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
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
Disclaimers and LimitationsSAIC in upward trend: price rose above 50-day moving average on May 18, 2026
SAIC moved above its 50-day moving average on May 18, 2026 date and that indicates a change from a downward trend to an upward trend. In of 41 similar past instances, the stock price increased further within the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on May 20, 2026. You may want to consider a long position or call options on SAIC as a result. In of 81 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for SAIC just turned positive on May 19, 2026. Looking at past instances where SAIC's MACD turned positive, the stock continued to rise in of 39 cases over the following month. The odds of a continued upward trend are .
The 10-day moving average for SAIC crossed bullishly above the 50-day moving average on May 27, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In of 18 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Following a +1 3-day Advance, the price is estimated to grow further. Considering data from situations where SAIC advanced for three days, in of 338 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The RSI Indicator demonstrates that the ticker has stayed in the overbought zone for 6 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 9 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
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 of 62 cases within the following month. The odds of a continued downward trend are .
SAIC broke above its upper Bollinger Band on June 01, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for SAIC entered a downward trend on May 13, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is seriously 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 (3.408) is normal, around the industry mean (7.840). P/E Ratio (12.904) is within average values for comparable stocks, (69.278). SAIC's Projected Growth (PEG Ratio) (0.000) is slightly lower than the industry average of (1.124). Dividend Yield (0.013) settles around the average of (0.026) among similar stocks. P/S Ratio (0.717) is also within normal values, averaging (18.697).
The Tickeron SMR rating for this company is (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 (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 PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent 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 Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. SAIC’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 91, placing this stock better than average.
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Advertisement
General Information
a provider of computer systems integration, technical engineering, and IT services
Industry InformationTechnologyServices
Advertisement