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<p>Science Applications International Corporation (NASDAQ: SAIC) <a href="https://investors.saic.com/news-releases/news-release-details/saic-announces-third-quarter-fiscal-year-2026-results" target="_blank" rel="noopener noreferrer nofollow">announced</a> its third-quarter results for fiscal year 2026, showing mixed performance against expectations. The company reported a decline in revenue but exceeded earnings per share (EPS) estimates, while also providing updated guidance for the fiscal year.</p>
<h3 id="revenue-declines-6-but-eps-surpasses-expectations">Revenue Declines 6% but EPS Surpasses Expectations</h3>
<p>In the third quarter of fiscal year 2026, SAIC reported revenues amounting to $1.87 billion, which aligns with the expectations set by analysts. However, this figure represents a decrease of 6% from the $1.98 billion reported in the same quarter of the previous year. The decline was primarily attributed to a reduction in volume on existing contracts and contract completions, although it was partially offset by new contracts. Despite this contraction, the company managed to achieve an <a href="https://tokenist.com/investing/how-to-value-a-stock/" rel="noopener noreferrer nofollow">EPS</a> of $2.58, surpassing the expected $2.08. This EPS beat highlights the company’s ability to maintain profitability amidst revenue challenges.</p>
<p>Compared to the previous year, SAIC’s operating income for the quarter saw a 20% decline, dropping from $160 million to $128 million. The operating margin also decreased from 8.1% to 6.9%. Adjusted EBITDA, a key measure of profitability, decreased slightly from $197 million to $185 million, reflecting a modest decline in operational efficiency. Despite the lower revenue and operating income, SAIC’s net income for the quarter was $78 million, down from $106 million in the prior year. The adjusted diluted EPS of $2.58, however, remained relatively stable compared to $2.61 in the previous year, indicating effective cost management and strategic financial adjustments.</p>
<p>SAIC’s cash flow from operating activities totaled $129 million, a decrease from the $143 million recorded in the same quarter last year. The company continued its capital deployment strategy, repurchasing $94 million in shares and paying $17 million in cash dividends. This ongoing commitment to shareholder returns underscores SAIC’s focus on long-term value creation despite the current revenue challenges.</p>
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<h3 id="raised-eps-and-ebitda-outlook-signals-confidence-in-profitability">Raised EPS and EBITDA Outlook Signals Confidence in Profitability</h3>
<p>Looking ahead, SAIC has updated its guidance for fiscal year 2026, reflecting a cautiously optimistic outlook. The company now expects revenue to range between $7.275 billion and $7.325 billion, a slight increase from the previous guidance of $7.250 billion to $7.325 billion. This adjustment indicates confidence in the company’s ability to secure and execute new contracts, despite the challenges faced in the current quarter.</p>
<p>SAIC has also revised its adjusted EBITDA guidance to approximately $695 million, up from the previous range of $680 million to $690 million. The adjusted EBITDA margin is expected to be around 9.5%, reflecting a focus on enhancing operational efficiency and profitability. Additionally, the company has raised its adjusted diluted EPS guidance to between $9.80 and $10.00, compared to the prior range of $9.40 to $9.60. This upward revision demonstrates SAIC’s commitment to delivering strong financial performance and shareholder value.</p>
<p>In terms of cash flow, SAIC expects free cash flow to exceed $550 million for the fiscal year, consistent with previous guidance. The company’s strategic focus on cash flow generation remains a key priority, enabling continued investment in growth initiatives and shareholder returns. As SAIC navigates the evolving market landscape, its updated guidance reflects a balanced approach to growth and profitability, positioning the company for sustained success in the coming quarters.</p>
<p><em>Disclaimer: The author does not hold or have a position in any securities discussed in the article.</em> <em>All stock prices were quoted at the time of writing.</em></p>
<p>The post <a rel="noopener noreferrer nofollow" href="https://tokenist.com/saic-reports-third-quarter-fiscal-2026-results/">SAIC Reports Third Quarter Fiscal 2026 Results</a> appeared first on <a rel="noopener noreferrer nofollow" href="https://tokenist.com">Tokenist</a>.</p>

SAIC Reports Third Quarter Fiscal 2026 Results

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