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SAIC Q1 earnings and revenues topped estimates, with EPS rising 68.2% year over year.
SAIC reported $2.1 billion in net bookings and ended the quarter with a $22.9 billion backlog.
SAIC raised fiscal 2027 EBITDA and EPS guidance following stronger profitability and margin expansion.
Science Applications International (SAIC - Free Report) reported better-than-expected results for the first quarter of fiscal 2027, wherein both top and bottom lines surpassed the Zacks Consensus Estimate.
SAIC’s non-GAAP earnings of $3.23 per share beat the Zacks Consensus Estimate of $2.26 by 42.9%. The bottom line increased 68.2% from the year-ago quarter’s earnings of $1.92.
Science Applications' fiscal first-quarter revenues increased 1.5% year over year to $1.91 billion and surpassed the Zacks Consensus Estimate of $1.78 billion by 6.9%.
Science Applications International Corporation Price, Consensus and EPS Surprise
Segment-wise, revenues from Defense and Intelligence, which accounted for 76.9% of revenues, totaled $1.47 billion and increased 2.3% year over year. Civilian revenues, which constitute 23.1% of revenues, totaled $440 million and decreased 0.9% year over year.
Net bookings were approximately $2.1 billion in the first quarter, which reflected a book-to-bill ratio of 1.1. The company’s trailing 12-month book-to-bill ratio was 1.0 at the end of the fiscal first quarter. SAIC’s estimated backlog at the end of the quarter was approximately $22.9 billion. Of the total backlog amount, approximately $3.7 billion was funded.
Selling, general and administrative (SG&A) expenses decreased 6.7% to $83 million. SG&A expenses, as a percentage of revenues, declined to 4.4% from 4.7% in the year-ago quarter.
Non-GAAP operating income increased year over year to $221 million from the year-ago quarter’s operating income of $158 million. The non-GAAP operating margin expanded 320 basis points (bps) year over year to 11.6%.
Adjusted EBITDA rose 41% to $222 million. Adjusted EBITDA margin for the quarter was 11.6% compared with 8.4% in the prior-year quarter.
Balance Sheet & Cash Flow Details of SAIC
Science Applications ended the fiscal first quarter with cash and cash equivalents of $109 million, significantly down from the previous quarter’s $182 million.
As of May 1, 2026, Science Applications’ long-term debt (net of the current portion) was $2.46 billion compared with $2.47 billion as of Jan. 30, 2026.
The company generated operating and free cash flows of $127 million and $118 million, respectively, in the fiscal first quarter.
During the fiscal first quarter, Science Applications repurchased shares worth $175 million and paid $17 million in dividends.
SAIC Provides Fiscal 2027 Guidance
Science Applications expects fiscal 2027 revenues between $7 billion and $7.2 billion. The Zacks Consensus Estimate for fiscal 2026 revenues is pegged at $7.11 billion, indicating a year-over-year decline of 2.1%.
Adjusted EBITDA is anticipated to be in the range of $720-$730 million, up from the earlier guidance of $705-$715 million. Adjusted EBITDA margin is expected to be in the band of 10.1-10.3%, up from the previous guided range of 9.9-10.1% band.
The company forecasts adjusted EPS in the range of $9.90-$10.10, up from the earlier guidance of $9.50-$9.70. The Zacks Consensus Estimate for the bottom line is pegged at $9.61 per share, indicating a year-over-year decline of 10.6%.
Science Applications estimates free cash flow for fiscal 2027 to exceed $600 million.
SAIC’s Zacks Rank & Stocks to Consider
Currently, Science Applications carries a Zacks Rank #3 (Hold).
Shares of Applied Materials have rallied 75.1% year to date. The Zacks Consensus Estimate for Applied Materials’ fiscal 2026 earnings is pegged at $12.02 per share, up by 8.3% over the past 30 days, indicating a year-over-year surge of 27.6%.
Shares of Celestica have gained 30.4% year to date. The Zacks Consensus Estimate for Celestica’s 2026 earnings is pegged at $10.16 per share, up 15.1% over the past 30 days, implying a year-over-year jump of 67.9%.
Amphenol shares have jumped 10.1% year to date. The Zacks Consensus Estimate for APH’s 2026 earnings is pegged at $4.76 per share, up 11.4% over the past 30 days, indicating a year-over-year increase of 42.5%.
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Science Applications' Q1 Earnings Beat Expectations, Revenues Rise Y/Y
Key Takeaways
Science Applications International (SAIC - Free Report) reported better-than-expected results for the first quarter of fiscal 2027, wherein both top and bottom lines surpassed the Zacks Consensus Estimate.
SAIC’s non-GAAP earnings of $3.23 per share beat the Zacks Consensus Estimate of $2.26 by 42.9%. The bottom line increased 68.2% from the year-ago quarter’s earnings of $1.92.
Science Applications' fiscal first-quarter revenues increased 1.5% year over year to $1.91 billion and surpassed the Zacks Consensus Estimate of $1.78 billion by 6.9%.
Science Applications International Corporation Price, Consensus and EPS Surprise
Science Applications International Corporation price-consensus-eps-surprise-chart | Science Applications International Corporation Quote
SAIC’s Q1 in Detail
Segment-wise, revenues from Defense and Intelligence, which accounted for 76.9% of revenues, totaled $1.47 billion and increased 2.3% year over year. Civilian revenues, which constitute 23.1% of revenues, totaled $440 million and decreased 0.9% year over year.
Net bookings were approximately $2.1 billion in the first quarter, which reflected a book-to-bill ratio of 1.1. The company’s trailing 12-month book-to-bill ratio was 1.0 at the end of the fiscal first quarter. SAIC’s estimated backlog at the end of the quarter was approximately $22.9 billion. Of the total backlog amount, approximately $3.7 billion was funded.
Selling, general and administrative (SG&A) expenses decreased 6.7% to $83 million. SG&A expenses, as a percentage of revenues, declined to 4.4% from 4.7% in the year-ago quarter.
Non-GAAP operating income increased year over year to $221 million from the year-ago quarter’s operating income of $158 million. The non-GAAP operating margin expanded 320 basis points (bps) year over year to 11.6%.
Adjusted EBITDA rose 41% to $222 million. Adjusted EBITDA margin for the quarter was 11.6% compared with 8.4% in the prior-year quarter.
Balance Sheet & Cash Flow Details of SAIC
Science Applications ended the fiscal first quarter with cash and cash equivalents of $109 million, significantly down from the previous quarter’s $182 million.
As of May 1, 2026, Science Applications’ long-term debt (net of the current portion) was $2.46 billion compared with $2.47 billion as of Jan. 30, 2026.
The company generated operating and free cash flows of $127 million and $118 million, respectively, in the fiscal first quarter.
During the fiscal first quarter, Science Applications repurchased shares worth $175 million and paid $17 million in dividends.
SAIC Provides Fiscal 2027 Guidance
Science Applications expects fiscal 2027 revenues between $7 billion and $7.2 billion. The Zacks Consensus Estimate for fiscal 2026 revenues is pegged at $7.11 billion, indicating a year-over-year decline of 2.1%.
Adjusted EBITDA is anticipated to be in the range of $720-$730 million, up from the earlier guidance of $705-$715 million. Adjusted EBITDA margin is expected to be in the band of 10.1-10.3%, up from the previous guided range of 9.9-10.1% band.
The company forecasts adjusted EPS in the range of $9.90-$10.10, up from the earlier guidance of $9.50-$9.70. The Zacks Consensus Estimate for the bottom line is pegged at $9.61 per share, indicating a year-over-year decline of 10.6%.
Science Applications estimates free cash flow for fiscal 2027 to exceed $600 million.
SAIC’s Zacks Rank & Stocks to Consider
Currently, Science Applications carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Computer and Technology sector are Applied Materials (AMAT - Free Report) , Celestica (CLS - Free Report) and Amphenol (APH - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of Applied Materials have rallied 75.1% year to date. The Zacks Consensus Estimate for Applied Materials’ fiscal 2026 earnings is pegged at $12.02 per share, up by 8.3% over the past 30 days, indicating a year-over-year surge of 27.6%.
Shares of Celestica have gained 30.4% year to date. The Zacks Consensus Estimate for Celestica’s 2026 earnings is pegged at $10.16 per share, up 15.1% over the past 30 days, implying a year-over-year jump of 67.9%.
Amphenol shares have jumped 10.1% year to date. The Zacks Consensus Estimate for APH’s 2026 earnings is pegged at $4.76 per share, up 11.4% over the past 30 days, indicating a year-over-year increase of 42.5%.