SAIC Announces Fourth Quarter and Full Fiscal Year 2026 Results

Core Viewpoint - Science Applications International Corporation (SAIC) reported a decline in revenues and net income for the fourth quarter and full fiscal year 2026, but highlighted strong operational execution and margin improvements moving forward [2][5][10]. Financial Performance - Q4 FY26 revenues were $1.75 billion, a decrease of 5% from $1.84 billion in Q4 FY25; FY26 revenues totaled $7.26 billion, down 3% from $7.48 billion in FY25 [5][10]. - Q4 FY26 net income was $85 million, down 13% from $98 million in Q4 FY25; FY26 net income was $358 million, a slight decrease of 1% from $362 million in FY25 [5][10]. - Adjusted EBITDA for Q4 FY26 was $181 million, representing 10.3% of revenues, compared to 9.6% in Q4 FY25; FY26 adjusted EBITDA was $708 million, or 9.7% of revenues, compared to 9.4% in FY25 [5][10][12]. - Diluted earnings per share for Q4 FY26 were $1.87, down 7% from $2.00 in Q4 FY25; FY26 diluted earnings per share were $7.70, up 7% from $7.17 in FY25 [5][13]. Operational Highlights - The decrease in Q4 revenues was primarily due to a ramp down in volume on existing contracts and contract completions, partially offset by new contracts and the acquisition of SilverEdge, which contributed $23 million [6][10]. - Operating income as a percentage of revenues increased to 7.6% in Q4 FY26 from 7.5% in the prior year, attributed to lower selling, general, and administrative expenses [7][8]. - The company reported a significant increase in net cash provided by operating activities, reaching $258 million in Q4 FY26, a 124% increase from $115 million in Q4 FY25 [14][15]. Backlog and Contract Awards - Net bookings for Q4 FY26 were approximately $0.6 billion, resulting in a book-to-bill ratio of 0.3; for the year, net bookings were approximately $7.8 billion, with a book-to-bill ratio of 1.1 [19]. - The estimated backlog at the end of FY26 was approximately $22.6 billion, with $3.6 billion funded [19][46]. - Notable contract awards during the quarter included approximately $629 million from U.S. Space and Intelligence Community organizations and a $95 million contract from the U.S. Government Accountability Office [20][21]. Fiscal Year 2027 Guidance - The company provided guidance for FY27, projecting revenues between $7.0 billion and $7.2 billion, with organic growth expected to decline between 4% and 2% [23][24]. - Adjusted EBITDA is expected to be between $705 million and $715 million, with an adjusted EBITDA margin of 9.9% to 10.1% [24].