NASDAQ$SAIC

Science Applications International Corporation · Q3 2026 earnings

Q3 2026 earnings · · Before market open · Investor relations

Briefing

SAIC reported a 5.6% revenue contraction, slightly ahead of guidance, with strong margins due to sound program execution, and increased its fiscal year 2026 guidance on certain key metrics.

SAIC announced its third quarter fiscal year 2026 results, with revenues of $1.87 billion, a 6% decrease from the prior year. Net income was $78 million, and diluted earnings per share stood at $1.69. The company reported strong adjusted EBITDA of $185 million, representing 9.9% of revenues, and generated $135 million in free cash flow. SAIC also increased its fiscal year 2026 guidance for revenue, adjusted EBITDA, adjusted EBITDA margin, adjusted diluted EPS, and free cash flow.

  • Revenues for the quarter decreased by 6% to $1.87 billion compared to the prior year, primarily due to contract ramp-downs and completions, partially offset by new contracts.
  • Net income for the quarter was $78 million, a 26% decrease from the prior year, while diluted earnings per share were $1.69.
  • Adjusted EBITDA was $185 million, or 9.9% of revenues, reflecting strong program execution despite a slight decrease in margin percentage.
  • The company generated $135 million in free cash flow and deployed $120 million of capital, including $94 million in share repurchases and $17 million in cash dividends.

Headline financials

Total Revenue

$1.87B

Previous: $1.98B-5.6%
EPS

$1.69

Previous: $2.13-20.7%
Book-to-bill ratio

1.2

No prior period
Total backlog

$23.8B

No prior period
Net bookings

$2.2B

No prior period
Adjusted EBITDA

$185M

Previous: $197M-6.1%
Adjusted EBITDA Margin

9.9%

Previous: 10.0%-1.0%
Operating income as a percentage of revenues

6.9%

Previous: 8.1%-14.8%
Net cash provided by operating activities

$129M

Previous: $143M-9.8%
Capital Expenditures

-$24M

Previous: -$21M-14.3%
Free Cash Flow

$54M

Previous: $85M-36.5%
Net Income

$78M

Previous: $106M-26.4%
Operating Income

$128M

Previous: $160M-20.0%
Gross Profit

$227M

Previous: $237M-4.2%
Cash & Equivalents

$45M

Previous: $46M-2.2%
Total Assets

$5.42B

Previous: $5.28B+2.8%

Revenue & EPS history

SAIC · Revenue · Quarterly

$1.87B

Q3 2026-5.6%vs Q3 2025
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Forward guidance

SAIC increased its fiscal year 2026 guidance for revenue, adjusted EBITDA, adjusted EBITDA margin, adjusted diluted EPS, and free cash flow, reflecting confidence in future performance.

Tailwinds

  • Increased revenue guidance to $7.275B - $7.325B from $7.250B - $7.325B.
  • Raised Adjusted EBITDA guidance to approximately $695M from $680M - $690M.
  • Improved Adjusted EBITDA Margin % guidance to approximately 9.5% from 9.3% - 9.5%.
  • Increased Adjusted Diluted EPS guidance to $9.80 - $10.00 from $9.40 - $9.60.
  • Raised Free Cash Flow guidance to >$550M from >$550M (implicitly higher due to other increases).

Headwinds

  • No specific negative adjustments were highlighted in the guidance update, as all metrics were either maintained or increased.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2026

Historical avgQ3 2026

+0.2%

Avg return

Earnings day

-1.2%

Avg return

5 days after

-0.1%

Avg return

30 days after

54%

31 / 57 earnings

Positive

+16.4%

Q3 2026

Best reaction

-18.4%

Q2 2018

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2026+1.2%+5.3%+4.7%
Q3 2026+16.4%+11.2%+15.6%
Q2 2026-6.8%-9.9%-10.9%
Q1 2026-13.2%-8.8%+1.7%
Q4 2025+7.2%+1.4%+11.4%
Q3 2025-4.7%-6.4%-7.9%
Q2 2025+3.0%+4.4%+12.7%
Q1 2025-12.9%-14.1%-13.6%
Q4 2024-11.2%-11.3%-12.6%
Q3 2024+9.9%+6.5%+2.9%
Q2 2024-4.5%-3.7%-7.7%
Q1 2024+1.7%+4.2%+11.6%
Q4 2023-0.0%+0.4%-7.0%
Q3 2023+5.4%+1.1%-0.4%
Q2 2023+0.9%+1.0%-2.9%
Q1 2023+7.5%+2.1%+6.7%
Q4 2022-0.7%+1.2%-6.7%
Q3 2022-1.0%-3.3%+1.4%
Q2 2022+3.6%+1.1%+2.2%
Q1 2022+2.5%+0.8%-4.7%
Q4 2021-15.6%-12.0%-7.9%
Q3 2021+3.9%+3.5%+0.5%
Q2 2021+0.5%-0.8%-4.3%
Q1 2021-3.2%-2.2%-14.4%
Q4 2020+6.6%+10.9%+26.6%
Q3 2020+0.5%-1.5%+4.5%
Q2 2020-7.1%-9.0%-5.5%
Q1 2020+8.5%+7.1%+11.0%
Q4 2019+5.0%+3.8%+1.0%
Q3 2019+7.1%+6.7%-1.3%
Q2 2019-10.6%-11.5%-18.6%
Q1 2019-8.5%-9.0%-3.3%
Q4 2018+9.3%+12.9%+17.6%
Q3 2018+9.4%+5.7%+6.7%
Q2 2018-18.4%-16.9%-7.3%
Q1 2018-3.3%-7.9%-6.1%
Q4 2017-13.7%-14.4%-15.4%
Q3 2017+8.0%+3.4%+4.2%
Q2 2017+1.8%+1.8%+4.6%
Q1 2017+1.2%-2.1%+4.6%
Q4 2016+12.3%
Q3 2016-0.9%
Q2 2016-12.3%
Q1 2016-4.5%
Q4 2015-6.2%
Q3 2015+2.5%
Q2 2015+1.7%
Q1 2014+12.1%
Q1 2015+12.1%
Q4 2012+7.8%
Q1 2013+7.8%
Q4 2014+10.2%
Q3 2013-7.9%
Q3 2014-5.4%
Q4 2013-0.4%
Q2 2014-0.4%
Q2 2013-0.4%
Q3 2012
Q2 2012
Q1 2012
Q4 2011
Q3 2010

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