0001571123-26-000079
SEC filingSAIC repurchased $175M in stock and holds $6.6B in remaining performance obligations as of May 1, 2026.
As of May 1, 2026, SAIC held $109M in cash and cash equivalents, down from $182M at fiscal year-end January 30, 2026. Total debt stood at $2.486B (net of $14M unamortized issuance costs), essentially flat versus $2.487B at year-end. The company maintains a $1.0B undrawn Revolving Credit Facility. Shareholders' equity decreased to $1.423B from $1.500B, driven by $175M in share repurchases and $16M in dividends, partially offset by $115M net income.
Remaining performance obligations (RPO) totaled $6.6B as of May 1, 2026, with 76% expected to be recognized within 12 months and 90% within 24 months. The company also has $8M in outstanding letters of credit and $19M in surety bonds. No other material purchase commitments were disclosed in the Notes.
During the quarter, SAIC repurchased 1.9M shares for $175M under its existing $1.2B authorization (no new authorization was announced). Dividends of $0.37 per share totaled $16M. Debt activity was minimal: a scheduled $1M principal payment on the Term Loan B3 Facility. Capital expenditures were $9M (0.5% of sales). The company also sold an equity investment for $15M, recognizing a $12M gain.
SAIC reports two segments: Defense & Intelligence (D&I) and Civilian. D&I generated $1,466M in revenue (up 2.3% YoY) with adjusted operating income of $146M (10.0% margin). Civilian revenue was $440M (down 0.9% YoY) with adjusted operating income of $68M (15.5% margin). Revenue by customer: Department of War $982M, Intelligence & other federal $875M, commercial/state/local/international $49M. Contract type mix: cost-reimbursement $1,172M, T&M $444M, FFP $290M. Prime contractor to federal government accounted for $1,710M of total revenue.
Operating cash flow of $127 million exceeded net income of $115 million, a positive indicator of cash flow quality. The primary drivers were non-cash add-backs (depreciation/amortization $40M, stock-based compensation $13M, deferred tax benefit $21M) and a significant swing in working capital: receivables increased $109 million (absorbing cash), offset by a $85 million rise in accounts payable. The net cash provided by operating activities improved 27% year-over-year from $100 million.
Capital expenditures remained modest at $9 million (approximately 8% of operating cash flow), reinforcing SAIC's asset-light model. Free cash flow (operating cash flow minus capex) was $118 million. However, $188 million was spent on share repurchases (including shares withheld for taxes) and $17 million on dividends, totaling $205 million in capital returns—well above free cash flow. This gap was funded by existing cash reserves, as cash, cash equivalents, and restricted cash declined from $190 million to $117 million. The investing section showed a net inflow of $1 million due to $15 million in investment sale proceeds, partially offset by minor investment purchases and capex.