RESTON, Va., Feb. 26, 2026 (GLOBE NEWSWIRE) -- Science Applications International Corp. (NASDAQ: SAIC) has officially been awarded a new $95 million contract by the U.S. Government Accountability Office (GAO) to provide comprehensive, full-scale IT services and solutions for the Technical Information Services (TIS) program. Under this contract, the company will deliver end-to-end IT solutions designed to support the GAO mission of a revamped and more efficient IT environment that best suits the evolving nee ...

Core Insights - Science Applications International Corp. (SAIC) has launched the Alliance for Advancing Rural Healthcare (AARH) to support the Rural Health Transformation (RHT) Program, a federal initiative aimed at enhancing healthcare systems in rural communities [1][2] - The RHT Program represents a significant federal investment in rural healthcare, emphasizing the need for effective execution to translate funding into improved healthcare access and outcomes [2][3] Company Overview - SAIC is a leading Fortune 500 mission integrator with a focus on technology and innovation, generating annual revenues of approximately $7.5 billion [5] - The AARH includes partnerships with organizations such as Arcadia, Castlight Health, Covista, Mission Mobile Medical, Telemedicine.com, TruBridge, and Walgreens, each contributing unique expertise to address rural healthcare challenges [1][3] Industry Context - The RHT Program is described as a once-in-a-generation opportunity for states to enhance rural healthcare, requiring collaboration and execution beyond mere funding [3] - AARH aims to assist state governments in overcoming challenges related to public sector accountability and healthcare operations, ensuring sustainable, people-centered solutions for rural communities [3] Partner Contributions - Each partner in the AARH brings specialized capabilities: - SAIC integrates AI, data management, and cybersecurity solutions [3] - Arcadia focuses on improving provider performance through data analytics [3] - Castlight Health enhances care navigation and access [3] - Covista addresses workforce needs by educating healthcare professionals [3] - Mission Mobile Medical expands access through mobile healthcare delivery [3] - Telemedicine.com provides telemedicine solutions to improve care access [3] - TruBridge supports rural hospitals with financial sustainability solutions [3] - Walgreens offers essential care in underserved areas through community pharmacies [3]

Core Viewpoint - James Reagan has been appointed as the new CEO of Science Applications International Corporation (SAIC), effective immediately, following a unanimous decision by the Board of Directors [1][2]. Company Leadership - Jim Reagan has nearly 40 years of experience, including two decades in senior leadership roles within the defense and government services industry, and has a strong background in business transformation [2][3]. - Prior to his appointment as CEO, Reagan served as Interim CEO since October 2025 and has been a member of the SAIC Board since January 2023 [3][4]. Strategic Focus - Reagan aims to sharpen SAIC's focus, enhance execution speed, and drive growth, expressing confidence in the company's strong future and the ongoing efforts to differentiate SAIC for sustained, profitable growth [4]. Company Overview - SAIC is a Fortune 500 mission integrator with a focus on technology and innovation across defense, space, civilian, and intelligence sectors, generating annual revenues of approximately $7.5 billion [5][6]. - The company employs around 24,000 individuals and is headquartered in Reston, Virginia [6].

Core Viewpoint - SAIC has reduced its revenue growth guidance for FY '27, now expecting a decline of approximately 1% due to the loss of key contracts [2][3]. Group 1: Revenue Guidance - Initially, SAIC projected revenue growth to be flat to plus 3% at the end of last year [2]. - The company indicated that it would likely be at the lower end of this range due to the loss of an Army Corps of Engineers recompete, which accounts for about 3% of the top line [2]. - Additionally, the loss of the Cloud One recompete is expected to impact revenue by roughly 1% [3]. Group 2: Q4 Revenue Environment - The company began Q4 with a reasonable revenue pace, which spans November to January [3].

Summary of Science Applications International (SAIC) FY Conference Call Company Overview - **Company**: Science Applications International Corporation (SAIC) - **Ticker**: NasdaqGS:SAIC - **Date of Call**: February 11, 2026 Key Points Industry and Market Context - The company operates in the defense and technology services sector, focusing on enterprise IT and mission-oriented engineering solutions [4][113]. - The macro environment is described as confusing, with uneven funding and slow contract execution impacting revenue growth [10][12]. Financial Performance and Guidance - SAIC initially projected revenue growth of flat to +3% for FY 2027 but revised guidance downwards due to contract losses, specifically: - Loss of the Army Corps of Engineers recompete (3% of revenue) - Loss of Cloud One recompete (1% of revenue) - The revised guidance indicates a nominal growth of approximately -1% for FY 2027 [4][22][24]. - Q4 revenue was reported to be light by about 2%, attributed to several factors including shutdown-related disruptions and delays in material availability [13][21]. Revenue Impact and Projections - The total impact from the two major contract losses is estimated at $275 million, with $200 million from CastleNet and $75 million from Cloud One [32][38]. - On-contract growth is expected to stabilize between 1% and 3% throughout the year, which is lower than historical averages [49][51]. - The company anticipates potential tailwinds from new contracts won, including: - Air Force TENCAP ($1 billion) - Navy ATSO ($350 million over 5 years) - Army OSINT ($75 million) [53][56]. Strategic Focus and Challenges - SAIC is focusing on being selective in bidding for contracts, particularly in the commoditized enterprise IT market, where margins are lower [113][120]. - The company aims to pivot towards fixed-price contracts and mission-oriented work, which have shown higher win rates [135][143]. - The backlog remains healthy, with expectations to finish FY 2026 with a book-to-bill ratio north of 1.0 [70][74]. Future Opportunities - The defense budget is projected to exceed $1 trillion, with SAIC focusing on mission data, cloud-based command and control, and modernization of legacy systems as key growth areas [184][191]. - The company is exploring M&A opportunities, particularly in data-focused AI and intelligence sectors, while being cautious about capital allocation due to stock valuation concerns [240][241]. Leadership and Culture - The search for a permanent CEO is ongoing, with a focus on finding an execution-oriented leader who can create shareholder value [276][280]. - The company is investing in employee training and development to retain top talent during its transformation process [302][310]. Risks and Considerations - The company faces risks related to recompete contracts, with approximately 1% of revenue up for recompete in the next 12 months [98][100]. - The procurement environment has shown signs of unpredictability, impacting submit volumes and contract negotiations [105][106]. Conclusion - SAIC is navigating a challenging environment with a focus on strategic growth areas and operational efficiency. The company is committed to transforming its portfolio and enhancing its competitive position in the defense sector while managing risks associated with contract recompetes and market dynamics [292][295].

Core Viewpoint - Science Applications International Corp. (SAIC) announced preliminary financial results for Q4 and FY 2026, indicating a revenue reduction due to procurement delays and unfavorable customer award decisions, leading to updated guidance for FY 2027 [1][6]. Group 1: Financial Results - Q4 FY26 revenue is approximately $1.745 billion, slightly below prior expectations of $7.275 billion to $7.325 billion for FY26, which is now expected to be around $7.26 billion [5]. - Organic growth for Q4 FY26 is estimated at approximately (6%), compared to a prior guidance of (2% - 3%) for FY26 [5]. - Adjusted EBITDA for Q4 FY26 is approximately $180 million, exceeding prior expectations of around $695 million for FY26, which is now expected to be approximately $705 million [5][4]. - Adjusted diluted EPS for FY26 is projected to be between $10.40 and $10.60, higher than the previous guidance of $9.80 to $10.00 [5]. Group 2: Updated Guidance - For FY27, revenue is now expected to be between $7.0 billion and $7.2 billion, a decline from the previous guidance of $7.35 billion to $7.55 billion [7]. - Organic growth for FY27 is now projected to be between (4%) and (2%), compared to the previous guidance of 0% to 3% [7]. - Adjusted EBITDA for FY27 is expected to be between $705 million and $715 million, lower than the previous guidance of $725 million to $735 million, although margins are expected to improve due to operational efficiency [8][6]. Group 3: Strategic Focus - The company is focusing on more selective customer opportunities that have the potential for technology transformation and execution upside, particularly in response to recent revenue pressures within larger Enterprise IT programs [3][2]. - Investments are being made to enhance business development and delivery processes, including a bottoms-up enterprise transformation program aimed at increasing investment capacity [2].

BUSINESS UPDATE FEBRUARY 11, 2026 SAIC PROPRIETARY INFORMATION I © SAIC. ALL RIGHTS RESERVED FORWARD LOOKING STATEMENTS | SOLID MARGIN AND CASH | Margins and free cash flow above prior guidance despite delays and disruptions impacting revenue | | --- | --- | | TO CLOSE FY26 | performance | | LOWERING FY27 REVENUE GUIDANCE | Revised FY27 revenue guidance reflects headwinds from recent recompete losses and continued | | | market disruptions | | INCREASING FY27 ADJ. EBITDA | Execution of cost efficiency effort ...

Financial Results - Science Applications International Corporation announced preliminary unaudited financial results for the fiscal fourth quarter and full fiscal year ended January 30, 2026[5]. - The company will report its full fourth quarter and fiscal year 2026 results on March 16, 2026, with non-GAAP measures to be reconciled to GAAP financial measures[5]. - The company cautions that actual results may differ from preliminary results due to normal end-of-period closing procedures[5]. Forward-Looking Statements - Forward-looking financial measures for fiscal year 2027 include adjusted EBITDA and free cash flow, which have not been reconciled to GAAP due to forecasting difficulties[6]. - The forward-looking statements reflect management's expectations and involve risks and uncertainties that could cause actual results to differ materially[8]. - The company undertakes no obligation to publicly release revisions to forward-looking statements after the date of the report[8]. Investor Relations - The company is attending an investor conference on February 11, 2026, to present a business update including the financial outlook[7]. - The press release and business update presentation are available on the company's Investor Relations website[5]. Compliance and Classification - The company has not elected to use the extended transition period for complying with new or revised financial accounting standards[3]. - The company is not classified as an emerging growth company under the Securities Act[3].

Core Insights - Science Applications International Corp (SAIC) will participate in the Cowen and Company 47th Annual Aerospace & Defense Conference, highlighting its role in the digital transformation across various sectors [1] - SAIC's Chief Financial Officer, Prabu Natarajan, will present the company's strategic and financial outlook during a Q&A session on February 11 [2] Company Overview - SAIC is a Fortune 500 mission integrator focused on technology and innovation to serve defense, space, intelligence, and civilian markets [3] - The company has a diverse portfolio that includes secure high-end solutions in mission IT, enterprise IT, engineering services, and professional services [3] - SAIC employs approximately 24,000 people and has annual revenues of around $7.5 billion [4]

Core Insights - Science Applications International Corporation (SAIC) is identified as one of the most undervalued tech stocks to buy in 2026, with a recent price target increase from Citi from $122 to $133, while UBS maintains a $113 target [1][2]. Financial Performance - In fiscal Q3 2026, SAIC reported an EPS of $2.58, exceeding estimates by $0.43, although revenue decreased by 5.57% year-over-year to $1.87 billion, falling short of expectations by $1.88 million [3]. - The revenue contraction was attributed primarily to the government shutdown, but it was noted that the revenue was slightly above the company's guidance [3]. Backlog and Market Outlook - SAIC's fiscal Q3 2026 backlog showed a 6% growth year-over-year, with a book-to-bill ratio of 1.2X over the last twelve months, indicating positive momentum in the aerospace and defense sector [2]. - Despite the growth in backlog, UBS pointed out that the company's funded backlog has continued to decline year-over-year [2]. Company Overview - SAIC operates as a technology integrator, providing full lifecycle engineering, IT, and professional services primarily to US government clients across defense, intelligence, space, and civilian sectors [4].