SAIC Reports 6% Revenue Growth to $1.88 Billion in Q2 Fiscal 2027

Science Applications International Corporation (SAIC) reported its financial results for the second quarter of fiscal 2027, ending July 31, 2026, revealing a revenue increase of 6% to $1.88 billion compared to $1.77 billion in the same period last year. For the first half of the fiscal year, revenues rose by 4% to $3.79 billion, up from $3.65 billion. The company's net income for the quarter was $102 million, a decrease of 20% from $127 million in the prior year, while net income for the six-month period increased by 11% to $217 million from $195 million.

The revenue growth was primarily attributed to increased volumes from existing and new contracts, as well as contributions from the acquisition of SilverEdge Government Solutions, which added $20 million in the quarter and $39 million in the first half. However, the company noted that contract completions partially offset these gains. Adjusting for acquisitions, revenue growth was approximately 5.3% for the quarter and 2.9% for the six months. Operating income for the quarter increased by 9% to $152 million, while for the first half, it rose by 27% to $331 million, reflecting improved profitability across the contract portfolio.

SAIC underwent a significant organizational restructuring effective January 31, 2026, consolidating its five business groups into three to enhance operational efficiency and customer focus. This reorganization did not affect the company's reportable segments, which remain the Defense and Intelligence segment and the Civilian segment. The company continues to serve a diverse portfolio of clients, with approximately 97% of revenues derived from U.S. government contracts.

In terms of operational metrics, SAIC reported a total backlog of $22.14 billion as of July 31, 2026, slightly down from $22.62 billion at the end of January 2026. The funded backlog increased to $3.82 billion, while the negotiated unfunded backlog decreased to $18.32 billion. The company also reported net bookings of approximately $1.2 billion for the quarter and $3.3 billion for the six months, indicating a strong pipeline of future revenue.

Looking ahead, SAIC's management expressed optimism about future growth opportunities, particularly in areas aligned with government spending priorities, including digital modernization and cybersecurity. However, they acknowledged potential risks related to government budget constraints and competitive pressures in the contracting landscape. The company plans to leverage its scale and established relationships to navigate these challenges and capitalize on emerging opportunities.