Core Viewpoint - James Reagan has been appointed as the new CEO of Science Applications International Corporation (SAIC), effective immediately, following a unanimous decision by the Board of Directors [1][2]. Company Leadership - Jim Reagan has nearly 40 years of experience, including two decades in senior leadership roles within the defense and government services industry, and has a strong background in business transformation [2][3]. - Prior to his appointment as CEO, Reagan served as Interim CEO since October 2025 and has been a member of the SAIC Board since January 2023 [3][4]. Strategic Focus - Reagan aims to sharpen SAIC's focus, enhance execution speed, and drive growth, expressing confidence in the company's strong future and the ongoing efforts to differentiate SAIC for sustained, profitable growth [4]. Company Overview - SAIC is a Fortune 500 mission integrator with a focus on technology and innovation across defense, space, civilian, and intelligence sectors, generating annual revenues of approximately $7.5 billion [5][6]. - The company employs around 24,000 individuals and is headquartered in Reston, Virginia [6].

Core Viewpoint - SAIC has reduced its revenue growth guidance for FY '27, now expecting a decline of approximately 1% due to the loss of key contracts [2][3]. Group 1: Revenue Guidance - Initially, SAIC projected revenue growth to be flat to plus 3% at the end of last year [2]. - The company indicated that it would likely be at the lower end of this range due to the loss of an Army Corps of Engineers recompete, which accounts for about 3% of the top line [2]. - Additionally, the loss of the Cloud One recompete is expected to impact revenue by roughly 1% [3]. Group 2: Q4 Revenue Environment - The company began Q4 with a reasonable revenue pace, which spans November to January [3].

Summary of Science Applications International (SAIC) FY Conference Call Company Overview - **Company**: Science Applications International Corporation (SAIC) - **Ticker**: NasdaqGS:SAIC - **Date of Call**: February 11, 2026 Key Points Industry and Market Context - The company operates in the defense and technology services sector, focusing on enterprise IT and mission-oriented engineering solutions [4][113]. - The macro environment is described as confusing, with uneven funding and slow contract execution impacting revenue growth [10][12]. Financial Performance and Guidance - SAIC initially projected revenue growth of flat to +3% for FY 2027 but revised guidance downwards due to contract losses, specifically: - Loss of the Army Corps of Engineers recompete (3% of revenue) - Loss of Cloud One recompete (1% of revenue) - The revised guidance indicates a nominal growth of approximately -1% for FY 2027 [4][22][24]. - Q4 revenue was reported to be light by about 2%, attributed to several factors including shutdown-related disruptions and delays in material availability [13][21]. Revenue Impact and Projections - The total impact from the two major contract losses is estimated at $275 million, with $200 million from CastleNet and $75 million from Cloud One [32][38]. - On-contract growth is expected to stabilize between 1% and 3% throughout the year, which is lower than historical averages [49][51]. - The company anticipates potential tailwinds from new contracts won, including: - Air Force TENCAP ($1 billion) - Navy ATSO ($350 million over 5 years) - Army OSINT ($75 million) [53][56]. Strategic Focus and Challenges - SAIC is focusing on being selective in bidding for contracts, particularly in the commoditized enterprise IT market, where margins are lower [113][120]. - The company aims to pivot towards fixed-price contracts and mission-oriented work, which have shown higher win rates [135][143]. - The backlog remains healthy, with expectations to finish FY 2026 with a book-to-bill ratio north of 1.0 [70][74]. Future Opportunities - The defense budget is projected to exceed $1 trillion, with SAIC focusing on mission data, cloud-based command and control, and modernization of legacy systems as key growth areas [184][191]. - The company is exploring M&A opportunities, particularly in data-focused AI and intelligence sectors, while being cautious about capital allocation due to stock valuation concerns [240][241]. Leadership and Culture - The search for a permanent CEO is ongoing, with a focus on finding an execution-oriented leader who can create shareholder value [276][280]. - The company is investing in employee training and development to retain top talent during its transformation process [302][310]. Risks and Considerations - The company faces risks related to recompete contracts, with approximately 1% of revenue up for recompete in the next 12 months [98][100]. - The procurement environment has shown signs of unpredictability, impacting submit volumes and contract negotiations [105][106]. Conclusion - SAIC is navigating a challenging environment with a focus on strategic growth areas and operational efficiency. The company is committed to transforming its portfolio and enhancing its competitive position in the defense sector while managing risks associated with contract recompetes and market dynamics [292][295].

Core Viewpoint - Science Applications International Corp. (SAIC) announced preliminary financial results for Q4 and FY 2026, indicating a revenue reduction due to procurement delays and unfavorable customer award decisions, leading to updated guidance for FY 2027 [1][6]. Group 1: Financial Results - Q4 FY26 revenue is approximately $1.745 billion, slightly below prior expectations of $7.275 billion to $7.325 billion for FY26, which is now expected to be around $7.26 billion [5]. - Organic growth for Q4 FY26 is estimated at approximately (6%), compared to a prior guidance of (2% - 3%) for FY26 [5]. - Adjusted EBITDA for Q4 FY26 is approximately $180 million, exceeding prior expectations of around $695 million for FY26, which is now expected to be approximately $705 million [5][4]. - Adjusted diluted EPS for FY26 is projected to be between $10.40 and $10.60, higher than the previous guidance of $9.80 to $10.00 [5]. Group 2: Updated Guidance - For FY27, revenue is now expected to be between $7.0 billion and $7.2 billion, a decline from the previous guidance of $7.35 billion to $7.55 billion [7]. - Organic growth for FY27 is now projected to be between (4%) and (2%), compared to the previous guidance of 0% to 3% [7]. - Adjusted EBITDA for FY27 is expected to be between $705 million and $715 million, lower than the previous guidance of $725 million to $735 million, although margins are expected to improve due to operational efficiency [8][6]. Group 3: Strategic Focus - The company is focusing on more selective customer opportunities that have the potential for technology transformation and execution upside, particularly in response to recent revenue pressures within larger Enterprise IT programs [3][2]. - Investments are being made to enhance business development and delivery processes, including a bottoms-up enterprise transformation program aimed at increasing investment capacity [2].

BUSINESS UPDATE FEBRUARY 11, 2026 SAIC PROPRIETARY INFORMATION I © SAIC. ALL RIGHTS RESERVED FORWARD LOOKING STATEMENTS | SOLID MARGIN AND CASH | Margins and free cash flow above prior guidance despite delays and disruptions impacting revenue | | --- | --- | | TO CLOSE FY26 | performance | | LOWERING FY27 REVENUE GUIDANCE | Revised FY27 revenue guidance reflects headwinds from recent recompete losses and continued | | | market disruptions | | INCREASING FY27 ADJ. EBITDA | Execution of cost efficiency effort ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _________________________________________________________ Form 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): February 11, 2026 Science Applications International Corporation (Exact name of registrant as specified in its charter) _________________________________________________________ Delaware 001-35832 46-1932921 (State or other Jurisdiction ...

Core Insights - Science Applications International Corp (SAIC) will participate in the Cowen and Company 47th Annual Aerospace & Defense Conference, highlighting its role in the digital transformation across various sectors [1] - SAIC's Chief Financial Officer, Prabu Natarajan, will present the company's strategic and financial outlook during a Q&A session on February 11 [2] Company Overview - SAIC is a Fortune 500 mission integrator focused on technology and innovation to serve defense, space, intelligence, and civilian markets [3] - The company has a diverse portfolio that includes secure high-end solutions in mission IT, enterprise IT, engineering services, and professional services [3] - SAIC employs approximately 24,000 people and has annual revenues of around $7.5 billion [4]

Core Insights - Science Applications International Corporation (SAIC) is identified as one of the most undervalued tech stocks to buy in 2026, with a recent price target increase from Citi from $122 to $133, while UBS maintains a $113 target [1][2]. Financial Performance - In fiscal Q3 2026, SAIC reported an EPS of $2.58, exceeding estimates by $0.43, although revenue decreased by 5.57% year-over-year to $1.87 billion, falling short of expectations by $1.88 million [3]. - The revenue contraction was attributed primarily to the government shutdown, but it was noted that the revenue was slightly above the company's guidance [3]. Backlog and Market Outlook - SAIC's fiscal Q3 2026 backlog showed a 6% growth year-over-year, with a book-to-bill ratio of 1.2X over the last twelve months, indicating positive momentum in the aerospace and defense sector [2]. - Despite the growth in backlog, UBS pointed out that the company's funded backlog has continued to decline year-over-year [2]. Company Overview - SAIC operates as a technology integrator, providing full lifecycle engineering, IT, and professional services primarily to US government clients across defense, intelligence, space, and civilian sectors [4].

Group 1: Macy's - Macy's operates as an omnichannel retail organization with stores, websites, and mobile applications [1] - The company has a Zacks Rank of 1 (Strong Buy) and a 9.6% increase in the Zacks Consensus Estimate for current year earnings over the last 60 days [1] - Macy's has a price-to-earnings ratio (P/E) of 10.39, significantly lower than the industry average of 22.30, and possesses a Value Score of A [2] Group 2: Science Applications International (SAIC) - SAIC is a leading information technology and professional services provider primarily serving the U.S. government [1] - The company also carries a Zacks Rank of 1 and has seen a 2.3% increase in the Zacks Consensus Estimate for current year earnings over the last 60 days [1] - SAIC has a price-to-earnings ratio (P/E) of 10.50, compared to the industry average of 15.30, and holds a Value Score of A [3]

Core Insights - Science Applications International Corporation (SAIC) has appointed Ravi Dankanikote as the Chief Growth Officer, effective immediately, reporting to Interim CEO Jim Reagan [1][2] - Dankanikote has over 30 years of experience in growth leadership within the government contracting space, recognized for his customer-centric business development approach [2][3] - His previous roles include Senior Vice President for Business Development at SAIC and Chief Growth Officer at Peraton, with a long tenure at CACI [3][4] Company Strategy - In his new role, Dankanikote will lead SAIC's enterprise growth strategy and go-to-market approach, focusing on aligning growth investments with long-term enterprise goals [2][4] - The company aims to implement a simplified organizational structure to enhance focus on key opportunities, thereby increasing value for customers and growth for shareholders [4] Market Position - SAIC is positioned as a leader in the defense, space, intelligence, and civilian markets, with a robust portfolio that includes mission IT, enterprise IT, engineering services, and professional services [6][7] - The company has annual revenues of approximately $7.5 billion and employs around 24,000 people [7]