Revenue growth remains inconsistent, fluctuating between -5.6% and 1.5% over the last ten quarters, while operating margins have shown recent improvement to 8.8% in 2027Q1.
| 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 |
|---|
| Sales/Revenue | 7.29B | 7.26B | 7.48B | 7.44B | 7.7B | 7.39B | 7.06B | 6.38B | 4.66B | 4.45B | 4.44B | 4.32B | 3.88B | 4.12B | 4.78B | 4.73B | 10.8B |
| Revenue Growth % | -2.9% | -2.9% | 0.47% | -3.37% | 4.19% | 4.79% | 10.61% | 36.92% | 4.6% | 0.27% | 2.94% | 11.07% | -5.73% | -13.8% | 1.01% | -56.17% | - |
| Cost of Goods Sold | 6.38B | 6.38B | 6.59B | 6.57B | 6.82B | 6.54B | 6.26B | 5.67B | 4.2B | 4.04B | 4B | 3.9B | 3.55B | 3.79B | 4.37B | 4.31B | 9.37B |
| COGS % of Revenue | - | 87.9% | 88.07% | 88.29% | 88.47% | 88.38% | 88.78% | 88.93% | 90.04% | 90.77% | 90.12% | 90.48% | 91.38% | 91.92% | 91.47% | 91% | 86.81% |
| Gross Profit | 912M | 879M | 892M | 872M | 888M | 859M | 792M | 706M | 464M | 411M | 439M | 411M | 335M | 333M | 408M | 426M | 1.42B |
| Gross Margin % | 12.51% | 12.1% | 11.93% | 11.71% | 11.53% | 11.62% | 11.22% | 11.07% | 9.96% | 9.23% | 9.88% | 9.52% | 8.62% | 8.08% | 8.53% | 9% | 13.19% |
| Gross Profit Growth % | - | -1.46% | 2.29% | -1.8% | 3.38% | 8.46% | 12.18% | 52.16% | 12.9% | -6.38% | 6.81% | 22.69% | 0.6% | -18.38% | -4.23% | -70.08% | - |
| Operating Expenses | 347M | 355M | 353M | 131M | 387M | 397M | 402M | 336M | 244M | 155M | 176M | 184M | 95M | 150M | 127M | 127M | 495M |
| OpEx % of Revenue | - | 4.89% | 4.72% | 1.76% | 5.02% | 5.37% | 5.7% | 5.27% | 5.24% | 3.48% | 3.96% | 4.26% | 2.45% | 3.64% | 2.66% | 2.68% | 4.58% |
| Selling, General & Admin | 347M | 332M | 319M | 369M | 373M | 340M | 346M | 281M | 153M | 151M | 162M | 180M | 90M | 88M | 96M | 119M | 495M |
| SG&A % of Revenue | - | 4.57% | 4.27% | 4.96% | 4.84% | 4.6% | 4.9% | 4.41% | 3.28% | 3.39% | 3.65% | 4.17% | 2.32% | 2.14% | 2.01% | 2.51% | 4.58% |
| Research & Development | 0 | 23M | 34M | 4M | 1M | 4M | 6M | 7M | 5M | 4M | 4M | 4M | 5M | 4M | 3M | 8M | 0 |
| R&D % of Revenue | - | 0.32% | 0.45% | 0.05% | 0.01% | 0.05% | 0.08% | 0.11% | 0.11% | 0.09% | 0.09% | 0.09% | 0.13% | 0.1% | 0.06% | 0.17% | - |
| Other Operating Expenses | 0 | 0 | 0 | -242M | 13M | 53M | 50M | 48M | 86M | 0 | 10M | 0 | 0 | 58M | 28M | 0 | 0 |
| Operating Income | 566M | 524M | 539M | 741M | 501M | 462M | 390M | 370M | 220M | 256M | 263M | 227M | 240M | 183M | 281M | 299M | 929M |
| Operating Margin % | 7.76% | 7.22% | 7.21% | 9.95% | 6.5% | 6.25% | 5.53% | 5.8% | 4.72% | 5.75% | 5.92% | 5.26% | 6.18% | 4.44% | 5.88% | 6.32% | 8.6% |
| Operating Income Growth % | - | -2.78% | -27.26% | 47.9% | 8.44% | 18.46% | 5.41% | 68.18% | -14.06% | -2.66% | 15.86% | -5.42% | 31.15% | -34.88% | -6.02% | -67.81% | - |
| EBITDA | 719M | 673M | 679M | 883M | 658M | 627M | 569M | 501M | 267M | 302M | 316M | 289M | 261M | 196M | 294M | 314M | 1.04B |
| EBITDA Margin % | 9.86% | 9.27% | 9.08% | 11.86% | 8.54% | 8.48% | 8.06% | 7.85% | 5.73% | 6.78% | 7.11% | 6.7% | 6.72% | 4.76% | 6.15% | 6.63% | 9.62% |
| EBITDA Growth % | 4.2% | -0.88% | -23.1% | 34.19% | 4.94% | 10.19% | 13.57% | 87.64% | -11.59% | -4.43% | 9.34% | 10.73% | 33.16% | -33.33% | -6.37% | -69.78% | - |
| D&A (Non-Cash Add-back) | 153M | 149M | 140M | 142M | 157M | 165M | 179M | 131M | 47M | 46M | 53M | 62M | 21M | 13M | 13M | 15M | 110M |
| EBIT | 582M | 512M | 546M | 740M | 493M | 463M | 393M | 376M | 223M | 258M | 264M | 227M | 240M | 183M | 281M | 298M | 933M |
| Net Interest Income | -136M | -135M | -140M | -120M | -118M | -105M | -122M | -90M | -53M | -44M | -52M | -44M | -17M | -7M | 10M | 5M | -92M |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 10M | 5M | 2M |
| Interest Expense | 136M | 135M | 140M | 120M | 118M | 105M | 122M | 90M | 53M | 44M | 52M | 44M | 17M | 7M | 0 | 0 | 94M |
| Other Income/Expense | -120M | -147M | -133M | -121M | -126M | -104M | -119M | -84M | -50M | -42M | -51M | -44M | -17M | -7M | 0 | -1M | -90M |
| Pretax Income | 446M | 377M | 406M | 620M | 375M | 358M | 271M | 286M | 170M | 214M | 212M | 183M | 223M | 176M | 281M | 298M | 839M |
| Pretax Margin % | 6.12% | 5.19% | 5.43% | 8.33% | 4.87% | 4.84% | 3.84% | 4.48% | 3.65% | 4.8% | 4.77% | 4.24% | 5.74% | 4.27% | 5.88% | 6.3% | 7.77% |
| Income Tax | 41M | 19M | 44M | 143M | 72M | 79M | 60M | 57M | 33M | 35M | 69M | 66M | 82M | 63M | 99M | 116M | 300M |
| Effective Tax Rate % | 9.19% | 5.04% | 10.84% | 23.06% | 19.2% | 22.07% | 22.14% | 19.93% | 19.41% | 16.36% | 32.55% | 36.07% | 36.77% | 35.8% | 35.23% | 38.93% | 35.76% |
| Net Income | 405M | 358M | 362M | 477M | 300M | 277M | 209M | 226M | 137M | 179M | 143M | 117M | 141M | 113M | 182M | 182M | 611M |
| Net Margin % | 5.55% | 4.93% | 4.84% | 6.41% | 3.89% | 3.75% | 2.96% | 3.54% | 2.94% | 4.02% | 3.22% | 2.71% | 3.63% | 2.74% | 3.81% | 3.85% | 5.66% |
| Net Income Growth % | 14.73% | -1.1% | -24.11% | 59% | 8.3% | 32.54% | -7.52% | 64.96% | -23.46% | 25.17% | 22.22% | -17.02% | 24.78% | -37.91% | 0% | -70.21% | - |
| Net Income (Continuing) | 405M | 358M | 362M | 477M | 303M | 279M | 211M | 229M | 137M | 179M | 143M | 117M | 141M | 113M | 182M | 182M | 539M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 2M | 67M | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 10M | 10M | 10M | 10M | 14M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 9.20 | 7.70 | 7.17 | 8.88 | 5.38 | 4.77 | 3.56 | 3.83 | 3.11 | 4.02 | 3.12 | 2.47 | 2.91 | 2.27 | 0.55 | 0.55 | 1.80 |
| EPS Growth % | 24.54% | 7.39% | -19.26% | 65.06% | 12.79% | 33.99% | -7.05% | 23.15% | -22.64% | 28.85% | 26.32% | -15.12% | 28.19% | 312.73% | 0% | -69.44% | - |
| EPS (Basic) | - | 7.73 | 7.23 | 8.98 | 5.43 | 4.81 | 3.60 | 3.87 | 3.16 | 4.13 | 3.21 | 2.55 | 3.01 | 2.33 | 0.55 | 0.55 | 1.81 |
| Diluted Shares Outstanding | 44M | 46.5M | 50.5M | 53.7M | 55.8M | 58.1M | 58.7M | 59M | 44.1M | 44.5M | 45.9M | 47.4M | 48.5M | 49.7M | 329M | 329M | 339M |
| Basic Shares Outstanding | 43.7M | 46.3M | 50.1M | 53.1M | 55.3M | 57.6M | 58.1M | 58.4M | 43.4M | 43.3M | 44.5M | 45.8M | 46.9M | 48.6M | 329M | 329M | 338M |
| Dividend Payout Ratio | - | 19.55% | 20.72% | 16.56% | 27.67% | 31.05% | 41.63% | 38.5% | 38.69% | 30.17% | 37.76% | 47.01% | 36.88% | 284.96% | 0.55% | - | - |
Contract Re-compete Concentration
As indicated by the quarterly data, SAIC's revenue trajectory remains inconsistent, fluctuating between $1.7B and $2.0B over the last ten quarters, with the most recent period showing a modest 1.5% growth after a sustained stretch of negative year-over-year performance in fiscal 2026.
The recent return to positive growth suggests that the company's strategic pivot toward higher-value digital integration may be beginning to offset the revenue loss from divesting lower-margin logistics assets. However, the historical volatility implies that organic growth remains highly sensitive to the timing of federal contract awards and the inherent lumpiness of the government procurement cycle.
Based on reported financial statements, SAIC's gross margin has hovered between 9.2% and 13.1% over the past ten quarters, reflecting a business model heavily reliant on pass-through labor and subcontracting costs that limit the company's ability to capture significant value-added premiums.
The margin expansion observed in 2027Q1 to 13.1% appears to be a positive deviation from the historical average, potentially signaling improved contract mix or better cost management on fixed-price work. Investors should monitor whether this margin improvement is sustainable or merely a temporary benefit from favorable contract close-outs and project-specific efficiencies.
According to the income statement, SAIC has demonstrated variable operating leverage, with operating margins reaching a peak of 8.8% in 2027Q1, suggesting that management is successfully exerting tighter control over SG&A expenses relative to the company's gross profit generation capacity.
The reduction in SG&A as a percentage of revenue in recent quarters indicates a concerted effort to streamline corporate overhead following the integration of major acquisitions. This trend warrants further investigation to determine if the current operating margin profile is a permanent structural shift or if it remains vulnerable to future increases in administrative and business development costs.
Based on the provided figures, SAIC's net income has experienced significant quarterly swings, with EPS ranging from $0.74 to $2.71, a trend partially influenced by non-operating items and consistent stock-based compensation expenses that averaged approximately $15M to $26M per quarter.
The wide variance in quarterly EPS suggests that reported net income is susceptible to accounting adjustments, such as Estimates at Completion (EAC) revisions, which can mask the underlying operational performance. Analysts should be cautious in extrapolating recent earnings growth, as the volatility implies that bottom-line results are not yet fully decoupled from contract-specific accounting noise.
While recent margins show improvement, the historical data reveals that SAIC's profitability remains fragile, with gross margins dipping as low as 9.2% in 2026Q1, highlighting the persistent risk that competitive pricing pressures in the federal services market could quickly erode recent gains.
Short-term margin expansion may be masking underlying challenges in maintaining a competitive edge against more specialized digital integrators. If the company fails to secure higher-margin, mission-critical work, it may be forced to rely on lower-margin staff augmentation, which would likely lead to a contraction in profitability and a re-rating of the stock's valuation.
Quick answers to the most common questions about buying SAIC stock.
For fiscal year 2026, Science Applications International Corporation (SAIC) reported total revenue of $7.26B. This represents a 32.7% decline compared to $10.80B in 2011.
Science Applications International Corporation (SAIC) is profitable, generating $358.0M in net income for the fiscal year ending 2026 with a net profit margin of 4.9%.
Science Applications International Corporation (SAIC) reported an operating income of $524.0M, resulting in an operating profit margin of 7.2%. This margin reflects the operational efficiency of the business before interest and taxes.
Science Applications International Corporation (SAIC) generated $879.0M in gross profit for the year, representing a gross profit margin of 12.1%. This demonstrates the company's core pricing power and production efficiency.