Science Applications International Corporation (SAIC) has reported mixed financial results for the second quarter of fiscal year 2026, prompting adjustments to its forecasts.
Q2 Financial Performance
For the second quarter of fiscal year 2026, SAIC reported revenues of $1.77 billion, marking a 3% decline from the same period last year. This decrease was primarily attributed to the completion and ramp-down of existing contracts, which were only partially offset by new contracts. The company's net income for the quarter was $127 million, a significant increase from $81 million in the prior year. Diluted earnings per share (EPS) rose to $2.71, surpassing the expected EPS of $2.25.
Revised Guidance for FY 2026
SAIC has revised its guidance for fiscal year 2026, now expecting revenue between $7.25 billion and $7.325 billion, down from previous guidance of $7.6 billion to $7.75 billion. This adjustment reflects a more cautious outlook due to slower on-contract growth and continued delays in new business awards. However, SAIC has raised its guidance for adjusted diluted EPS to a range of $9.40 to $9.60.
Management's Strategic Comments
CEO Toni Townes-Whitley emphasized the company's strategic response to the challenging environment, focusing on aligning cost structures while sustaining key investments for long-term value creation. SAIC's revised guidance assumes a stable operating environment for the remainder of the fiscal year.
SAIC's Q2 financial results demonstrate a mix of trends, with a decline in revenue and an increase in earnings per share. The revised forecasts indicate caution in light of current challenges while supporting long-term investments.
