SAIC beats Q1 estimates with stronger earnings, margin expansion, positive bookings, and higher full-year profit guidance.
Stock Earnings Results
June 1, 2026
Table of Contents
June 1, 2026
Science Applications International Corporation (NASDAQ: SAIC) reported first-quarter fiscal 2027 results above expectations, supported by stronger earnings, margin expansion, positive bookings, and higher full-year profit guidance.
SAIC is a government technology and defense contractor providing IT modernization, engineering, mission support, cloud, cybersecurity, and digital transformation services to U.S. defense, intelligence, and civilian agencies.
The company reported adjusted EPS of $3.23, above estimates of $2.26, representing a 42.9% earnings surprise. Revenue came in at $1.91 billion, above estimates of $1.78 billion, with revenue growth of 1.5%.
SAIC posted adjusted earnings per share of $3.23 for the quarter.
That came in well above analyst expectations and reflected stronger profitability across the contract portfolio. The beat was also supported by improved margins and a gain from the sale of an investment.
Revenue reached $1.91 billion, up from $1.88 billion in the prior-year period.
Organic revenue growth was 0.5% excluding the SilverEdge acquisition. The growth rate was modest, but the revenue beat showed stronger-than-expected execution during the quarter.
Adjusted EBITDA margin expanded to 11.6%, compared with 8.4% in the prior-year quarter.
Management said the quarter delivered record margin, driven by stronger execution, better contract profitability, and continued focus on financial targets.
SAIC raised its fiscal 2027 adjusted EPS guidance to $9.90 to $10.10.
That was up from the prior range of $9.50 to $9.70. The company also raised its adjusted EBITDA guidance to $720 million to $730 million, compared with the prior range of $705 million to $715 million.
Adjusted EBITDA margin guidance was increased to 10.1% to 10.3%, up from the prior range of 9.9% to 10.1%.
SAIC maintained its fiscal 2027 revenue outlook of $7.0 billion to $7.2 billion.
The midpoint of $7.1 billion was slightly below analyst expectations, which suggests investors focused more on profitability, margin expansion, and earnings guidance than top-line acceleration.
SAIC generated $127 million in operating cash flow and $118 million in free cash flow during the quarter.
The company deployed $192 million of capital, including $175 million in share repurchases and $17 million in dividends.
Net bookings totaled $2.1 billion during the quarter.
That produced a positive book-to-bill ratio, showing that SAIC continued converting government demand into future contracted work.
Investors are likely to watch whether SAIC can keep expanding margins while maintaining steady revenue growth.
The key areas are:
SAIC’s quarter showed that profitability mattered more than rapid revenue growth.
Revenue growth was modest, but the earnings beat, record margin, stronger cash flow, share repurchases, and raised profit outlook gave investors a clear reason to react positively.
Platforms like LevelFields track earnings beats, margin expansion, guidance raises, government contract demand, book-to-bill trends, and stock reactions together, helping investors identify when defense and government technology stocks are moving on real operating improvement.
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