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Aug 01, 2025
SAIC Q2 2026 Earnings Report
SAIC reported solid earnings and strong bookings despite a revenue decline in Q2 FY2026.
Key Takeaways
SAIC's Q2 FY2026 saw a 3% drop in revenue, but profitability improved with strong margins and robust net bookings of $2.6B. Net income surged to $127M, driven by improved contract profitability and a patent settlement gain.
Revenue declined 3% year-over-year due to contract completions and volume ramp-downs.
Net income rose to $127M, a 57% increase over the prior year quarter.
Adjusted EPS reached $3.63, reflecting stronger margins and cost recoveries.
Free cash flow totaled $150M despite reduced collections and higher vendor payments.
Revenue by Segment
Forward Guidance
SAIC lowered its full-year revenue and adjusted EBITDA guidance due to a challenging contract environment but raised guidance for adjusted EPS and free cash flow.
Positive Outlook
- Increased FY26 adjusted EPS guidance to $9.40–$9.60
- Raised FY26 free cash flow guidance to over $550M
- Management expects stable operating conditions for the remainder of FY26
- Strong bookings pipeline supports long-term outlook
- Ongoing investments in high-margin areas and tech innovation
Challenges Ahead
- Lowered FY26 revenue guidance to $7.25B–$7.325B
- Reduced FY26 adjusted EBITDA guidance to $680M–$690M
- Continued delays in new business awards and program ramps
- Slower on-contract growth affecting near-term revenue
Historical Earnings Impact
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Avg. Return Before/After Earnings
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