Science Applications International Corporation (NASDAQ: SAIC) reported fourth-quarter results that exceeded profit expectations but slightly missed revenue estimates, pushing shares up roughly 2% intra-day Monday.
The technology integrator reported adjusted earnings per share of $2.62 for the quarter, significantly beating the analyst consensus estimate of $1.98 by $0.64. Revenue totaled $1.75 billion, falling short of the $1.77 billion estimate and declining 5% from $1.84 billion in the prior-year quarter.
The company said the revenue decline largely reflected reduced volume on existing contracts, including impacts from a government shutdown and the completion of certain contracts.
Adjusted EBITDA margin improved to 10.3% during the quarter from 9.6% a year earlier, driven by lower selling, general, and administrative expenses.
For the full fiscal year 2026, SAIC generated revenue of $7.26 billion, down 3% year over year, while adjusted earnings per share increased 18% to $10.75 from $9.13 in fiscal 2025.
Looking ahead, the company issued fiscal 2027 guidance calling for revenue between $7.0 billion and $7.2 billion and adjusted EPS of $9.50 to $9.70. The midpoint of $9.60 is below the fiscal 2026 result of $10.75.
SAIC also expects adjusted EBITDA margin between 9.9% and 10.1% and free cash flow exceeding $600 million.
Net bookings during the quarter totaled $0.6 billion, resulting in a book-to-bill ratio of 0.3, although the trailing twelve-month book-to-bill ratio stood at 1.1.
