SAIC Announces Third Quarter of Fiscal Year 2026 Results

Rhea-AI Summary

SAIC (NASDAQ: SAIC) reported third quarter fiscal 2026 results for the period ended October 31, 2025, with revenues of $1.87 billion, net income of $78 million, and adjusted EBITDA of $185 million (9.9% of revenues). The company reported net bookings of $2.2 billion for the quarter, a quarter book-to-bill of 1.2, and estimated backlog of $23.8 billion (≈$3.8 billion funded).

Management noted revenue headwinds including ~$16 million from the government shutdown and announced a preliminary acquisition (SilverEdge) for a $203 million purchase price. SAIC raised parts of its fiscal 2026 outlook: adjusted EBITDA ~ $695M and adjusted diluted EPS $9.80–$10.00. The Board declared a $0.37 per share quarterly dividend payable Jan 28, 2026.

Positive

• Net bookings of $2.2B in Q3
• Trailing twelve months book-to-bill ratio of 1.2
• Estimated backlog of $23.8B at quarter end
• Adjusted EBITDA guidance increased to approx. $695M
• Adjusted diluted EPS guidance raised to $9.80–$10.00
• Free cash flow in Q3 of $135M (vs $9M prior year)

Negative

• Revenues down 6% to $1.87B year-over-year
• Net income declined 26% to $78M in Q3
• Diluted EPS fell 21% to $1.69 in Q3
• Operating income down 20% to $128M year-over-year

Insights

Senior Financial Analyst

Results show mixed execution: revenue contraction and EPS decline, but strong bookings, cash flow, and raised guidance on key metrics.

SAIC reported $1.87B in quarterly revenues with net income of $78M and adjusted EBITDA of $185M (9.9% margin). The company delivered $2.2B in quarterly net bookings (book-to-bill 1.2) and estimated backlog of $23.8B, while deploying $94M to share repurchases and declaring a $0.37 quarterly dividend payable on January 28, 2026.

The business mechanism is clear: government services revenue dipped due to contract ramp-downs and a ~1 government shutdown headwind, yet new awards (notably multiple multi-year task orders totaling several hundred million dollars and a $1.4B Air Force COBRA task order) and healthy bookings support future revenue visibility. Free cash flow remained robust at $135M and full-year guidance was nudged up for adjusted EBITDA and adjusted EPS, which signals management confidence in near-term profitability.

Key dependencies and risks include the pace of contract ramp-ups, realization of booked awards into revenue, and the effects of executive transition costs noted in the period. Monitor quarterly conversion of backlog to revenue, the company’s use of the MARPA facility reflected in working capital, and the integration of the SilverEdge acquisition (preliminary purchase price $203M). Watch the next quarterly report and backlog conversion over the next 12 months for confirmation of the guidance upgrade.

• Revenues of $1.87 billion
• Net bookings of $2.2 billion; book-to-bill ratio and trailing twelve months book-to-bill ratio of 1.2
• Year-to-date net bookings of $7.2 billion; year-to-date book-to-bill ratio of 1.3
• Net income of $78 million; Adjusted EBITDA⁽¹⁾ of $185 million or 9.9% of revenues
• Diluted earnings per share of $1.69; Adjusted diluted earnings per share⁽¹⁾ of $2.58
• Cash flows provided by operating activities of $129 million; Free cash flow⁽¹⁾ of $135 million
• Company increases fiscal year 2026 guidance on certain key metrics

RESTON, Va., Dec. 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 third quarter ended October 31, 2025.

"Our third quarter results reflect a 5.6% revenue contraction, slightly ahead of our guidance when adjusting for the approximate 1% headwind from the government shutdown, and strong margins due to continued sound program execution,” said Jim Reagan, SAIC Interim Chief Executive Officer. “My priority as interim CEO is to focus the company for long-term shareholder value creation. We have already begun implementing the initial changes to fuel growth and drive margins higher while maintaining our capital allocation framework centered around our share repurchase program."

Third Quarter of Fiscal Year 2026: Summary Operating Results

	Three Months Ended
	October 31, 2025				Percent change			November 1, 2024
	(dollars in millions, except per share amounts)
Revenues	$	1,866			(6	)%		$	1,976
Operating income		128			(20	)%			160
Operating income as a percentage of revenues		6.9	%		-120bps				8.1	%
Adjusted operating income(1)		183			(6	)%			195
Adjusted operating income as a percentage of revenues		9.8	%		-10bps				9.9	%
Net income		78			(26	)%			106
EBITDA(1)		168			(15	)%			197
EBITDA as a percentage of revenues		9.0	%		-100bps				10.0	%
Adjusted EBITDA(1)		185			(6	)%			197
Adjusted EBITDA as a percentage of revenues		9.9	%		-10bps				10.0	%
Diluted earnings per share	$	1.69			(21	)%		$	2.13
Adjusted diluted earnings per share(1)	$	2.58			(1	)%		$	2.61
Net cash provided by operating activities	$	129			(10	)%		$	143
Free cash flow(1)	$	135			1,400	%		$	9

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

Third Quarter Summary Results

Revenues for the quarter decreased $110 million or 6% compared to the same period in the prior year primarily due to ramp down in volume on existing contracts, including approximately $16 million attributable to the government shutdown, and contract completions, partially offset by new contracts. Revenues recognized from the acquisition of SilverEdge for the three months ended October 31, 2025 were immaterial.

Operating income as a percentage of revenues for the quarter decreased compared to the same period in the prior year primarily due to executive transition costs, net of recoveries, and the favorable resolution of the Assault Amphibious Vehicle ("AAV") contract termination in the prior year ($14 million), partially offset by timing and volume mix in our contract portfolio.

Adjusted EBITDA⁽¹⁾ as a percentage of revenues for the quarter decreased to 9.9% from 10.0% for the same period in the prior year primarily due to the favorable resolution of the AAV contract termination in the prior year ($14 million), partially offset by timing and volume mix in our contract portfolio.

Diluted earnings per share for the quarter was $1.69 compared to $2.13 in the prior year quarter. Adjusted diluted earnings per share⁽¹⁾ for the quarter was $2.58 compared to $2.61 in the prior year quarter. The weighted-average diluted shares outstanding during the quarter decreased to 46.1 million from 49.8 million during the prior year quarter.

⁽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 third quarter decreased $14 million compared to the prior year quarter primarily due to higher cash outflows from the usage of the Master Accounts Receivable Purchase Agreement ("MARPA Facility") in the current year and other changes in working capital, partially offset by timing of customer collections.

During the quarter, SAIC deployed $120 million of capital, primarily consisting of $94 million of plan share repurchases and $17 million in cash dividends.

Quarterly Dividend Declared

Subsequent to quarter end, on December 2, 2025, the Company's Board of Directors declared a cash dividend of $0.37 per share of the Company's common stock payable on January 28, 2026 to stockholders of record on January 14, 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 and year were approximately $2.2 billion and $7.2 billion, respectively, which reflects a book-to-bill ratio of 1.2 and 1.3, respectively, and a trailing twelve months book-to-bill ratio of 1.2. SAIC’s estimated backlog at the end of the quarter was approximately $23.8 billion. Of the total backlog amount, approximately $3.8 billion was funded.

Notable New and Recompete Awards:

U.S Air Force: During the quarter, SAIC was awarded the $1.4 billion Collaborative Operations for Battlespace Resilient Architecture ("COBRA") task order in support of the U.S. Air Force. Under this five year (one-year base, plus four, one-year option periods) task order SAIC will provide engineering services to the Department of the Air Force, leveraging its expertise in IT modernization, mission solutions, and digital transformation.

U.S. Army: During the quarter, SAIC was awarded a $413 million, five-year (one-year base, plus four, one-year option periods) Open Source Intelligence Enterprise ("OSINT") task order. The core purpose of the task order is to operationalize OSINT for the Department of the Army, mission partners, and for the Intelligence Community including defense, civilian, and partner nation intelligence organizations. Execution of this task order will inform and implement Army policy as well as provide access to, training for, and management and oversight of enterprise-approved OSINT capabilities for the Army and the broader Intelligence Community.

U.S. Navy: During the quarter, SAIC was awarded a $171 million, 5-year contract with the U.S. Navy. The objective of this effort is to perform R&D to modify and upgrade legacy technology and identify and develop new technology for expeditionary, including low altitude, Multi-Mission Electromagnetic Warfare ("MMEW") systems to address capability, readiness, and sustainment gaps for Department of War ("DoW", formerly referred to as the Department of Defense) and Other Government Agencies ("OGAs") systems. The goal is to develop the future generations of advanced MMEW and Electromagnetic Warfare Management ("EWM") systems, Force Level Electromagnetic Warfare ("FLEW"), and Electromagnetic Spectrum Operations ("EMSO").

Naval Undersea Warfare Center: SAIC was awarded a $242 million, five-year single-award indefinite delivery, indefinite quantity (IDIQ) contract by the Naval Undersea Warfare Center to operate, maintain, and upgrade certain key facilities. The NP Propulsion Test Facility (PTF) Torpedoes contract supports testing services, (including, but not limited to, assembly, integration, and breakdown of Test Articles, execution of tests, and troubleshooting of test systems) Torpedo Test Equipment Services (including, but not limited to, fabrication, refurbishment, upgrades, and mitigating obsolescence issues) and Engineering and Technical services (including, but not limited to, design, drafting, prototyping, remote technical support and troubleshooting). Net bookings and backlog for the quarter include $180 million related to this award.

U.S. Space and Intelligence Community: During the quarter, SAIC was awarded approximately $515 million of contract awards by space and intelligence organizations. These awards represent a combination of new business, modifications, and recompetes.

Other Notable News:

On October 15, 2025, SAIC acquired SilverEdge Government Solutions ("SilverEdge"), an innovative provider of mission-driven technology solutions and products, for a preliminary purchase price of $203 million, net of $6 million cash acquired, subject to post-closing adjustments. The acquisition advances the Company's strategy to provide mission focused, IP-based solutions and commercial products to its customers.

Fiscal Year 2026 Guidance

The table below summarizes fiscal year 2026 guidance and represents the Company's views as of December 4, 2025.        

	CURRENT	PRIOR
	Fiscal Year	Fiscal Year
	2026 Guidance	2026 Guidance
Revenue	$7.275B - $7.325B	$7.250B - $7.325B
Adjusted EBITDA(1)	Approx. $695M	$680M - $690M
Adjusted EBITDA Margin %(1)	Approx. 9.5%	9.3% - 9.5%
Adjusted Diluted EPS(1)	$9.80 - $10.00	$9.40 - $9.60
Free Cash Flow(1)	>$550M	>$550M

⁽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 December 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 $7.5 billion. For more information, visit saic.com. For ongoing news, please visit our newsroom.

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								Nine Months Ended
	October 31, 2025				November 1, 2024				October 31, 2025				November 1, 2024
	(in millions, except per share amounts)
Revenues	$	1,866			$	1,976			$	5,512			$	5,641
Cost of revenues		1,639				1,739				4,861				4,981
Selling, general and administrative expenses		101				83				265				245
Other operating (income) expense		(2	)			(6	)			(2	)			(10	)
Operating income		128				160				388				425
Interest expense, net		33				32				94				97
Other (income) expense, net		1				2				6				7
Income before income taxes		94				126				288				321
Income tax (expense) benefit		(16	)			(20	)			(15	)			(57	)
Net income	$	78			$	106			$	273			$	264
Weighted-average number of shares outstanding:
Basic		45.9				49.4				46.7				50.6
Diluted		46.1				49.8				46.9				51.1
Earnings per share:
Basic	$	1.70			$	2.15			$	5.85			$	5.22
Diluted	$	1.69			$	2.13			$	5.82			$	5.17

Schedule 2:

SCIENCE APPLICATIONS INTERNATIONAL CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
	October 31, 2025				January 31, 2025
	(in millions)
ASSETS
Current assets:
Cash and cash equivalents	$	45			$	56
Receivables, net		1,045				1,000
Prepaid expenses		145				78
Other current assets		22				20
Total current assets		1,257				1,154
Goodwill		2,960				2,851
Intangible assets, net		779				779
Property, plant, and equipment, net		108				104
Operating lease right of use assets		162				164
Other assets		157				194
Total assets	$	5,423			$	5,246
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	627			$	631
Accrued payroll and employee benefits		308				339
Other accrued liabilities		103				113
Debt, current portion		12				313
Total current liabilities		1,050				1,396
Debt, net of current portion		2,475				1,907
Operating lease liabilities		159				173
Deferred income taxes		124				24
Other long-term liabilities		103				169
Equity:
Total stockholders' equity		1,512				1,577
Total liabilities and stockholders' equity	$	5,423			$	5,246

Schedule 3:

SCIENCE APPLICATIONS INTERNATIONAL CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
	Three Months Ended								Nine Months Ended
	October 31, 2025				November 1, 2024				October 31, 2025				November 1, 2024
	(in millions)
Cash flows from operating activities:
Net income	$	78			$	106			$	273			$	264
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		38				35				109				104
Stock-based compensation expense		26				13				51				38
Deferred income taxes		(8	)			(7	)			101				(15	)
Gain on sale of equity method investments		—				(5	)			—				(5	)
Other		(4	)			(1	)			(4	)			(4	)
Increase (decrease) resulting from changes in operating assets and liabilities, net of the effect of acquisitions:
Receivables		(80	)			(76	)			(31	)			(108	)
Prepaid expenses and other current assets		39				17				(68	)			31
Accounts payable and other accrued liabilities		62				80				(22	)			119
Accrued payroll and employee benefits		(33	)			(27	)			(36	)			(59	)
Operating lease assets and liabilities, net		(1	)			(2	)			(5	)			(7	)
Other assets and other long-term liabilities, net		12				10				(17	)			21
Net cash provided by operating activities		129				143				351				379
Cash flows from investing activities:
Cash paid for acquisitions, net of cash acquired		(203	)			—				(203	)			—
Expenditures for property, plant, and equipment		(9	)			(9	)			(24	)			(21	)
Purchases of marketable securities		(1	)			(3	)			(5	)			(11	)
Sales of marketable securities		1				4				5				10
Proceeds from sale of equity method investments		—				10				—				10
Contributions to investments		(3	)			(1	)			(10	)			(3	)
Net cash (used in) provided by investing activities		(215	)			1				(237	)			(15	)
Cash flows from financing activities:
Proceeds from borrowings		1,438				441				2,745				1,114
Principal payments on borrowings		(1,238	)			(450	)			(2,473	)			(1,056	)
Stock repurchased and retired or withheld for taxes on equity awards		(95	)			(121	)			(347	)			(425	)
Dividend payments to stockholders		(17	)			(18	)			(53	)			(57	)
Issuances of stock		4				5				16				14
Debt issuance costs		(9	)			—				(9	)			—
Other		—				(3	)			(4	)			(3	)
Net cash provided by (used in) financing activities		83				(146	)			(125	)			(413	)
Net decrease in cash, cash equivalents and restricted cash		(3	)			(2	)			(11	)			(49	)
Cash, cash equivalents and restricted cash at beginning of period		56				56				64				103
Cash, cash equivalents and restricted cash at end of period	$	53			$	54			$	53			$	54

Schedule 4:

SCIENCE APPLICATIONS INTERNATIONAL CORPORATION SEGMENT OPERATING RESULTS (Unaudited)
	Three Months Ended								Nine Months Ended
	October 31, 2025				November 1, 2024				October 31, 2025				November 1, 2024
	(dollars in millions)
Revenues
Defense and Intelligence	$	1,439			$	1,515			$	4,246			$	4,366
Civilian		427				461				1,266				1,275
Total revenues	$	1,866			$	1,976			$	5,512			$	5,641
Adjusted operating income (loss)
Defense and Intelligence	$	118			$	148			$	357			$	396
Civilian		62				49				168				141
Corporate		3				(2	)			(2	)			(8	)
Total adjusted operating income	$	183			$	195			$	523			$	529
Adjusted operating margin
Defense and Intelligence		8.2	%			9.8	%			8.4	%			9.1	%
Civilian		14.5	%			10.6	%			13.3	%			11.1	%
Total adjusted operating margin		9.8	%			9.9	%			9.5	%			9.4	%

Third Quarter Defense and Intelligence Results

Revenues for the quarter decreased $76 million or 5% compared to the same period in the prior year primarily due to contract completions and ramp down in volume on existing contracts, partially offset by new contracts.

Adjusted operating income as a percentage of revenues decreased compared to the same period in the prior year primarily due to timing and volume mix in our contract portfolio and the favorable resolution of the AAV contract termination in the prior year ($14 million).

Third Quarter Civilian Results

Revenues for the quarter decreased $34 million or 7% 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.

Adjusted operating income as a percentage of revenues increased from the comparable prior year period primarily due to improved profitability across our contract portfolio.

Third Quarter Corporate Results

Adjusted operating income was $3 million for the current quarter compared to an adjusted operating loss of $2 million during the same period in the prior year primarily due to 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:

	October 31, 2025									January 31, 2025
	Defense and Intelligence			Civilian			Total SAIC			Defense and Intelligence			Civilian			Total SAIC
	(in millions)
Funded backlog	$	2,696		$	1,127		$	3,823		$	2,599		$	845		$	3,444
Negotiated unfunded backlog		16,753			3,212			19,965			15,341			3,072			18,413
Total backlog	$	19,449		$	4,339		$	23,788		$	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								Nine Months Ended
	October 31, 2025				November 1, 2024				October 31, 2025				November 1, 2024
	(dollars in millions)
Revenues	$	1,866			$	1,976			$	5,512			$	5,641
Operating income	$	128			$	160			$	388			$	425
Operating income as a percentage of revenues		6.9	%			8.1	%			7.0	%			7.5	%
Depreciation of property, plant and equipment		9				6				22				17
Amortization of intangible assets		29				29				87				87
Acquisition, integration, restructuring and impairment costs		1				—				5				2
Recovery of acquisition, integration, restructuring and impairment costs		—				—				(2	)			(2	)
Costs related to the settlement of federal tax audits		—				—				7				—
Executive transition costs, net of recoveries		16				—				16				—
Adjusted operating income(1)	$	183			$	195			$	523			$	529
Adjusted operating income as a percentage of revenues		9.8	%			9.9	%			9.5	%			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, 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. Executive transition costs, net of recoveries, represent costs associated with the immediate departure of our CEO and other executives, net of the portion recovered through our indirect rates in accordance with Cost Accounting Standards. 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 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								Nine Months Ended
	October 31, 2025				November 1, 2024				October 31, 2025				November 1, 2024
	(dollars in millions)
Revenues	$	1,866			$	1,976			$	5,512			$	5,641
Net income	$	78			$	106			$	273			$	264
Interest expense, net and loss on sale of receivables		36				36				104				108
Income tax expense (benefit)		16				20				15				57
Depreciation and amortization		38				35				109				104
EBITDA(1)		168				197				501				533
EBITDA as a percentage of revenues		9.0	%			10.0	%			9.1	%			9.4	%
Acquisition, integration, restructuring and impairment costs		1				—				5				2
Recovery of acquisition, integration, restructuring and impairment costs		—				—				(2	)			(2	)
Costs related to the settlement of federal tax audits		—				—				7				—
Executive transition costs, net of recoveries		16				—				16				—
Adjusted EBITDA(1)	$	185			$	197			$	527			$	533
Adjusted EBITDA as a percentage of revenues		9.9	%			10.0	%			9.6	%			9.4	%

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. Executive transition costs, net of recoveries, represent costs associated with the immediate departure of our CEO and other executives, net of the portion recovered through our indirect rates in accordance with Cost Accounting Standards. 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 October 31, 2025
	(in millions, except per share amounts)
	As Reported				Acquisition, integration, restructuring and impairment costs				Amortization of intangible assets				Executive transition costs, net of recoveries				Non-GAAP results(1)
Income before income taxes	$	94			$	1			$	29			$	16			$	140
Income tax (expense) benefit		(16	)			—				(5	)			—				(21	)
Net income	$	78			$	1			$	24			$	16			$	119
Diluted EPS	$	1.69			$	0.02			$	0.52			$	0.35			$	2.58

	Three Months Ended November 1, 2024
	(in millions, except per share amounts)
	As Reported				Amortization of intangible assets				Non-GAAP results(1)
Income before income taxes	$	126			$	29			$	155
Income tax (expense) benefit		(20	)			(5	)			(25	)
Net income	$	106			$	24			$	130
Diluted EPS	$	2.13			$	0.48			$	2.61

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. 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 immediate departure of our CEO and other executives, net of the portion recovered through our indirect rates in accordance with Cost Accounting Standards. 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

	Nine Months Ended October 31, 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				Executive transition costs, net of recoveries				Non-GAAP results(1)
Income before income taxes	$	288			$	5			$	(2	)		$	87			$	7			$	16			$	401
Income tax (expense) benefit		(15	)			—				—				(5	)			—				—				(20	)
Net income	$	273			$	5			$	(2	)		$	82			$	7			$	16			$	381
Diluted EPS	$	5.82			$	0.10			$	(0.04	)		$	1.75			$	0.15			$	0.34			$	8.12

	Nine Months Ended November 1, 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	$	321			$	2			$	(2	)		$	87			$	408
Income tax (expense) benefit		(57	)			—				—				(16	)			(73	)
Net income	$	264			$	2			$	(2	)		$	71			$	335
Diluted EPS	$	5.17			$	0.04			$	(0.04	)		$	1.39			$	6.56

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. Executive transition costs, net of recoveries, represent costs associated with the immediate departure of our CEO and other executives, net of the portion recovered through our indirect rates in accordance with Cost Accounting Standards. 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								Nine Months Ended
	October 31, 2025				November 1, 2024				October 31, 2025				November 1, 2024
	(in millions)
Net cash provided by operating activities	$	129			$	143			$	351			$	379
Expenditures for property, plant, and equipment		(9	)			(9	)			(24	)			(21	)
Cash used from (provided by) MARPA Facility		15				(125	)			(86	)			(95	)
Free cash flow(1)	$	135			$	9			$	241			$	263

	FY26 Guidance
	(in millions)
Net cash provided by operating activities	>$585
Expenditures for property, plant, and equipment	Approximately $35
Free cash flow(1)	>$550

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. This measure 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 revenues and net income for Q3 fiscal 2026 (ended Oct 31, 2025)?

SAIC reported $1.87 billion in revenues and $78 million in net income for Q3 fiscal 2026.

How did SAIC's adjusted EBITDA and margin perform in Q3 2026?

Adjusted EBITDA was $185 million, representing 9.9% of revenues for the quarter.

What guidance did SAIC update for fiscal year 2026 on Dec 4, 2025?

SAIC raised fiscal 2026 guidance to adjusted EBITDA approx. $695M and adjusted diluted EPS $9.80–$10.00; revenue guidance is $7.275B–$7.325B.

What was SAIC's book-to-bill and backlog as of Oct 31, 2025?

Quarter net bookings were $2.2B with a book-to-bill of 1.2; estimated backlog was $23.8B (≈$3.8B funded).

Did SAIC return capital to shareholders in Q3 fiscal 2026?

Yes—SAIC deployed capital including $94 million in share repurchases and declared a $0.37 per share quarterly dividend payable Jan 28, 2026.

What material acquisition did SAIC announce in Q3 2025?

On Oct 15, 2025, SAIC acquired SilverEdge Government Solutions for a preliminary purchase price of $203 million (net of $6M cash acquired).