# Science Applications International Corporation (SAIC) Q2 2026 Financial Results Summary
**Release Date:** September 4, 2025
Science Applications International Corporation (SAIC) has reported its financial results for the second quarter of fiscal year 2026, which ended on August 1, 2025. Below is a summary of the results:
### Financial Highlights
– **Revenues:**
– **Q2 2026:** $1.77 billion
– **Change:** Decreased by approximately **3%** compared to Q2 2025’s revenue of $1.82 billion.
– **Net Bookings:**
– **Q2 2026:** $2.6 billion
– **Book-to-Bill Ratio:** 1.5 for the quarter and 1.0 for the trailing twelve months.
– **Year-to-Date Bookings:** $5.0 billion with a year-to-date book-to-bill ratio of 1.4.
– **Net Income:**
– **Q2 2026:** $127 million
– **Change:** Increased by **57%** from $81 million in Q2 2025.
– **Operating Income:**
– **Q2 2026:** $139 million
– **Change:** Increased by **4%** from $134 million in Q2 2025.
– **Adjusted EBITDA:**
– **Q2 2026:** $185 million
– **Adjusted EBITDA Margin:** **10.5%**, up from **9.4%** in Q2 2025.
– **Earnings Per Share:**
– **Diluted EPS:** $2.71, up **72%** from $1.58 a year earlier.
– **Adjusted Diluted EPS:** $3.63, up **77%** from $2.05 in Q2 2025.
### Cash Flow and Capital Deployment
– **Cash Flows from Operating Activities:**
– **Q2 2026:** $122 million
– **Change:** Decreased by **12%** from $138 million in Q2 2025.
– **Free Cash Flow:**
– **Q2 2026:** $150 million
– **Change:** Decreased by **38%** from $241 million in Q2 2025.
– **Capital Deployment:**
– SAIC deployed $130 million in capital, which includes:
– **Share Repurchases:** $106 million
– **Dividends Paid:** $17 million.
### Dividend Declared
– The Board of Directors declared a cash dividend of **$0.37** per share of common stock, payable on **October 24, 2025** to stockholders of record on **October 10, 2025**.
### Backlog and Notable Contracts
– **Estimated Backlog:** Approximately **$23.2 billion** at the end of Q2 2026.
– **Notable Contract Awards in Q2 2026:**
– **U.S. Air Force:** Awarded a $928 million contract for the Hyper-Innovative Operational Prototype Engineering (HOPE) 2.0.
– **Department of Treasury:** Awarded a $728 million task order for cloud services.
– **U.S. Navy:** Contracts totaling approximately $562 million for various training and operational support programs.
### Guidance
– The company has revised its fiscal year 2026 guidance:
– **Revenue:** Estimated between $7.250 billion and $7.325 billion (revised down from the previous estimate of $7.60 billion – $7.75 billion).
– **Adjusted EBITDA:** Now projected between $680 million and $690 million (down from $715 million – $735 million).
– **Adjusted EBITDA Margin:** Expected to range between **9.3% and 9.5%**.
– **Free Cash Flow:** Expected to exceed **$550 million**, up from a prior guide of $510 million – $530 million.
– **Adjusted Diluted EPS:** Now projected between **$9.40 and $9.60** (previously $9.10 – $9.30).
### Summary
SAIC’s second quarter results reflect a mixed performance characterized by lower revenues but significant growth in both net income and earnings per share. The company remains optimistic about its future cash generation capabilities, as noted in its guidance for free cash flow and adjusted diluted earnings per share. The declared dividend reflects the company’s commitment to returning value to its shareholders.
### CONDENSED CONSOLIDATED STATEMENTS OF INCOME
*Amounts in millions*
| Three Months Ended | Six Months Ended | |||
|---|---|---|---|---|
| August 1, 2025 | August 2, 2024 | August 1, 2025 | August 2, 2024 | |
| Revenues | $1,769 | $1,818 | $3,646 | $3,665 |
| Cost of revenues | $1,554 | $1,608 | $3,222 | $3,242 |
| Selling, general and administrative expenses | $75 | $77 | $164 | $162 |
| Other operating (income) expense | $1 | -$1 | $0 | -$4 |
| Operating income | $139 | $134 | $260 | $265 |
| Interest expense, net | $31 | $31 | $61 | $65 |
| Other (income) expense, net | $0 | $3 | $5 | $5 |
| Income before income taxes | $108 | $100 | $194 | $195 |
| Income tax (expense) benefit | $19 | -$19 | $1 | -$37 |
| Net income | $127 | $81 | $195 | $158 |
| Weighted-average number of shares outstanding: Basic | 46.7 | 50.9 | 47.1 | 51.3 |
| Weighted-average number of shares outstanding: Diluted | 46.8 | 51.2 | 47.3 | 51.7 |
| Earnings per share: Basic | $2.72 | $1.59 | $4.14 | $3.08 |
| Earnings per share: Diluted | $2.71 | $1.58 | $4.12 | $3.06 |
—
### CONDENSED CONSOLIDATED BALANCE SHEETS
*Amounts in millions*
| August 1, 2025 | January 31, 2025 | |
|---|---|---|
| ASSETS | ||
| Current assets: | ||
| Cash and cash equivalents | $48 | $56 |
| Receivables, net | $951 | $1,000 |
| Prepaid expenses | $175 | $78 |
| Other current assets | $30 | $20 |
| Total current assets | $1,204 | $1,154 |
| Goodwill | $2,851 | $2,851 |
| Intangible assets, net | $721 | $779 |
| Property, plant, and equipment, net | $104 | $104 |
| Operating lease right of use assets | $156 | $164 |
| Other assets | $165 | $194 |
| Total assets | $5,201 | $5,246 |
| LIABILITIES AND EQUITY | ||
| Current liabilities: | ||
| Accounts payable | $557 | $631 |
| Accrued payroll and employee benefits | $336 | $339 |
| Other accrued liabilities | $106 | $113 |
| Debt, current portion | $448 | $313 |
| Total current liabilities | $1,447 | $1,396 |
| Debt, net of current portion | $1,844 | $1,907 |
| Operating lease liabilities | $153 | $173 |
| Deferred income taxes | $132 | $24 |
| Other long-term liabilities | $108 | $169 |
| Equity: | ||
| Total stockholders’ equity | $1,517 | $1,577 |
| Total liabilities and stockholders’ equity | $5,201 | $5,246 |
