SAIC Reports Mixed FY26 Results Amid Contract Challenges

Event summary

  • SAIC reported FY26 revenue of $7.26B, down 3% YoY, with Q4 revenue at $1.75B, down 5% YoY.
  • Adjusted EBITDA margin improved to 9.7% for FY26, up 20bps YoY, despite contract completions and government shutdown impacts.
  • Q4 net bookings were $0.6B with a book-to-bill ratio of 0.3, while trailing twelve months book-to-bill ratio was 1.1.
  • SAIC awarded notable contracts including a $95M GAO IT solutions contract and a $330M Space and Intelligence Community recompete.
  • FY27 guidance projects revenue between $7.0B-$7.2B, with adjusted EBITDA margin of 9.9%-10.1%.

The big picture

SAIC's FY26 results reflect ongoing challenges in government contract volumes, balanced by operational improvements. The company's ability to maintain margins despite revenue declines highlights its focus on cost discipline. However, the broader context of U.S. government spending priorities and contract competition will be critical in determining SAIC's growth trajectory.

What we're watching

Contract Pipeline
Whether SAIC can sustain its book-to-bill ratio above 1.0 amid government contract volatility.
Operational Efficiency
How SAIC's focus on cost management will impact its adjusted EBITDA margin in FY27.
Government Spending
The pace at which defense and intelligence budgets will support SAIC's revenue growth.