SAIC stock price rises 2%, Q4 earnings beat expectations but revenue falls slightly short

Virginia Beach, VA - Science Applications International Corporation (NASDAQ: SAIC) reported its Q4 earnings, exceeding profit expectations but slightly missing revenue estimates, causing the stock to rise 2.7%.

The technology integrator posted adjusted Q4 earnings of $2.62 per share, beating the analyst consensus of $1.98 by $0.64. However, revenue of $1.75 billion fell short of the $1.77 billion forecast and declined 5% from $1.84 billion in the same period last year.

The revenue decline was mainly due to reduced existing contract work (including the impact of government shutdowns) and contract completions.

SAIC CEO Jim Reagan said, “As we announced on February 11, our Q4 performance reflects ongoing revenue challenges, but strong operational execution supports our ability to raise profit margin expectations. I am encouraged by the progress we are making and the opportunities ahead.”

The company’s adjusted EBITDA margin expanded to 10.3% from 9.6% last year, driven by lower selling, general, and administrative expenses. For fiscal year 2026, SAIC reported revenue of $7.26 billion, down 3% year-over-year, and adjusted EPS of $10.75, up 18% from $9.13 in FY2025.

For FY2027, SAIC’s guidance projects revenue between $7.0 billion and $7.2 billion, with adjusted EPS of $9.50 to $9.70. The midpoint of EPS guidance at $9.60 is below this year’s $10.75. The company expects an adjusted EBITDA margin of 9.9% to 10.1%, and free cash flow will exceed $600 million.

Total net orders for the quarter were $600 million, with an order-to-shipment ratio of 0.3, but the order-to-shipment ratio over the past 12 months was 1.1.

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