SAIC Reports 5.6% Revenue Decline in Q3 Fiscal 2026, Completes Acquisition of SilverEdge

Science Applications International Corporation (SAIC) reported a decline in financial performance for the third quarter of fiscal 2026, with revenues of $1.866 billion, a decrease of 5.6% from $1.976 billion in the same period last year. For the nine months ending October 31, 2025, total revenues were $5.512 billion, down 2.3% from $5.641 billion in the prior year. The company's net income for the quarter was $78 million, a 26.4% decrease from $106 million a year earlier, while net income for the nine-month period increased slightly to $273 million from $264 million.

The decrease in revenue was attributed primarily to a ramp-down in volume on existing contracts and contract completions, which included an estimated $16 million impact from a government shutdown. The company also noted that new contracts partially offset these declines. Operating income for the quarter fell to $128 million, down 20% from $160 million in the previous year, reflecting increased executive transition costs and the absence of favorable contract resolutions that had benefited the prior year’s results.

In terms of strategic developments, SAIC completed the acquisition of SilverEdge Government Solutions on October 15, 2025, for a preliminary purchase price of $203 million. This acquisition is expected to enhance SAIC's capabilities in providing mission-focused, intellectual property-based solutions. The company also announced a strategic reorganization set to take effect on January 31, 2026, consolidating its five business groups into three, which aims to align its Innovation Factory more closely with its operational segments.

Operationally, SAIC reported approximately 24,000 employees and maintained a backlog of $23.788 billion as of October 31, 2025, which includes $3.823 billion in funded backlog. The company secured net bookings of $2.2 billion during the quarter and $7.2 billion for the nine-month period. The revenue mix showed a continued reliance on cost-reimbursement contracts, which accounted for 62% of total revenues, while time and materials contracts made up 23%, and firm-fixed price contracts represented 15%.

Looking ahead, SAIC's management expressed cautious optimism regarding future revenue generation, contingent on government spending patterns and the successful integration of SilverEdge. The company is closely monitoring the impact of ongoing government budget negotiations and potential funding delays, which could affect its operations and profitability. The effective tax rate for the quarter was reported at 16.7%, influenced by recent changes in U.S. corporate tax law, while the company continues to navigate the complexities of its operational environment.