SAIC Stock Falls After Q1 Earnings Miss, Soft Guidance

Science Applications International Corporation SAIC stock is trading lower on Monday after reporting the first-quarter 2026 earnings.

The company reported quarterly sales growth of 2% year-on-year to $1.88 billion, beating the analyst consensus estimate of $1.87 billion.

The adjusted EPS of $1.92 missed the analyst consensus estimate of $2.22.

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Operating income for the quarter declined by 8% to $121 million, and the operating margin declined by 70 basis points to 6.4%.

Adjusted EBITDA decreased 5% to $157 million with an adjusted EBITDA margin of 8.4%, a 60 basis points decline.

Net bookings for the quarter were approximately $2.4 billion, which reflects a book-to-bill ratio of 1.3. 

The quarter’s operating cash flow totaled $100 million. Free cash flow was an outflow of $44 million.

SAIC’s estimated backlog for the quarter was approximately $22.3 billion, of which $3.3 billion was funded. As of May 2, 2025, the company held $47 million in cash and equivalents.

CEO Toni Townes-Whitley acknowledged the steady progress it made against its enterprise growth strategy despite a still dynamic operating environment.

Science Applications reiterated the 2026 revenue outlook of $7.60 billion-$7.75 billion, below the analyst consensus estimate of $7.93 billion.

The company maintained an annual adjusted EPS outlook of $9.10-$9.30 below the analyst consensus estimate of $10.24.

Price Action: SAIC shares are trading lower by 10.7% to $103.21 at last check Monday.

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