[Executive Summary](index=1&type=section&id=Executive%20Summary) This section provides an overview of SAIC's Q2 FY2026 performance, highlighting CEO commentary, key financial results, and revised fiscal year guidance [Announcement and CEO Commentary](index=1&type=section&id=Announcement%20and%20CEO%20Commentary) SAIC announced its Q2 FY2026 results, with CEO Toni Townes-Whitley highlighting strong program performance and booking momentum, but acknowledging a challenging revenue environment due to slower on-contract growth and delays in new business awards - CEO highlights **strong program performance and booking momentum**, but acknowledges a challenging revenue environment due to slower on-contract growth and delays in new business awards[3](index=3&type=chunk) - SAIC is aligning its cost structure and sustaining key investments to drive long-term value creation, adopting a more cautious outlook for FY2026[3](index=3&type=chunk) [Second Quarter Fiscal Year 2026 Highlights](index=1&type=section&id=Second%20Quarter%20Fiscal%20Year%202026%20Highlights) SAIC reported Q2 FY2026 revenues of $1.77 billion, a 3% contraction, but achieved significant growth in net income (57% to $127 million) and adjusted diluted EPS (77% to $3.63) Q2 FY2026 Key Financial Highlights | Metric | Value (Q2 FY2026) | Change YoY | | :-------------------------------- | :---------------- | :--------- | | Revenues | **$1.77 billion** | **(3)%** | | Net Income | **$127 million** | **57%** | | Adjusted EBITDA | **$185 million** | **9%** | | Adjusted EBITDA as % of revenues | **10.5%** | **+110bps** | | Diluted EPS | **$2.71** | **72%** | | Adjusted Diluted EPS | **$3.63** | **77%** | | Net Bookings | **$2.6 billion** | N/A | | Book-to-bill ratio (Q2) | **1.5** | N/A | | Book-to-bill ratio (TTM) | **1.0** | N/A | | Cash flows from operating activities | **$122 million** | **(12)%** | | Free cash flow | **$150 million** | **(38)%** | - Management lowered revenue and adjusted EBITDA guidance but increased free cash flow and adjusted diluted earnings per share guidance for FY2026[5](index=5&type=chunk) [Detailed Second Quarter Fiscal Year 2026 Financial Performance](index=1&type=section&id=Detailed%20Second%20Quarter%20Fiscal%20Year%202026%20Financial%20Performance) This section provides an in-depth analysis of SAIC's Q2 FY2026 consolidated operating results, cash flow, capital deployment, and backlog, detailing revenue, profitability, and contract awards [Consolidated Operating Results](index=1&type=section&id=Consolidated%20Operating%20Results) SAIC's Q2 FY2026 revenues decreased by 3% YoY to $1.77 billion due to contract completions and volume ramp-downs, yet the company improved profitability with increased operating income and adjusted EBITDA margins [Revenue Performance](index=1&type=section&id=Revenue%20Performance) This subsection details SAIC's Q2 FY2026 revenue performance, showing a 3% year-over-year decrease to $1,769 million Q2 FY2026 Revenue Performance | Metric | Q2 FY2025 (millions) | Q2 FY2024 (millions) | Change ($ millions) | Change (%) | | :------- | :------------------- | :------------------- | :--------- | :--------- | | Revenues | **$1,769** | $1,818 | **($49)** | **(3)%** | - Revenue decrease primarily due to contract completions and ramp-down in volume on existing contracts, partially offset by new contracts[6](index=6&type=chunk) [Profitability Metrics (Operating Income, EBITDA)](index=1&type=section&id=Profitability%20Metrics%20%28Operating%20Income%2C%20EBITDA%29) This subsection presents SAIC's Q2 FY2026 profitability metrics, including operating income, EBITDA, and their respective margins, showing improvements across the board Q2 FY2026 Profitability Metrics | Metric | Q2 FY2025 (millions) | Q2 FY2024 (millions) | Change ($ millions) | Change (%) | Change (bps) | | :-------------------------------- | :------------------- | :------------------- | :--------- | :--------- | :----------- | | Operating income | **$139** | $134 | **$5** | **4%** | **+50bps** | | Operating income as % of revenues | **7.9%** | 7.4% | N/A | N/A | **+50bps** | | Adjusted operating income | **$182** | $169 | **$13** | **8%** | **+100bps** | | Adjusted operating income as % of revenues | **10.3%** | 9.3% | N/A | N/A | **+100bps** | | EBITDA | **$177** | $169 | **$8** | **5%** | **+70bps** | | EBITDA as % of revenues | **10.0%** | 9.3% | N/A | N/A | **+70bps** | | Adjusted EBITDA | **$185** | $170 | **$15** | **9%** | **+110bps** | | Adjusted EBITDA as % of revenues | **10.5%** | 9.4% | N/A | N/A | **+110bps** | - Improved profitability across the contract portfolio and a recovery of costs from a patent infringement settlement were primary drivers for increased operating income and Adjusted EBITDA margins[7](index=7&type=chunk)[8](index=8&type=chunk) - Partially offset by costs related to the settlement of federal tax audits and the indirect rates impact of state taxes[7](index=7&type=chunk)[8](index=8&type=chunk) [Earnings Per Share](index=1&type=section&id=Earnings%20Per%20Share) This subsection outlines SAIC's Q2 FY2026 earnings per share, highlighting a significant increase in both diluted and adjusted diluted EPS Q2 FY2026 Earnings Per Share | Metric | Q2 FY2025 | Q2 FY2024 | Change (%) | | :-------------------------- | :-------- | :-------- | :--------- | | Diluted earnings per share | **$2.71** | $1.58 | **72%** | | Adjusted diluted earnings per share | **$3.63** | $2.05 | **77%** | | Weighted-average diluted shares outstanding | **46.8 million** | 51.2 million | **(8.6)%** | - Significant increase in EPS primarily due to a decrease in weighted-average diluted shares outstanding[8](index=8&type=chunk) [Cash Flow and Capital Deployment](index=2&type=section&id=Cash%20Flow%20and%20Capital%20Deployment) Net cash provided by operating activities decreased by 12% to $122 million in Q2 FY2026, with free cash flow also declining significantly, while SAIC deployed $130 million primarily through share repurchases and dividends Q2 FY2026 Cash Flow | Metric | Q2 FY2025 (millions) | Q2 FY2024 (millions) | Change ($ millions) | Change (%) | | :-------------------------------- | :------------------- | :------------------- | :--------- | :--------- | | Net cash provided by operating activities | **$122** | $138 | **($16)** | **(12)%** | | Free cash flow | **$150** | $241 | **($91)** | **(38)%** | - Decrease in operating cash flow primarily due to timing of customer collections and vendor payments, partially offset by lower cash outflows from MARPA Facility usage[9](index=9&type=chunk) - SAIC deployed **$130 million** of capital, including **$106 million in share repurchases** and **$17 million in cash dividends**[10](index=10&type=chunk) - The Board declared a quarterly cash dividend of **$0.37 per share**, payable October 24, 2025[11](index=11&type=chunk) [Backlog and Contract Awards](index=2&type=section&id=Backlog%20and%20Contract%20Awards) SAIC reported strong Q2 FY2026 bookings of $2.6 billion, resulting in a book-to-bill ratio of 1.5, with an estimated total backlog of $23.2 billion, bolstered by several significant contract wins [Bookings and Total Backlog](index=2&type=section&id=Bookings%20and%20Total%20Backlog) This subsection details SAIC's Q2 FY2026 bookings, book-to-bill ratios, and the estimated total and funded backlog at quarter-end Q2 FY2026 Bookings and Backlog | Metric | Value | | :-------------------------------- | :---------------- | | Net bookings (Q2) | **$2.6 billion** | | Book-to-bill ratio (Q2) | **1.5** | | Net bookings (YTD) | **$5.0 billion** | | Book-to-bill ratio (YTD) | **1.4** | | Trailing twelve months book-to-bill ratio | **1.0** | | Estimated total backlog (end of Q2) | **$23.2 billion** | | Funded backlog (end of Q2) | **$3.6 billion** | [Key Contract Wins](index=2&type=section&id=Key%20Contract%20Wins) This subsection highlights several significant contract awards secured by SAIC across defense, civilian, and intelligence sectors during Q2 FY2026 - Awarded **$928 million HOPE 2.0 contract** for U.S. Air Force AF TENCAP for RDT&E mission engineering services over five years[13](index=13&type=chunk) - Secured a three-year, **$728 million task order** to continue providing essential cloud services for the Department of Treasury[14](index=14&type=chunk)[15](index=15&type=chunk) - Awarded a five-year, **$202 million contract** for U.S. Navy training solutions, including modernized virtual and synthetic environments[16](index=16&type=chunk) - Received a two-year, **$547 million contract extension** on the Vanguard program for IT services with the U.S. Department of State[17](index=17&type=chunk) - Awarded a five-year, approximately **$360 million contract** with a Navy customer for electronic warfare and active emitter systems development and modernization[18](index=18&type=chunk) - Secured a **$164 million contract** to continue delivering IT managed services for Orange County, California, over five years with options[19](index=19&type=chunk) - Awarded approximately **$150 million in contracts** from the U.S. Space and Intelligence Community, combining new business and recompetes[20](index=20&type=chunk) [Fiscal Year 2026 Guidance Update](index=3&type=section&id=Fiscal%20Year%202026%20Guidance%20Update) This section provides an update on SAIC's revised financial guidance for Fiscal Year 2026, reflecting adjustments to revenue, EBITDA, EPS, and free cash flow expectations [Fiscal Year 2026 Guidance](index=3&type=section&id=Fiscal%20Year%202026%20Guidance) SAIC revised its FY2026 guidance, lowering revenue and Adjusted EBITDA expectations due to a challenging operating environment, while simultaneously increasing its Adjusted Diluted EPS and Free Cash Flow guidance Fiscal Year 2026 Guidance Comparison | Metric | Current FY2026 Guidance | Prior FY2026 Guidance | | :-------------------------- | :---------------------- | :-------------------- | | Revenue | **$7.250B - $7.325B** | $7.60B - $7.75B | | Adjusted EBITDA | **$680M - $690M** | $715M - $735M | | Adjusted EBITDA Margin % | **9.3% - 9.5%** | 9.4% - 9.6% | | Adjusted Diluted EPS | **$9.40 - $9.60** | $9.10 - $9.30 | | Free Cash Flow | **>$550M** | $510M - $530M | - The revised guidance assumes a stable operating environment but does not anticipate improvement this year[3](index=3&type=chunk) [Segment Operating Results](index=8&type=section&id=Segment%20Operating%20Results) This section analyzes the Q2 FY2026 operating performance of SAIC's Defense and Intelligence, Civilian, and Corporate segments, detailing revenue changes and adjusted operating margins [Overview of Segment Performance](index=8&type=section&id=Overview%20of%20Segment%20Performance) In Q2 FY2026, both SAIC's Defense and Intelligence and Civilian segments experienced revenue decreases but demonstrated improved adjusted operating margins, with the Corporate segment also showing a positive shift Q2 FY2026 Segment Operating Results | Segment | Q2 FY2025 Revenues (millions) | Q2 FY2024 Revenues (millions) | Revenue Change (%) | Q2 FY2025 Adj. Op. Income (millions) | Q2 FY2024 Adj. Op. Income (millions) | Adj. Op. Income Change (%) | Q2 FY2025 Adj. Op. Margin (%) | Q2 FY2024 Adj. Op. Margin (%) | Margin Change (bps) | | :---------------------- | :---------------------------- | :---------------------------- | :----------------- | :----------------------------------- | :----------------------------------- | :--------------------------- | :---------------------------- | :---------------------------- | :------------------ | | Defense and Intelligence | **$1,374** | $1,415 | **(3)%** | **$124** | $124 | **0%** | **9.0%** | 8.8% | **+20bps** | | Civilian | **$395** | $403 | **(2)%** | **$54** | $46 | **17.4%** | **13.7%** | 11.4% | **+230bps** | | Corporate | N/A | N/A | N/A | **$4** | ($1) | N/A | N/A | N/A | N/A | | Total | **$1,769** | $1,818 | **(3)%** | **$182** | $169 | **7.7%** | **10.3%** | 9.3% | **+100bps** | [Defense and Intelligence Segment](index=8&type=section&id=Defense%20and%20Intelligence%20Segment) The Defense and Intelligence segment's revenues decreased by 3% YoY to $1.374 billion, primarily due to contract completions, but its adjusted operating income as a percentage of revenues increased - Revenue decrease primarily due to contract completions and ramp down in volume on existing contracts, partially offset by new contracts[35](index=35&type=chunk) - Adjusted operating income as a percentage of revenues increased due to timing and volume mix in the contract portfolio[35](index=35&type=chunk) [Civilian Segment](index=8&type=section&id=Civilian%20Segment) The Civilian segment experienced a 2% YoY revenue decrease to $395 million, mainly due to contract completions, but showed significant improvement in profitability with increased adjusted operating income margins - Revenue decrease primarily due to contract completions and ramp down in volume on existing contracts[36](index=36&type=chunk) - Adjusted operating income as a percentage of revenues increased due to improved profitability across the contract portfolio[36](index=36&type=chunk) [Corporate Segment](index=8&type=section&id=Corporate%20Segment) The Corporate segment reported an adjusted operating income of $4 million for Q2 FY2026, a positive turnaround from a prior-year loss, largely attributed to a patent infringement settlement recovery - Adjusted operating income was **$4 million**, up from a **$1 million loss** in the prior year, primarily due to a recovery of costs from a patent infringement settlement[37](index=37&type=chunk) - Partially offset by higher other selling, general and administrative expenses[37](index=37&type=chunk) [Financial Statements](index=5&type=section&id=Financial%20Statements) This section presents SAIC's condensed consolidated financial statements for Q2 FY2026, including statements of income, balance sheets, and cash flows [Condensed Consolidated Statements of Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) The condensed consolidated statements of income for Q2 FY2026 show a slight revenue decline to $1,769 million, but net income significantly increased to $127 million, and diluted EPS rose to $2.71 Condensed Consolidated Statements of Income (Three Months Ended) | Metric | August 1, 2025 (millions) | August 2, 2024 (millions) | | :-------------------------------- | :------------------------ | :------------------------ | | Revenues | **$1,769** | $1,818 | | Cost of revenues | **$1,554** | $1,608 | | Operating income | **$139** | $134 | | Income before income taxes | **$108** | $100 | | Net income | **$127** | $81 | | Diluted earnings per share | **$2.71** | $1.58 | [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of August 1, 2025, SAIC's total assets were $5,201 million, with current assets increasing to $1,204 million, while total liabilities slightly decreased to $3,684 million Condensed Consolidated Balance Sheets (Selected Items) | Metric | August 1, 2025 (millions) | January 31, 2025 (millions) | | :-------------------------- | :------------------------ | :-------------------------- | | Total current assets | **$1,204** | $1,154 | | Goodwill | **$2,851** | $2,851 | | Total assets | **$5,201** | $5,246 | | Total current liabilities | **$1,447** | $1,396 | | Debt, net of current portion | **$1,844** | $1,907 | | Total stockholders' equity | **$1,517** | $1,577 | | Total liabilities and stockholders' equity | **$5,201** | $5,246 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For Q2 FY2026, net cash provided by operating activities was $122 million, a decrease from the prior year, with cash and cash equivalents remaining stable at $56 million Condensed Consolidated Statements of Cash Flows (Three Months Ended) | Metric | August 1, 2025 (millions) | August 2, 2024 (millions) | | :-------------------------------- | :------------------------ | :------------------------ | | Net cash provided by operating activities | **$122** | $138 | | Net cash used in investing activities | **($7)** | ($9) | | Net cash used in financing activities | **($114)** | ($131) | | Net increase (decrease) in cash | **$1** | ($2) | | Cash, cash equivalents and restricted cash at end of period | **$56** | $56 | [Supplemental Information](index=3&type=section&id=Supplemental%20Information) This section provides additional context about SAIC, details for webcast and investor information, and explanations of non-GAAP financial measures and forward-looking statements [About SAIC](index=4&type=section&id=About%20SAIC) SAIC is a Fortune 500 technology integrator specializing in secure high-end solutions across defense, space, civilian, and intelligence markets, employing approximately 24,000 individuals - SAIC is a premier Fortune 500 technology integrator for defense, space, civilian, and intelligence markets[24](index=24&type=chunk) - Offers secure high-end solutions in mission IT, enterprise IT, engineering services, and professional services[24](index=24&type=chunk) - Approximately **24,000 employees** with annual revenues of about **$7.5 billion**[24](index=24&type=chunk) [Webcast and Investor Information](index=3&type=section&id=Webcast%20and%20Investor%20Information) SAIC provided details for its Q2 FY2026 earnings conference call, held on September 4, 2025, accessible via webcast, with supplemental materials available online - Earnings conference call held on **September 4, 2025, at 10:00 a.m. Eastern time** via webcast[23](index=23&type=chunk) - Supplemental presentation and on-demand audio replay available on the Investor Relations section of the SAIC website[23](index=23&type=chunk) [Non-GAAP Financial Measures and Forward-Looking Statements](index=4&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Forward-Looking%20Statements) This section details SAIC's non-GAAP financial measures, providing definitions and reconciliations, and includes a standard disclosure on forward-looking statements [Adjusted Operating Income](index=10&type=section&id=Adjusted%20Operating%20Income) This subsection provides the reconciliation and definition of Adjusted Operating Income, a non-GAAP measure excluding non-recurring transactions Adjusted Operating Income Reconciliation (Three Months Ended) | Metric | August 1, 2025 (millions) | August 2, 2024 (millions) | | :-------------------------------- | :------------------------ | :------------------------ | | Operating income | **$139** | $134 | | Depreciation of property, plant and equipment | **$6** | $5 | | Amortization of intangible assets | **$29** | $29 | | Acquisition, integration, restructuring and impairment costs | **$1** | $2 | | Costs related to the settlement of federal tax audits | **$7** | $0 | | Adjusted operating income | **$182** | $169 | - Adjusted operating income is a non-GAAP measure that primarily excludes the impact of non-recurring transactions and activities not indicative of ongoing operating performance[42](index=42&type=chunk) [EBITDA and Adjusted EBITDA](index=11&type=section&id=EBITDA%20and%20Adjusted%20EBITDA) This subsection presents the reconciliation and definition of EBITDA and Adjusted EBITDA, non-GAAP performance measures excluding specific financial items and non-recurring transactions EBITDA and Adjusted EBITDA Reconciliation (Three Months Ended) | Metric | August 1, 2025 (millions) | August 2, 2024 (millions) | | :-------------------------------- | :------------------------ | :------------------------ | | Net income | **$127** | $81 | | Interest expense, net and loss on sale of receivables | **$34** | $35 | | Income tax expense (benefit) | **($19)** | $19 | | Depreciation and amortization | **$35** | $34 | | EBITDA | **$177** | $169 | | Acquisition, integration, restructuring and impairment costs | **$1** | $2 | | Costs related to the settlement of federal tax audits | **$7** | $0 | | Adjusted EBITDA | **$185** | $170 | - EBITDA is a performance measure that is calculated by taking net income and excluding interest, income taxes, and depreciation and amortization. Adjusted EBITDA further excludes non-recurring transactions[45](index=45&type=chunk) [Adjusted Diluted Earnings Per Share](index=12&type=section&id=Adjusted%20Diluted%20Earnings%20Per%20Share) This subsection provides the reconciliation and definition of Adjusted Diluted Earnings Per Share, a non-GAAP performance measure excluding non-recurring transactions Adjusted Diluted EPS Reconciliation (Three Months Ended) | Metric | As Reported (Aug 1, 2025) | Acquisition, integration, restructuring and impairment costs | Amortization of intangible assets | Costs related to the settlement of federal tax audits | Non-GAAP Results | | :-------------------------- | :------------------------ | :------------------------------------------------------- | :-------------------------------- | :--------------------------------------------------- | :--------------- | | Net income (millions) | **$127** | $1 | $35 | $7 | **$170** | | Diluted EPS | **$2.71** | $0.02 | $0.75 | $0.15 | **$3.63** | - Adjusted diluted earnings per share is a performance measure that excludes the impact of non-recurring transactions and activities not indicative of ongoing operating performance[48](index=48&type=chunk) [Free Cash Flow](index=14&type=section&id=Free%20Cash%20Flow) This subsection details the reconciliation and definition of Free Cash Flow, a non-GAAP measure calculated from operating activities less capital expenditures and MARPA Facility cash flows Free Cash Flow Reconciliation (Three Months Ended) | Metric | August 1, 2025 (millions) | August 2, 2024 (millions) | | :-------------------------------- | :------------------------ | :------------------------ | | Net cash provided by operating activities | **$122** | $138 | | Expenditures for property, plant, and equipment | **($7)** | ($6) | | Cash used from (provided by) MARPA Facility | **$35** | $109 | | Free cash flow | **$150** | $241 | - Free cash flow is calculated by taking cash flows provided by operating activities less expenditures for property, plant, and equipment and less cash flows from the MARPA Facility[54](index=54&type=chunk) [Backlog Definition](index=9&type=section&id=Backlog%20Definition) This subsection defines SAIC's backlog, categorizing it into funded and negotiated unfunded components, and provides a table of backlog figures Backlog as of August 1, 2025 | Category | Defense and Intelligence (millions) | Civilian (millions) | Total SAIC (millions) | | :-------------------------- | :-------------------------------- | :------------------ | :-------------------- | | Funded backlog | **$2,646** | $948 | **$3,594** | | Negotiated unfunded backlog | **$15,994** | $3,584 | **$19,578** | | Total backlog | **$18,640** | $4,532 | **$23,172** | - Backlog represents the estimated amount of future revenues to be recognized under negotiated contracts and task orders, segregated into funded and negotiated unfunded categories[39](index=39&type=chunk)

Core Points - Science Applications International Corp. (SAIC) is set to release its second quarter fiscal year 2026 results on September 4, 2025, before market open [1] - A conference call to discuss the operational and financial results will take place at 10:00 a.m. Eastern time, which will be webcast to the public [2] - SAIC is a Fortune 500 mission integrator with a focus on technology and innovation across defense, space, civilian, and intelligence markets [3] - The company has approximately 24,000 employees and annual revenues of about $7.5 billion [4]

Core Viewpoint - U Power Limited has signed a Memorandum of Understanding (MOU) with SAIC Hongyan and UNEX EV to deploy battery-swapping compatible electric heavy trucks in Thailand, addressing the demand for green and sustainable transportation solutions in the logistics industry [1][2]. Group 1: Partnership Details - The collaboration involves deploying 3,000 electric heavy-duty tractors for long-haul transportation and 1,200 electric heavy-duty port-specific short-distance trucks in Thailand [2]. - U Power will lead the development and manufacture of battery-swapping stations and provide operational services, while UNEX EV will adapt SAIC Hongyan's heavy trucks for battery swapping and promote sales in Thailand [3]. - SAIC Hongyan will supply heavy truck prototypes and provide technical support to ensure compatibility with U Power's battery-swapping stations [3]. Group 2: Market Focus and Expansion - The initiative aims to promote the adoption of green commercial heavy trucks in Thailand, focusing on major highway transportation enterprises and container port operators [4]. - The partnership is exploring expansion opportunities into additional markets, including Southeast Asia, Latin America, Europe, Hong Kong SAR, and Macau SAR [2]. Group 3: Strategic Insights - The collaboration reflects a shared commitment to accelerating the shift toward zero-emission logistics, with a focus on creating a scalable and sustainable heavy truck electrification model [5]. - U Power has previously launched Southeast Asia's first operational smart battery-swapping station in Phuket, Thailand, and aims to enhance its presence in the Thailand market [5].

Core Insights - Radiance Technologies has appointed Mr. Tony Moraco to its Board of Directors, bringing significant experience from his tenure as CEO of Science Applications International Corporation (SAIC) [1][2] - Mr. Moraco's expertise includes national security, space systems, cybersecurity, and government contracting, which aligns with Radiance's focus on serving defense and intelligence markets [2][3] Company Overview - Radiance Technologies is an employee-owned prime contractor founded in 1999, with over 1,200 employee-owners serving the Department of Defense and other government agencies [7] - The company specializes in cybersecurity, systems engineering, prototyping and integration, and operational and strategic intelligence [7] Leadership Experience - Mr. Moraco led SAIC through a significant transformation, including the separation of a $10 billion entity into Leidos Corporation and a refocused SAIC, and grew SAIC's revenue from $4 billion to $6.5 billion through strategic acquisitions [3][4] - Under his leadership, SAIC's stock price more than doubled, indicating strong improvements in profitability and free cash flow [3] Post-Retirement Activities - After retiring from SAIC, Mr. Moraco has provided consulting services to AEA Investors and GLG, and he currently serves on the board of Curtiss-Wright Corporation [5][6] - He holds advanced degrees in Geodetic Sciences and Civil and Environmental Engineering from Virginia Tech and has been recognized as a distinguished alumnus [6]

Core Points - Science Applications International Corp. (SAIC) has secured a $202 million contract to provide training solutions for the U.S. Navy, enhancing operational readiness and combat capabilities [1][5] - The contract includes a 10-month base period, four one-year options, and one six-month extension option, ensuring a long-term partnership with the Navy [2] - SAIC will support 19 different headquarters and training commands, offering a range of training methods including academic instruction, live exercises, and synthetic training events [3][4] Company Overview - SAIC is a Fortune 500 mission integrator focused on technology and innovation across defense, space, civilian, and intelligence markets, with annual revenues of approximately $7.5 billion [6][7] - The company employs around 24,000 individuals and is headquartered in Reston, Virginia [7]

Core Insights - Science Applications International Corp. (SAIC) has formed a strategic alliance with Google Public Sector to implement "AI at the Edge" solutions, utilizing Google Distributed Cloud [1][4] - The collaboration aims to enhance mission outcomes for government clients by integrating SAIC's technology expertise with Google Cloud's AI and machine learning capabilities [4][7] Company Overview - SAIC is a Fortune 500 mission integrator with a focus on technology and innovation across defense, space, civilian, and intelligence markets, generating annual revenues of approximately $7.5 billion [5][8] - The company employs around 24,000 personnel and is headquartered in Reston, Virginia [8] Strategic Alliance Details - The alliance will involve training and certifying 1,000 SAIC personnel in Google Cloud technologies, supported by a dedicated Learning Consultant from Google Cloud [3] - SAIC is positioned as one of the first system integrators to market Google Distributed Cloud, enhancing its capability to deliver impactful solutions [2] Key Benefits of the Collaboration - The partnership aims to provide tactical edge solutions that meet specialized requirements such as low latency and high bandwidth [6] - It will enable secure, scalable AI solutions that ensure access to mission-critical applications even in disconnected environments [6][7] - The collaboration is expected to accelerate innovation by co-developing AI solutions tailored to specific customer needs [7]

Core Insights - Science Applications International Corp. (SAIC) has launched eligibilityNOW, a comprehensive claims management solution aimed at improving the speed and accuracy of processing benefits claims for government agencies [1][2] - The solution leverages AI technology in partnership with Xerox to address eligibility backlogs and enhance outcomes for beneficiaries [1][3] Group 1: Product Overview - eligibilityNOW is designed to modernize the benefits claims lifecycle by digitizing, validating, routing, and securely storing claims data in the cloud [2] - The solution minimizes manual efforts and overcomes legacy system constraints, enabling agencies to deliver health benefits efficiently while meeting service-level expectations [2][3] Group 2: Strategic Importance - The platform is modular and purpose-built to adapt to the evolving needs of government health agencies, including the Department of Veterans Affairs and the Department of Health and Human Services [3] - By reducing the cognitive load on claims adjudicators, eligibilityNOW enhances citizen trust and accelerates benefit delivery [3] Group 3: Company Background - SAIC is a Fortune 500 mission integrator with a focus on technology and innovation across defense, space, civilian, and intelligence markets, generating annual revenues of approximately $7.5 billion [4][5] - The company employs around 24,000 individuals and is headquartered in Reston, Virginia [5]

Core Insights - David Urban has been appointed to the Board of Directors of Science Applications International Corp. (SAIC), effective September 15, 2025, bringing extensive experience in policy, politics, and strategy [1][2] - Urban's expertise includes navigating public policy, strategic communications, corporate governance, risk management, and organizational leadership, which will be beneficial for SAIC [1][2] - His appointment increases SAIC's Board from eleven to twelve members and he will serve on the Board's Audit Committee [1] Company Overview - SAIC is a leading mission integrator in the United States, focusing on technology and innovation to serve defense, space, civilian, and intelligence markets [4] - The company has a robust portfolio that includes secure high-end solutions in mission IT, enterprise IT, engineering services, and professional services [4] - SAIC is headquartered in Reston, Virginia, and has approximately 24,000 employees with annual revenues of about $7.5 billion [5]

Core Insights - Science Applications International Corp. (SAIC) has announced a strategic collaboration with ServiceNow to enhance government risk reduction efforts for mission operations [1][2] - The partnership aims to shift IT risk management from a reactive approach to a proactive, autonomous resilience model, ensuring no-fail mission environments for U.S. armed forces and agencies [1][2] Group 1: Collaboration Details - The collaboration will leverage ServiceNow's AI Platform integrated into SAIC's mission labs, providing real-time intelligence for decision-making, issue prediction, and process automation [2][3] - The partnership focuses on enabling customers to rapidly develop, test, and deploy secure IT services, ensuring scalability and faster delivery of capabilities [2][3] Group 2: Strategic Goals - The collaboration aims to unlock efficiencies in government operations by combining SAIC's mission integration approach with ServiceNow's innovative AI technology [3][4] - The goal is to accelerate modernization efforts within defense and government sectors, enhancing user experiences and reducing technical debt [3][4] Group 3: Market Position - As an Elite partner of ServiceNow, SAIC is positioned to deliver transformative solutions at an enterprise scale across defense, civilian, and intelligence markets [4] - SAIC leads the largest federal implementation of ServiceNow through the Army Enterprise Service Management Platform, demonstrating its capability to operationalize complex solutions [4][6]

Company Overview - SAIC shares have increased by approximately 11.9% since the last earnings report, outperforming the S&P 500 [1] - The most recent earnings report is essential to understand the key drivers behind this performance [1] Earnings Estimates - Estimates for SAIC have trended upward over the past month, indicating positive sentiment among analysts [2][4] VGM Scores - SAIC has a strong Growth Score of A, but a low Momentum Score of F, while also receiving an A grade for value, placing it in the top quintile for this investment strategy [3] - The aggregate VGM Score for SAIC is A, which is significant for investors not focused on a single strategy [3] Industry Comparison - SAIC is part of the Zacks Computers - IT Services industry, where Wix.com has gained 6.2% over the past month [5] - Wix.com reported revenues of $473.65 million for the last quarter, reflecting a year-over-year increase of 12.8% [5] - Wix.com is expected to post earnings of $1.75 per share for the current quarter, representing a year-over-year change of 4.8% [6]