SAIC Reports Strong Q4 Earnings, Secures $1.8B Army Contract

Science Applications International Corporation (SAIC) reported robust fourth-quarter results for fiscal 2025, exceeding revenue and earnings expectations with $1.84 billion in revenue and an adjusted EPS of $2.57, marking an 80% year-over-year increase. The company attributed its success to significant new contracts, including a $1.8 billion award from the U.S. Army, which bolstered a contract backlog of approximately $20 billion. Despite concerns over potential Department of Defense budget cuts, SAIC's performance suggests that fears may be overstated, as its future revenue guidance for fiscal 2026 also outpaces analyst estimates. The company's strong operational efficiencies and focus on cybersecurity services have positively impacted profitability, with an adjusted EBITDA of $177 million and free cash flow rising significantly. CEO Toni Townes-Whitley expressed confidence in the company’s growth momentum, underscoring its commitment to national security missions amidst evolving market dynamics. Shares of SAIC increased by over 7% following the earnings report, reflecting renewed investor confidence.