Science Applications International Corporation (SAIC)

On 2 November 2026 SAIC announced and priced a private offering of $500 million of senior notes due 2034, to redeem all of its 4.875% senior notes due 2028 3.

The deal is expected to close on or about 13 November 2026 3.

Revenue for the second quarter, ended 31 July 2026, was $1.88 billion, about 6.3% higher than a year earlier, and net income was $102 million against $127 million 2.

The company raised its fiscal 2027 revenue guidance to a range of $7.2 billion to $7.3 billion, from $7.0 billion to $7.2 billion 2.

A new finance chief arrives next month: Ken Crews, formerly chief financial officer of Northrop Grumman, takes the role on 7 December 2026, and Prabu Natarajan moves to run the Civilian business group 4.

The open question is new work: backlog, the contract revenue still to be earned, was about $22.1 billion, but new orders of $1.2 billion were only 0.6 times the quarter's revenue 2.

SAIC describes itself as a provider of technical, engineering and information technology services, mostly to the U.S. government, with a history of over 50 years 5.

It grew by acquisition: Engility Holdings joined in fiscal 2019, and SAIC signed an asset purchase agreement with Unisys on 5 February 2020 5.

In May 2023 SAIC closed the sale of its logistics and supply chain business to ASRC Federal 5.

Fiscal 2024, which ended 2 February 2024, was the high point for profit: revenue was $7,444 million and operating income $741 million, including a $240 million gain on divestitures 5.

On 3 February 2024 the company replaced its two operating sectors with five business groups, grouped into two reportable segments 5.

Fiscal 2025 revenue was flat at $7,479 million, while operating income fell 24% to $563 million 5.

Fiscal 2026, the year ended 30 January 2026, brought revenue down 3% to $7,262 million, mainly from contract completions and lower volume on existing contracts, including about $26 million tied to the government shutdown 5.

That shutdown began on 1 October 2025 and ended after 43 days 5.

On 15 October 2025 SAIC bought SilverEdge Government Solutions for a preliminary $203 million, net of $6 million of cash acquired 5.

A week later, on 23 October 2025, the board named Jim Reagan interim chief executive as Toni Townes-Whitley stepped down, and Reagan became chief executive in February 2026 65.

On 31 January 2026, the first day of fiscal 2027, the five business groups were consolidated into three 5.

What SAIC sells

SAIC is a provider of technical, engineering and mission and enterprise information technology services, working on about 1,700 active contracts and task orders with about 23,000 employees 5.

Its offerings include IT modernization (cloud, cybersecurity and software), digital engineering, artificial intelligence, mission systems support for weapon systems, training and simulation, and ground vehicles support 5.

Defense and Intelligence

The larger segment serves the Department of War and the Intelligence Community 5.

Its fiscal 2026 revenue was $5,581 million, down 3%, and adjusted operating income, which sets aside depreciation, amortization and one-off costs, was $478 million or 8.6% of revenue 5.

Civilian

The Civilian segment serves civilian agencies and state and local governments, including border security and travel and trade systems 5.

Its fiscal 2026 revenue was $1,681 million, down 4%, and adjusted operating income was $228 million, or 13.6% 5.

After the quarter ended, SAIC won a five-year recompete of about $740 million with the Department of Homeland Security to support Customs and Border Protection systems 2.

Customers, backlog and awards

In fiscal 2026, 98% of revenue came from the U.S. government or its other contractors, and about 52% from the Department of War 5.

Backlog was about $22.1 billion at 31 July 2026, of which about $3.8 billion was funded 2.

Quarter awards included about $400 million for a U.S. intelligence agency, about $330 million for the U.S. Army and about $130 million for the U.S. Navy 2.

SAIC was also added to a multiple-award contract for missile evaluation and testing estimated at $14 billion; revenue arrives only if it wins task orders under it 2.

People and places

Jim Reagan is chief executive, and Ken Crews, hired from Northrop Grumman, becomes chief financial officer on 7 December 2026 45.

The company occupies about 3 million square feet, nearly all leased, with headquarters in Reston, Virginia, and ran about 106 properties in 20 states as of 30 January 2026 5.

Rivals and pressures

Named rivals include Booz Allen Hamilton, CACI, Leidos, ManTech, Parsons, Peraton and Serco, and the commercial firms Accenture, AECOM, Amentum, Deloitte and IBM 5.

The company says more work now goes to multiple-award contracts, which brings greater competition and pricing pressure, and that the Homeland Security department was shut down from February 2026 through April 2026 51.

Total debt was $2,499 million at 31 July 2026, and in the six months to that date SAIC bought back about 2.7 million shares for about $265 million 1.

The umbrella, in words

SAIC sells under its own name; its annual report lists subsidiaries including Halfaker and Associates, Koverse, Silveredge Government Solutions, Varen Technologies and TASC Services Corporation 8.

It sold 0.1% of its 50.1% interest in its Forfeiture Support Associates joint venture in February 2023, and no longer controls it 5.

The 2026 proxy statement lists BlackRock as owning 10.1% of the common stock and Fuller & Thaler Asset Management as owning 6.10% 7.

On 31 August 2026 the company set its fiscal 2027 guidance for revenue at $7.2 billion to $7.3 billion 2.

It guided adjusted EBITDA (earnings before interest, taxes, depreciation and amortization, adjusted) to $750 million to $755 million, and adjusted diluted earnings per share to $10.65 to $10.75 2.

It also expects free cash flow of more than $600 million and an adjusted EBITDA margin of 10.3% to 10.5% 2.

Organic growth, revenue growth without acquisitions, is guided at minus 2% to 0% 2.

The $500 million notes offering is expected to close on or about 13 November 2026, with proceeds to redeem the 2028 notes 3.

The Board authorized repurchases of up to $1.2 billion in December 2024, and SAIC had repurchased about 31.2 million shares for about $2.8 billion under the plan as of 31 July 2026 1.

SAIC says it intends to keep paying a quarterly dividend, though the board decides each quarter 2.

Mr. Crews takes over as chief financial officer on 7 December 2026 4.