Science Applications International Corporation (SAIC) missed estimates on earnings per share last quarter, as income and free cash flow declined.
SAIC’s adjusted diluted earnings per share remained stable at US$1.92 year-over-year, below consensus estimates of $2.22. Revenue was up 2% to $1.88 billion, just above estimates of $1.87 billion.
“Our performance in the first quarter reflects the steady progress we are making against our enterprise growth strategy despite a still dynamic operating environment,” said SAIC CEO Toni Townes-Whitley.
“As a premier mission integrator, the rapid evolution of new technologies, a renewed focus on deploying software to drive efficiency, and an elevated global threat environment create significant opportunities for SAIC. I am confident that SAIC is prepared and well aligned with these macro trends to drive value for our customers, employees, and shareholders.”
Net income dropped by 12% year-over-year to US$68 million. Adjusted operating income also fell by 4% to $158 million, which the company credited to “timing and volume mix in our contract portfolio”.
Its net bookings were US$2.4 billion, with a book-to-bill ratio of 1.3. Last quarter, SAIC received contracts to provide technology and IT services to organisations including the United States Army, U.S. Department of State, and Pension Benefit Guaranty Corporation.
SAIC is a key technology and surveillance contractor for the Department of Homeland Security (DHS), supporting Customs and Border Protection (CBP) and Immigration and Customs Enforcement (ICE) in border security operations. Since 2004, SAIC has secured multiple contracts exceeding $605.8 million, including projects involving licence plate recognition systems and real-time data analytics for border enforcement. The company continues to provide advanced IT solutions for DHS agencies, enhancing their ability to monitor and regulate United States borders.
The company’s free cash flow plummeted to an outflow of US$44 million, compared with positive inflow of $13 million one year ago.
SAIC’s guidance for fiscal year 2026 projects revenue of US$7.60-7.75 billion, with adjusted diluted earnings per share of $9.10-9.30 and free cash for of $510-530 million.
SAIC’s (NASDAQ: SAIC) share price fell to US$100.22 after the earnings release, down 13.3% from its previous close at $115.54. Its market capitalisation is $4.73 billion.
