Science Applications International Corporation (NASDAQ: SAIC) Q1 2026 Earnings Call 6/2/2025

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Science Applications International Corporation (NASDAQ: SAIC) reported its Q1 2026 results on June 2, 2025, delivering revenue of $1.88 billion, up 2% year-over-year and in line with analyst forecasts. However, adjusted earnings per share (EPS) came in at $1.92, missing consensus estimates of $2.14 and remaining flat compared to last year, as higher tax rates and lower adjusted EBITDA offset the benefit of a reduced share count. Net income for the quarter was $68 million, down from $77 million a year ago, while operating income declined 8% to $121 million. The company’s Defense and Intelligence segment accounted for 76% of revenues (down 0.2% year-over-year), while Civilian segment revenues grew 8% to $444 million. Margins were pressured, with non-GAAP operating income at $158 million (8.4% margin, down 50 basis points) and adjusted EBITDA falling 5% to $157 million. Free cash flow was negative $44 million, impacted by the timing of receivables, though management expects this to normalize over the year. Bookings for the quarter reached $2.4 billion, with a book-to-bill ratio of 1.3x, and total backlog stood at $22.3 billion. The company repurchased $125 million in shares and paid $19 million in dividends during the quarter. Despite the earnings miss, SAIC reaffirmed its full-year 2026 guidance, projecting revenue of $7.6–$7.75 billion and adjusted EPS of $9.10–$9.30, in line with analyst expectations. The company expects organic growth to accelerate in the second half of the year as new business ramps up and contract transitions become less of a headwind. Management cited procurement delays at some customers but emphasized that these are not related to program performance and do not expect them to materially impact full-year results. The company remains focused on digital engineering, secure cloud solutions, and operational efficiency to drive sustained growth. About Inside Ticker: For more expert analysis and real-time updates on Science Applications International Corporation (NASDAQ: SAIC) and other market movers, follow Inside Ticker and visit InsideTicker.com for in-depth reports, financial insights, and the latest news on leading companies. #SAIC #EarningsCall #Q12026 #ITServices #Defense #GovernmentContracts #StockMarket #Investing #InsideTicker