Government technology services provider SAIC reported its SAIC Q3 FY2026 Results, posting $1.87 billion in revenue. This figure represents a 5.6 percent decrease compared to the same period in the previous fiscal year. Despite the decline in quarterly revenue, the company demonstrated solid demand by achieving $2.2 billion in Q3 net bookings, resulting in a healthy trailing 12 months book-to-bill ratio of 1.2. As the quarter closed, SAIC held an estimated total backlog of approximately $23.8 billion. Interim CEO Jim Reagan has clearly articulated his priorities, directing the company to take decisive action that will sharpen its focus and position it for stronger, long-term shareholder value creation.
Executing on Strategic Priorities
Jim Reagan assumed the interim leadership role in October and immediately outlined key strategies aimed at boosting financial health and execution. Reagan stressed the need to elevate quality over maximizing throughput and shift concentration to markets where the company possesses the highest probability of success. SAIC plans to build on recent changes across its business development function by sharpening its overall execution. This increased focus is crucial to improving decision-making, ensuring more efficient resource allocation, and driving stronger performance moving forward.
To streamline its operations and strengthen customer engagement, SAIC announced an organizational restructuring in November. The company will consolidate its five existing business groups into three, a change designed to drive growth and enhance shareholder value. This new structure will take effect on January 31.
Driving Growth Through AI Acquisition
A significant element of the company’s forward-looking strategy involves targeted investment, exemplified by its acquisition of SilverEdge Government Solutions. Reagan expressed excitement about integrating SilverEdge’s differentiated technology and commercial go-to-market approach with SAIC’s existing capabilities. SilverEdge specializes in bringing sought-after Artificial Intelligence (AI) capabilities to the Intelligence Community.
SAIC expects robust continued growth as it deploys SilverEdge’s talented team and solutions across its broader portfolio. This acquisition serves as a key proof point demonstrating SAIC’s readiness to incorporate increased AI content into the solutions its customers now demand. Furthermore, the company stands ready to support the Department of Defense (DoD) in its planned procurement reforms, including accelerating acquisition and improving readiness through expanded use of innovative contracting vehicles like Other Transaction Authorities (OTAs).
Financial Performance and Outlook
In terms of financial performance, SAIC recorded $185 million in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) for the third quarter, representing 9.9 percent of revenues. Net income for the quarter reached $78 million. The company reported adjusted diluted earnings per share (EPS) of $2.58 and generated $135 million in free cash flow, underscoring solid liquidity from its operations following the strong SAIC Q3 FY2026 Results.
