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May 02

SAIC Q1 2026 Earnings Report

SAIC reported stable performance with moderate revenue growth and a steady adjusted EPS for Q1 2026.

Key Takeaways

SAIC delivered a solid Q1 FY26 with $1.88B in revenue and strong contract bookings, though profit margins saw slight pressure.

Revenue rose to $1.88B, up 2% YoY driven by growth in Civilian segment contracts.

Net income came in at $68M with diluted EPS of $1.42.

Free cash flow was negative at -$44M due to higher cash usage from receivables.

Strong bookings of $2.4B resulted in a book-to-bill ratio of 1.3.

Total Revenue
$1.88B
Previous year: $1.85B
+1.6%
EPS
$1.92
Previous year: $1.92
+0.0%
Book-to-Bill Ratio
1.3
Previous year: 0.8
+62.5%
Total Backlog
$22.3B
Previous year: $21.9B
+2.2%
Cash and Equivalents
$47M
Previous year: $49M
-4.1%
Free Cash Flow
-$44M
Previous year: $92M
-147.8%
Total Assets
$5.21B
Previous year: $5.25B
-0.7%

SAIC

SAIC

SAIC Revenue by Segment

Forward Guidance

SAIC reaffirmed its FY26 outlook, projecting steady performance and strong cash generation.

Positive Outlook

  • Revenue guidance between $7.60B and $7.75B.
  • Adjusted EBITDA expected between $715M and $735M.
  • Free cash flow projected at $510M to $530M.
  • Adjusted EPS guidance between $9.10 and $9.30.
  • EBITDA margin forecasted at 9.4% to 9.6%.

Challenges Ahead

  • Margins under pressure due to volume and timing mix.
  • Free cash flow impacted by MARPA Facility usage.
  • Higher SG&A costs impacted corporate income.
  • Slight YoY decline in Defense & Intelligence segment revenue.
  • Adjusted EBITDA margin declined from prior year.