SAIC Announces Fourth Quarter and Full Fiscal Year 2026 Results

Rhea-AI Summary

SAIC (NASDAQ: SAIC) reported Q4 FY26 revenue of $1.75B and full-year revenue of $7.26B. Q4 net income was $85M and FY26 net income was $358M. Adjusted EBITDA was $181M (10.3%) for Q4 and $708M (9.7%) for FY26. Adjusted diluted EPS was $10.75 for FY26. Cash flow from operations was $609M for FY26 and free cash flow $577M. SAIC provided FY27 guidance: revenue $7.0B–$7.2B, adjusted EBITDA $705M–$715M, adjusted diluted EPS $9.50–$9.70, and free cash flow >$600M.

Positive

• Adjusted diluted EPS +18% YoY to $10.75
• Adjusted EBITDA of $708M for FY26 (9.7% margin)
• FY26 free cash flow of $577M and operating cash flow $609M
• Share repurchases of $422M in FY26 (≈4.0M shares)

Negative

• Revenue down 3% YoY to $7.26B
• Q4 net bookings only $0.6B with book-to-bill of 0.3
• FY27 organic growth guide of (4%)–(2%) implies continued contraction

News Market Reaction – SAIC

-1.27%

1 alert

-1.27% News Effect

On the day this news was published, SAIC declined 1.27%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Q4 FY26 revenue: $1.75 billion FY26 revenue: $7.26 billion Q4 adj. EBITDA: $181 million (10.3% margin) +5 more

8 metrics

Q4 FY26 revenue $1.75 billion Fourth quarter fiscal 2026 revenues

FY26 revenue $7.26 billion Full fiscal year 2026 revenues

Q4 adj. EBITDA $181 million (10.3% margin) Q4 FY26 adjusted EBITDA and margin

FY26 adj. EPS $10.75 Full‑year 2026 adjusted diluted EPS

Q4 free cash flow $336 million Q4 FY26 free cash flow

FY26 free cash flow $577 million Full‑year 2026 free cash flow

FY27 adj. EBITDA $705M–$715M Fiscal 2027 adjusted EBITDA guidance

FY27 adj. EPS guide $9.50–$9.70 Fiscal 2027 adjusted diluted EPS guidance

Market Reality Check

Price: $96.75 Vol: Pre‑news volume of 784,44...

normal vol

$96.75 Last Close

Volume Pre‑news volume of 784,442 shares vs 20‑day average of 687,786 suggests slightly elevated trading interest. normal

Technical Shares at $91.91, trading below the 200‑day MA of $102.68 and about 25.94% under the 52‑week high.

Peers on Argus

SAIC was up 0.4% pre‑release. Peers showed mixed action: APLD up modestly on mom...

2 Up

SAIC was up 0.4% pre‑release. Peers showed mixed action: APLD up modestly on momentum scans, while several high‑affinity peers (e.g., PSN, VRRM) were down earlier in the session, pointing to stock‑specific drivers rather than a broad sector move.

Previous Earnings Reports

5 past events · Latest: Feb 11 (Negative)

Same Type Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Feb 11	Prelim FY26 update	Negative	-16.0%	Preliminary FY26 results with lowered FY27 revenue outlook despite stronger margins.
Dec 04	Q3 FY26 earnings	Positive	+16.3%	Q3 beat on profitability, strong bookings and guidance raise drove a positive reaction.
Sep 04	Q2 FY26 earnings	Negative	-6.9%	Q2 revenue decline and lowered FY26 revenue guidance outweighed solid margins and wins.
Jun 02	Q1 FY26 earnings	Neutral	-13.3%	Mixed Q1 with revenue growth but lower net income and reaffirmed guidance.
Mar 17	FY25 earnings	Positive	+7.2%	Strong FY25 revenue growth, solid margins and sizable backlog supported a gain.

Pattern Detected

Across the last five earnings‑tagged releases, SAIC’s stock often reacted sharply, with an average move of about -2.55%, skewed by a -16.03% drop on the February 2026 preliminary FY26 update.

Recent Company History

Recent earnings and related updates show a shift from FY2025 growth to FY2026 top‑line pressure but improving margins and cash generation. Earlier FY2026 quarters featured lowered revenue guidance alongside stronger profitability, culminating in the Feb 11, 2026 preliminary FY26 results and reduced FY27 revenue outlook (news_id 1011341). That update triggered a -16.03% move, framing today’s finalized FY26 figures and reiterated FY27 guidance as part of an ongoing recalibration rather than a new strategic turn.

Historical Comparison

-2.5% avg move · In the past five earnings releases, SAIC’s average move was -2.55%, with reactions ranging from a -1...

earnings

-2.5%

Average Historical Move earnings

In the past five earnings releases, SAIC’s average move was -2.55%, with reactions ranging from a -16.03% selloff on the FY26 prelim update to a 16.29% jump on Q3 FY26 results, underscoring historically high sensitivity to earnings quality and guidance shifts.

Earnings updates show FY2025 growth giving way to FY2026 revenue pressure, while adjusted EBITDA margins and free cash flow improved. Guidance now emphasizes flat‑to‑down FY2027 revenue at $7.0–$7.2B but higher 9.9%–10.1% adjusted EBITDA margins and >$600M free cash flow.

Market Pulse Summary

This announcement finalizes Q4 and FY2026 results showing softer revenue but stronger margins and ca...

Analysis

This announcement finalizes Q4 and FY2026 results showing softer revenue but stronger margins and cash flow, alongside FY2027 guidance for $7.0–$7.2B revenue, adjusted EBITDA of $705M–$715M, and adjusted EPS of $9.50–$9.70. Prior earnings updates in FY2026 repeatedly highlighted this tradeoff between top‑line pressure and profitability. Key factors to monitor include net bookings, book‑to‑bill ratio, backlog of $22.6B, and management’s ability to sustain >$600M in free cash flow while navigating organic revenue decline.

Key Terms

adjusted EBITDA, free cash flow, book-to-bill ratio, backlog, +3 more

7 terms

adjusted EBITDA financial

"Q4 FY26 net income of $85 million, adjusted EBITDA(1) of $181 million or 10.3%..."

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

free cash flow financial

"cash flows provided by operating activities of $258 million, free cash flow(1) of $336 million..."

Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.

book-to-bill ratio financial

"Q4 FY26 net bookings of $0.6 billion; book-to-bill ratio of 0.3..."

The book-to-bill ratio compares the value of new orders a company receives to the value of products it ships out or bills for over a certain period. If the ratio is above 1, it means the company is getting more orders than it is completing, which can indicate growth. If it's below 1, it suggests demand is slowing down.

backlog financial

"SAIC’s estimated backlog at the end of fiscal 2026 was approximately $22.6 billion..."

A backlog is the amount of work or orders that a company has received but hasn't completed yet. It’s like a restaurant with many dishes to serve; the backlog shows how many orders are still waiting to be finished. It matters because a large backlog can indicate strong demand or potential delays in delivering products or services.

non-GAAP financial

"(1)Non-GAAP measure, see Schedule 6 for information about this measure."

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

Master Accounts Receivable Purchase Agreement financial

"lower cash outflows from the usage of the Master Accounts Receivable Purchase Agreement..."

A master accounts receivable purchase agreement is a standing contract that lets a company regularly sell its unpaid customer invoices to a buyer in exchange for immediate cash, with agreed rules about pricing, responsibilities, and how disputes are handled. For investors it matters because this arrangement speeds up cash flow and can reduce borrowing needs, but it also comes with fees, affects reported liabilities and credit risk, and can signal how a company finances its working capital.

forward-looking statements regulatory

"Certain statements in this release contain or are based on “forward-looking” information..."

Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.

AI-generated analysis. Not financial advice.

• Q4 FY26 revenues of $1.75 billion; FY26 revenues of $7.26 billion
• Q4 FY26 net income of $85 million, adjusted EBITDA⁽¹⁾ of $181 million or 10.3% of revenue; FY26 net income of $358 million, adjusted EBITDA⁽¹⁾ of $708 million or 9.7% of revenue
• Q4 FY26 diluted earnings per share of $1.87, adjusted diluted earnings per share⁽¹⁾ of $2.62; FY26 diluted earnings per share of $7.70, adjusted diluted earnings per share⁽¹⁾ of $10.75
• Q4 FY26 cash flows provided by operating activities of $258 million, free cash flow⁽¹⁾ of $336 million; FY26 cash flows provided by operating activities of $609 million, free cash flow⁽¹⁾ of $577 million
• Q4 FY26 net bookings of $0.6 billion; book-to-bill ratio of 0.3; trailing twelve months book-to-bill ratio of 1.1
• Announces FY27 guidance for adjusted diluted earnings per share⁽¹⁾ and reiterates revenue, adjusted EBITDA⁽¹⁾, adjusted EBITDA margin⁽¹⁾, and free cash flow⁽¹⁾ guidance

RESTON, Va., March 16, 2026 (GLOBE NEWSWIRE) -- Science Applications International Corporation (NASDAQ: SAIC), a premier Fortune 500 technology integrator driving our nation's digital transformation across the defense, space, civilian, and intelligence markets, today announced results for the fourth quarter and full fiscal year ended January 30, 2026.

"As previously announced on February 11, our fourth-quarter results reflected ongoing top-line challenges, balanced by strong operational execution that supports our ability to raise margin expectations moving forward," said Jim Reagan, SAIC’s Chief Executive Officer. "I am encouraged by the progress we are making and by the opportunities in front of us. Our plan is simple – we will focus on elements within our control to drive more consistent and reliable growth. With a career dedicated to operational excellence and value creation in our industry, I am honored to continue, as permanent CEO, building on SAIC’s solid foundation to deliver meaningful results to all stakeholders."

Fourth Quarter and Full Fiscal Year 2026: Summary Operating Results

		Three Months Ended											Year Ended
		January 30, 2026				Percent change			January 31, 2025				January 30, 2026				Percent change			January 31, 2025
		(dollars in millions, except per share amounts)
Revenues		$	1,750			(5)%			$	1,838			$	7,262			(3)%			$	7,479
Operating income			133			(4)%				138				521			(7)%				563
Operating income as a percentage of revenues			7.6	%		10bps				7.5	%			7.2	%		-30bps				7.5	%
Adjusted operating income(1)			179			2	%			176				702			—	%			705
Adjusted operating income as a percentage of revenues			10.2	%		60bps				9.6	%			9.7	%		30bps				9.4	%
Net income			85			(13)%				98				358			(1)%				362
EBITDA(1)			175			—	%			175				676			(5)%				708
EBITDA as a percentage of revenues			10.0	%		50bps				9.5	%			9.3	%		-20bps				9.5	%
Adjusted EBITDA(1)			181			2	%			177				708			—	%			710
Adjusted EBITDA as a percentage of revenues			10.3	%		70bps				9.6	%			9.7	%		20bps				9.5	%
Diluted earnings per share		$	1.87			(7)%			$	2.00			$	7.70			7	%		$	7.17
Adjusted diluted earnings per share(1)		$	2.62			2	%		$	2.57			$	10.75			18	%		$	9.13
Net cash provided by operating activities		$	258			124	%		$	115			$	609			23	%		$	494
Free cash flow(1)		$	336			42	%		$	236			$	577			16	%		$	499

⁽¹⁾Non-GAAP measure, see Schedule 6 for information about this measure.

Fourth Quarter Summary Results

Revenues for the quarter decreased $88 million compared to the prior year quarter primarily due to ramp down in volume on existing contracts, including the impact of government shutdown, and contract completions, partially offset by new contracts and the acquisition of SilverEdge ($23 million).

Operating income as a percentage of revenues increased to 7.6% for the quarter as compared to 7.5% in the comparable prior year period primarily due to lower selling, general and administrative expenses, partially offset by timing and volume mix in our contract portfolio.

Adjusted EBITDA⁽¹⁾ as a percentage of revenues for the quarter was 10.3%, compared to 9.6% for the prior year quarter primarily due to lower selling, general and administrative expenses, partially offset by timing and volume mix in our contract portfolio.

Diluted earnings per share for the quarter was $1.87 compared to $2.00 in the prior year quarter. Adjusted diluted earnings per share⁽¹⁾ was $2.62 for the quarter compared to $2.57 in the prior year quarter. The weighted-average diluted shares outstanding during the quarter decreased to 45.4 million shares from 49.0 million shares during the prior year quarter.

⁽¹⁾Non-GAAP measure, see Schedule 6 for information about this measure.

Fiscal Year 2026 Summary Results

Revenues for the fiscal year decreased $217 million compared to the prior year primarily due to contract completions and ramp down in volume on existing contracts, including approximately $26 million attributable to the government shutdown, partially offset by new contracts. Revenues attributed to SilverEdge for the year ended January 30, 2026 were $27 million. Adjusting for the acquisition of SilverEdge, revenues contracted by approximately 3.3%.

Operating income as a percentage of revenues for the fiscal year decreased compared to the prior year primarily due to executive transition costs, net of recoveries, the favorable resolution of the Assault Amphibious Vehicle ("AAV") contract termination in the prior year ($13 million), costs related to the settlement of federal tax audits, and timing and volume mix in our contract portfolio, partially offset by a recovery of costs from the settlement of a patent infringement matter.

Adjusted EBITDA⁽¹⁾ as a percentage of revenues for the fiscal year increased compared to the prior year primarily due to a recovery of costs from the settlement of a patent infringement matter and lower other selling, general and administrative expenses, partially offset by the favorable resolution of the AAV contract termination in the prior year ($13 million), and timing and volume mix in our contract portfolio.

Diluted earnings per share for the year was $7.70 compared to $7.17 in the prior year. Adjusted diluted earnings per share⁽¹⁾ was $10.75 for the year compared to $9.13 in the prior year. The weighted-average diluted shares outstanding during the year decreased to 46.5 million shares from 50.5 million shares during the prior year.

⁽¹⁾Non-GAAP measure, see Schedule 6 for information about this measure.

Cash Generation and Capital Deployment

Total cash flows provided by operating activities for the fourth quarter were $258 million, an increase of $143 million compared to the prior year quarter, primarily due to timing of customer collections, lower cash outflows from the usage of the Master Accounts Receivable Purchase Agreement ("MARPA Facility"), and lower cash taxes paid, net of tax refunds received in the current year, partially offset by timing of vendor payments.

Total cash flows provided by operating activities for the year were $609 million, an increase of $115 million from the prior year, primarily due to timing of customer collections, lower cash outflows from the usage of the MARPA Facility, lower cash taxes paid, net of tax refunds received in the current year, and other changes in working capital, partially offset by timing of vendor payments.

During the quarter, SAIC deployed $122 million of capital, consisting primarily of $97 million of share repurchases in accordance with established repurchase plans and $17 million in cash dividends to shareholders. For the year, SAIC deployed $524 million of capital, consisting primarily of share repurchases of $422 million (approximately 4.0 million shares) in accordance with established repurchase plans and cash dividends of $70 million to shareholders.

Quarterly Dividend Declared

As previously announced, subsequent to fiscal year-end, the Company’s Board of Directors ("Board of Directors") declared a cash dividend of $0.37 per share of the Company’s common stock payable on April 24, 2026 to stockholders of record on April 10, 2026. SAIC intends to continue paying dividends on a quarterly basis, although the declaration of any future dividends will be determined by the Board of Directors each quarter and will depend on earnings, financial condition, capital requirements and other factors.

Backlog and Contract Awards

Net bookings for the quarter were approximately $0.6 billion, which reflects a book-to-bill ratio of approximately 0.3. Net bookings for the year were approximately $7.8 billion, which reflects a book-to-bill ratio of approximately 1.1.

SAIC’s estimated backlog at the end of fiscal 2026 was approximately $22.6 billion of which $3.6 billion was funded.

SAIC was awarded the following notable contracts during the quarter:

Notable Space and Intelligence Community Awards:

U.S. Space and Intelligence Community: During the quarter, SAIC was awarded approximately $629 million of contract awards by space and intelligence organizations. These awards represent a combination of new business, modifications, and recompetes.

Notable New Awards:

U.S. Government Accountability Office ("GAO"): SAIC was awarded a new $95 million contract by the GAO to provide comprehensive, full-scale IT solutions for the Technical Information Services (TIS) program. Under this five-year (one-year base, plus four, one-year option periods) contract, the Company will deliver end-to-end IT solutions designed to support the GAO mission of a revamped and more efficient IT environment.

Notable Awards Subsequent to Period End (not included in current quarter bookings):

U.S. Space and Intelligence Community: Subsequent to the end of the quarter, SAIC was awarded a seven-year recompete contract of approximately $330 million with a Space and Intelligence Community customer. Under this contract, SAIC will provide systems engineering and technical assistance to its customer.

Federal Civilian Community: Subsequent to the end of the quarter, SAIC was awarded a five-year (one-year base, plus four, one-year option periods) recompete contract of approximately $200 million with an agency in its Civilian business group. Under this contract, SAIC will provide technology enhancement, modernization, and refresh of customer systems.

Fiscal Year 2027 Guidance

The Company's outlook for fiscal year 2027 is being provided, announcing guidance for adjusted diluted EPS⁽¹⁾ and reiterating the previously announced guidance for revenue, adjusted EBITDA⁽¹⁾, adjusted EBITDA margin⁽¹⁾, and free cash flow⁽¹⁾. The table below summarizes fiscal year 2027 guidance and represents our views as of March 16, 2026.        

	CURRENT Fiscal Year
	2027 Guidance
Revenue	$7.0B - $7.2B
Organic Growth	(4%) - (2%)
Adjusted EBITDA(1)	$705M - $715M
Adjusted EBITDA Margin %(1)	9.9% - 10.1%
Adjusted Diluted EPS(1)	$9.50 - $9.70
Free Cash Flow(1)	>$600M

⁽¹⁾Non-GAAP measure, see Schedule 6 for information about this measure.

Webcast Information

SAIC management will discuss operations and financial results in an earnings conference call beginning at 10 a.m. Eastern time on March 16, 2026. The conference call will be webcast simultaneously to the public through a link on the Investor Relations section of the SAIC website (http://investors.saic.com). We will be providing webcast access only – “dial-in” access is no longer available. Additionally, a supplemental presentation will be available to the public through links to the Investor Relations section of the SAIC website. After the call concludes, an on-demand audio replay of the webcast can be accessed on the Investor Relations website.

About SAIC

SAIC^® is a premier Fortune 500 mission integrator focused on advancing the power of technology and innovation to serve and protect our world. Our robust portfolio of offerings across the defense, space, civilian and intelligence markets includes secure high-end solutions in mission IT, enterprise IT, engineering services and professional services. We integrate emerging technology, rapidly and securely, into mission critical operations that modernize and enable critical national imperatives.

We are approximately 23,000 strong; driven by mission, united by purpose, and inspired by opportunities. Headquartered in Reston, Virginia, SAIC has annual revenues of approximately $7.3 billion.​​​​ For more information, visit saic.com. For ongoing news, please visit our newsroom.

Media Contact

Darryn James
Director, Media and Brand Reputation
publicrelations@saic.com 

Investor Relations Contact

Jon Raviv
Vice President, Investor Relations
investorrelations@saic.com 

GAAP to Non-GAAP Guidance Reconciliation

The Company does not provide a reconciliation of forward-looking adjusted diluted EPS to GAAP diluted EPS or adjusted EBITDA margin to GAAP net income due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliation. Because certain deductions for non-GAAP exclusions used to calculate net income may vary significantly based on actual events, the Company is not able to forecast GAAP diluted EPS or GAAP net income with reasonable certainty. The variability of the above charges may have an unpredictable and potentially significant impact on our future GAAP financial results.

Forward-Looking Statements

Certain statements in this release contain or are based on “forward-looking” information within the meaning of the Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by words such as “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “guidance,” and similar words or phrases. Forward-looking statements in this release may include, among others, estimates of future revenues, operating income, earnings, earnings per share, charges, total contract value, backlog, outstanding shares and cash flows, as well as statements about future dividends, share repurchases and other capital deployment plans. Such statements are not guarantees of future performance and involve risk, uncertainties and assumptions, and actual results may differ materially from the guidance and other forward-looking statements made in this release as a result of various factors. Risks, uncertainties and assumptions that could cause or contribute to these material differences include those discussed in the “Risk Factors,” “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Legal Proceedings” sections of our Annual Report on Form 10-K, as updated in any subsequent Quarterly Reports on Form 10-Q and other filings with the SEC, which may be viewed or obtained through the Investor Relations section of our website at www.saic.com or on the SEC’s website at www.sec.gov. Due to such risks, uncertainties and assumptions you are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date hereof. SAIC expressly disclaims any duty to update any forward-looking statement provided in this release to reflect subsequent events, actual results or changes in SAIC’s expectations. SAIC also disclaims any duty to comment upon or correct information that may be contained in reports published by investment analysts or others.

Schedule 1:

SCIENCE APPLICATIONS INTERNATIONAL CORPORATION CONDENSED AND CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
		Three Months Ended								Year Ended
		January 30, 2026				January 31, 2025				January 30, 2026				January 31, 2025
		(in millions, except per share amounts)
Revenues		$	1,750			$	1,838			$	7,262			$	7,479
Cost of revenues			1,529				1,606				6,390				6,587
Selling, general and administrative expenses			85				94				350				339
Other operating (income) expense			3				—				1				(10	)
Operating income			133				138				521				563
Interest expense, net			34				29				128				126
Other (income) expense, net			—				2				6				9
Income before income taxes			99				107				387				428
Provision for income taxes			(14	)			(9	)			(29	)			(66	)
Net income		$	85			$	98			$	358			$	362
Weighted-average number of shares outstanding:
Basic			45.0				48.6				46.3				50.1
Diluted			45.4				49.0				46.5				50.5
Earnings per share:
Basic		$	1.89			$	2.02			$	7.73			$	7.23
Diluted		$	1.87			$	2.00			$	7.70			$	7.17

Schedule 2:

SCIENCE APPLICATIONS INTERNATIONAL CORPORATION CONDENSED AND CONSOLIDATED BALANCE SHEETS (Unaudited)
	January 30, 2026			January 31, 2025
	(in millions)
ASSETS
Current assets:
Cash and cash equivalents	$	182		$	56
Receivables, net		853			1,000
Prepaid expenses		122			78
Other current assets		22			20
Total current assets		1,179			1,154
Goodwill		2,944			2,851
Intangible assets, net		761			779
Property, plant, and equipment, net		110			104
Operating lease right of use assets		193			164
Other assets		167			194
Total assets	$	5,354		$	5,246
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	500		$	631
Accrued payroll and other employee benefits		201			219
Accrued vacation		115			120
Other accrued liabilities		147			113
Debt, current portion		19			313
Total current liabilities		982			1,396
Debt, net of current portion		2,468			1,907
Operating lease liabilities		198			173
Deferred income taxes		104			24
Other long-term liabilities		102			169
Equity:
Total stockholders' equity		1,500			1,577
Total liabilities and stockholders' equity	$	5,354		$	5,246

Schedule 3:

SCIENCE APPLICATIONS INTERNATIONAL CORPORATION CONDENSED AND CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
	Three Months Ended								Year Ended
	January 30, 2026				January 31, 2025				January 30, 2026				January 31, 2025
	(in millions)
Cash flows from operating activities:
Net income	$	85			$	98			$	358			$	362
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		40				36				149				140
Deferred income taxes		(20	)			12				81				(3	)
Stock-based compensation expense		13				15				64				53
Other		5				2				1				(7	)
Increase (decrease) resulting from changes in operating assets and liabilities, net of the effect of the acquisitions and divestitures:
Receivables		192				22				161				(86	)
Prepaid expenses and other current assets		24				(7	)			(44	)			24
Accounts payable and other accrued liabilities		(79	)			(71	)			(101	)			48
Accrued payroll and employee benefits		8				28				(28	)			(31	)
Operating lease assets and liabilities, net		3				1				(2	)			(6	)
Other assets and other long-term liabilities, net		(13	)			(21	)			(30	)			—
Net cash provided by operating activities		258				115				609				494
Cash flows from investing activities:
Cash paid for acquisition, net of cash acquired		—				—				(203	)			—
Expenditures for property, plant, and equipment		(8	)			(15	)			(32	)			(36	)
Contributions to investments		(1	)			(4	)			(11	)			(7	)
Purchases of marketable securities		(4	)			(3	)			(9	)			(14	)
Sales of marketable securities		2				2				7				12
Proceeds from sale of equity method investments		—				—				—				10
Net cash used in investing activities		(11	)			(20	)			(248	)			(35	)
Cash flows from financing activities:
Proceeds from borrowings		—				385				2,745				1,499
Principal payments on borrowings		(1	)			(325	)			(2,474	)			(1,381	)
Stock repurchased and retired or withheld for taxes on equity awards		(98	)			(133	)			(445	)			(558	)
Dividend payments to stockholders		(17	)			(18	)			(70	)			(75	)
Issuances of stock		6				6				22				20
Debt issuance costs		—				—				(9	)			—
Other		—				—				(4	)			(3	)
Net cash used in financing activities		(110	)			(85	)			(235	)			(498	)
Net increase (decrease) in cash, cash equivalents and restricted cash		137				10				126				(39	)
Cash, cash equivalents and restricted cash at beginning of period		53				54				64				103
Cash, cash equivalents and restricted cash at end of period	$	190			$	64			$	190			$	64

Schedule 4:

SCIENCE APPLICATIONS INTERNATIONAL CORPORATION SEGMENT OPERATING RESULTS (Unaudited)
	Three Months Ended								Year Ended
	January 30, 2026				January 31, 2025				January 30, 2026				January 31, 2025
	(dollars in millions)
Revenues
Defense and Intelligence	$	1,335			$	1,360			$	5,581			$	5,726
Civilian		415				478				1,681				1,753
Total revenues	$	1,750			$	1,838			$	7,262			$	7,479
Adjusted operating income (loss)
Defense and Intelligence	$	121			$	113			$	478			$	509
Civilian		60				75				228				216
Corporate		(2	)			(12	)			(4	)			(20	)
Total adjusted operating income	$	179			$	176			$	702			$	705
Adjusted operating margin
Defense and Intelligence		9.1	%			8.3	%			8.6	%			8.9	%
Civilian		14.5	%			15.7	%			13.6	%			12.3	%
Total adjusted operating margin		10.2	%			9.6	%			9.7	%			9.4	%

Defense and Intelligence Results

Revenues in the fourth quarter decreased $25 million or 2% compared to the same period in the prior year primarily due to ramp down in volume on existing contracts and contract completions, partially offset by new contracts and the acquisition of SilverEdge ($23 million).

Revenues in the fiscal year decreased $145 million or 3% compared to the prior year primarily due to contract completions and ramp down in volume on existing contracts, partially offset by new contracts. Revenues attributed to SilverEdge for the year ended January 30, 2026 were $27 million.

Adjusted operating income as a percentage of revenues in the fourth quarter increased compared to the same period in the prior year primarily due to timing and volume mix in the contract portfolio.

Adjusted operating income as a percentage of revenues in the fiscal year decreased from the prior year primarily due to contract completions and ramp down in volume on existing contracts and the favorable resolution of the AAV contract termination in the prior year ($13 million), partially offset by new contracts.

Civilian Results

Revenues in the fourth quarter decreased $63 million or 13% compared to the same period in the prior year primarily due to ramp down in volume on existing contracts and contract completions, partially offset by new contracts.

Revenues in the fiscal year decreased $72 million or 4% compared to the prior year primarily due to ramp down in volume on existing contracts and contract completions, partially offset by new contracts.

Adjusted operating income as a percentage of revenues in the fourth quarter decreased compared to the same period in the prior year primarily due to timing and volume mix in the contract portfolio.

Adjusted operating income as a percentage of revenues in the fiscal year increased compared to the prior year primarily due to improved profitability across the contract portfolio.

Corporate Results

Adjusted operating loss in the fourth quarter decreased $10 million compared to the same period in the prior year primarily due to lower selling, general and administrative expenses.

Adjusted operating loss in the fiscal year decreased $16 million compared to the prior year primarily due to recovery of costs from the settlement of a patent infringement matter and lower other selling, general and administrative expenses.

Schedule 5:

SCIENCE APPLICATIONS INTERNATIONAL CORPORATION
BACKLOG
(Unaudited)

The estimated value of our total backlog as of the dates presented was:

	January 30, 2026							January 31, 2025
	Defense and Intelligence		Civilian		Total SAIC			Defense and Intelligence		Civilian		Total SAIC
	(in millions)
Funded backlog	$	2,511	$	1,061	$	3,572		$	2,599	$	845	$	3,444
Negotiated unfunded backlog		15,869		3,181		19,050			15,341		3,072		18,413
Total backlog	$	18,380	$	4,242	$	22,622		$	17,940	$	3,917	$	21,857

Backlog represents the estimated amount of future revenues to be recognized under negotiated contracts and task orders as work is performed and excludes contract awards which have been protested by competitors until the protest is resolved in our favor. SAIC segregates backlog into two categories, funded backlog and negotiated unfunded backlog. Funded backlog for contracts with government agencies primarily represents contracts for which funding is appropriated less revenues previously recognized on these contracts, and does not include the unfunded portion of contracts where funding is incrementally appropriated or authorized by the U.S. government and other customers even though the contract may call for performance over a number of years. Funded backlog for contracts with non-government agencies represents the estimated value of contracts which may cover multiple future years under which SAIC is obligated to perform, less revenues previously recognized on these contracts. Negotiated unfunded backlog represents the estimated future revenues to be earned from negotiated contracts for which funding has not been appropriated or authorized, and unexercised priced contract options. Negotiated unfunded backlog does not include any estimate of future potential task orders expected to be awarded under indefinite delivery, indefinite quantity (IDIQ), U.S. General Services Administration (GSA) schedules or other master agreement contract vehicles, with the exception of certain IDIQ contracts where task orders are not competitively awarded and separately priced but instead are used as a funding mechanism, and where there is a basis for estimating future revenues and funding on future anticipated task orders.

Schedule 6:

SCIENCE APPLICATIONS INTERNATIONAL CORPORATION
NON-GAAP FINANCIAL MEASURES
(Unaudited)

This schedule describes the consolidated non-GAAP financial measures included in this earnings release. While we believe that these non-GAAP financial measures may be useful in evaluating our financial information, they should be considered as supplemental in nature and not as a substitute for financial information prepared in accordance with GAAP. Reconciliations, definitions, and how we believe these measures are useful to management and investors are provided below. Other companies may define similar measures differently.

Adjusted Operating Income

	Three Months Ended								Year Ended
	January 30, 2026				January 31, 2025				January 30, 2026				January 31, 2025
	(dollars in millions)
Revenues	$	1,750			$	1,838			$	7,262			$	7,479
Operating income	$	133			$	138			$	521			$	563
Operating income as a percentage of revenues		7.6	%			7.5	%			7.2	%			7.5	%
Depreciation of property, plant, and equipment		8				8				30				25
Amortization of intangible assets		32				28				119				115
Acquisition, integration, restructuring and impairment costs		11				4				16				6
Depreciation included in restructuring and impairment costs		(1	)			(1	)			(1	)			(1	)
Recovery of acquisition, integration, restructuring and impairment costs		(4	)			(1	)			(6	)			(3	)
Executive transition costs, net of recoveries		—				—				16				—
Costs related to the settlement of federal tax audits		—				—				7				—
Adjusted operating income(1)	$	179			$	176			$	702			$	705
Adjusted operating income as a percentage of revenues		10.2	%			9.6	%			9.7	%			9.4	%

Adjusted operating income is a performance measure that primarily excludes the impact of non-recurring transactions and activities that we do not consider to be indicative of our ongoing operating performance. Adjusted operating income is calculated by taking operating income and excluding depreciation and amortization, acquisition, integration, restructuring, and impairment costs, and any other material non-recurring costs. Acquisition, integration, restructuring and impairment costs represent costs incurred related to acquisitions, reorganizations, facilities optimization efforts, and impairments of long-lived assets, along with associated depreciation. Recovery of acquisition, integration, restructuring and impairment costs represents costs recovered through our indirect rates in accordance with Cost Accounting Standards. Depreciation of property, plant, and equipment relates to property, plant, and equipment specifically identifiable for each segment and Corporate. Adjusted operating income also excludes amortization of intangible assets because we do not have a history of significant acquisition activity, and therefore consider acquisitions to be a non-recurring activity, and the amount of an acquisition's purchase price allocated to intangible assets and the related amortization term are unique to each acquisition. Executive transition costs, net of recoveries, represent costs associated with the departure of our CEO and other executives in the third quarter of the fiscal year 2026, net of the portion recovered through our indirect rates in accordance with Cost Accounting Standards. Costs related to the settlement of federal tax audits represent costs related to the IRS audit settlement for fiscal years 2016 through 2019. We believe that adjusted operating income provides management and investors with useful information in assessing trends in our ongoing operating performance and may provide greater visibility in understanding our long-term financial performance.

⁽¹⁾Non-GAAP measure, see above for definition.

Schedule 6 (continued):

SCIENCE APPLICATIONS INTERNATIONAL CORPORATION
NON-GAAP FINANCIAL MEASURES
(Unaudited)

EBITDA and Adjusted EBITDA

	Three Months Ended								Year Ended
	January 30, 2026				January 31, 2025				January 30, 2026				January 31, 2025
	(dollars in millions)
Revenues	$	1,750			$	1,838			$	7,262			$	7,479
Net income	$	85			$	98			$	358			$	362
Interest expense, net and loss on sale of receivables		36				32				140				140
Provision for income taxes		14				9				29				66
Depreciation and amortization		40				36				149				140
EBITDA(1)		175				175				676				708
EBITDA as a percentage of revenues		10.0	%			9.5	%			9.3	%			9.5	%
Acquisition, integration, restructuring and impairment costs		11				4				16				6
Depreciation included in restructuring and impairment costs		(1	)			(1	)			(1	)			(1	)
Recovery of acquisition, integration, restructuring and impairment costs		(4	)			(1	)			(6	)			(3	)
Executive transition costs, net of recoveries		—				—				16				—
Costs related to the settlement of federal tax audits		—				—				7				—
Adjusted EBITDA(1)	$	181			$	177			$	708			$	710
Adjusted EBITDA as a percentage of revenues		10.3	%			9.6	%			9.7	%			9.5	%

The performance measure EBITDA is calculated by taking net income and excluding interest and loss on sale of receivables, provision for income taxes, and depreciation and amortization. Adjusted EBITDA is a performance measure that excludes the impact of non-recurring transactions and activities that we do not consider to be indicative of our ongoing operating performance. Adjusted EBITDA is calculated by taking EBITDA and excluding acquisition, integration, restructuring and impairment costs, and any other material non-recurring costs. Acquisition, integration, restructuring and impairment costs represent costs incurred related to acquisitions, reorganizations, facilities optimization efforts, and impairments of long-lived assets, along with associated depreciation. Recovery of acquisition, integration, restructuring and impairment costs represents costs recovered through our indirect rates in accordance with Cost Accounting Standards. Executive transition costs, net of recoveries, represent costs associated with the departure of our CEO and other executives in the third quarter of the fiscal year 2026, net of the portion recovered through our indirect rates in accordance with Cost Accounting Standards. Costs related to the settlement of federal tax audits represent costs related to the IRS audit settlement for fiscal years 2016 through 2019. We believe that EBITDA and adjusted EBITDA provide management and investors with useful information in assessing trends in our ongoing operating performance and may provide greater visibility in understanding the long-term financial performance of our Company.

⁽¹⁾Non-GAAP measure, see above for definition.

Schedule 6 (continued):

SCIENCE APPLICATIONS INTERNATIONAL CORPORATION
NON-GAAP FINANCIAL MEASURES
(Unaudited)

Adjusted Diluted Earnings Per Share

	Three Months Ended January 30, 2026
	As Reported				Amortization of intangible assets				Acquisition, integration, restructuring and impairment costs				Recovery of acquisition, integration, restructuring and impairment costs				Non-GAAP results(1)
	(in millions, except per share amounts)
Income before income taxes	$	99			$	32			$	11			$	(4	)		$	138
Income tax expense		(14	)			(5	)			(1	)			1				(19	)
Net income	$	85			$	27			$	10			$	(3	)		$	119
Diluted EPS	$	1.87			$	0.60			$	0.22			$	(0.07	)		$	2.62

	Three Months Ended January 31, 2025
	As Reported				Amortization of intangible assets				Acquisition, integration, restructuring and impairment costs				Recovery of acquisition, integration, restructuring and impairment costs				Non-GAAP results(1)
	(in millions, except per share amounts)
Income before income taxes	$	107			$	28			$	4			$	(1	)		$	138
Income tax expense		(9	)			(2	)			(1	)			—				(12	)
Net Income	$	98			$	26			$	3			$	(1	)		$	126
Diluted EPS	$	2.00			$	0.53			$	0.06			$	(0.02	)		$	2.57

Adjusted diluted earnings per share is a performance measure that excludes the impact of non-recurring transactions that we do not consider to be indicative of our ongoing operating performance. Adjusted diluted earnings per share is calculated by taking diluted earnings per share and excluding amortization of intangible assets, acquisition, integration, restructuring, and impairment costs, and any other material non-recurring costs. Acquisition, integration, restructuring and impairment costs represent costs incurred related to acquisitions, reorganizations, facilities optimization efforts, and impairments of long-lived assets, along with associated depreciation. Recovery of acquisition, integration, restructuring and impairment costs represents costs recovered through our indirect rates in accordance with Cost Accounting Standards. Adjusted diluted earnings per share also excludes amortization of intangible assets because we do not have a history of significant acquisition activity, we do not acquire businesses on a predictable cycle, and the amount of an acquisition's purchase price allocated to intangible assets and the related amortization term are unique to each acquisition. We believe that adjusted diluted earnings per share provides management and investors with useful information in assessing trends in our ongoing operating performance and may provide greater visibility in understanding the long-term financial performance of the Company.

⁽¹⁾Non-GAAP measure, see above for definition.

Schedule 6 (continued):

SCIENCE APPLICATIONS INTERNATIONAL CORPORATION
NON-GAAP FINANCIAL MEASURES
(Unaudited)

Adjusted Diluted Earnings Per Share

	Year Ended January 30, 2026
	As Reported				Amortization of intangible assets				Acquisition, integration, restructuring and impairment costs				Recovery of acquisition, integration, restructuring and impairment costs				Executive transition costs, net of recoveries			Costs related to the settlement of federal tax audits			Non-GAAP results(1)
	(in millions, except per share amounts)
Income before income taxes	$	387			$	119			$	16			$	(6	)		$	16		$	7		$	539
Income tax expense		(29	)			(10	)			(1	)			1				—			—			(39	)
Net income	$	358			$	109			$	15			$	(5	)		$	16		$	7		$	500
Diluted EPS	$	7.70			$	2.34			$	0.33			$	(0.11	)		$	0.34		$	0.15		$	10.75

	Year Ended January 31, 2025
	As Reported				Amortization of intangible assets				Acquisition, integration, restructuring and impairment costs				Recovery of acquisition, integration, restructuring and impairment costs				Non-GAAP results(1)
	(in millions, except per share amounts)
Income before income taxes	$	428			$	115			$	6			$	(3	)		$	546
Income tax expense		(66	)			(18	)			(1	)			—				(85	)
Net Income	$	362			$	97			$	5			$	(3	)		$	461
Diluted EPS	$	7.17			$	1.92			$	0.10			$	(0.06	)		$	9.13

Adjusted diluted earnings per share is a performance measure that excludes the impact of non-recurring transactions that we do not consider to be indicative of our ongoing operating performance. Adjusted diluted earnings per share is calculated by taking diluted earnings per share and excluding amortization of intangible assets, acquisition, integration, restructuring, and impairment costs, and any other material non-recurring costs. Acquisition, integration, restructuring and impairment costs represent costs incurred related to acquisitions, reorganizations, facilities optimization efforts, and impairments of long-lived assets, along with associated depreciation. Recovery of acquisition, integration, restructuring and impairment costs represents costs recovered through our indirect rates in accordance with Cost Accounting Standards. Adjusted diluted earnings per share also excludes amortization of intangible assets because we do not have a history of significant acquisition activity, we do not acquire businesses on a predictable cycle, and the amount of an acquisition's purchase price allocated to intangible assets and the related amortization term are unique to each acquisition. Executive transition costs, net of recoveries, represent costs associated with the departure of our CEO and other executives in the third quarter of the fiscal year 2026, net of the portion recovered through our indirect rates in accordance with Cost Accounting Standards. Costs related to the settlement of federal tax audits represent costs related to the IRS audit settlement for fiscal years 2016 through 2019. We believe that adjusted diluted earnings per share provides management and investors with useful information in assessing trends in our ongoing operating performance and may provide greater visibility in understanding the long-term financial performance of the Company.

⁽¹⁾Non-GAAP measure, see above for definition.

Schedule 6 (continued):

SCIENCE APPLICATIONS INTERNATIONAL CORPORATION
NON-GAAP FINANCIAL MEASURES
(Unaudited)

Free Cash Flow

	Three Months Ended								Year Ended
	January 30, 2026				January 31, 2025				January 30, 2026				January 31, 2025
	(in millions)
Net cash provided by operating activities	$	258			$	115			$	609			$	494
Expenditures for property, plant, and equipment		(8	)			(15	)			(32	)			(36	)
Cash used from (provided by) MARPA Facility		86				136				—				41
Free cash flow(1)	$	336			$	236			$	577			$	499

	FY27 Guidance
	(in millions)
Net cash provided by operating activities	>$635M
Expenditures for property, plant, and equipment	Approximately $35M
Free cash flow(1)	>$600M

Free cash flow is calculated by taking cash flows provided by operating activities less expenditures for property, plant, and equipment and less cash flows from our Master Accounts Receivable Purchasing Agreement (MARPA Facility) for the sale of certain designated eligible U.S. government receivables. Under the MARPA Facility, the Company can sell eligible receivables up to a maximum amount of $300 million. We believe that free cash flow provides management and investors with useful information in assessing trends in our cash flows and in comparing them to other peer companies, many of whom present similar non-GAAP liquidity measures. These measures should not be considered as a measure of residual cash flow available for discretionary purposes.

⁽¹⁾Non-GAAP measure, see above for definition.

FAQ

What were SAIC's key Q4 FY26 financial results (SAIC)?

SAIC reported Q4 FY26 revenue of $1.75B and net income of $85M. According to SAIC, adjusted EBITDA for the quarter was $181M (10.3% of revenue) and adjusted diluted EPS was $2.62.

How did SAIC perform for full fiscal year 2026 (SAIC)?

SAIC delivered FY26 revenue of $7.26B and net income of $358M. According to SAIC, adjusted EBITDA totaled $708M (9.7% margin) and adjusted diluted EPS was $10.75 for the year.

What guidance did SAIC give for fiscal year 2027 (SAIC)?

SAIC guided FY27 revenue of $7.0B–$7.2B and adjusted diluted EPS of $9.50–$9.70. According to SAIC, adjusted EBITDA guidance is $705M–$715M and free cash flow is targeted >$600M.

What did SAIC report about cash flow and capital deployment in FY26 (SAIC)?

SAIC reported FY26 operating cash flow of $609M and free cash flow of $577M. According to SAIC, capital deployment included $422M of share repurchases and $70M of cash dividends in FY26.

What backlog and bookings figures did SAIC disclose for FY26 (SAIC)?

SAIC ended FY26 with estimated backlog of $22.6B, of which $3.6B was funded. According to SAIC, net bookings were $0.6B in Q4 (book-to-bill ~0.3) and $7.8B for the year (TTM book-to-bill ~1.1).