Science Applications International Corp SEC 10-Q Report

Science Applications International Corp (SAIC), a leading provider of technology and engineering solutions primarily to the U.S. government, has released its Form 10-Q report for the third quarter of fiscal year 2025. The report highlights key financial and operational metrics, reflecting the company's performance amidst various challenges and strategic initiatives.

Financial Highlights

Revenues: $1,866 million, a decrease of 6% compared to the same period last year. This decline was primarily due to a ramp down in volume on existing contracts and contract completions, partially offset by new contracts.

Cost of Revenues: $1,639 million, representing 87.8% of revenues, slightly improved from 88.0% in the prior year period.

Operating Income: $128 million, a decrease of 20% from the prior year period, primarily due to executive transition costs and the favorable resolution of a contract termination in the prior year.

Net Income: $78 million, a decrease of 26% from the prior year period, impacted by the One Big Beautiful Bill Act and other factors.

Basic EPS: $1.70, decreased from $2.15 in the prior year period.

Diluted EPS: $1.69, decreased from $2.13 in the prior year period.

Business Highlights

Revenue Segments: The company operates through two main segments: Defense and Intelligence, and Civilian. The Defense and Intelligence segment provides national security solutions to the Department of War and Intelligence Community, while the Civilian segment serves federal, state, and local governments with solutions for citizen well-being and border security.

Segment Performance: For the three months ended October 31, 2025, the Defense and Intelligence segment experienced a 5% decrease in revenues compared to the prior year, primarily due to contract completions and reduced volume on existing contracts. The Civilian segment saw a 7% decrease in revenues, attributed to similar factors.

Operational Challenges: The company faced operational challenges due to a government shutdown that impacted revenues by approximately $16 million. Additionally, the expiration of a continuing resolution led to a temporary halt in government operations, affecting contract performance.

Acquisition Impact: The acquisition of SilverEdge Government Solutions is expected to enhance the company's mission-driven technology solutions, although its revenue contribution for the three months ended October 31, 2025, was immaterial.

Future Outlook: The company anticipates potential impacts from ongoing government budget reviews and executive orders, which could affect contract awards and funding. However, new government spending packages may provide opportunities in areas like digital modernization and cybersecurity.

Innovation Factory: The company's Innovation Factory continues to support both segments by developing enterprise-class solutions, focusing on AI, application development, and cybersecurity, to accelerate digital transformation for customers.

Strategic Reorganization: A strategic reorganization is planned for January 31, 2026, consolidating the company's five business groups into three, which is expected to streamline operations and align the Innovation Factory more closely with market needs.

SEC Filing: Science Applications International Corp [ SAIC ] - 10-Q - Dec. 04, 2025