SAIC's Q3 2025: A Tale of Growth and Agility

Science Applications International Corporation (SAIC) recently reported its third-quarter fiscal year 2025 earnings, showcasing robust growth and strategic prowess. The company's revenue increased by 4.3% to $1.98 billion, driven by volume ramp-ups on existing and new contracts. This growth translated into better-than-expected profitability, with net income surging by 14% to $106 million and adjusted diluted earnings per share rising 15% to $2.61.



SAIC's CEO, Toni Townes-Whitley, attributed the strong performance to the company's agility in business development and its ability to leverage emerging technologies to enhance government efficiency. The company expects to exceed $25 billion in submissions for the fiscal year, significantly higher than its earlier target of $22 billion. This increased activity is expected to translate into an improving book-to-bill ratio and accelerating growth in fiscal year 2026.



One notable contributor to SAIC's financial performance was the resolution of the Assault Amphibious Vehicle (AAV) contract termination. This resolution led to a 12% increase in operating income and a 14% increase in net income compared to the prior year. Additionally, it contributed to an increase in adjusted EBITDA as a percentage of revenues, from 9.4% to 10.0%.

SAIC's share price has responded positively to these results, reflecting investor confidence in the company's growth prospects. The company's Board of Directors has authorized a $1.2 billion share repurchase program, representing 20% of the market value, further boosting shareholder value.

As SAIC continues to leverage its strengths in emerging technologies and agile business development, investors can expect the company to maintain its momentum and deliver robust financial performance in the coming quarters.

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