SAIC Announces Preliminary Unaudited Fourth Quarter and Full Fiscal Year 2026 Financial Results and Updated Fiscal Year 2027 Guidance
Rhea-AI Summary
Science Applications International Corp (NASDAQ: SAIC) reported preliminary unaudited Q4 FY26 and full-year FY26 results and updated FY27 guidance due to procurement delays and unfavorable recompete awards. FY26 revenue is ~$7.26B with adjusted EPS $10.40–$10.60 and free cash flow $570M–$575M. FY27 revenue guidance was lowered to $7.0B–$7.2B with organic decline expected and margins modestly higher.
Positive
- Adjusted diluted EPS raised to $10.40–$10.60 for FY26
- FY26 free cash flow of $570M–$575M exceeds prior target
- Adjusted EBITDA margin improved to ~9.7% for FY26
Negative
- FY27 revenue guidance lowered to $7.0B–$7.2B from $7.35B–$7.55B
- Organic revenue decline expected in FY27 of (4%)–(2%)
- Recent procurement delays and two unfavorable recompete awards reduced near-term revenue outlook
News Market Reaction
On the day this news was published, SAIC declined 16.03%, reflecting a significant negative market reaction. Argus tracked a trough of -13.6% from its starting point during tracking. Our momentum scanner triggered 145 alerts that day, indicating very high trading interest and price volatility. This price movement removed approximately $844M from the company's valuation, bringing the market cap to $4.42B at that time. Trading volume was very high at 3.4x the daily average, suggesting heavy selling pressure.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
Peer moves are mixed and modest (e.g., PSN +0.49%, APLD -0.48%, PONY -0.61%), suggesting this earnings and guidance update is more stock-specific than sector-driven.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Dec 04 | Q3 FY26 earnings | Positive | +15.9% | Stronger Q3 results with higher FY26 adjusted EBITDA and EPS guidance. |
| Sep 04 | Q2 FY26 earnings | Negative | -6.9% | Revenue decline and reduced FY26 revenue outlook despite higher EPS guidance. |
| Jun 02 | Q1 FY26 earnings | Neutral | -13.3% | Modest revenue growth with mixed profit metrics and reaffirmed FY26 guidance. |
| Mar 17 | FY25 results | Positive | +7.2% | Strong FY25 organic growth, solid margins, and sizable backlog position. |
| Dec 05 | Q3 FY25 earnings | Positive | -2.5% | Strong Q3 FY25 growth and margin performance with increased FY25 guidance. |
Earnings releases often trigger meaningful moves for SAIC, with a mix of strong positive reactions and sharp selloffs, indicating investor sensitivity to guidance and margin trends.
Over the past year, SAIC’s earnings updates have shown shifting revenue trends but resilient profitability. Q1–Q2 FY26 featured revenue pressure and lowered full-year revenue guidance, while Q3 FY26 delivered stronger results and raised outlook for adjusted EBITDA and EPS. FY25 results highlighted solid organic growth and margins. Today’s preliminary FY26 figures and reduced FY27 revenue guidance extend this pattern of top-line headwinds offset by operational efficiency and margin focus, building on earlier commentary about shutdowns, delays, and contract mix.
Historical Comparison
In the past five earnings events, SAIC’s average move was about 7%, with both sharp rallies and selloffs, showing that guidance changes and margin shifts have been key drivers.
Earnings updates from late FY2025 into FY2026 show a shift from solid growth and backlog strength toward managing revenue headwinds, while maintaining or improving adjusted EBITDA margins and EPS guidance.
Market Pulse Summary
The stock dropped -16.0% in the session following this news. A negative reaction despite better-than-expected FY26 profitability would fit past episodes where guidance cuts dominated sentiment. Prior earnings saw both rallies and sharp declines, including moves of -6.91% and -13.26%. The lowered FY27 revenue and organic growth outlook, tied to recompete losses and market conditions, could reinforce a focus on top-line risk even as margins and free cash flow guidance improve.
Key Terms
adjusted ebitda financial
organic growth financial
adjusted diluted eps financial
free cash flow financial
non-gaap financial
master accounts receivable purchasing agreement financial
AI-generated analysis. Not financial advice.
RESTON, Va., Feb. 11, 2026 (GLOBE NEWSWIRE) -- Science Applications International Corp. (NASDAQ: SAIC), a leading mission integrator supporting defense, space, intelligence and civilian agencies, today announced unaudited preliminary financial results for the fiscal fourth quarter and full fiscal year 2026 and updated its financial guidance for fiscal year 2027. The Company’s announcement of unaudited preliminary financial results and updated guidance was primarily due to recent procurement delays and unfavorable customer award decisions. These items will result in a reduction to expected fiscal year 2026 and 2027 revenue compared to prior guidance.
"While recent dynamics pressure our near-term revenue outlook, we continue to invest to ensure that our solutions directly support what is most impactful to national security and to broader government transformation. We are also improving every stage of our business development and delivery processes by investing in our people, processes, and tools. This includes a bottoms-up enterprise transformation program to increase our investment capacity. I’m confident these efforts will generate more sustained, profitable growth in the coming years,” said Jim Reagan, SAIC’s Interim Chief Executive Officer.
“The revenue pressures we have seen recently are disproportionately within our portfolio of larger and commoditized Enterprise IT programs. Going forward, we will be more selective by focusing on customer opportunities with the potential for technology transformation and execution upside. We’re confident in our ability to return to growth with solid double-digit margins over time. We look forward to discussing these efforts in greater detail on our fourth quarter earnings call in March,” said Prabu Natarajan, SAIC’s Chief Financial Officer. Mr. Natarajan will provide further comments on these dynamics in a presentation at the TD Cowen Aerospace & Defense Conference on February 11 at 4:20 PM ET. The webcast and associated materials can be accessed in the events section of SAIC’s investor relations website.
Preliminary Q4 FY26 and FY26 results
The table below summarizes the company’s current expectations for the full year 2026 financial results for certain key metrics. Revenue results are modestly below prior expectations due to the 2025 government shutdown, adverse weather, and procurement delays. Adjusted EBITDA(1), adjusted EBITDA %(1), adjusted diluted EPS(1), and free cash flow(1) are above prior expectations due to strong execution, improved operational efficiency, and a lower tax rate.
| PRELIMINARY | PRELIMINARY | PRIOR Fiscal Year | |
| Q4 FY26 Results | FY26 Results | 2026 Guidance | |
| Revenue | ~ | ~ | |
| Organic Growth | ~( | ~( | ( |
| Adjusted EBITDA(1) | ~ | ~ | ~ |
| Adjusted EBITDA Margin %(1) | ~ | ~ | ~ |
| Adjusted Diluted EPS(1) | |||
| Free Cash Flow(1) | > |
(1)Non-GAAP measure, please refer below for information about this measure.
Revised FY27 guidance
In addition, the company is updating its financial guidance for fiscal year 2027 which is reflected in the table below. As a result of two recent unfavorable recompete award decisions and unchanged market conditions, the company now expects fiscal year 2027 revenue to organically decline, compared to previous guidance of modest growth. Margin is expected to be higher than the previous guidance due to improved operational efficiency and mix. Adjusted EBITDA(1) is now expected to be lower due to the impact of lower revenue, partially offset by higher margin.
| CURRENT Fiscal Year | PRIOR Fiscal Year | |||
| 2027 Guidance | 2027 Targets | |||
| Revenue | ||||
| Organic Growth | ( | |||
| Adjusted EBITDA(1) | ||||
| Adjusted EBITDA Margin %(1) | ||||
| Free Cash Flow(1) | > | > |
(1)Non-GAAP measure, please refer below for information about this measure.
The company expects to report its full fourth quarter and fiscal year 2026 results before the market opens on March 16, 2026, and will host a conference call and webcast to discuss the earnings release at 10:00 a.m. Eastern Time.
Non-GAAP Financial Measures
Adjusted EBITDA is a performance measure that is calculated by taking net income and excluding interest and loss on sale of receivables, provision for income taxes, depreciation and amortization, acquisition, integration, restructuring and impairment costs, and any other material non-recurring costs.
Adjusted Diluted Earnings Per Share ("EPS") is a performance measure that is calculated by taking EPS and excluding the impact of non-recurring transactions and activities that we do not consider to be indicative of our ongoing operating performance.
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.
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 customers 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 24,000 strong; driven by mission, united by purpose, and inspired by opportunities. Headquartered in Reston, Virginia, SAIC has annual revenues of approximately
Media Contact
Darryn James
Director, Media and Brand Reputation
(202) 492-7834
publicrelations@saic.com
Investor Relations Contact
Jon Raviv
Vice President, Investor Relations
(703) 676-4432
investorrelations@saic.com
Forward-Looking Statements
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 saic.com or on the SEC’s website at 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.
FAQ
What preliminary FY26 revenue and EPS did SAIC (NASDAQ: SAIC) report on Feb 11, 2026?
How did SAIC update its fiscal year 2027 revenue guidance on Feb 11, 2026?
What did SAIC say about margins and adjusted EBITDA for FY27 after the update?
When will SAIC report final Q4 and FY26 results and host its earnings call?
