SAIC-Science Applications Q4 Earnings Beat Estimates, Revenues Rise Y/Y

Core Insights - Science Applications International (SAIC) reported better-than-expected fourth-quarter fiscal 2025 results, with non-GAAP earnings of $2.57 per share, exceeding the Zacks Consensus Estimate by 28.5% and showing a year-over-year increase of 79.7% driven by higher revenues and effective cost management [1][2] Financial Performance - Fiscal fourth-quarter revenues rose 5.8% year over year to$ 1.838 billion, slightly surpassing the Zacks Consensus Estimate of $1.804 billion by 1.88%, primarily due to increased volume on new and existing contracts [3] - Segment-wise, Defense and Intelligence revenues accounted for 74% of total revenues, amounting to$ 1.36 billion with a year-over-year increase of 0.6%, while Civilian revenues, making up 26%, totaled $478 million, rising 24.2% year over year [5] - Non-GAAP operating income increased to$ 176 million from $124 million in the prior year, with a non-GAAP operating margin expansion of 250 basis points to 9.6% [8] - Adjusted EBITDA advanced 39.4% to$ 177 million, with an adjusted EBITDA margin of 9.6% compared to 7.3% in the prior year [9] Cost Management - Selling, general and administrative (SG&A) expenses decreased by 17.5% to $94 million, with SG&A as a percentage of revenues declining from 6.6% to 1.4% year over year [7] Cash Flow and Shareholder Returns - The company generated operating cash flow of$ 115 million and free cash flow of $236 million in the fiscal fourth quarter, with total operating cash flow and free cash flow for fiscal 2025 at$ 494 million and $499 million, respectively [11] - During the fiscal fourth quarter, SAIC repurchased shares worth$ 130 million and paid $18 million in dividends [12] Guidance - For fiscal 2026, SAIC projects revenues in the range of$ 7.60- $7.75 billion and adjusted earnings between$ 9.10- $9.30 per share, with the Zacks Consensus Estimate for revenues at$ 7.65 billion and non-GAAP earnings at $9.05 per share [13]