Science Applications International (SAIC) Q4 2025 earnings summary

Executive summary

• FY25 revenue reached $7.48B, up 3.1% organically, with adjusted EBITDA of $710M (9.5% margin) and adjusted diluted EPS of $9.13, reflecting improved execution and lower incentive compensation expense.

• Free cash flow for FY25 was $507M, or just over $10 per share, supported by higher EBITDA and lower share count.

• Bookings totaled $6.6B for FY25 (book-to-bill 0.9), with a $1.8B contract win post-quarter-end boosting future visibility.

• Commercial sector revenue grew from less than $1M in FY22 to ~$45M in FY25, targeting $100M by FY28.

• Focus remains on mission-critical, technology-driven government programs and outcome-based contracting.

Financial highlights

• Q4 revenue was $1.84B, up 6% year-over-year; FY25 revenue was $7.48B, with 3.1% organic growth at the high end of guidance.

• Q4 adjusted EBITDA was $177M (9.6% margin); FY25 adjusted EBITDA was $710M (9.5% margin), 20 bps above guidance.

• Adjusted diluted EPS was $2.57 in Q4 and $9.13 for FY25, aided by strong operations and lower tax rate.

• Free cash flow was $236M in Q4 and $507M for FY25.

• Book-to-bill ratio for FY25 was 0.9x, with total backlog of ~$22B at year-end.

Outlook and guidance

• FY26 revenue guidance is $7.6B–$7.75B, with ~3% organic growth at midpoint and adjusted EBITDA of $715M–$735M (margin 9.4%–9.6%).

• FY26 adjusted diluted EPS is expected at $9.10–$9.30; free cash flow guidance is $510M–$530M (~$11/share), with visibility to $12/share in FY27.

• Growth expected to accelerate in H2 FY26, with headwinds from recompete losses and no-bid decisions offset by ramp-up of new business.

• FY27 targets: revenue of $7.95B–$8.10B, 4–6% organic growth, adjusted EBITDA margin of 9.5%–9.7%, and free cash flow of $550M (~$12/share).

• Share repurchases of $350M–$400M planned for FY26–27; M&A capacity maintained.