- 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
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, 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 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.
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.
