Science Applications International (SAIC) Q4 2025 earnings summary

Executive summary

• FY25 revenue reached $7.48B, up 3.1% organically, with adjusted EBITDA of $710M (9.5% margin) and adjusted diluted EPS of $9.13, reflecting strong execution and lower incentive compensation expense.

• Free cash flow increased to $507M, supported by higher EBITDA and lower share count, despite higher interest expense and cash taxes.

• Q4 revenue was $1.84B, up 6% year-over-year, with adjusted EBITDA of $177M (9.6% margin).

• Strategy centers on mission-critical, technology-driven solutions and outcome-based contracting, with a robust bid pipeline and notable program wins supporting future growth.

• Market conditions remain dynamic, but recent government actions and efficiency initiatives have had only nominal financial impact so far.

Financial highlights

• FY25 revenue was $7.48B, with 3.1% organic growth at the high end of guidance.

• Q4 adjusted EBITDA was $177M (9.6% margin); full-year adjusted EBITDA was $710M (9.5% margin), 20 bps above guidance.

• Adjusted diluted EPS was $2.57 for Q4 and $9.13 for the year, aided by strong operations and a lower tax rate.

• Free cash flow was $236M in Q4 and $507M for the year, or just over $10 per share.

• Book-to-bill ratio for FY25 was 0.9x, with total backlog of ~$22B at year-end.

Outlook and guidance

• FY26 revenue guidance is $7.6–$7.75B, with 2–4% organic growth and adjusted EBITDA of $715M–$735M (margin 9.4–9.6%).

• FY26 adjusted diluted EPS guidance is $9.10–$9.30; free cash flow expected at $510–$530M (~$11/share).

• FY27 targets: revenue of $7.95B–$8.10B, adjusted EBITDA margin of 9.5–9.7%, and free cash flow of $550M (~$12/share).

• Growth expected to accelerate in the second half as recompete headwinds ease.

• Share repurchases of $350–$400M planned for FY26 and FY27, with capacity for M&A.