SAIC Q4 EPS of $2.62 Beats by 32%, Revenue Falls 5% to $1.75B
SAIC posted Q4 adjusted EPS of $2.62, beating estimates by $0.64, while revenue declined 5% year-over-year to $1.75 billion, missing forecasts by $20 million. For fiscal 2026, revenue fell 3% to $7.26 billion but adjusted EPS rose 18% to $10.75; guidance for fiscal 2027 calls for EPS of $9.50 to $9.70 and revenue of $7.0 billion to $7.2 billion.
1. Q4 Earnings and Revenue
SAIC delivered Q4 adjusted EPS of $2.62, surpassing estimates by $0.64, while revenue fell 5% year-over-year to $1.75 billion, missing the $1.77 billion forecast. The decline stemmed from lower contract volumes due to a government shutdown and completion of certain contracts.
2. Margin Improvement and Order Activity
Adjusted EBITDA margin expanded to 10.3% from 9.6% a year earlier, driven by reduced selling, general and administrative expenses. Net bookings for the quarter totaled $600 million, resulting in a book-to-bill ratio of 0.3 and a trailing twelve-month ratio of 1.1.
3. Full-Year Fiscal 2026 Results
For fiscal 2026, SAIC generated revenue of $7.26 billion, down 3% from the prior year, while adjusted EPS increased 18% to $10.75 from $9.13. The EPS growth reflected margin gains and operational efficiencies implemented throughout the year.
4. Outlook for Fiscal 2027
SAIC projects revenue between $7.0 billion and $7.2 billion and adjusted EPS of $9.50 to $9.70, below the prior year’s $10.75 result. The company also anticipates adjusted EBITDA margins of 9.9% to 10.1% and free cash flow exceeding $600 million.