Optimizing SG&A Costs: A Tale of Two Giants

In the competitive landscape of technology and defense, managing Selling, General, and Administrative (SG&A) expenses is crucial for profitability. Over the past decade, QUALCOMM Incorporated and Leidos Holdings, Inc. have demonstrated contrasting strategies in optimizing these costs.

QUALCOMM's Consistent Strategy

From 2014 to 2023, QUALCOMM's SG&A expenses have shown a steady pattern, peaking in 2018 with a 30% increase from 2014. Despite fluctuations, QUALCOMM maintained an average SG&A expense of approximately $2.46 billion, reflecting a consistent approach to cost management.

Leidos' Dynamic Approach

Leidos Holdings, Inc., on the other hand, exhibited a more dynamic trend. Starting with lower expenses in 2014, Leidos saw a significant rise, reaching a peak in 2022 with a 206% increase from 2014. This suggests a strategic expansion and investment in administrative capabilities.

In conclusion, while QUALCOMM focuses on stability, Leidos embraces adaptability, each optimizing SG&A costs in alignment with their corporate strategies.