Science Applications International Corporation (NASDAQ:SAIC) shares declined 9.7% on Thursday after the technology integrator posted mixed second-quarter results, with earnings exceeding expectations but revenue missing forecasts. The company also lowered its full-year revenue guidance amid a challenging business environment.
The defense and government services provider reported adjusted earnings of $3.63 per share for Q2, well above analyst estimates of $2.24. However, revenue fell 3% year-over-year to $1.77 billion, below the consensus estimate of $1.87 billion.
“Our second quarter results reflect strong program performance, and our bookings reflect further momentum in our business development efforts; however, slower on-contract growth and continued delays in new business awards and new program ramps are contributing to a more challenging revenue environment than previously forecasted,” said Toni Townes-Whitley, SAIC Chief Executive Officer.
During the quarter, SAIC secured $2.6 billion in net bookings, achieving a book-to-bill ratio of 1.5, signaling strong future business potential despite current headwinds. Year-to-date bookings reached $5.0 billion with a book-to-bill ratio of 1.4.
The company lowered its fiscal 2026 revenue guidance to $7.25–7.33 billion from the previous $7.60–7.75 billion, below analyst expectations of $7.63 billion. However, SAIC raised its adjusted earnings outlook to $9.40–$9.60 per share, exceeding the consensus of $8.92, and increased its free cash flow guidance to more than $550 million.
Adjusted EBITDA margin improved to 10.5% from 9.4% in the same quarter last year, reflecting enhanced profitability across its contract portfolio and cost recovery from a patent infringement settlement.
“We are responding purposefully by aligning our cost structure while sustaining key investments to drive long-term value creation,” Townes-Whitley added.
Science Applications International Corporation stock price
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