SAICMEDIUM SIGNALOPERATIONAL10-K

SAIC completed a business reorganization consolidating five business groups into three while experiencing a notable decline in net income amid improved cash generation.

The organizational restructuring suggests management is focused on operational efficiency and simplification, which could drive future profitability improvements. However, the combination of lower net income alongside stronger operating cash flows indicates potential timing differences or non-cash charges that warrant monitoring.

Comparing 2026-03-16 vs 2025-03-17View on EDGAR →
FINANCIAL ANALYSIS

SAIC's financial profile shows mixed signals with net income declining meaningfully to $362M while operating cash flow improved notably to $609M, suggesting strong underlying cash generation. The balance sheet reflects operational changes with inventory dropping substantially and current liabilities decreasing meaningfully, while total debt increased modestly to $2.5B. The company reduced share buybacks to $445M, indicating a more conservative capital allocation approach during this transitional period.

FINANCIAL STATEMENT CHANGES
Inventory
Balance Sheet
-95.8%
$71.0M→$3.0M

Inventory drawn down 95.8% — strong sell-through or deliberate destocking; watch for supply constraints.

Current Liabilities
Balance Sheet
-29.7%
$1.4B→$982.0M

Current liabilities reduced — improved short-term financial position and working capital health.

Net Income
P&L
-24.1%
$477.0M→$362.0M

Net income declined 24.1% — review whether driven by operations, interest costs, or non-recurring items.

Operating Cash Flow
Cash Flow
+23.3%
$494.0M→$609.0M

Operating cash flow grew 23.3% — strong conversion of earnings to cash, healthy business fundamentals.

Share Buybacks
Cash Flow
-20.3%
$558.0M→$445.0M

Buyback activity reduced 20.3% — capital being redeployed elsewhere or cash conservation underway.

Accounts Receivable
Balance Sheet
-14.7%
$1.0B→$853.0M

Receivables declined — improved collection efficiency or conservative revenue recognition.

Total Debt
Balance Sheet
+12%
$2.2B→$2.5B

Debt rose 12% — additional borrowing for investment or operations; monitor coverage ratios.

LANGUAGE CHANGES
NEW — 2026-03-16
PRIOR — 2025-03-17
ADDED
Our business has a long and successful history of over 50 years serving all military forces (Army, Air Force, Navy, Marines, Coast Guard, and Space Force) and agencies of the Department of War ("DoW", formerly referred to as the Department of Defense), National Aeronautics and Space Administration ("NASA"), U.S.
Effective January 31, 2026, the first day of fiscal 2027, we completed a business reorganization that consolidated our five business groups into three.
The reorganization is designed to simplify our structure and optimize operations and customer focus for growth.
The consolidated business groups will continue to report directly to our Chief Executive Officer ( CEO ) who will continue to be the chief operating decision maker ( CODM ).
We do not expect the reorganization to have an impact on our reportable segments.
Mission Systems Support: We design, build, modify, integrate, and sustain weapon systems across all branches of the U.S.
We are one of the largest pure-play technology service providers to the U.S.
Our significant scale advantage enables us to serve as a prime systems integrator on large, complex programs and to allocate resources toward further developing and expanding our repeatable, proven solutions and differentiated technical capabilities.
Acquisitions and Divestitures On October 15, 2025, we acquired SilverEdge Government Solutions, an innovative provider of mission-driven technology solutions and products.
The acquisition advances our strategy to provide mission focused solutions and commercial products to our customers.
REMOVED
Our business has a long and successful history of over 50 years serving all military forces (Army, Air Force, Navy, Marines, Coast Guard, and Space Force) and agencies of the Department of Defense ("DoD"), National Aeronautics and Space Administration ("NASA"), U.S.
Digital Engineering: Our digital engineering integrates industry-leading tools and processes for design; engineering; analytics; modeling, simulation and visualization; and manufacturing execution, all within a secure and collaborative ecosystem to ensure faster systems outcomes for our customers.
Within this report, we have recast historical financial information to reflect the new reportable segments.
The recast historical information has no impact on our previously reported consolidated financial statements.
With approximately $7.5 billion in revenue in fiscal 2025, we are one of the largest pure-play technology service providers to the U.S.
Acquisitions and Divestitures On May 6, 2023, SAIC closed the sale of its logistics and supply chain management business ("Supply Chain Business") to ASRC Federal Holding Company, LLC ("ASRC Federal").
("FSA") to its sole joint venture partner for a nominal amount.
Key Customers In fiscal 2025, 2024 and 2023, 98% of our total revenues were attributable to prime contracts with the U.S.
In fiscal 2023, 49% of our total revenues were attributable to both the "Department of Defense" and "Intelligence and other federal government agencies" respectively, with the remainder attributable to "Commercial, state and local governments and international" customers.
Together with various agency-specific supplements, the FAR governs the terms and conditions of government contracts, including bidding, performance, and pricing, and imposes specific compliance obligations related to security, intellectual property, data privacy, and environmental regulations.
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