Science Applications International (SAIC) Q4 2026 earnings summary

Executive summary

• Leadership transition completed with a focus on continuity, operational excellence, and portfolio realignment toward Mission IT & Engineering and non-commoditized Enterprise IT.

• Operating discipline and business development improvements drove robust EBITDA and cash flow despite a challenging sales environment and revenue declines.

• Enterprise transformation and process efficiency initiatives launched to streamline operations and increase investment capacity.

• Revenue declined year-over-year due to recompete losses, contract ramp downs, and customer disruptions, but cost efficiencies and program mix supported profitability.

• Q4 FY26 revenues were $1.75B, down 5–6% year-over-year; FY26 revenues were $7.26B, down 3%.

Financial highlights

• FY26 revenue was $7.26B, down 3% organically; Q4 revenue was $1.75B, down 5–6% year-over-year.

• Adjusted EBITDA for FY26 was $708M (9.7% margin); Q4 adjusted EBITDA margin was 10.3%.

• Adjusted diluted EPS for FY26 was $10.75 (up 18%); Q4 adjusted diluted EPS was $2.62.

• FY26 free cash flow was $577M (up 16%); Q4 free cash flow was $336M (up 42%).

• FY26 net income was $358M (down 1%); Q4 net income was $85M (down 13%).

Outlook and guidance

• FY27 revenue guidance: $7.0B–$7.2B, reflecting a 2–4% organic contraction.

• Adjusted EBITDA guidance: $705M–$715M (9.9–10.1% margin); adjusted diluted EPS: $9.50–$9.70.

• Free cash flow guidance: at least $600M for FY27, including $70M in non-recurring tax benefits.

• FY28 free cash flow expected at $530M or ~$13 per share, excluding tax benefit.

• Guidance assumes a 23% effective tax rate, $135M net interest expense, and $130M intangible amortization.