Science Applications International Corp

Latest Report Overview

Science Applications International Corp (SAIC) reported For the quarterly period ended July 31, 2026 (Issuer fiscal Q2 FY2027) revenue of $1,880 million with diluted EPS of $2.38 and net income of $102 million. Operating margin was 8.1%, and free cash flow was $131 million for the period. Profitability remained resilient during the quarter, with net income reaching $102 million and operating cash flow contributing $146 million to liquidity. Management highlighted continued success in securing new contract awards and recompetes, reinforcing the company's multi-year backlog and revenue visibility. Capital allocation during the period emphasized returning value to shareholders through share repurchases, with $93 million of common stock repurchased. The balance sheet remained stable with total debt at $2.485 billion, supporting ongoing operational and strategic initiatives.

Key Takeaways for Science Applications International Corp

• Science Applications International Corp reported Q2 FY2027 revenue of $1.88 billion, representing a 6.3% YoY increase driven by strong federal program execution.
• Diluted EPS reached $2.38 for the quarter, supported by steady operating margins of 8.1% and disciplined cost management.
• Operating cash flow stood at $146 million, contributing to a robust TTM free cash flow profile of $619 million.
• The company repurchased $93 million of common stock during the quarter, reinforcing its active capital return strategy.
• Total debt remained stable at $2.485 billion, reflecting consistent balance sheet stewardship amid ongoing capital deployment.
• High demand for federal IT modernization, cloud migration, and digital engineering provides strong visibility through multi-year contract backlogs.

What Does Science Applications International Corp Do?

Science Applications International Corp is a Fortune 500 technology integrator that provides engineering, systems integration, and information technology solutions primarily to the U.S. government. Its primary customers include the Department of Defense, the intelligence community, and federal civilian agencies. The company offers a comprehensive suite of services including digital engineering, enterprise IT, cloud migration, software development, artificial intelligence integration, and cyber security. Operating across national security, defense, and civilian sectors, SAIC leverages deep domain expertise and cleared personnel to support mission-critical operations. With a large workforce and extensive nationwide locations, the company's scale allows it to bid on and manage multi-billion-dollar federal prime contracts. The business model is distinguished by long-term customer relationships, rigorous security clearance standards, and the ability to integrate complex, disparate technologies into cohesive operational systems for government clients.

Growth Drivers for Science Applications International Corp

• Winning new prime contract awards and successfully defending recompetes across the Department of Defense and civilian agencies.
• Expansion into high-demand technical domains including digital engineering, enterprise IT modernization, and cyber security.
• Increased federal government spending on cloud migration, data analytics, and secure communications.
• Strategic deployment of capital toward share repurchases and selective value-accretive opportunities.
• Leveraging advanced artificial intelligence and machine learning solutions to enhance service delivery and win competitive bids.