SAIC saw its fiscal year 2026 first-quarter revenue increase 2 percent to $1.88 billion and reported Q1 net bookings of approximately $2.4 billion with a book-to-bill ratio of 1.3.
In an earnings statement published Monday, the Reston, Virginia-based government technology services contractor said it ended the first quarter with an estimated total backlog of approximately $22.3 billion, of which about $3.3 billion was funded.
CEO on Defense Spending, SAIC’s Support for DOD’s Top Priorities
At Monday’s earnings conference call, Toni Townes-Whitley, CEO of SAIC and a 2025 Wash100 awardee, said the company’s assessment of the president’s budget request for fiscal year 2026 suggests that strategic priorities and funding levels “create both opportunities and potential challenges but on balance are supportive of our growth strategy.”
“We were encouraged to see a solid request for defense spending, with a proposed increase of 13%, including reconciliation and political support to provide additional funding in excess of that requested,” Townes-Whitley told analysts.
The SAIC chief executive noted that the company expects the U.S. Air Force, U.S. Space Force and the U.S. Navy to see stronger budget support as the Trump administration prioritizes spending with a focus on readiness.
“The mission criticality of our work is evidenced by the durability of our portfolio throughout DoD-related scrutiny in recent months and our ability to support many of the Department of Defense’s 17 top priorities as detailed by Secretary Hegseth,” Townes-Whitley said.
She noted that the company has key programs and demonstrated technical leadership in a number of these top priorities, including homeland missile defense, Southwest border activities, Virginia-class submarines, core readiness, cybersecurity and combat in command support agency funding.
“The strategy we began implementing roughly 18 months ago to pivot our portfolio to mission and enterprise IT aligns with the priorities of the new administration and the acceleration of technology adoption to increase lethality and efficiency,” she added.
During the call, the CEO told investors and analysts that annual revenue from the departments of Transportation, Homeland Security, State, Veterans Affairs and the Treasury represents over 70 percent of the company’s total revenue for its civilian segment.
Q1 FY 2026 Financial Highlights
First-quarter net income was $68 million, while the company’s diluted earnings per share and adjusted diluted EPS for the quarter were $1.42 and $1.92, respectively.
Adjusted earnings before interest, taxes, depreciation and amortization, or EBITDA, for the quarter was $157 million, or 8.4 percent of revenue.
“Our performance in the first quarter reflects the steady progress we are making against our enterprise growth strategy despite a still dynamic operating environment,” Townes-Whitley said in a statement. “As a premier mission integrator, the rapid evolution of new technologies, a renewed focus on deploying software to drive efficiency, and an elevated global threat environment create significant opportunities for SAIC. I am confident that SAIC is prepared and well aligned with these macro trends to drive value for our customers, employees, and shareholders.”
Notable Contract Wins
SAIC received new and recompete awards during the quarter, including the five-year, $1.8 billion System Software Lifecycle Engineering contract to provide software development and mission engineering support for the Army Combat Capabilities Development Command’s Aviation and Missile Center and the eight-year, $327 million contract to continue delivering IT services to the Pension Benefit Guarantee Corp.
During the quarter, the company also secured approximately $300 million in space and intelligence contracts.
