Science Applications International Corporation (SAIC) has announced its first-quarter results for fiscal year 2026, revealing key insights into its financial performance.
In the first quarter of fiscal year 2026, SAIC reported revenues of $1.88 billion, representing approximately 2% revenue growth compared to the same period in the prior year, when revenues were $1.847 billion.
The company's net income for the quarter was $68 million, reflecting a 12% decrease from the prior year's net income of $77 million. Adjusted EBITDA stood at $157 million or 8.4% of revenues, down 5% from the prior year's figure of $166 million, representing 9% of revenues.
Diluted earnings per share for the quarter were $1.42, a 4% decrease from the prior year's $1.48. Adjusted diluted earnings per share remained unchanged at $1.92 for both the current and prior year quarter.
Cash flows provided by operating activities increased by 2% to $100 million, up from $98 million in the prior year quarter. However, free cash flow showed a significant decrease, standing at $(44) million, down from $13 million in the prior year quarter.
SAIC's management reaffirmed its fiscal year 2026 guidance, with revenue expected to range between $7.60 billion and $7.75 billion. The company also expects adjusted EBITDA to fall between $715 million and $735 million, with an adjusted EBITDA margin of 9.4% to 9.6%. Additionally, SAIC anticipates adjusted diluted EPS to range from $9.10 to $9.30, and free cash flow to be between $510 million and $530 million for fiscal year 2026.
The company's net bookings for the quarter were approximately $2.4 billion, resulting in a book-to-bill ratio of 1.3. SAIC's estimated backlog at the end of the quarter was approximately $22.3 billion, with $3.3 billion funded.
SAIC's cash deployment during the quarter totaled $152 million, primarily consisting of $125 million in planned share repurchases and $19 million in cash dividends. The company also declared a quarterly cash dividend of $0.37 per share.
SAIC's webcast to discuss its operations and financial results is scheduled to begin at 10:00 a.m. Eastern Time on June 2, 2025.
SAIC, a Fortune 500 company, is a mission integrator focused on advancing technology and innovation across defense, space, civilian, and intelligence markets. The company has approximately 24,000 employees and is headquartered in Reston, Virginia, with annual revenues of approximately $7.5 billion. As a result of these announcements, the company's shares have moved -14.71% on the market, and are now trading at a price of $98.54. For more information, read the company's full 8-K submission here.
