SAIC (SAIC) Reports Fourth Quarter And Full Fiscal Year 2025 Earnings Results

Science Applications International Corporation (SAIC) today announced its financial results for the latest quarter, showcasing a strong performance that exceeded market expectations. The company reported an earnings per share (EPS) of $2.57, significantly surpassing the estimated EPS of $1.92. This impressive EPS beat by $0.65 highlights SAIC’s robust operational efficiency and strategic execution.

Key Highlights:

• Q4 FY25 revenues of $1.84 billion, representing a 5.8% organic growth.
• FY25 revenues totaled $7.48 billion, with a 3.1% organic growth.
• Q4 FY25 net income was $98 million, with an adjusted EBITDA of $177 million or 9.6% of revenue.
• FY25 net income was $362 million, with an adjusted EBITDA of $710 million or 9.5% of revenue.
• Q4 FY25 diluted earnings per share were $2.00, with adjusted diluted earnings per share of $2.57.
• FY25 diluted earnings per share were $7.17, with adjusted diluted earnings per share of $9.13.
• Q4 FY25 cash flows from operating activities were $115 million, with free cash flow of $236 million.
• FY25 cash flows from operating activities were $494 million, with free cash flow of $499 million.
• FY26 guidance introduced above prior targets for revenues, adjusted EBITDA, adjusted EBITDA margin, and adjusted diluted EPS.
• SAIC received a $1.8 billion award for the System Software Lifecycle Engineering program.

Summary:

Science Applications International Corporation (SAIC) reported strong financial results for the fourth quarter and full fiscal year 2025, with significant growth in revenues and profitability. The company achieved Q4 revenues of $1.84 billion, marking a 5.8% organic growth, and FY25 revenues of $7.48 billion, reflecting a 3.1% organic growth. The net income for Q4 was $98 million, with an adjusted EBITDA of $177 million, representing 9.6% of revenue. For the full fiscal year, net income was $362 million, with an adjusted EBITDA of $710 million, or 9.5% of revenue. The company also reported strong cash flows, with Q4 cash flows from operating activities at $115 million and free cash flow at $236 million. For FY25, cash flows from operating activities were $494 million, with free cash flow at $499 million.

SAIC’s CEO, Toni Townes-Whitley, expressed pride in the company’s performance, highlighting that revenue, adjusted EBITDA, adjusted earnings per share, and free cash flow were ahead of guidance. The company secured a significant $1.8 billion award for the System Software Lifecycle Engineering program, which is expected to drive future growth. SAIC’s backlog of submitted bids is valued at approximately $20 billion, indicating strong momentum. The company introduced FY26 guidance above prior targets, with expectations for revenues between $7.60 billion and $7.75 billion, adjusted EBITDA between $715 million and $735 million, and adjusted diluted EPS between $9.10 and $9.30.

Science Applications International Corporation (SAIC) has experienced a tumultuous year in terms of stock price performance, with a notable decline of 26.19% over the past year. The recent six-month period alone saw a significant drop of 23.12%, indicating potential investor concerns or market volatility affecting the stock. However, the company did see a modest recovery in the past month with a 3.47% increase, suggesting some short-term optimism or corrective movement. Despite these price fluctuations, SAIC’s fundamental metrics present a mixed picture. The company’s price-to-earnings ratio stands at 17.98, which is relatively moderate, suggesting that the stock might be fairly valued compared to its earnings. However, the revenue and free cash flow have both contracted over the past two years, with CAGRs of -0.94% and -3.52% respectively, which could be a red flag for potential investors. On a positive note, SAIC maintains a return on invested capital of 7.21% and a net profit margin of 4.06%, indicating some level of operational efficiency and profitability. The company’s earnings per share have grown at a 6.74% CAGR over the past two years, which might provide a glimmer of hope for future growth prospects.

Science Applications International Corporation provides technical, engineering, and enterprise information technology (IT) services primarily in the United States. The company’s offerings include engineering; technology integration; IT modernization; maintenance of ground and maritime systems; logistics; training and simulation; operation and program support services; and end-to-end services, such as design, development, integration, deployment, management and operations, sustainment, and security of its customers’ IT infrastructure, as well as cloud migration, managed services, infrastructure modernization, and enterprise IT-as-a-service solutions. It serves the U.S. military comprising Army, Air Force, Navy, Marines, and Coast Guard; Department of Defense agencies; National Aeronautics and Space Administration; the U.S. Department of State; Department of Justice; Department of Homeland Security; and various intelligence community agencies, as well as U.S. federal civilian agencies. The company was formerly known as SAIC Gemini, Inc. and changed its name to Science Applications International Corporation in September 2013. Science Applications International Corporation was founded in 1969 and is headquartered in Reston, Virginia.