Science Applications International 2026 Q2 Earnings Strong Performance as Net Income Surges 56.8%

Science Applications International (SAIC) reported its fiscal 2026 Q2 earnings on Sep 04th, 2025. The results showed mixed performance, with revenue declining but earnings rising. The company raised its adjusted EPS guidance and expects strong free cash flow, despite a contraction in revenue growth.

SAIC’s Q2 earnings highlighted resilience amid revenue headwinds, as it reported a 56.8% increase in net income to $127 million compared to $81 million in the prior year. The company raised its 2026 adjusted EPS guidance and expects continued strength in free cash flow, despite a modest organic revenue contraction.

Revenue
The total revenue of Science Applications International decreased by 2.7% to $1.77 billion in 2026 Q2, down from $1.82 billion in 2025 Q2.

Earnings/Net Income
Science Applications International's EPS rose 71.1% to $2.72 in 2026 Q2 from $1.59 in 2025 Q2, marking continued earnings growth. Meanwhile, the company's profitability strengthened with net income of $127 million in 2026 Q2, marking 56.8% growth from $81 million in 2025 Q2. The Company has sustained profitability for 13 years over the corresponding fiscal quarter, reflecting stable business performance. The impressive net income growth underscores the company's effective cost management and operational efficiency.

Price Action
The stock price of Science Applications International has edged up 2.51% during the latest trading day, has tumbled 10.99% during the most recent full trading week, and has dropped 6.17% month-to-date.

Post-Earnings Price Action Review
Toni Townes-Whitley, CEO & Director, highlighted mixed Q2 results, with 2.7% year-over-year revenue decline but strong margin recovery. She emphasized challenges from delayed on-contract growth, program disruptions, and new award delays, noting these headwinds are temporary but require cost alignment. Townes-Whitley reiterated confidence in the business’s long-term strategy, including AI integration for operational efficiency and margin tailwinds. She underscored progress in recompete win rates and new business pursuits, aligning with targets, and expressed cautious optimism despite near-term revenue uncertainties. Leadership remains focused on culture, employee engagement, and mission-driven outcomes to drive sustainable value creation.

Guidance
Prabu Natarajan, Executive VP & CFO, outlined 2026 revenue guidance of $7.25–$7.325 billion, reflecting 2%–3% organic contraction, with Q3 and Q4 expecting 5.5% and 4% declines, respectively. Adjusted EBITDA margin is lowered to 9.5%–9.7% for 2027, while 2026 adjusted EPS is raised to $9.40–$9.60, aided by tax benefits. Free cash flow guidance for 2026 is increased to over $550 million, with $200 million in tax savings over 2026–2028. 2027 free cash flow is expected to remain strong, with cost efficiencies and tax benefits offsetting revenue pressures.

Additional News
Over the past three weeks, Nigeria’s business landscape saw significant political and legal developments. Kaduna State Police Command summoned former Governor Nasir El-Rufai and six senior ADC leaders over alleged criminal conspiracy, marking a major political development. Meanwhile, the Osun ALGON challenged the Central Bank of Nigeria over local government account signatories, sparking sectoral discussions. In another notable move, the Lagos deputy speaker announced scholarships and palliatives for constituents, reflecting growing political engagement in local governance. These developments highlight the evolving regulatory and political environment across the nation.