SAIC Reports Q4 & FY26 Results, Issues Lower FY27 EPS Guidance Amid Revenue Decline
Summary
Science Applications International Corporation reported a decline in Q4 and full fiscal year 2026 revenues and GAAP earnings, alongside strong cash flow, but issued significantly lower adjusted EPS guidance for fiscal year 2027.
Key Events
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Q4 & FY26 Revenue Decline
Revenues decreased by 5% in Q4 and 3% for the full fiscal year 2026, reflecting ongoing top-line challenges.
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Mixed Earnings Performance
GAAP diluted EPS decreased for Q4 and increased for the full year, while adjusted diluted EPS showed growth for both periods, reaching $10.75 for FY26.
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Strong Cash Flow
The company reported significant increases in operating cash flow (up 124% in Q4, 23% for FY26) and free cash flow (up 42% in Q4, 16% for FY26).
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Lower FY27 EPS Guidance
SAIC provided FY27 adjusted diluted EPS guidance of $9.50 - $9.70, a substantial reduction from FY26's $10.75, indicating a challenging outlook for profitability.
Analysis
The filing reveals a mixed financial performance for fiscal year 2026, with revenues and GAAP earnings declining, but adjusted earnings and cash flow showing strength. However, the most impactful information is the fiscal year 2027 guidance, which projects a notable decrease in adjusted diluted earnings per share compared to fiscal year 2026. This lowered outlook, coupled with anticipated organic revenue decline, suggests ongoing operational challenges and could pressure investor sentiment despite a healthy backlog and robust cash generation. Investors should monitor the company's ability to stabilize revenue and improve profitability in the coming year.
At the time of this filing, SAIC was trading at $91.91 on NASDAQ in the Technology sector, with a market capitalization of approximately $4.1B. The 52-week trading range was $81.08 to $124.11. This filing was assessed with negative market sentiment and an importance score of 8 out of 10.