- SAIC has recorded $1.9 billion in revenue for the first quarter of fiscal 2027
- The company has raised its full-year earnings and margin outlook
- SAIC is shifting focus toward higher-value defense, engineering and mission-focused work
SAIC has reported first-quarter fiscal 2027 revenue of $1.9 billion and raised its full-year earnings guidance, following record profitability and strong cash generation.
How Did SAIC Perform in the First Quarter?
The company said it recorded organic revenue growth of 0.5 percent in the fiscal first quarter, exceeding internal expectations due in part to the timing of materials and an extension of the RITS program. Adjusted EBITDA reached $222 million, driven by cost efficiency initiatives and a $12 million gain from a venture investment’s initial public offering. The transaction contributed 60 basis points to the company’s EBITDA margin, prompting SAIC to raise its full-year margin guidance to a range of 10.1 percent to 10.3 percent.
The company also posted adjusted diluted earnings per share of $3.23 and generated $118 million in free cash flow. Net bookings totaled approximately $2.1 billion, resulting in a book-to-bill ratio of 1.1x for the quarter. Awards included a $200 million Department of Homeland Security recompete contract.
Jim Reagan, who was appointed CEO in February after serving on an interim basis since October 2025, said the company delivered modest organic growth despite ongoing recompete headwinds.
“Fiscal first quarter margin was a company record driven by strong program execution,” said the five-time Wash100 Award winner.
Reagan also said SAIC remains well-positioned for future awards despite requests for proposals and contract submissions being slowed by environmental factors.
“Recompete win rates are stabilizing. As we expect them to return to the 90% range,” he said. “And new business win rates continued to perform well above 30%.”
What Is Driving SAIC’s Growth Strategy?
SAIC is refining its portfolio to focus on higher-value mission and engineering work while reducing emphasis on more commoditized enterprise IT opportunities. Its qualified pipeline stands at approximately $85 billion, with a major recompete opportunity in the Department of State’s $10 billion Evolve program.
The company highlighted growth opportunities in battle management systems, command-and-control capabilities, mission engineering, radar modernization, autonomous systems and artificial intelligence-enabled mission support.
“There is some natural portfolio realignment this year as we digest recompete losses, primarily in the large enterprise IT market,” said Reagan. “We are also actively controlling our future as we build a premier portfolio of integrated mission critical capabilities more aligned to budget priorities and more insulated against the commoditization that we have seen in certain parts of the market.”
What Is SAIC’s Outlook for Fiscal 2027?
Prabu Natarajan, SAIC’s chief financial officer and executive vice president of enterprise operations, who will temporarily oversee the civilian business group following the departure of 2026 Wash100 awardee Srinivas Attili, said revenue guidance will remain unchanged, though the company expects to trend toward or slightly above the midpoint of the forecast range.
The company also reaffirmed its expectation of generating more than $600 million in free cash flow during fiscal 2027.
“We continue to see at least $14 of free cash flow per share this year and at least $13 of free cash flow per share next year in FY 2028 as historical tax assets roll off,” said Reagan.
