SAIC(US:SAIC) ZACKS·2025-06-03 14:42Core Insights - Science Applications International (SAIC) reported its first-quarter fiscal 2026 results, with non-GAAP earnings of $1.92 per share, missing the Zacks Consensus Estimate of $2.14 by 10.28% and showing flat year-over-year profits [1][9] - Revenues for the fiscal first quarter rose 2% year over year to $1.877 billion, slightly surpassing the Zacks Consensus Estimate of $1.864 billion by 0.71%, driven by increased contract volumes [2][9] - Despite the revenue growth, SAIC shares fell 13% following the earnings miss, contributing to a year-to-date decline of 9.8%, underperforming the Computers – IT Services industry [3] Financial Performance - Defence and Intelligence segment revenues, accounting for 76.3% of total revenues, decreased 0.2% year over year to $1.43 billion, while Civilian revenues rose 8% year over year to $444 million, constituting 23.7% of total revenues [4] - Net bookings for the quarter were approximately $2.4 billion, resulting in a book-to-bill ratio of 1.3, with an estimated backlog of $22.3 billion at the end of the quarter [5] - Selling, general and administrative (SG&A) expenses decreased 4.7% to $89 million, while non-GAAP operating income fell to $158 million from $165 million year over year, leading to a non-GAAP operating margin contraction of 50 basis points to 8.4% [6] EBITDA and Cash Flow - Adjusted EBITDA declined 5.42% to $157 million, with an adjusted EBITDA margin of 8.4%, down from 9% in the prior-year quarter, impacted by seasonal investment costs [7] - The company ended the fiscal first quarter with cash and cash equivalents of $47 million, down from $56 million in the previous quarter, and long-term debt decreased to $1.876 billion [8] Guidance and Outlook - SAIC reaffirmed its fiscal 2026 guidance, projecting revenues in the range of $7.60-$7.75 billion and adjusted earnings between $9.10-$9.30 per share, with adjusted EBITDA expected to be approximately $715-$735 million [11]