Science Applications International Corporation (SAIC) announced its results for the third quarter of fiscal year 2026 with revenues of $1.87 billion.
The company reported a net income of $78 million and adjusted EBITDA of $185 million, representing 9.9% of revenues.
SAIC increased its fiscal year 2026 guidance on certain key metrics to drive growth and higher margins.
Revenue Decrease
Revenues for the quarter decreased by $110 million or 6% compared to the same period in the prior year, attributed to various factors including contract volume ramp down.
Operating Income
Operating income percentage of revenues decreased, impacted by executive transition costs and contract mix changes in the portfolio.
Cash Generation and Deployment
Cash flows provided by operating activities decreased, mainly due to higher cash outflows from capital usage. SAIC deployed $120 million in capital during the quarter.
- The company reported a 5.6% revenue contraction for the quarter, slightly above guidance when adjusting for external factors like the government shutdown.
- Despite the revenue decrease, strong margins were maintained due to sound program execution, signaling operational efficiency.
SAIC's third quarter results highlight a strategic focus on long-term shareholder value creation, with plans for growth and margin improvement. The company's commitment to capital deployment and revenue guidance reflects a proactive approach to financial management.