SAIC Posts $1.9B Revenue in Q1 and Boosts Full-Year Earnings Forecast

SAIC reported strong first-quarter results with $1.9 billion revenue and raised its full-year earnings and margin outlook, driven by strategic shifts and robust contract wins.

Editorial Team · Jun 2, 2026 · 2 min read · Source: govconwire.com

Science Applications International Corporation (SAIC) reported first-quarter fiscal 2027 revenue of $1.9 billion, surpassing expectations and prompting an upward revision of its annual earnings and margin guidance. The company's adjusted EBITDA reached $222 million in the quarter, reflecting improved operational efficiency and a notable $12 million gain from a venture investment's initial public offering.

Organic revenue grew modestly by 0.5 percent despite challenges from contract recompetes, partly due to material timing and the prolonged RITS program. The company generated $118 million in free cash flow, and its net bookings totaled roughly $2.1 billion, resulting in a strong book-to-bill ratio of 1.1 for the period. Notable contract awards included a $200 million Department of Homeland Security recompete.

SAIC’s CEO highlighted that the company achieved a record fiscal first-quarter margin, supported by solid program execution, while emphasizing stabilization in recompete win rates, which are expected to return to around 90 percent. New business wins remain robust, with rates above 30 percent despite slower contract activity overall due to external factors.

The company is strategically realigning its portfolio towards higher-value defense work, including mission engineering, autonomous systems, and AI-enabled support, while scaling back on commoditized enterprise IT services. Its qualified pipeline currently stands at approximately $85 billion, anchored by a significant opportunity in the Department of State’s $10 billion Evolve program. Growth is also targeted in battle management systems, command-and-control capabilities, and radar modernization.

SAIC’s CFO noted the company’s focus on building an integrated portfolio more aligned with government budget priorities, aiming to mitigate the risks linked to commoditization found in certain market segments. This approach underpins the company’s raised full-year margin guidance, now expected between 10.1 and 10.3 percent, reflecting confidence in both its execution and market positioning.