In the earnings report for Science Applications International Corporation (SAIC) for the fourth quarter of fiscal year 2025, the company reported revenue of $1.84 billion, which represents a 6% increase compared to the same quarter last year. For the full year, SAIC’s revenue totaled $7.48 billion, marking a 3.1% organic growth when adjusted for divestitures.

Net income in Q4 was $98 million, while the adjusted EBITDA for the same period was $177 million, yielding an EBITDA margin of 9.6%. Over the fiscal year, net income stood at $362 million with an adjusted EBITDA of $710 million, maintaining a 9.5% margin. The adjusted diluted earnings per share for Q4 was reported at $2.57, up 80% year-over-year, while for the entire fiscal year, it reached $9.13, reflecting a 16% increase.

SAIC’s cash flows from operating activities were $115 million for Q4 and $494 million for the fiscal year, resulting in a free cash flow of $236 million for Q4 and a total of $507 million for the year. Free cash flow per share was reported at just over $10. For fiscal year 2026, SAIC has guided for revenue between $7.6 billion and $7.75 billion, expecting approximately 3% organic growth at the midpoint.

The company’s net bookings for Q4 amounted to $1.3 billion, while the book-to-bill ratio for the year was approximately 0.9. The trailing twelve-month book-to-bill ratio, including recent contract awards, increased significantly due to the $1.8 billion contract award received after quarter-end for the System Software Lifecycle Engineering program.

For Q4 FY25, the operating income as a percentage of revenues rose to 7.5%, up from 4.5% in the previous year, due primarily to improved profitability across the contract portfolio and lower incentive-based compensation expense. Adjusted operating income for the same quarter climbed to $176 million from $124 million, equating to 9.6% of revenues.

SAIC’s guidance for fiscal year 2026 includes adjusted diluted earnings per share to be in the range of $9.10 to $9.30, alongside an anticipated EBITDA margin increase to between 9.4% and 9.6%. Free cash flow expectations for FY26 range from $510 million to $530 million.

Overall, SAIC is in a stable condition, demonstrating growth in financial metrics particularly in its revenue and adjusted profit figures, signifying a sustained operational performance within its respective markets. The company anticipates continued opportunities amid fluctuations in government procurement and market conditions.