreased $188 million for thethree months ended October 2, 2026, compared to the prior year quarter. The decrease was primarily due to unfavorable changes in working capital, including the timing of vendor payments, and the timing of payroll and employee benefit payments.

Net cash provided by operating activities increased $362 million for the nine months ended October 2, 2026, compared to the prior year. The increase was primarily due to favorable changes in working capital and lower tax payments of $148 million.

Net cash used in investing activities increased $12 million for the three months ended October 2, 2026, compared to the prior year quarter primarily due to higher capital expenditures, partially offset by a $7 million payment related to the acquisition of Kudu Dynamics in the prior year quarter.

Net cash used in investing activities increased $2,073 million for the nine months ended October 2, 2026, compared to the prior year. The increase was primarily due to $2,338 million of cash paid in connection with the acquisition of Entrust, net of cash acquired and higher capital expenditures.

Net cash used in financing activities decreased $46 million for the three months ended October 2, 2026, compared to the prior year quarter. The decrease was primarily due to a $450 million prepayment on our senior unsecured term loan in the prior year quarter, partially offset by a $400 million increase in stock repurchases.

Net cash provided by financing activities increased $1,209 million for the nine months ended October 2, 2026, compared to the prior year. The increase was primarily due to a net increase of $1,391 million in cash inflows from debt activity, consisting of proceeds from debt issuances and payments for borrowings and debt issuance costs. The increase was partially offset by an increase of $166 million in stock repurchases and $13 million in shares withheld for tax obligations.