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Jan 31

SAIC Q4 2025 Earnings Report

SAIC reported strong Q4 FY25 earnings with revenue and adjusted EPS exceeding expectations.

Key Takeaways

SAIC delivered strong Q4 FY25 results with revenue reaching $1.84 billion, reflecting 5.8% organic growth. Net income surged to $98 million, and diluted EPS came in at $2.00, with adjusted EPS at $2.57. Free cash flow improved significantly to $236 million, and operating income saw a sharp increase of 75% to $138 million.

Revenue increased 6% year-over-year to $1.84 billion.

Net income surged 151% to $98 million.

Adjusted EPS rose 80% to $2.57.

Free cash flow increased by 143% to $236 million.

Total Revenue
$1.84B
Previous year: $1.74B
+5.8%
EPS
$2.57
Previous year: $1.43
+79.7%
Total Backlog
$21.9B
Previous year: $22.8B
-4.0%
Book-to-Bill Ratio
0.7
Previous year: 0.9
-22.2%
Gross Profit
$232M
Previous year: $192M
+20.8%
Cash and Equivalents
$56M
Previous year: $94M
-40.4%
Free Cash Flow
$236M
Previous year: $97M
+143.3%
Total Assets
$5.25B
Previous year: $5.31B
-1.3%

SAIC

SAIC

SAIC Revenue by Segment

Forward Guidance

SAIC provided an optimistic FY26 outlook with revenue, adjusted EBITDA, and adjusted EPS expected to exceed prior targets.

Positive Outlook

  • Revenue guidance raised to $7.60B-$7.75B.
  • Adjusted EBITDA projected between $715M-$735M.
  • Adjusted EPS forecasted between $9.10-$9.30.
  • Free cash flow expected between $510M-$530M.
  • Continued strong backlog with new contract wins.

Challenges Ahead

  • Book-to-bill ratio declined to 0.7.
  • Funded backlog decreased slightly from $3.54B to $3.44B.
  • Operating margin pressure remains a concern.
  • Stock-based compensation expenses impacting profitability.
  • Macroeconomic uncertainties could affect future contract awards.

Revenue & Expenses

Visualization of income flow from segment revenue to net income