Science Applications International Corporation (0V9N.L) posted a solidly profitable QQ4 2026 despite a measured decline in top-line revenue. Revenue for the quarter was USD 1.75 billion, down 4.8% year over year and 6.2% quarter over quarter, while gross profit reached USD 221 million for a gross margin of 12.6%. Operating income stood at USD 133 million (operating margin 7.6%), and net income was USD 85 million with a net margin of 4.9%, supported by a favorable tax item that booked a USD 14 million tax benefit. Diluted earnings per share were USD 1.87, or USD 1.89 on a GAAP basis, against a weighted average share count of 45.0 million (diluted 45.4 million). EBITDA amounted to USD 133 million with a trailing total interest expense of USD 34 million and USD 34 million of other income/expenses net, underscoring the firm’s profitability framework even as revenue moderated.
Taken together, the quarter demonstrates SAIC’s ability to translate a disciplined cost base into stable profitability while it benefits from its core strengths in engineering, IT modernization, cloud migration, and end-to-end services within the U.S. government ecosystem. Management commentary historically emphasizes demand drivers tied to defense and federal civilian agency modernization, cloud adoption, and secure IT operations; while not explicitly disclosed here, those themes remain central to the long-term revenue trajectory. In the near term, investors should monitor government budget cycles, contract awards, and backlog development for a more complete read on visibility and growth potential.