Science Applications International Corp. (NASDAQ:SAIC) reported its fiscal fourth quarter and full-year 2026 results on March 16, 2026, showcasing a company in the midst of a significant structural and leadership transition.
The Reston, Virginia-based technology integrator posted fourth-quarter revenue of $1.75 billion, a decline compared to the prior year primarily due to contract completions and recent procurement delays across federal agencies.
Despite the top-line pressure, SAIC demonstrated robust margin expansion.
Fourth-quarter net income reached $85 million, or $1.87 per diluted share.
On an adjusted basis, diluted earnings per share (EPS) hit $2.62, significantly outperforming the consensus analyst estimate of $1.79.
This profitability was driven by a consolidated organizational structure—streamlined from five business groups to three—and a focus on more selective, technology-rich awards rather than larger, commoditized IT programs.
For the full fiscal year ended January 30, 2026, SAIC reported total revenue of $7.26 billion and a net income of $358 million ($7.70 per share).
Adjusted diluted EPS for the year reached $10.75.
The company’s cash flow remained a highlight of the report, with full-year free cash flow totaling $577 million, enabling the Board of Directors to declare a quarterly cash dividend of $0.37 per share, payable on April 24, 2026.
Under the leadership of CEO James Reagan, who transitioned from interim to permanent chief executive in February, SAIC is navigating a shifting federal landscape.
While the company noted "near-term revenue outlook" pressure from unfavorable recompete decisions, its year-end backlog remains substantial at an estimated $23 billion.
Looking forward to fiscal year 2027, the company expects revenue in the range of $7 billion to $7.2 billion, with adjusted diluted EPS projected between $9.50 and $9.70.