SAIC Q2 Revenue Hits $1.88B, Organic Growth at 5.3%

By Hao Liu • Monday, August 31 10:51 • Permanent Link

SAIC reported second-quarter fiscal 2027 revenue of $1.88 billion, up 6.3% from $1.769 billion a year earlier, with organic growth of 5.3%.

Net income fell to $102 million from $127 million, while diluted earnings per share dropped to $2.38 from $2.71. Adjusted diluted earnings per share fell to $3.01 from $3.63.

Operating income rose to $152 million from $139 million, and operating margin improved to 8.1% from 7.9%. Adjusted operating income increased to $191 million from $182 million, though adjusted operating margin edged down to 10.2% from 10.3%.

EBITDA increased to $193 million from $177 million, lifting EBITDA margin to 10.3% from 10.0%. Adjusted EBITDA was also $193 million, up from $185 million, but adjusted EBITDA margin slipped to 10.3% from 10.5%.

Cash from operations climbed to $146 million from $122 million, while free cash flow declined to $131 million from $150 million.

Bookings totaled about $1.2 billion, producing a quarterly book-to-bill ratio of 0.6 and a trailing 12-month ratio of 0.8. Backlog ended the quarter at about $22.1 billion, including $3.8 billion funded.

During the quarter, SAIC won a roughly $400 million recompete contract with a U.S. intelligence agency, a $330 million contract supporting the U.S. Army, and a $130 million contract supporting the U.S. Navy.

After quarter end, the company won a $740 million recompete contract with the Department of Homeland Security and was named to a potential $14 billion missile evaluation and testing contract.

For fiscal 2027, SAIC raised revenue guidance to $7.2 billion to $7.3 billion from $7.0 billion to $7.2 billion. It also lifted adjusted EBITDA guidance to $750 million to $755 million from $720 million to $730 million, adjusted EBITDA margin guidance to 10.3% to 10.5% from 10.1% to 10.3%, and adjusted diluted EPS guidance to $10.65 to $10.75 from $9.90 to $10.10. Free cash flow guidance stayed above $600 million. The market has reacted to these announcements by moving the company's shares 3.61% to a price of $130.505. If you want to know more, read the company's complete 8-K report here.

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