SAIC Lifts Fiscal 2027 Revenue Outlook to $7.3 Billion
The mission integrator posted $1.88 billion of second-quarter sales, up 6.3% from a year earlier, and raised full-year targets after a slower first quarter.
Science Applications International Corporation (SAIC) raised fiscal 2027 revenue guidance to $7.2 billion to $7.3 billion from $7.0 billion to $7.2 billion after second-quarter sales of $1.88 billion, up approximately 6.3% from a year earlier, or 5.3% on an organic basis.
The acceleration reversed a run of weaker top-line growth. In the first quarter ended May 1, 2026, revenue was $1.91 billion, up about 2% year over year, or 0.5% on an organic basis after the SilverEdge Government Solutions acquisition. The quarter before that, ended January 30, 2026, saw revenue of $1.75 billion, down 5% from a year earlier.
The company said the latest increase was primarily due to ramp-up in volume on existing and new contracts and $20 million from SilverEdge, partially offset by contract completions. Chief Executive Officer Jim Reagan said the company was raising guidance to reflect strong year-to-date performance and that it is transforming the enterprise to support customers’ most critical missions, drive long-term growth and margin expansion, and continue investing in capabilities.
Adjusted EBITDA was $193 million, or 10.3% of revenue, down from 11.6% of revenue in the prior quarter and matching 10.3% in the quarter before that. Adjusted operating income was $191 million, or 10.2% of revenue. GAAP operating income was $152 million, or 8.1% of revenue.
The company attributed the decline in adjusted EBITDA margin versus the year-ago quarter primarily to higher selling, general and administrative expenses, including a recovery of costs from the settlement of a patent infringement matter in the prior year, partially offset by improved profitability across the contract portfolio. Adjusted diluted earnings per share were $3.01, compared with $3.63 a year earlier. Diluted earnings per share were $2.38, compared with $2.71. Weighted-average diluted shares outstanding fell to 42.8 million from 46.8 million.
Defense and Intelligence revenue was $1.45 billion, up 5% year over year, including $20 million from SilverEdge. Civilian revenue was $431 million, up 9%. Defense and Intelligence adjusted operating margin was 9.5%. Civilian adjusted operating margin was 13.0%. The company said Defense and Intelligence adjusted operating margin rose on improved profitability across the contract portfolio. It said Civilian adjusted operating margin declined on timing and volume mix.
Net bookings were approximately $1.2 billion, with a quarterly book-to-bill ratio of 0.6, after $2.1 billion of bookings and a 1.1 book-to-bill ratio in the prior quarter and $0.6 billion of bookings and a 0.3 book-to-bill ratio in the quarter before that. Trailing twelve-month book-to-bill was 0.8. Estimated backlog was approximately $22.1 billion, of which approximately $3.8 billion was funded.
Notable awards in the quarter included a five-year recompete of approximately $400 million supporting a U.S. Intelligence Agency, a five-year contract of approximately $330 million supporting all branches of the Armed Services, and a five-year Navy contract of approximately $130 million for airborne electronic warfare systems. Subsequent to quarter end, SAIC was awarded a five-year recompete of approximately $740 million with the U.S. Department of Homeland Security and a position on the estimated $14 billion COMET IDIQ contract.
Cash flows provided by operating activities were $146 million. Free cash flow was $131 million. The company deployed $106 million of capital, including $90 million of share repurchases and $16 million in cash dividends. Subsequent to quarter end, it amended the MARPA facility to increase the aggregate limit from $300 million to $400 million and declared a cash dividend of $0.37 a share.
Fiscal 2027 organic growth guidance is now (2%) to (0%), from (4%) to (2%). Adjusted EBITDA guidance is $750 million to $755 million, from $720 million to $730 million. Adjusted EBITDA margin guidance is 10.3% to 10.5%, from 10.1% to 10.3%. Adjusted diluted EPS guidance is $10.65 to $10.75, from $9.90 to $10.10. Free cash flow guidance remains more than $600 million.