Description

Science Applications International Corporation (SAIC)’s $28 Billion Pipeline Signals a Strategic Growth Inflection!

Science Applications International Corporation (SAIC) reported its fiscal year 2026 third-quarter results, showcasing both challenges and areas of opportunity for the company. The quarter ended on October 31, 2025, with revenue at $1.87 billion, indicating a decline of 5.6% year-over-year, exacerbated by a roughly 1% impact from a government shutdown. Excluding this, the adjusted revenue slightly exceeded previous guidance, suggesting some market stability recovery. Adjusted EBITDA stood at $185 million, reflecting a margin of 9.9% driven by robust program execution. Meanwhile, adjusted diluted EPS reached $2.58, underscoring strong margin dynamics and a favorable tax backdrop. Despite cash flow challenges due to the shutdown, quarterly free cash flow remained solid at $135 million, though some collections shifted to the fourth fiscal quarter. These financial outcomes surpassed prior guidance; however, the leadership under interim CEO Jim Reagan emphasizes the necessity for stronger revenue gains long term.