SAIC Announces Second Quarter of Fiscal Year 2026 Results
SAIC (NASDAQ: SAIC) reported Q2 FY2026 results with revenues of $1.77 billion, representing a 3% year-over-year decline. Despite lower revenues, the company achieved improved profitability with net income of $127 million (up 57%) and adjusted EBITDA margin of 10.5%. Net bookings were strong at $2.6 billion with a book-to-bill ratio of 1.5.
The company secured several major contract wins, including a $928 million U.S. Air Force HOPE 2.0 contract and a $728 million Treasury Department cloud services task order. However, due to slower on-contract growth and delayed new business awards, SAIC lowered its FY2026 revenue guidance to $7.25-7.33 billion from $7.60-7.75 billion, while increasing its adjusted EPS guidance to $9.40-9.60.
SAIC (NASDAQ: SAIC) ha comunicato i risultati del secondo trimestre dell'esercizio fiscale 2026 con ricavi pari a $1,77 miliardi, in calo del 3% rispetto all'anno precedente. Nonostante la riduzione dei ricavi, la società ha migliorato la redditività registrando un utile netto di $127 milioni (in aumento del 57%) e un margine EBITDA rettificato del 10,5%. Le prenotazioni nette sono risultate solide, a $2,6 miliardi, con un rapporto book-to-bill di 1,5.
Tra le vittorie contrattuali più rilevanti figurano un contratto HOPE 2.0 da $928 milioni con l'US Air Force e un task order da $728 milioni per servizi cloud del Dipartimento del Tesoro. Tuttavia, a causa di una crescita on-contract più lenta e dei ritardi nell'avvio di nuovi contratti, SAIC ha rivisto al ribasso la guidance sui ricavi FY2026 a $7,25-7,33 miliardi (da $7,60-7,75 miliardi), aggiornando invece al rialzo la guidance sull'EPS rettificato a $9,40-9,60.
SAIC (NASDAQ: SAIC) informó resultados del segundo trimestre del ejercicio fiscal 2026 con ingresos de $1,77 mil millones, lo que supone una caída interanual del 3%. A pesar de los ingresos más bajos, la compañía mejoró su rentabilidad con un beneficio neto de $127 millones (un aumento del 57%) y un margen EBITDA ajustado del 10,5%. Las reservas netas fueron sólidas, por $2,6 mil millones, con una relación book-to-bill de 1,5.
La empresa consiguió varios contratos importantes, entre ellos un contrato HOPE 2.0 de $928 millones con la Fuerza Aérea de EE. UU. y una orden de trabajo por $728 millones para servicios en la nube del Departamento del Tesoro. No obstante, debido a un crecimiento on-contract más lento y a demoras en la adjudicación de nuevos negocios, SAIC redujo su previsión de ingresos para FY2026 a $7,25-7,33 mil millones desde $7,60-7,75 mil millones, mientras aumentó su previsión de EPS ajustado a $9,40-9,60.
SAIC (NASDAQ: SAIC)는 2026 회계연도 2분기 실적을 발표하며 매출액이 $17.7억으로 전년 동기 대비 3% 감소했다고 밝혔습니다. 매출은 줄었지만 회사는 수익성이 개선되어 순이익 $1.27억(57% 증가)과 조정 EBITDA 마진 10.5%를 기록했습니다. 순 수주액은 $26억으로 견조했으며 북투빌(book-to-bill) 비율은 1.5였습니다.
주요 수주로는 미 공군 HOPE 2.0 계약 $9.28억과 재무부 클라우드 서비스 과업지시서 $7.28억 등이 포함됩니다. 다만 온컨트랙트 성장 둔화 및 신규 사업 수주 지연으로 SAIC는 FY2026 매출 가이던스를 기존 $7.60-7.75억에서 $7.25-7.33억으로 하향 조정했고, 조정 주당순이익(EPS) 가이던스는 $9.40-9.60으로 상향 조정했습니다.
SAIC (NASDAQ: SAIC) a publié ses résultats du 2e trimestre de l'exercice 2026 avec des revenus de 1,77 milliard $, en baisse de 3% en glissement annuel. Malgré ce recul du chiffre d'affaires, la société a amélioré sa rentabilité en réalisant un bénéfice net de 127 millions $ (en hausse de 57%) et une marge EBITDA ajustée de 10,5%. Les commandes nettes ont été solides, à 2,6 milliards $, avec un ratio book-to-bill de 1,5.
Parmi les gains de contrats majeurs figurent un contrat HOPE 2.0 de 928 millions $ avec l'US Air Force et un bon de commande de 728 millions $ pour des services cloud du Trésor. Cependant, en raison d'une croissance on-contract plus lente et de retards dans l'attribution de nouveaux marchés, SAIC a abaissé sa guidance de revenus FY2026 à 7,25-7,33 milliards $ (contre 7,60-7,75 milliards $), tout en relevant sa guidance d'EPS ajusté à 9,40-9,60 $.
SAIC (NASDAQ: SAIC) meldete die Ergebnisse für das zweite Quartal des Geschäftsjahres 2026: der Umsatz belief sich auf $1,77 Milliarden, ein Rückgang von 3% gegenüber dem Vorjahr. Trotz geringerer Umsätze verbesserte das Unternehmen seine Profitabilität und erzielte ein Nettoergebnis von $127 Millionen (plus 57%) sowie eine bereinigte EBITDA-Marge von 10,5%. Die Nettobuchungen waren mit $2,6 Milliarden stark, das Book-to-Bill-Verhältnis lag bei 1,5.
Zu den bedeutenden Auftragsgewinnen zählen ein $928-Millionen HOPE-2.0-Vertrag mit der US Air Force sowie ein $728-Millionen-Task-Order für Cloud-Dienste des Finanzministeriums. Aufgrund langsamerem On-Contract-Wachstum und Verzögerungen bei Neuausweisungen senkte SAIC jedoch die Umsatzprognose für FY2026 auf $7,25-7,33 Milliarden (vorher $7,60-7,75 Milliarden) und hob gleichzeitig die bereinigte EPS-Prognose auf $9,40-9,60 an.
- Net income increased 57% year-over-year to $127 million
- Strong bookings of $2.6 billion with book-to-bill ratio of 1.5
- Adjusted EBITDA margin improved to 10.5% from 9.4% year-over-year
- Secured multiple large contract wins including $928M Air Force and $728M Treasury deals
- Increased FY2026 adjusted EPS guidance to $9.40-9.60 from $9.10-9.30
- Raised free cash flow guidance to >$550M from $510M-530M
- Revenue declined 3% year-over-year to $1.77 billion
- Lowered FY2026 revenue guidance by ~$400M to $7.25-7.33B
- Reduced FY2026 adjusted EBITDA guidance to $680-690M from $715-735M
- Experiencing delays in new business awards and program ramps
- Operating cash flow decreased 12% year-over-year to $122 million
Insights
SAIC reported mixed Q2 results with revenue contraction but improved profitability; management lowered revenue guidance while raising EPS and cash flow expectations.
SAIC's Q2 FY2026 results reveal a 3% year-over-year revenue decline to
The book-to-bill ratio of 1.5 for the quarter and 1.4 year-to-date points to healthy future revenue potential, with significant contract wins including a
Management's revised guidance reflects current market realities – lowering revenue expectations to
The company continues to return capital to shareholders through
- Revenues of
$1.77 billion ; approximately (3)% revenue contraction
- Net bookings of
$2.6 billion ; book-to-bill ratio of 1.5, trailing twelve months book-to-bill ratio of 1.0 - Year-to-date net bookings of
$5.0 billion ; year-to-date book-to-bill ratio of 1.4 - Net income of
$127 million ; Adjusted EBITDA(1) of$185 million or10.5% of revenues - Diluted earnings per share of
$2.71 ; Adjusted diluted earnings per share(1) of$3.63 - Cash flows provided by operating activities of
$122 million ; Free cash flow(1) of$150 million - Management lowers revenue and adjusted EBITDA(1) guidance and increases free cash flow(1) and adjusted diluted earnings per share(1) guidance
RESTON, Va., Sept. 04, 2025 (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 second quarter ended August 1, 2025.
"Our second quarter results reflect strong program performance, and our bookings reflect further momentum in our business development efforts; however, slower on-contract growth and continued delays in new business awards and new program ramps are contributing to a more challenging revenue environment than previously forecasted,” said Toni Townes-Whitley, SAIC Chief Executive Officer. “We are responding purposefully by aligning our cost structure while sustaining key investments to drive long-term value creation. Our revised guidance assumes that the operating environment remains stable but does not improve this year. We believe that this more cautious outlook is prudent, and we are confident in our ability to execute against it."
Second Quarter of Fiscal Year 2026: Summary Operating Results
| Three Months Ended | |||||||
| August 1, 2025 | Percent change | August 2, 2024 | |||||
| (dollars in millions, except per share amounts) | |||||||
| Revenues | $ | 1,769 | (3)% | $ | 1,818 | ||
| Operating income | 139 | 134 | |||||
| Operating income as a percentage of revenues | 7.9 | % | 50bps | 7.4 | % | ||
| Adjusted operating income(1) | 182 | 169 | |||||
| Adjusted operating income as a percentage of revenues | 10.3 | % | 100bps | 9.3 | % | ||
| Net income | 127 | 81 | |||||
| EBITDA(1) | 177 | 169 | |||||
| EBITDA as a percentage of revenues | 10.0 | % | 70bps | 9.3 | % | ||
| Adjusted EBITDA(1) | 185 | 170 | |||||
| Adjusted EBITDA as a percentage of revenues | 10.5 | % | 110bps | 9.4 | % | ||
| Diluted earnings per share | $ | 2.71 | $ | 1.58 | |||
| Adjusted diluted earnings per share(1) | $ | 3.63 | $ | 2.05 | |||
| Net cash provided by operating activities | $ | 122 | (12)% | $ | 138 | ||
| Free cash flow(1) | $ | 150 | (38)% | $ | 241 | ||
(1)Non-GAAP measure, see Schedule 6 for information about this measure.
Second Quarter Summary Results
Revenues for the quarter decreased
Operating income as a percentage of revenues for the quarter increased compared to the same period in the prior year primarily due to improved profitability across our contract portfolio and a recovery of costs from the settlement of a patent infringement matter, partially offset by costs related to the settlement of federal tax audits and the indirect rates impact of state taxes related to the One Big Beautiful Bill Act.
Adjusted EBITDA(1) as a percentage of revenues for the quarter increased to
Diluted earnings per share for the quarter was
(1)Non-GAAP measure, see Schedule 6 for information about this measure.
Cash Generation and Capital Deployment
Cash flows provided by operating activities for the second quarter decreased
During the quarter, SAIC deployed
Quarterly Dividend Declared
Subsequent to quarter end, the Company's Board of Directors declared a cash dividend of
Backlog and Contract Awards
Net bookings for the quarter and year were approximately
Notable New and Recompete Awards:
U.S. Air Force: During the quarter, SAIC was awarded the Hyper-Innovative Operational Prototype Engineering ("HOPE") 2.0 contract in support of the U.S. Air Force Tactical Exploitation of National Capabilities ("AF TENCAP"). This
Department of Treasury: During the quarter, SAIC was awarded a three-year (one-year base plus, two, one-year option periods)
U.S. Navy: During the quarter, SAIC was awarded a five year (one-year base, plus four, one-year options),
U.S. Department of State: During the quarter, SAIC was awarded a two-year, (1 year base plus four, three-month option periods)
U.S. Navy: During the quarter, SAIC was awarded a 5-year, approximately
Orange County, California: During the quarter, SAIC was awarded a
U.S. Navy: During the quarter, SAIC was awarded a Seaport Task Order to support Naval Surface Warfare Center Crane Mobility Platform Integration, with a total contract value of
U.S. Space and Intelligence Community: During the quarter, SAIC was awarded approximately
Fiscal Year 2026 Guidance
The table below summarizes fiscal year 2026 guidance and represents the Company's views as of September 4, 2025.
| CURRENT | PRIOR | |
| Fiscal Year | Fiscal Year | |
| 2026 Guidance | 2026 Guidance | |
| Revenue | ||
| Adjusted EBITDA(1) | ||
| Adjusted EBITDA Margin %(1) | ||
| Adjusted Diluted EPS(1) | ||
| Free Cash Flow(1) | > | |
(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 10:00 a.m. Eastern time on September 4, 2025. The conference call will be webcast simultaneously to the public through a link on the Investor Relations section of the SAIC website (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 24,000 strong; driven by mission, united by purpose, and inspired by opportunities. Headquartered in Reston, Virginia, SAIC has annual revenues of approximately
Contacts
Investor Relations: Joe DeNardi, joseph.w.denardi@saic.com
Media: Kara Ross, kara.g.ross@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, adjusted EBITDA margin to GAAP net income or free cash flow to GAAP net cash flows from operating activities 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 and cash flows from operating activities may vary significantly based on actual events, the Company is not able to forecast GAAP diluted EPS, GAAP net income or GAAP net cash flows from operating activities 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 CONSOLIDATED STATEMENTS OF INCOME (Unaudited) | |||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||
| August 1, 2025 | August 2, 2024 | August 1, 2025 | August 2, 2024 | ||||||||||||
| (in millions, except per share amounts) | |||||||||||||||
| Revenues | $ | 1,769 | $ | 1,818 | $ | 3,646 | $ | 3,665 | |||||||
| Cost of revenues | 1,554 | 1,608 | 3,222 | 3,242 | |||||||||||
| Selling, general and administrative expenses | 75 | 77 | 164 | 162 | |||||||||||
| Other operating (income) expense | 1 | (1 | ) | — | (4 | ) | |||||||||
| Operating income | 139 | 134 | 260 | 265 | |||||||||||
| Interest expense, net | 31 | 31 | 61 | 65 | |||||||||||
| Other (income) expense, net | — | 3 | 5 | 5 | |||||||||||
| Income before income taxes | 108 | 100 | 194 | 195 | |||||||||||
| Income tax (expense) benefit | 19 | (19 | ) | 1 | (37 | ) | |||||||||
| Net income | $ | 127 | $ | 81 | $ | 195 | $ | 158 | |||||||
| Weighted-average number of shares outstanding: | |||||||||||||||
| Basic | 46.7 | 50.9 | 47.1 | 51.3 | |||||||||||
| Diluted | 46.8 | 51.2 | 47.3 | 51.7 | |||||||||||
| Earnings per share: | |||||||||||||||
| Basic | $ | 2.72 | $ | 1.59 | $ | 4.14 | $ | 3.08 | |||||||
| Diluted | $ | 2.71 | $ | 1.58 | $ | 4.12 | $ | 3.06 | |||||||
Schedule 2:
| SCIENCE APPLICATIONS INTERNATIONAL CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) | |||||||
| August 1, 2025 | January 31, 2025 | ||||||
| (in millions) | |||||||
| ASSETS | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 48 | $ | 56 | |||
| Receivables, net | 951 | 1,000 | |||||
| Prepaid expenses | 175 | 78 | |||||
| Other current assets | 30 | 20 | |||||
| Total current assets | 1,204 | 1,154 | |||||
| Goodwill | 2,851 | 2,851 | |||||
| Intangible assets, net | 721 | 779 | |||||
| Property, plant, and equipment, net | 104 | 104 | |||||
| Operating lease right of use assets | 156 | 164 | |||||
| Other assets | 165 | 194 | |||||
| Total assets | $ | 5,201 | $ | 5,246 | |||
| LIABILITIES AND EQUITY | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 557 | $ | 631 | |||
| Accrued payroll and employee benefits | 336 | 339 | |||||
| Other accrued liabilities | 106 | 113 | |||||
| Debt, current portion | 448 | 313 | |||||
| Total current liabilities | 1,447 | 1,396 | |||||
| Debt, net of current portion | 1,844 | 1,907 | |||||
| Operating lease liabilities | 153 | 173 | |||||
| Deferred income taxes | 132 | 24 | |||||
| Other long-term liabilities | 108 | 169 | |||||
| Equity: | |||||||
| Total stockholders' equity | 1,517 | 1,577 | |||||
| Total liabilities and stockholders' equity | $ | 5,201 | $ | 5,246 | |||
Schedule 3:
| SCIENCE APPLICATIONS INTERNATIONAL CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) | |||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||
| August 1, 2025 | August 2, 2024 | August 1, 2025 | August 2, 2024 | ||||||||||||
| (in millions) | |||||||||||||||
| Cash flows from operating activities: | |||||||||||||||
| Net income | $ | 127 | $ | 81 | $ | 195 | $ | 158 | |||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||
| Depreciation and amortization | 35 | 34 | 71 | 69 | |||||||||||
| Stock-based compensation expense | 10 | 12 | 25 | 25 | |||||||||||
| Deferred income taxes | 110 | (8 | ) | 109 | (8 | ) | |||||||||
| Other | (1 | ) | (2 | ) | — | (3 | ) | ||||||||
| Increase (decrease) resulting from changes in operating assets and liabilities: | |||||||||||||||
| Receivables | 58 | (12 | ) | 49 | (32 | ) | |||||||||
| Prepaid expenses and other current assets | (113 | ) | (1 | ) | (107 | ) | 14 | ||||||||
| Accounts payable and other accrued liabilities | (117 | ) | (21 | ) | (84 | ) | 39 | ||||||||
| Accrued payroll and employee benefits | 48 | 51 | (3 | ) | (32 | ) | |||||||||
| Operating lease assets and liabilities, net | (2 | ) | (2 | ) | (4 | ) | (5 | ) | |||||||
| Other assets and other long-term liabilities, net | (33 | ) | 6 | (29 | ) | 11 | |||||||||
| Net cash provided by operating activities | 122 | 138 | 222 | 236 | |||||||||||
| Cash flows from investing activities: | |||||||||||||||
| Expenditures for property, plant, and equipment | (7 | ) | (6 | ) | (15 | ) | (12 | ) | |||||||
| Purchases of marketable securities | — | (4 | ) | (4 | ) | (8 | ) | ||||||||
| Sales of marketable securities | 1 | 2 | 4 | 6 | |||||||||||
| Contributions to investments | (1 | ) | (1 | ) | (7 | ) | (2 | ) | |||||||
| Net cash used in investing activities | (7 | ) | (9 | ) | (22 | ) | (16 | ) | |||||||
| Cash flows from financing activities: | |||||||||||||||
| Proceeds from borrowings | 557 | 380 | 1,307 | 673 | |||||||||||
| Principal payments on borrowings | (546 | ) | (296 | ) | (1,235 | ) | (606 | ) | |||||||
| Stock repurchased and retired or withheld for taxes on equity awards | (110 | ) | (201 | ) | (252 | ) | (304 | ) | |||||||
| Dividend payments to stockholders | (17 | ) | (19 | ) | (36 | ) | (39 | ) | |||||||
| Issuances of stock | 6 | 5 | 12 | 9 | |||||||||||
| Other | (4 | ) | — | (4 | ) | — | |||||||||
| Net cash used in financing activities | (114 | ) | (131 | ) | (208 | ) | (267 | ) | |||||||
| Net increase (decrease) in cash, cash equivalents and restricted cash | 1 | (2 | ) | (8 | ) | (47 | ) | ||||||||
| Cash, cash equivalents and restricted cash at beginning of period | 55 | 58 | 64 | 103 | |||||||||||
| Cash, cash equivalents and restricted cash at end of period | $ | 56 | $ | 56 | $ | 56 | $ | 56 | |||||||
Schedule 4:
| SCIENCE APPLICATIONS INTERNATIONAL CORPORATION SEGMENT OPERATING RESULTS (Unaudited) | |||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||
| August 1, 2025 | August 2, 2024 | August 1, 2025 | August 2, 2024 | ||||||||||||
| (dollars in millions) | |||||||||||||||
| Revenues | |||||||||||||||
| Defense and Intelligence | $ | 1,374 | $ | 1,415 | $ | 2,807 | $ | 2,851 | |||||||
| Civilian | 395 | 403 | 839 | 814 | |||||||||||
| Total revenues | $ | 1,769 | $ | 1,818 | $ | 3,646 | $ | 3,665 | |||||||
| Adjusted operating income (loss) | |||||||||||||||
| Defense and Intelligence | $ | 124 | $ | 124 | $ | 239 | $ | 248 | |||||||
| Civilian | 54 | 46 | 106 | 92 | |||||||||||
| Corporate | 4 | (1 | ) | (5 | ) | (6 | ) | ||||||||
| Total adjusted operating income | $ | 182 | $ | 169 | $ | 340 | $ | 334 | |||||||
| Adjusted operating margin | |||||||||||||||
| Defense and Intelligence | 9.0 | % | 8.8 | % | 8.5 | % | 8.7 | % | |||||||
| Civilian | 13.7 | % | 11.4 | % | 12.6 | % | 11.3 | % | |||||||
| Total adjusted operating margin | 10.3 | % | 9.3 | % | 9.3 | % | 9.1 | % | |||||||
Second Quarter Defense and Intelligence Results
Revenues for the quarter decreased
Adjusted operating income as a percentage of revenues increased compared to the same periods in the prior year primarily due to timing and volume mix in our contract portfolio.
Second Quarter Civilian Results
Revenues for the quarter decreased
Adjusted operating income as a percentage of revenues increased from the comparable prior year period due to improved profitability across our contract portfolio.
Second Quarter Corporate Results
Adjusted operating income was
Schedule 5:
SCIENCE APPLICATIONS INTERNATIONAL CORPORATION
BACKLOG
(Unaudited)
The estimated value of our total backlog as of the dates presented was:
| August 1, 2025 | January 31, 2025 | ||||||||||||||||||
| Defense and Intelligence | Civilian | Total SAIC | Defense and Intelligence | Civilian | Total SAIC | ||||||||||||||
| (in millions) | |||||||||||||||||||
| Funded backlog | $ | 2,646 | $ | 948 | $ | 3,594 | $ | 2,599 | $ | 845 | $ | 3,444 | |||||||
| Negotiated unfunded backlog | 15,994 | 3,584 | 19,578 | 15,341 | 3,072 | 18,413 | |||||||||||||
| Total backlog | $ | 18,640 | $ | 4,532 | $ | 23,172 | $ | 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 | Six Months Ended | ||||||||||||||
| August 1, 2025 | August 2, 2024 | August 1, 2025 | August 2, 2024 | ||||||||||||
| (dollars in millions) | |||||||||||||||
| Revenues | $ | 1,769 | $ | 1,818 | $ | 3,646 | $ | 3,665 | |||||||
| Operating income | $ | 139 | $ | 134 | $ | 260 | $ | 265 | |||||||
| Operating income as a percentage of revenues | 7.9 | % | 7.4 | % | 7.1 | % | 7.2 | % | |||||||
| Depreciation of property, plant and equipment | 6 | 5 | 13 | 11 | |||||||||||
| Amortization of intangible assets | 29 | 29 | 58 | 58 | |||||||||||
| Acquisition, integration, restructuring and impairment costs | 1 | 2 | 4 | 2 | |||||||||||
| Recovery of acquisition, integration, restructuring and impairment costs | — | (1 | ) | (2 | ) | (2 | ) | ||||||||
| Costs related to the settlement of federal tax audits | 7 | — | 7 | — | |||||||||||
| Adjusted operating income(1) | $ | 182 | $ | 169 | $ | 340 | $ | 334 | |||||||
| Adjusted operating income as a percentage of revenues | 10.3 | % | 9.3 | % | 9.3 | % | 9.1 | % | |||||||
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, the reorganization, 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. Adjusted operating income 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. 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 these performance measures 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 the Company.
(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 | Six Months Ended | ||||||||||||||
| August 1, 2025 | August 2, 2024 | August 1, 2025 | August 2, 2024 | ||||||||||||
| (dollars in millions) | |||||||||||||||
| Revenues | $ | 1,769 | $ | 1,818 | $ | 3,646 | $ | 3,665 | |||||||
| Net income | $ | 127 | $ | 81 | $ | 195 | $ | 158 | |||||||
| Interest expense, net and loss on sale of receivables | 34 | 35 | 68 | 72 | |||||||||||
| Income tax expense (benefit) | (19 | ) | 19 | (1 | ) | 37 | |||||||||
| Depreciation and amortization | 35 | 34 | 71 | 69 | |||||||||||
| EBITDA(1) | 177 | 169 | 333 | 336 | |||||||||||
| EBITDA as a percentage of revenues | 10.0 | % | 9.3 | % | 9.1 | % | 9.2 | % | |||||||
| Acquisition, integration, restructuring and impairment costs | 1 | 2 | 4 | 2 | |||||||||||
| Recovery of acquisition, integration, restructuring and impairment costs | — | (1 | ) | (2 | ) | (2 | ) | ||||||||
| Costs related to the settlement of federal tax audits | 7 | — | 7 | — | |||||||||||
| Adjusted EBITDA(1) | $ | 185 | $ | 170 | $ | 342 | $ | 336 | |||||||
| Adjusted EBITDA as a percentage of revenues | 10.5 | % | 9.4 | % | 9.4 | % | 9.2 | % | |||||||
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, 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, the reorganization, 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. 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 these performance measures 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 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
| Three Months Ended August 1, 2025 | |||||||||||||||||||
| (in millions, except per share amounts) | |||||||||||||||||||
| As Reported | Acquisition, integration, restructuring and impairment costs | Amortization of intangible assets | Costs related to the settlement of federal tax audits | Non-GAAP results(1) | |||||||||||||||
| Income before income taxes | $ | 108 | $ | 1 | $ | 29 | $ | 7 | $ | 145 | |||||||||
| Income tax (expense) benefit | 19 | — | 6 | — | 25 | ||||||||||||||
| Net income | $ | 127 | $ | 1 | $ | 35 | $ | 7 | $ | 170 | |||||||||
| Diluted EPS | $ | 2.71 | $ | 0.02 | $ | 0.75 | $ | 0.15 | $ | 3.63 | |||||||||
| Three Months Ended August 2, 2024 | |||||||||||||||||||
| (in millions, except per share amounts) | |||||||||||||||||||
| As Reported | Acquisition, integration, restructuring and impairment costs | Recovery of acquisition, integration, restructuring and impairment costs | Amortization of intangible assets | Non-GAAP results(1) | |||||||||||||||
| Income before income taxes | $ | 100 | $ | 2 | $ | (1 | ) | $ | 29 | $ | 130 | ||||||||
| Income tax (expense) benefit | (19 | ) | — | — | (6 | ) | (25 | ) | |||||||||||
| Net income | $ | 81 | $ | 2 | $ | (1 | ) | $ | 23 | $ | 105 | ||||||||
| Diluted EPS | $ | 1.58 | $ | 0.04 | $ | (0.02 | ) | $ | 0.45 | $ | 2.05 | ||||||||
Adjusted diluted earnings per share 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. Acquisition, integration, restructuring and impairment costs represent costs incurred related to acquisitions, the reorganization, 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. 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 this performance measure 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
| Six Months Ended August 1, 2025 | |||||||||||||||||||||||
| (in millions, except per share amounts) | |||||||||||||||||||||||
| As Reported | Acquisition, integration, restructuring and impairment costs | Recovery of acquisition, integration, restructuring and impairment costs | Amortization of intangible assets | Costs related to the settlement of federal tax audits | Non-GAAP results(1) | ||||||||||||||||||
| Income before income taxes | $ | 194 | $ | 4 | $ | (2 | ) | $ | 58 | $ | 7 | $ | 261 | ||||||||||
| Income tax (expense) benefit | 1 | — | — | — | — | 1 | |||||||||||||||||
| Net income | $ | 195 | $ | 4 | $ | (2 | ) | $ | 58 | $ | 7 | $ | 262 | ||||||||||
| Diluted EPS | $ | 4.12 | $ | 0.08 | $ | (0.04 | ) | $ | 1.23 | $ | 0.15 | $ | 5.54 | ||||||||||
| Six Months Ended August 2, 2024 | |||||||||||||||||||
| (in millions, except per share amounts) | |||||||||||||||||||
| As Reported | Acquisition, integration, restructuring and impairment costs | Recovery of acquisition, integration, restructuring and impairment costs | Amortization of intangible assets | Non-GAAP results(1) | |||||||||||||||
| Income before income taxes | $ | 195 | $ | 2 | $ | (2 | ) | $ | 58 | $ | 253 | ||||||||
| Income tax (expense) benefit | (37 | ) | — | — | (11 | ) | (48 | ) | |||||||||||
| Net income | $ | 158 | $ | 2 | $ | (2 | ) | $ | 47 | $ | 205 | ||||||||
| Diluted EPS | $ | 3.06 | $ | 0.04 | $ | (0.04 | ) | $ | 0.91 | $ | 3.97 | ||||||||
Adjusted diluted earnings per share 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. Acquisition, integration, restructuring and impairment costs represent costs incurred related to acquisitions, the reorganization, 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. 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 this performance measure 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 | Six Months Ended | ||||||||||||||
| August 1, 2025 | August 2, 2024 | August 1, 2025 | August 2, 2024 | ||||||||||||
| (in millions) | |||||||||||||||
| Net cash provided by operating activities | $ | 122 | $ | 138 | $ | 222 | $ | 236 | |||||||
| Expenditures for property, plant, and equipment | (7 | ) | (6 | ) | (15 | ) | (12 | ) | |||||||
| Cash used from (provided by) MARPA Facility | 35 | 109 | (101 | ) | 30 | ||||||||||
| Free cash flow(1) | $ | 150 | $ | 241 | $ | 106 | $ | 254 | |||||||
| CURRENT | PRIOR | ||
| FY26 Guidance | FY26 Guidance | ||
| (in millions) | |||
| Net cash provided by operating activities | > | ||
| Expenditures for property, plant, and equipment | Approximately | Approximately | |
| Free cash flow(1) | > | ||
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
(1)Non-GAAP measure, see above for definition.
FAQ
What were SAIC's Q2 2026 earnings results?
Why did SAIC lower its FY2026 revenue guidance?
What major contracts did SAIC win in Q2 2026?
What is SAIC's current backlog and book-to-bill ratio?
How much capital did SAIC return to shareholders in Q2 2026?
