SAIC Q2 revenue beats on contract growth, SilverEdge deal; lifts FY outlook
SAIC•Revenue growth drivers
Revenue growth was driven by ramp up in volume on existing and new contracts and a $20 million contribution from the SilverEdge acquisition, partially offset by contract completions.
Operating income margin increased due to improved profitability across the contract portfolio and lower costs related to federal tax audits in the prior year.
Adjusted EBITDA margin declined due to higher selling, general and administrative expenses, including recovery of costs from a patent settlement in the prior year.
Raised fiscal 2027 outlook
SAIC raised fiscal 2027 revenue guidance to $7.2 billion-$7.3 billion from $7.0 billion-$7.2 billion.
The company now sees fiscal 2027 adjusted diluted EPS at $10.65-$10.75, up from $9.90-$10.10.
SAIC reiterated fiscal 2027 free cash flow guidance of over $600 million.
Q2 results beat expectations
US defense IT integrator SAIC said fiscal second-quarter revenue rose 6%, beating analyst expectations.
Adjusted EPS and adjusted EBITDA for fiscal Q2 also beat analyst expectations.
Reported quarterly figures and analyst view
| Metric | Beat/Miss | Actual | Consensus Estimate |
|---|---|---|---|
| Q2 Revenue | Beat | $1.88 billion | $1.77 billion (9 Analysts) |
| Q2 Adjusted EPS | Beat |
