Science Applications International Corporation (SAIC) announced its financial results for the second quarter of fiscal year 2026.
Revenues amounted to $1.77 billion with a (3)% revenue contraction.
Key metrics included net bookings of $2.6 billion and net income of $127 million.
Book-to-Bill Ratio
Book-to-bill ratio of 1.5 for the quarter, reflecting positive momentum in business development efforts.
Adjusted EBITDA Guidance
Management lowered revenue and adjusted EBITDA guidance, while increasing free cash flow and adjusted diluted earnings per share guidance.
Challenging Revenue Environment
Challenges faced due to slower on-contract growth and delays in new business awards impacting revenue forecasts.
- The second quarter showed a 3% decrease in revenues primarily due to contract completions and volume reductions on existing contracts.
- Operating income percentage increased, attributed to improved profitability across contracts and cost recoveries from settlements.
- Adjusted EBITDA percentage also rose to 10.5%, driven by improved profitability and cost recovery from settlements.
SAIC remains focused on aligning cost structures and investments for long-term value creation amidst a challenging revenue environment. The company's revised guidance reflects a cautious outlook for the remainder of the year.