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Executive Summary

SAIC reported mixed Q4 and full-year FY26 results with revenue and GAAP EPS declining year-over-year, but non-GAAP metrics like adjusted EPS and adjusted EBITDA improving. The company raised FY27 adjusted EPS guidance despite projecting continued revenue contraction, citing margin expansion and strong cash flow. Book-to-bill was weak in Q4 but solid for the full year.

Key Financial Metrics

Key Facts

• FY26 revenue declined 3% YoY to $7.26B, driven by contract completions and government shutdown impact
• FY26 GAAP diluted EPS decreased 7% to $7.70, but adjusted diluted EPS rose 18% to $10.75
• Adjusted EBITDA margin improved to 9.7% from 9.5% in prior year
• FY27 guidance calls for revenue of $7.0B–$7.2B (down 3–6% YoY), adjusted EPS of $9.50–$9.70
• Free cash flow increased 16% to $577M; company deployed $524M in capital via buybacks and dividends
• Q4 book-to-bill ratio was weak at 0.3, though trailing twelve-month ratio was healthy at 1.1

Financial Impact

Revenue down $217M YoY, but adjusted EPS up $1.62; FY27 revenue guidance implies further decline of $200M–$400M

Risk Factors

• Persistent revenue decline and weak near-term bookings (0.3 book-to-bill in Q4)
• Guidance assumes continued margin expansion despite revenue contraction
• Heavy reliance on non-GAAP metrics that exclude significant recurring costs like intangible amortization

Market Snapshot

Investment Themes

Documents Analyzed

This report is based on 1 press release from GlobeNewswire.

US Market Status