The chart below shows how SAIC performed 10 days before and after its earnings report, based on data from the past quarters. Typically, SAIC sees a -0.44% change in stock price 10 days leading up to the earnings, and a -2.49% change 10 days following the report. On the earnings day itself, the stock moves by +0.31%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Organic Revenue Growth Analysis: We reported third quarter organic revenue growth of 4.3% as increases from new business and on-contract growth offset an approximately 5-point headwind from contract transitions.
Strong Adjusted EBITDA Performance: Adjusted EBITDA of $197 million and margin of 10% reflects solid program performance across our portfolio.
Strong Profitability Impact: Adjusted diluted earnings per share of $2.61 benefited from strong profitability and an approximately 16% effective tax rate in the quarter.
Free Cash Flow Analysis: Free cash flow of $9 million was somewhat softer than what we typically produce in third quarter, due in part to an additional payroll cycle and very strong collections in our second quarter.
Revenue Growth Expectation: We expect fully year revenue growth of 3%, which is slightly ahead of the midpoint of our prior guidance.
Negative
Organic Revenue Growth Impact: Reported third quarter organic revenue growth of 4.3% was offset by approximately 5-point headwind from contract transitions.
Strong Program Performance: Adjusted EBITDA of $197 million and margin of 10% reflect solid program performance across our portfolio.
Free Cash Flow Analysis: Free cash flow of $9 million was somewhat softer than what we typically produce in third quarter, due in part to an additional payroll cycle and very strong collections in our second quarter.
Revenue Growth Update: We now expect fully year revenue growth of 3%, which is slightly ahead of the midpoint of our prior guidance.
FY'26 Revenue Projections: We continue to see FY'26 revenue growth in a range of 2% to 4%, and our expectation is for slower growth in the first half of the year, improving to the 5% range by the end of the year.
Science Applications International Corporation (SAIC) Q3 2025 Earnings Call Transcript
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