SAIC Q1 Fiscal 2027 – Revenue Up 2% to $1.9B

By Chris Stiles • Monday, June 01 11:33 • Permanent Link

Science Applications International Corp. reported first-quarter fiscal 2027 revenue of $1.906 billion, up about 2% from $1.877 billion a year earlier. Excluding the SilverEdge acquisition, revenue rose 0.5%.

Operating income climbed to $179 million from $121 million, a 48% increase, while operating margin expanded to 9.4% from 6.4%. Adjusted operating income increased to $221 million from $158 million, and adjusted operating margin widened to 11.6% from 8.4%.

Net income rose to $115 million from $68 million, up 69%. Diluted earnings per share increased to $2.61 from $1.42. Adjusted diluted earnings per share rose to $3.23 from $1.92.

Adjusted EBITDA increased to $222 million from $157 million, with adjusted EBITDA margin improving to 11.6% from 8.4%. EBITDA was $220 million, up from $156 million.

Cash flow from operations increased to $127 million from $100 million. Free cash flow swung to $118 million from negative $44 million.

Bookings totaled about $2.1 billion, producing a quarterly book-to-bill ratio of 1.1 and a trailing 12-month ratio of 1.0. Backlog ended the quarter at about $22.9 billion, including $3.7 billion funded.

During the quarter, the company deployed $192 million of capital, including $175 million in share repurchases and $17 million in dividends.

For fiscal 2027, SAIC raised its adjusted EBITDA outlook to $720 million to $730 million from $705 million to $715 million. It lifted adjusted EBITDA margin guidance to 10.1% to 10.3% from 9.9% to 10.1%, and adjusted diluted EPS guidance to $9.90 to $10.10 from $9.50 to $9.70. Revenue guidance stayed at $7.0 billion to $7.2 billion, and free cash flow guidance remained above $600 million.

The company also said it won several contracts during the quarter, including three seven-year recompetes in the space and intelligence community worth about $330 million, $540 million, and $100 million; a five-year Homeland Security recompete worth about $200 million; a five-year Air Force contract worth about $192 million; and a six-year Navy award worth about $123 million. After quarter end, it also won FAA task orders totaling $100 million. As a result of these announcements, the company's shares have moved 13.09% on the market, and are now trading at a price of $117.84. If you want to know more, read the company's complete 8-K report here.

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