SAIC Q2 FY2026 – Revenue Dips 3%, Net Income Up 57%

By Tamara Parker • Thursday, September 04 12:07 • Permanent Link

Science Applications International Corporation (SAIC) has announced its second-quarter fiscal year 2026 results, revealing a revenue of $1.77 billion, representing a approximately 3% contraction compared to the same period last year. The company's net bookings for the quarter stood at $2.6 billion, with a book-to-bill ratio of 1.5, and year-to-date net bookings reaching $5.0 billion, with a book-to-bill ratio of 1.4.

SAIC reported a net income of $127 million, marking a 57% increase from the previous year's quarter. Adjusted EBITDA was $185 million, accounting for 10.5% of revenues, compared to 9.4% in the same period last year. Diluted earnings per share for the quarter were $2.71, a 72% increase from the prior year, while adjusted diluted earnings per share stood at $3.63, representing a 77% increase.

The company's free cash flow for the quarter amounted to $150 million, showing a decrease of 38% from the prior year's $241 million. Meanwhile, SAIC deployed $130 million of capital, primarily through $106 million in planned share repurchases and $17 million in cash dividends.

SAIC's estimated backlog at the end of the quarter was approximately $23.2 billion, with $3.6 billion funded. Notable new and recompete awards included contracts with the U.S. Air Force, Department of Treasury, U.S. Navy, U.S. Department of State, and Orange County, California, among others.

Looking ahead, SAIC revised its guidance, lowering revenue and adjusted EBITDA, while increasing free cash flow and adjusted diluted earnings per share guidance for fiscal year 2026. The company now expects revenues in the range of $7.250 billion to $7.325 billion, adjusted EBITDA of $680 million to $690 million, adjusted diluted EPS of $9.40 to $9.60, and free cash flow exceeding $550 million.

SAIC's management highlighted a more challenging revenue environment than previously forecasted, with slower on-contract growth and continued delays in new business awards and new program ramps. The company aims to align its cost structure while sustaining key investments to drive long-term value creation.

SAIC is a Fortune 500 technology integrator operating in the defense, space, civilian, and intelligence markets, with annual revenues of approximately $7.5 billion. The market has reacted to these announcements by moving the company's shares -3.52% to a price of $114.11. For the full picture, make sure to review Science Applications International Corp's 8-K report.

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