Revenue has contracted by 6.3% year-over-year in the most recent quarter, yet operating margin expanded to 8.1% from 7.9% a year prior, suggesting effective cost management through SG&A discipline is partially offsetting top-line weakness.
Science Applications International Corporation (SAIC) annual income statement — 16-year revenue, gross profit & net income history
| 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 | 7.4B | 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 % | -0.78% | -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 | 6.47B | 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 | 936M | 879M | 892M | 872M | 888M | 859M | 792M | 706M | 464M | 411M | 439M | 411M | 335M | 333M | 408M | 426M | 1.42B |
| Gross Margin % | 12.65% | 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 | 359M | 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 | 359M | 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 | 578M | 524M | 539M | 741M | 501M | 462M | 390M | 370M | 220M | 256M | 263M | 227M | 240M | 183M | 281M | 299M | 929M |
| Operating Margin % | 7.81% | 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 | 696M | 673M | 679M | 883M | 658M | 627M | 569M | 501M | 267M | 302M | 316M | 289M | 261M | 196M | 294M | 314M | 1.04B |
| EBITDA Margin % | 9.4% | 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 % | -0.29% | -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) | 118M | 149M | 140M | 142M | 157M | 165M | 179M | 131M | 47M | 46M | 53M | 62M | 21M | 13M | 13M | 15M | 110M |
| EBIT | 592M | 512M | 546M | 740M | 493M | 463M | 393M | 376M | 223M | 258M | 264M | 227M | 240M | 183M | 281M | 298M | 933M |
| Net Interest Income | -135M | -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 | 135M | 135M | 140M | 120M | 118M | 105M | 122M | 90M | 53M | 44M | 52M | 44M | 17M | 7M | 0 | 0 | 94M |
| Other Income/Expense | -121M | -147M | -133M | -121M | -126M | -104M | -119M | -84M | -50M | -42M | -51M | -44M | -17M | -7M | 0 | -1M | -90M |
| Pretax Income | 457M | 377M | 406M | 620M | 375M | 358M | 271M | 286M | 170M | 214M | 212M | 183M | 223M | 176M | 281M | 298M | 839M |
| Pretax Margin % | 6.17% | 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 | 77M | 19M | 44M | 143M | 72M | 79M | 60M | 57M | 33M | 35M | 69M | 66M | 82M | 63M | 99M | 116M | 300M |
| Effective Tax Rate % | 16.85% | 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 | 380M | 358M | 362M | 477M | 300M | 277M | 209M | 226M | 137M | 179M | 143M | 117M | 141M | 113M | 182M | 182M | 611M |
| Net Margin % | 5.13% | 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 % | -4.76% | -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) | 380M | 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) | 8.88 | 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 % | 3.51% | 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 | 42.8M | 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 | 42.4M | 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% | - | - |
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.
Key Metrics
Top Statement Risk
Top-line contraction amid margin pressure
Metrics are mathematically derived from official filings.
Revenue Growth Decelerates into Contraction
After a period of modest growth, SAIC's revenue trajectory has shifted to contraction, with the most recent quarter showing a 6.3% year-over-year decline, a stark reversal from the 5.8% growth seen in 2025Q4.
The shift from positive to negative year-over-year growth over the last four quarters suggests a potential loss of contract volume or a strategic pruning of lower-margin work. This deceleration is particularly notable given the company's historical reliance on large, multi-year federal contracts, indicating that new wins may not be offsetting the completion or loss of legacy programs. Investors should monitor whether this represents a temporary portfolio transition or a more fundamental challenge in the competitive federal IT services market.
Gross Margin Volatility Amid Structural Low
SAIC's gross margin has shown significant quarterly volatility, ranging from a low of 9.2% in 2026Q1 to a high of 13.1% in 2027Q1, reflecting the impact of contract mix and the high proportion of pass-through revenue.
The structural gross margin, averaging around 12%, is significantly below peers like Leidos (17.7%) and CACI (33.2%), underscoring SAIC's business model heavily weighted toward cost-plus and time-and-materials contracts with limited markup. The recent improvement to 12.7% in 2027Q2 from 12.2% a year ago may indicate a favorable shift toward higher-margin work, but the volatility suggests this is not yet a stable trend. Permanent margin expansion appears contingent on successfully increasing the mix of proprietary digital integration services over commoditized staff augmentation.
Operating Leverage Tested by Revenue Decline
Operating income has remained relatively stable despite revenue contraction, with the operating margin expanding to 8.1% in 2027Q2 from 7.9% a year prior, suggesting effective cost management in a challenging top-line environment.
The ability to maintain operating income in the face of declining revenue indicates a degree of operational flexibility, likely through SG&A discipline, as seen in the reduction from $87M to $75M in comparable quarters. However, this leverage is being tested; the operating margin in 2027Q2 (8.1%) is below the 8.8% achieved in 2027Q1, hinting that cost cuts may be reaching their limit. The lack of R&D investment, as shown by the $0 line item, further highlights a focus on near-term profitability over long-term organic growth initiatives.
Net Income Volatility Driven by Non-Operating Items
Net income has been highly volatile, swinging from $127M in 2026Q2 to $78M in 2026Q3, with EPS growth rates ranging from -65.5% to +170.3%, indicating significant influence from non-operational factors.
The erratic EPS growth, which does not correlate with the more stable operating income trend, suggests that items such as tax rate fluctuations, interest expense, or one-time gains/losses are materially impacting the bottom line. For instance, the 170.3% EPS growth in 2025Q4 on only 5.8% revenue growth points to a non-recurring benefit. This volatility complicates the assessment of underlying business performance and warrants a focus on operating metrics rather than headline net income figures.
SG&A Discipline as Primary Margin Lever
SG&A expenses have been the primary variable cost lever, ranging from $48M to $100M per quarter, with recent quarters showing a return to a more disciplined $83M-$87M range after a spike in 2026Q3.
The significant fluctuation in SG&A, particularly the jump to $100M in 2026Q3 followed by a reduction, suggests either lumpy spending related to integration or bid/proposal costs, or a period of operational inefficiency that has since been addressed. With COGS being largely fixed as a percentage of revenue in this labor-heavy model, SG&A management becomes the critical tool for protecting operating margins during revenue downturns. The recent stabilization around $83M-$87M appears to be a key factor in maintaining profitability despite the top-line pressure.
Margin Expansion Thesis Faces Revenue Headwinds
The narrative of margin expansion through a higher mix of digital work is challenged by the persistent negative revenue growth, which could indicate that the company is losing scale in its core, lower-margin business without yet replacing it with sufficient higher-margin volume.
While management may be pruning low-margin contracts to improve profitability, the -6.3% revenue decline in 2027Q2 raises the risk that this is not a strategic choice but a competitive outcome. If SAIC is unable to win new, higher-margin contracts at a rate that offsets the loss of legacy volume, the overall profit pool could shrink even if margins improve. The peer comparison is telling: CACI is growing revenue at 10.9% with a 33.2% gross margin, suggesting that a higher-margin business model and top-line growth are not mutually exclusive in this sector.