Cash conversion remains robust, evidenced by an OCF/NI ratio of 3.04x in 2026Q4, though free cash flow margins remain volatile, ranging from 3.0% to 14.3% over the observed period.
| Metric | TTM | Jan'26 | Jan'25 | Jan'24 | Jan'23 | Jan'22 | Jan'21 | Jan'20 | Jan'19 | Jan'18 | Jan'17 | Jan'16 | Jan'15 | Jan'14 | Jan'13 | Jan'12 | Jan'11 |
|---|
| Cash from Operations | 636M | 609M | 494M | 396M | 532M | 518M | 755M | 458M | 184M | 217M | 273M | 226M | 277M | 183M | 345M | 769M | 713M |
| Operating CF Margin % | - | 8.39% | 6.61% | 5.32% | 6.91% | 7.01% | 10.7% | 7.18% | 3.95% | 4.87% | 6.15% | 5.24% | 7.13% | 4.44% | 7.22% | 16.25% | 6.6% |
| Operating CF Growth % | 129.96% | 23.28% | 24.75% | -25.56% | 2.7% | -31.39% | 64.85% | 148.91% | -15.21% | -20.51% | 20.8% | -18.41% | 51.37% | -46.96% | -55.14% | 7.85% | - |
| Net Income | 405M | 358M | 362M | 477M | 303M | 279M | 211M | 229M | 137M | 179M | 148M | 117M | 141M | 113M | 182M | -11M | 539M |
| Depreciation & Amortization | 153M | 149M | 140M | 142M | 157M | 165M | 179M | 138M | 49M | 46M | 53M | 62M | 21M | 13M | 113M | 114M | 110M |
| Stock-Based Compensation | 62M | 64M | 53M | 68M | 48M | 46M | 42M | 37M | 45M | 27M | 31M | 33M | 35M | 33M | 84M | 84M | 99M |
| Deferred Taxes | 101M | 81M | -3M | -17M | -17M | 59M | 12M | 44M | 19M | 13M | 1M | 3M | 4M | 18M | 7M | -9M | -1M |
| Other Non-Cash Items | -12M | 1M | -7M | -253M | -1M | -10M | 18M | 5M | 40M | 184M | -15M | -9M | -3M | 57M | 3M | -1M | 1M |
| Working Capital Changes | -73M | -44M | -51M | -21M | 42M | -21M | 293M | 5M | -106M | -48M | 63M | 20M | 79M | 6M | -386M | 595M | -35M |
| Change in Receivables | 61M | 161M | -86M | -46M | 79M | -31M | 221M | -43M | -4M | -135M | 96M | -5M | 77M | 34M | 350M | -60M | 1M |
| Change in Inventory | 0 | 0 | 0 | -43M | 0 | 14M | 8M | -10M | -26M | 19M | 0 | -11M | 16M | 0 | -64M | -93M | -29M |
| Change in Payables | -49M | -101M | 48M | 13M | -9M | 30M | -76M | 62M | -65M | 68M | 16M | 44M | -19M | -33M | -744M | 757M | -16M |
| Cash from Investing | -232M | -248M | -35M | 314M | -36M | -292M | -1.23B | -47M | -1.03B | -22M | -17M | -798M | -22M | -16M | -6M | -203M | -445M |
| Capital Expenditures | 0 | 0 | -36M | -27M | -25M | -36M | -46M | -21M | -28M | -22M | -15M | -20M | -22M | -16M | -7M | -65M | -73M |
| CapEx % of Revenue | 0% | 0.44% | 0.48% | 0.36% | 0.32% | 0.49% | 0.65% | 0.33% | 0.6% | 0.49% | 0.34% | 0.46% | 0.57% | 0.39% | 0.15% | 1.37% | 0.68% |
| Acquisitions | -203M | -203M | 10M | 348M | 0 | -247M | -1.19B | 0 | -1B | 0 | -2M | -764M | 0 | 0 | -482M | -222M | -382M |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -21M | -32M | -7M | -5M | -8M | -6M | -3M | -5M | 1M | -22M | -2M | -34M | -22M | -16M | 483M | 227M | 10M |
| Cash from Financing | -342M | -235M | -498M | -725M | -493M | -301M | 464M | -455M | 938M | -261M | -247M | 466M | -208M | 86M | -274M | -302M | 184M |
| Debt Issued (Net) | 200M | 262M | 118M | -281M | -150M | -3M | 601M | -174M | 1.08B | -25M | -27M | 598M | -13M | 499M | -4M | -2M | 184M |
| Equity Issued (Net) | -470M | -423M | -538M | -365M | -251M | -210M | -21M | -187M | -62M | -180M | -175M | -65M | -146M | 17M | 0 | 0 | 0 |
| Dividends Paid | -68M | -70M | -75M | -79M | -83M | -86M | -87M | -87M | -53M | -54M | -54M | -55M | -52M | -322M | -1M | 0 | 0 |
| Share Repurchases | -491M | -445M | -558M | -382M | -267M | -226M | -34M | -197M | -69M | -186M | -180M | -69M | -149M | -13M | 0 | 0 | 0 |
| Other Financing | -4M | -4M | -3M | -663M | -9M | -2M | -29M | -7M | -27M | -2M | 9M | -12M | 3M | -108M | -270M | -300M | 0 |
| Net Change in Cash | 62M | 126M | -39M | -15M | 3M | -75M | -12M | -44M | 94M | -66M | 9M | -106M | 47M | 253M | 1M | 225M | 506M |
| Free Cash Flow | 627M | 577M | 458M | 369M | 507M | 482M | 709M | 437M | 156M | 195M | 258M | 206M | 255M | 167M | 273M | 704M | 640M |
| FCF Margin % | 8.6% | 7.95% | 6.12% | 4.96% | 6.58% | 6.52% | 10.05% | 6.85% | 3.35% | 4.38% | 5.81% | 4.77% | 6.56% | 4.05% | 5.71% | 14.87% | 5.93% |
| FCF Growth % | 34.55% | 25.98% | 24.12% | -27.22% | 5.19% | -32.02% | 62.24% | 180.13% | -20% | -24.42% | 25.24% | -19.22% | 52.69% | -38.83% | -61.22% | 10% | - |
| FCF per Share | 14.25 | 12.41 | 9.07 | 6.87 | 9.09 | 8.30 | 12.08 | 7.41 | 3.54 | 4.38 | 5.62 | 4.35 | 5.26 | 3.36 | 0.83 | 2.14 | 1.89 |
| FCF Conversion (FCF/Net Income) | 1.55x | 1.70x | 1.36x | 0.83x | 1.77x | 1.87x | 3.61x | 2.03x | 1.34x | 1.21x | 1.91x | 1.93x | 1.96x | 1.62x | 1.90x | 4.23x | 1.17x |
| Interest Paid | 0 | 0 | 121M | 125M | 111M | 98M | 96M | 86M | 44M | 41M | 48M | 36M | 17M | 7M | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 66M | 165M | 70M | 7M | 39M | 32M | 24M | 31M | 46M | 53M | 49M | 29M | 0 | 0 | 0 |
Contract Re-compete Concentration
According to reported financial statements, SAIC consistently generates operating cash flow in excess of net income, with an OCF/NI ratio that reached a notable 3.04x in 2026Q4, suggesting that the company's reported earnings are supported by robust underlying cash generation rather than aggressive accounting accruals.
The persistent gap between net income and operating cash flow appears to be driven by non-cash charges and working capital fluctuations rather than structural earnings quality issues. Investors should monitor whether this conversion efficiency remains sustainable as the company shifts its contract mix toward higher-margin, potentially more complex digital integration work.
Based on the provided quarterly data, SAIC's free cash flow margins have fluctuated significantly, ranging from a low of 3.0% in 2024Q4 to a peak of 14.3% in 2026Q4, indicating that the company's ability to convert revenue into cash remains highly sensitive to timing and contract milestones.
The volatility in FCF margins suggests that while the business is fundamentally cash-generative, the timing of government payments and project-based milestones creates lumpy cash flow profiles. This inconsistency warrants caution, as it may mask underlying operational challenges during periods where working capital requirements temporarily suppress free cash flow generation.
As reported in recent filings, SAIC experiences significant quarterly swings in working capital, evidenced by a $135M inflow in 2026Q4 followed by a $48M outflow in 2027Q1, highlighting the inherent difficulty in managing cash cycles within a large-scale, government-contracted service environment.
These fluctuations appear to be a byproduct of the federal procurement cycle, where the timing of contract awards and subsequent billing milestones can create substantial, albeit temporary, liquidity swings. Analysts should interpret these movements as operational noise rather than a fundamental shift in the company's ability to manage its receivables and payables effectively.
Based on the provided figures, SAIC has consistently prioritized shareholder returns, with quarterly share repurchases reaching as high as $201M in 2025Q2, a trend that appears to be funded by both operational cash flow and a willingness to maintain a leveraged balance sheet.
The company's commitment to returning capital to shareholders, even during periods of revenue contraction, suggests a management focus on EPS accretion. However, this strategy leaves limited room for error, and investors should monitor whether this level of capital deployment remains sustainable if organic growth does not accelerate to offset the impact of recent portfolio pruning.
Quick answers to the most common questions about buying SAIC stock.
Science Applications International Corporation (SAIC) generated $609.0M in net cash from operating activities in 2026. This reflects the cash generated directly from core business operations.
Science Applications International Corporation (SAIC) generated $577.0M in free cash flow in 2026. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Science Applications International Corporation (SAIC) spent $0.0M on capital expenditures in 2026. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2026, Science Applications International Corporation (SAIC) returned $70.0M to shareholders via cash dividends and spent $445.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.