Science Applications International (SAIC) Q3 2025 earnings summary

Executive summary

• Q3 FY25 revenues reached $1.98B, up 4.3% year-over-year, with adjusted EBITDA of $197M (10.0% margin) and adjusted diluted EPS of $2.61, reflecting improved execution and a lower tax rate.

• Net income for the quarter was $106M, up 14% year-over-year; diluted EPS was $2.13, up from $1.76.

• Free cash flow was $9M, impacted by working capital timing and an extra payroll cycle.

• Full-year revenue growth now expected at 3%, with FY25 guidance raised to $7.425B–$7.475B and adjusted EPS guidance increased to $8.50–$8.65.

• Board authorized a new $1.2B share repurchase program, representing 20% of market value.

Financial highlights

• Adjusted EBITDA for Q3 was $197M (10.0% margin), up from $178M year-over-year; adjusted diluted EPS was $2.61.

• Net cash from operating activities for the nine months was $379M, up from $333M prior year.

• Bookings for the quarter were $1.5B; backlog at quarter-end was $22.4B, with a trailing 12-month book-to-bill ratio of 0.9.

• Free cash flow for Q3 was $9M, down from $97M year-over-year due to working capital timing.

• Weighted-average diluted shares outstanding decreased to 49.8M from 53.3M year-over-year.

Outlook and guidance

• FY25 revenue guidance raised to $7.425B–$7.475B, with adjusted EBITDA guidance of $685M–$695M and adjusted EPS of $8.50–$8.65.

• Free cash flow guidance reaffirmed at $490M–$510M; FY27 free cash flow per share target is ~$12.

• Management expects increased business development submissions to drive improved book-to-bill and growth in FY26.

• Multi-year plan targets FY27 revenue of $7.95B–$8.10B and adjusted EBITDA margin of 9.4%–9.6%.

• Organic revenue growth expected to average ~3.5% FY22–FY27, with margin improvement.