SAIC Reports Modest Revenue Increase to $7.48 Billion for Fiscal Year 2025

Science Applications International Corporation (SAIC) reported a modest increase in revenue for fiscal year 2025, generating $7.48 billion, up from $7.44 billion in the previous fiscal year. This growth was primarily driven by increased volumes in existing and new contracts, although it was partially offset by the divestiture of its logistics and supply chain management business, which accounted for a $188 million reduction in revenue. The company’s net income for the year was $362 million, a decrease of 24% from $477 million in fiscal 2024, attributed to a significant gain from the sale of the Supply Chain Business in the prior year.

In terms of operational changes, SAIC underwent a significant reorganization effective February 3, 2024, transitioning from two operating sectors to five customer-facing business groups. These groups are categorized into two reportable segments: Defense and Intelligence, and Civilian. This restructuring aims to enhance operational efficiency and align resources with strategic growth areas. The company also reported a total employee count of approximately 24,000, maintaining a strong workforce to support its operations.

SAIC's customer base remains heavily reliant on U.S. government contracts, with 98% of total revenues derived from prime contracts or subcontracts with government entities. The Department of Defense accounted for approximately 52% of total revenues, while the Intelligence Community and other federal agencies contributed 46%. The company reported a backlog of $21.86 billion as of January 31, 2025, indicating a robust pipeline of future work, although the backlog decreased from $22.76 billion in the previous year.

The company’s financial outlook remains cautious, with potential risks stemming from U.S. government budgetary pressures and changes in procurement practices. The recent passage of a continuing resolution provides some budget certainty through September 2025, but the potential for future spending cuts remains a concern. Additionally, SAIC is navigating an increasingly competitive landscape, with a shift towards multi-award contracts that may intensify pricing pressures. Despite these challenges, SAIC believes its scale and established customer relationships position it well to capitalize on future opportunities in the defense and civilian sectors.

Looking ahead, SAIC plans to continue focusing on its core competencies in IT modernization, digital engineering, and artificial intelligence, while also investing in talent development and retention initiatives. The company remains committed to enhancing its service offerings and maintaining its competitive edge in the government contracting space.