SAIC Announces First Quarter of Fiscal Year 2026 Results

Core Insights - Science Applications International Corporation (SAIC) reported a revenue increase of 2% in the first quarter of fiscal year 2026, totaling $1.877 billion compared to$1.847 billion in the same period last year [3][4][7] - The company experienced a decline in operating income, net income, and EBITDA, attributed to contract completions and timing and volume mix in its contract portfolio [4][5][34] - SAIC's backlog at the end of the quarter was approximately $22.3 billion, with net bookings of$2.4 billion, reflecting a book-to-bill ratio of 1.3 [10][11] Financial Performance - Revenues for the quarter increased by $30 million or 2$121 million, with an operating margin of 6.4%, down from 7.1% in the prior year [3][4][33] - Net income was $68 million, a decrease of 12$77 million in the previous year [3][6] - Adjusted EBITDA was $157 million, representing 8.4$100 million, up from $98 million in the prior year [7][52] - Free cash flow was negative at$(44) million, a significant decline from $13 million in the same quarter last year [3][52] - The company deployed$152 million in capital, including $125 million for share repurchases and$19 million in cash dividends [8] Contract Awards and Backlog - SAIC secured notable contracts, including a $1.8 billion contract with the U.S. Army and a$327 million contract with the Pension Benefit Guaranty Corporation [11][12] - The estimated backlog included approximately $3.3 billion in funded contracts, with a total backlog of$22.3 billion [10][38] Fiscal Year 2026 Guidance - Management reaffirmed fiscal year 2026 guidance, projecting revenues between $7.60 billion and$7.75 billion, with adjusted EBITDA between $715 million and$735 million [14][15]