SAIC Q2 2026 Results and FY2027 Outlook
Science Applications International Corp (NASDAQ: SAIC) announced second‑quarter 2026 financial results that surpassed analyst expectations and subsequently raised its full‑year 2027 guidance. In the quarter, the company posted adjusted earnings per share (EPS) of $3.01, beating the consensus estimate of $2.31 by $0.70. Revenue reached $1.88 billion, exceeding the consensus forecast of $1.76 billion and representing a 6.3% increase over the $1.77 billion recorded in the same quarter of the prior year.
Adjusted EBITDA margin improved to 10.3%, up from 9.6% in the prior‑year period, driven by the recent SilverEdge acquisition, one‑time materials revenue, and on‑contract growth. The company reported 5% organic growth in the quarter, attributing the performance to capitalizing on the prevailing government spending environment.
FY2027 Guidance Updates
- Adjusted EPS guidance is now $10.65 to $10.75, compared with the analyst consensus of $9.95; the midpoint of $10.70 is well above expectations.
- Revenue guidance has been raised to a range of $7.2 billion to $7.3 billion, up from the prior range of $7.0 billion to $7.2 billion; the midpoint of $7.25 billion exceeds the consensus estimate of $7.19 billion.
- Adjusted EBITDA guidance is increased to $750 million to $755 million, up from $720 million to $730 million previously projected. The company reaffirms its target of generating more than $14 in free cash flow per share for fiscal 2027.
Strategic Initiatives and Longer‑Term Targets
SAIC continues execution of Project ORBIT, a multi‑year initiative expected to contribute $150 million to support growth and margin expansion. The firm aims to achieve an adjusted EBITDA margin of approximately 11% by fiscal 2030.
Market Reaction
Following the release, SAIC shares rose roughly 6.85% in pre‑market trading, reflecting investor optimism around the earnings beat and the upgraded outlook.