Science Applications International Corporation (SAIC), a premier mission integrator driving our nation's digital transformation across the defense, space, intelligence, and civilian markets, announced results for the first quarter ended May 1, 2026.
"I am proud of our team’s performance this quarter, delivering record margin and modest organic growth," said Jim Reagan, SAIC Chief Executive Officer. "These results reflect our focus on execution and our commitment to our financial targets. We are raising our guidance to reflect this strong start, while continuing to invest for the future. We are also advancing our enterprise transformation and strategy efforts to drive long-term growth and margin expansion, and to support our customers’ most critical missions."
First Quarter Summary Results
Revenues for the quarter increased $29 million or approximately 2% compared to the same period in the prior year primarily due to revenues from the acquisition of SilverEdge Government Solutions ("SilverEdge") of $19 million and ramp up in volume on existing and new contracts, partially offset by contract completions. Adjusting for the acquisition of SilverEdge, revenues grew by approximately 0.5%.
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 $12 million gain from the sale of an investment in the current year.
Adjusted EBITDA(1) as a percentage of revenues for the quarter increased to 11.6% from 8.4% for the same period in the prior year due to improved profitability across our contract portfolio, a $12 million gain from the sale of an investment in the current year, and lower selling, general and administrative expenses.
Diluted earnings per share for the quarter was $2.61 compared to $1.42 in the prior year quarter. Adjusted diluted earnings per share(1) for the quarter was $3.23 compared to $1.92 in the prior year quarter. The weighted-average diluted shares outstanding during the quarter decreased to 44.0 million from 47.8 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 first quarter increased $27 million compared to the prior year quarter primarily due to timing of vendor payments, lower cash incentive-based compensation payments, and other changes in working capital, partially offset by lower cash inflows from the usage of the MARPA Facility and higher interest paid in the current year.
During the quarter, SAIC deployed $192 million of capital, consisting of $175 million of plan share repurchases and $17 million in cash dividends.
Quarterly Dividend Declared
Subsequent to quarter end, on May 28, 2026, the Company's Board of Directors declared a cash dividend of $0.37 per share of the Company's common stock payable on July 24, 2026 to stockholders of record on July 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 $2.1 billion which reflects a book-to-bill ratio of 1.1 and a trailing twelve months book-to-bill ratio of 1.0. SAIC’s estimated backlog at the end of the quarter was approximately $22.9 billion. Of the total backlog amount, approximately $3.7 billion was funded.
Notable New and Recompete Awards:
U.S. Space and Intelligence Community: During the quarter, SAIC was awarded several awards within the U.S. Space and Intelligence Community, including:
- 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.
- A seven-year recompete of approximately $540 million with a Space and Intelligence Community customer. Under this contract, SAIC will provide systems engineering and technical assistance in the form of subject matter expertise.
- A seven-year recompete of approximately $100 million with a Space and Intelligence Community customer. Under this contract, SAIC will provide organizational support, mission analysis and engineering, program support, and additional technical services.
U.S. Department of Homeland Security: During the quarter, SAIC was awarded a five-year (one-year base, plus four, one-year option periods) recompete contract of approximately $200 million with the U.S. Department of Homeland Security, in its Civilian business group. Under this contract, SAIC will provide technology enhancement, modernization, and refresh of customer systems.
U.S. Air Force: During the quarter, SAIC was awarded a five-year (three-year base, plus two, one-year option periods) contract of approximately $192 million with the Air Force Lifecycle Management Center. Under this contract, SAIC will provide digital infrastructure support via design, development, testing and deployment.
U.S. Navy: During the quarter, SAIC was awarded a six-year (one-year base, plus five, one-year option periods) contract of approximately $123 million with the Naval Information Warfare Systems Command. SAIC will provide systems engineering and support services toward the upgrade and refurbishment of the Royal Saudi Naval Forces (RSNF) C4ISR Systems.
Notable Awards Subsequent to Period End (not included in current quarter bookings):
Federal Aviation Administration ("FAA"): Subsequent to the end of the quarter, SAIC was awarded several task orders totaling $100 million. Under these task orders, SAIC will support systems engineering, software development and other services in support of the FAA's air traffic organization, which manages all of U.S. civilian airspace and airports.
Webcast Information
SAIC management will discuss operations and financial results in an earnings conference call beginning at 10:00 a.m. Eastern time on June 1, 2026. The conference call will be webcast simultaneously to the public through a link on the Investor Relations section of the SAIC website (https://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.
