SAIC Reports Q2 and H1 2025 Earnings: Sales Down, Net Income Up

Science Applications International Corporation reported Q2 sales of $1.769bn, down from $1.818bn YoY, and net income of $127m, up from $81m YoY. For the six months, sales were $3.646bn, down from $3.665bn YoY, and net income was $195m, up from $158m YoY. Basic earnings per share from continuing operations were $2.72 for Q2 and $4.14 for the six months, while diluted earnings per share were $2.71 for Q2 and $4.12 for the six months.

Science Applications International Corporation (SAIC) has released its second-quarter (Q2) fiscal year 2026 results, reflecting a challenging revenue environment but a strong performance in program execution and bookings. The company reported revenues of $1.769 billion, down 3% year-over-year (YoY) from $1.818 billion. Net income stood at $127 million, up 57% YoY from $81 million [1].

Operating income as a percentage of revenues increased to 7.9% from 7.4%, primarily due to improved profitability across the contract portfolio and the recovery of costs from the settlement of a patent infringement matter. Adjusted EBITDA as a percentage of revenues rose to 10.5% from 9.4%, reflecting similar factors. Diluted earnings per share (EPS) for the quarter were $2.71, up 72% YoY from $1.58, while adjusted diluted EPS increased to $3.63, up 77% YoY from $2.05 [1].

The company's net cash provided by operating activities decreased to $122 million, down 12% YoY from $138 million, while free cash flow fell to $150 million, down 38% YoY from $241 million. SAIC deployed $130 million of capital, primarily through share repurchases and dividends, and declared a subsequent quarterly dividend of $0.37 per share [1].

For the six months ended August 1, 2025, SAIC reported revenues of $3.646 billion, down 0.6% YoY from $3.665 billion, and net income of $195 million, up 24% YoY from $158 million. Basic EPS from continuing operations were $2.72 for Q2 and $4.14 for the six months, while diluted EPS were $2.71 for Q2 and $4.12 for the six months [1].

SAIC's book-to-bill ratio for the quarter and year was 1.5 and 1.4, respectively, with a trailing twelve months ratio of 1.0. The company's estimated backlog at the end of the quarter was approximately $23.2 billion, with $3.6 billion funded [1].

The company announced several notable contract awards during the quarter, including a $928 million contract with the U.S. Air Force for the Hyper-Innovative Operational Prototype Engineering (HOPE) 2.0 program, a $728 million task order with the Department of Treasury for cloud services, and a $202 million contract with the U.S. Navy for training solutions [1].

SAIC has revised its fiscal year 2026 guidance, expecting revenues between $7.250 billion and $7.325 billion, adjusted EBITDA between $680 million and $690 million, and adjusted diluted EPS between $9.40 and $9.60. The company expects free cash flow to be greater than $550 million [1].

References:
[1] https://investors.saic.com/news-releases/news-release-details/saic-announces-second-quarter-fiscal-year-2026-results