SAIC Reports Fiscal 2026 Results with Strong Margin Execution and Cash Flow
Key Takeaways
- Fourth quarter fiscal 2026 revenue reached $1.75 billion, down 4.8% year-over-year, with full-year revenue at $7.26 billion.
- Adjusted diluted earnings per share for the quarter hit $2.62, beating analyst expectations, while full-year adjusted diluted EPS came in at $10.75.
- Adjusted EBITDA margin improved to 10.3% in the quarter and 9.7% for the full year.
- Free cash flow for the quarter totaled $336 million, supporting full-year free cash flow of $577 million.
- Net income for the quarter was $85 million, with full-year net income at $358 million.
- Stock reacted positively post-release amid focus on margin strength and cash generation despite top-line pressure.
Earnings Context and Why It Matters
Science Applications International Corporation (SAIC) operates as a key technology integrator for U.S. defense, intelligence, space, and civilian agencies. Its fiscal year ends in late January, making the fourth quarter and full-year 2026 results a critical checkpoint for investors tracking government contract momentum and operational efficiency. Recent periods have shown revenue variability tied to procurement timing and contract transitions, while margins and cash flow remain focal points amid broader defense spending trends.
Reported Results
SAIC reported fourth-quarter fiscal 2026 revenue of $1.75 billion, a decline from $1.84 billion in the prior-year quarter. Full-year revenue totaled $7.26 billion. Diluted earnings per share for the quarter stood at $1.87, with adjusted diluted earnings per share at $2.62. For the full year, diluted earnings per share reached $7.70 and adjusted diluted earnings per share reached $10.75. Adjusted EBITDA was $181 million (10.3% margin) in the quarter and $708 million (9.7% margin) for the year. Operating cash flow for the quarter was $258 million, yielding free cash flow of $336 million; full-year operating cash flow was $609 million and free cash flow was $577 million. The results reflected revenue shortfalls from procurement delays but highlighted strong margin execution and cash conversion. I also checked this using Tickeron’s AI Screener to see how SAIC compares to peers in the industry.
Market Reaction and Investor Sentiment
Following the March 16, 2026, release, investor attention centered on the beat in adjusted earnings per share and margin expansion despite the revenue miss. The results underscored operational resilience in a challenging contracting environment, with positive sentiment driven by cash flow strength and updated fiscal 2027 guidance issued alongside preliminary figures in February.
Forward Outlook and Key Factors to Monitor
SAIC provided updated guidance for fiscal 2027 following the earnings release. Investors should track contract award timing and organic revenue trends, as procurement delays impacted the prior year. Margin sustainability will depend on cost discipline and mix of higher-margin work. Book-to-bill ratios and net bookings remain important indicators of future revenue visibility in the government services sector.
Free cash flow generation and capital allocation decisions, including share repurchases and dividends, will also warrant attention. Broader defense budget developments and any shifts in customer priorities could influence demand patterns across SAIC’s key markets.
Upcoming quarterly updates will provide further clarity on progress against fiscal 2027 targets and the pace of recovery in top-line growth.
Using AI Tools in My Research Process
When analyzing companies like SAIC, I often turn to Tickeron’s AI Screener to quickly filter for stocks with similar fundamental profiles or technical setups. This tool lets me apply customizable screens around industry, market cap, performance metrics, and AI-driven signals, helping surface comparable ideas without spending hours on manual review. It has become a regular part of how I cross-check sector trends and identify potential watchlist candidates alongside traditional financial statement analysis.
Disclaimer
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Disclaimers and LimitationsContributor
Financial writer and active order flow futures trader with a focus on fundamental analysis, macroeconomic factors, and equity research. I make in-depth blogs on stocks and ETFs, bridging the gap between raw market data and real-world trading decisions.
SAIC sees its Stochastic Oscillator ascends from oversold territory
On October 09, 2026, the Stochastic Oscillator for SAIC moved out of oversold territory and this could be a bullish sign for the stock. Traders may want to buy the stock or buy call options. Tickeron's A.I.dvisor looked at 53 instances where the indicator left the oversold zone. In 43 of the 53 cases the stock moved higher in the following days. This puts the odds of a move higher at over 81%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where SAIC's RSI Indicator exited the oversold zone, 22 of 31 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 71%.
The Momentum Indicator moved above the 0 level on October 09, 2026. You may want to consider a long position or call options on SAIC as a result. In 65 of 83 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 78%.
SAIC moved above its 50-day moving average on October 08, 2026 date and that indicates a change from a downward trend to an upward trend.
Following a +10.62% 3-day Advance, the price is estimated to grow further. Considering data from situations where SAIC advanced for three days, in 229 of 344 cases, the price rose further within the following month. The odds of a continued upward trend are 67%.
SAIC may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In 165 of 239 cases where SAIC Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 69%.
Bearish Trend Analysis
The Moving Average Convergence Divergence Histogram (MACD) for SAIC turned negative on September 22, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 41 similar instances when the indicator turned negative. In 28 of the 41 cases the stock turned lower in the days that followed. This puts the odds of success at 68%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where SAIC declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 57%.
Fundamental Analysis (Ratings)
The Tickeron Valuation Rating of 15 (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (3.820) is normal, around the industry mean (7.552). P/E Ratio (15.263) is within average values for comparable stocks, (68.701). Projected Growth (PEG Ratio) (0.440) is also within normal values, averaging (2.284). Dividend Yield (0.011) settles around the average of (0.010) among similar stocks. P/S Ratio (0.798) is also within normal values, averaging (143.599).
The Tickeron PE Growth Rating for this company is 18 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is 37 (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is 38 (best 1 - 100 worst), indicating steady price growth. SAIC’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 55 (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 93, placing this stock slightly better than average.
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General Information
a provider of computer systems integration, technical engineering, and IT services
Industry InformationTechnologyServices
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