Science Applications International Reports Strong Q2 Results, Raises Full-Year Guidance
Science Applications International (NASDAQ:SAIC) delivered strong second-quarter results for fiscal 2027, reporting $1.9 billion in revenue with 5% organic growth and a 10.3% adjusted EBITDA margin. The company generated $131 million in free cash flow while reducing net leverage to 3.0 times. SAIC raised its full-year guidance for revenue to $7.25 billion, adjusted EBITDA margins of 10.3%-10.5%, and at least $600 million in free cash flow. The company highlighted strong on-contract growth of 9% during the quarter, driven by programs won in fiscal years 2025 and 2026 that are now ramping up. However, uneven procurement activity is expected to impact second-half revenue due to a contract rollover (RITS), which will create an approximate 350-basis-point headwind. SAIC's efficiency initiative, Project ORBIT, aims for $150 million in annual savings and supports long-term margin expansion toward approximately 11%. CFO Prabu Natarajan noted that second-half margins are expected to be in the high-9% range due to targeted investments.
Topics: ebitda free_cash_flow guidance_update revenue