SAIC Beats Q4 Expectations With $2.57 EPS, $1.84B in Revenue

Science Applications International Corporation (NASDAQ: SAIC) reported its fourth-quarter results for fiscal year 2025, showcasing a commendable performance. The company’s revenue for the quarter reached $1.84 billion, marking an organic growth of 5.8% compared to the previous year. This increase was primarily driven by the ramp-up in volume on both new and existing contracts, although it was slightly offset by contract completions.

The company also reported a net income of $98 million for the quarter, with an adjusted EBITDA of $177 million, representing 9.6% of revenue. The diluted earnings per share for the quarter stood at $2.00, while the adjusted diluted earnings per share was $2.57. These figures reflect a significant improvement from the prior year’s quarter, where the diluted earnings per share was $0.74.

The company’s ability to enhance profitability across its contract portfolio, coupled with reduced incentive-based and stock-based compensation expenses, contributed to these results. Furthermore, the quarter saw a substantial increase in cash flows provided by operating activities, which rose to $115 million, an 83% growth from the previous year.

SAIC Beats EPS, Revenue Expectations in Q4

SAIC’s quarterly performance exceeded market expectations, with actual revenue surpassing the anticipated $1.81 billion. The company also reported a diluted earnings per share of $2.00, slightly below the expected $2.08, but its adjusted diluted earnings per share of $2.57 was significantly higher. This performance reflects SAIC’s strategic focus on contract profitability and operational efficiency, which helped offset the impact of contract completions and divestitures.

The company’s book-to-bill ratio for the quarter was 0.7, indicating strong contract awards relative to revenue. Although this was slightly below the previous year’s ratio, it still reflects a healthy pipeline of future work. Moreover, SAIC’s net bookings for the year amounted to $6.6 billion, with a trailing twelve months book-to-bill ratio of 0.9.

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SAIC Expects $7.60B to $7.75B in Revenue for Fiscal 2026

Looking ahead, SAIC has introduced its guidance for fiscal year 2026, which reflects optimistic projections. The company anticipates revenues to range between $7.60 billion and $7.75 billion, slightly above the previous guidance of $7.55 billion to $7.75 billion. Adjusted EBITDA is expected to be between $715 million and $735 million, with an adjusted EBITDA margin of 9.4% to 9.6%.

The company also projects an adjusted diluted earnings per share between $9.10 and $9.30, reflecting an upward revision from the prior target of $8.90 to $9.10. Additionally, SAIC expects free cash flow to be in the range of $510 million to $530 million, consistent with prior targets.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.