SAIC earnings analysis
What we found in SAIC's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
SAIC delivered $1.77 billion of revenue, 12.2% gross margin, 7.9% operating margin, and $2.71 diluted EPS, with margins, EPS, and free cash flow improving versus the prior listed quarter. Management also raised FY2027 revenue and adjusted EPS guidance to $7.2-$7.3 billion and $10.65-$10.75, respectively, while reiterating free cash flow above $600 million. The principal concern is demand visibility: the prior disclosure cited a 0.6 book-to-bill ratio, while quarterly revenue declined approximately 5.9% sequentially.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Margins expanded despite lower revenue
- Revenue was $1.77 billion, down from $1.88 billion in the prior listed quarter, while gross margin improved to 12.2% from 11.1% and operating margin increased to 7.9% from 6.5%.
- EPS increased sharply
- Diluted EPS was $2.71 versus $1.42 in the prior listed quarter, an increase of $1.29, or approximately 91%.
- Cash generation improved
- Free cash flow was $115 million, up from $92 million in the prior listed quarter, an increase of $23 million, or approximately 25%.
- Significant share repurchases
- SAIC repurchased 877,540 shares under publicly announced programs during the quarter at an average price of $102.60 per share; total purchases, including tax-withholding activity, were 881,913 shares.
- Long-term capital return continued
- As of July 31, 2026, the company had repurchased approximately 31.2 million shares for approximately $2.8 billion under its repurchase program.
- Controls remained effective
- Management concluded that disclosure controls were effective as of July 31, 2026, and reported no material changes in internal controls during the quarter.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Quarterly revenue volatility
- Quarterly revenue of $1.77 billion was below the prior listed quarter's $1.88 billion, a decline of approximately 5.9%, indicating uneven quarterly demand despite improved profitability.
- Low bookings and backlog conversion
- The prior earnings disclosure cited a quarterly book-to-bill ratio of 0.6, signaling bookings below recognized revenue and potential pressure on future growth and funded backlog.
- Capital allocation and liquidity tradeoff
- The company repurchased 881,913 shares during the quarter and had repurchased approximately 31.2 million shares for approximately $2.8 billion as of July 31, 2026; continued buybacks could reduce liquidity available for other uses.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $2.71
- Gross margin
- 12.2%
- Operating margin
- 7.9%
What they said about what is next.
Management raised FY2027 revenue guidance to $7.2-$7.3 billion, adjusted EBITDA guidance to $750-$755 million, adjusted EBITDA margin guidance to 10.3%-10.5%, and adjusted diluted EPS guidance to $10.65-$10.75. Free cash flow guidance was reiterated at greater than $600 million.
The filing reads better than the one before it.
What came before.
- 10-Q · June 1, 2026
- SAIC's Q1 2026 results showed revenue growth of 2% year-over-year to $1.91 billion, which exceeded consensus estimates of $1.81 billion. Diluted EPS also surpassed expectations at $2.61, well above the estimated $2.27,…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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