Science Applications (0V9N.L) Q2 2026 Earnings Report

Science Applications International Corporation (SAIC) delivered a solid quarterly performance in QQ2 2026 despite a modest revenue decline. Revenue reached USD 1.769 billion, down 2.7% year over year and 5.75% quarter over quarter, while gross profit amounted to USD 215 million for a gross margin of 12.15%. The company generated USD 139 million of operating income (margin of 7.86%) and USD 127 million of net income (net margin 7.18%), with EPS of USD 2.72 (diluted USD 2.71). The bottom line benefited from operating leverage and a favorable non-operating income/expense mix, resulting in YoY net income growth of 56.8% and QoQ growth of 86.8%. Free cash flow stood at USD 122 million, underpinning a robust cash-generation profile even as working capital movements and timing effects influenced near-term cash flow dynamics. Balance sheet remains solid, with total assets of USD 5.20 billion and stockholders’ equity of USD 1.52 billion. The company carries USD 601 million of total debt (net debt USD 553 million) and a relatively modest cash balance, contributing to a current ratio below 1.0 (1.204B current assets vs 1.447B current liabilities). Management’s commentary emphasized disciplined cost management and continued focus on high-margin, mission-critical IT services for federal customers. Near-term catalysts include ongoing US federal IT modernization, cloud migration, cyber and security services, and long-duration contracts that support recurring revenue streams. Overall, SAIC’s QQ2 2026 results reinforce a conservative, cash-generative model with earnings resilience amid a growing emphasis on modernization across defense and civilian agencies.