• They're like Accenture for the U.S. government.
• They're like IBM Global Services for the U.S. government.

• Engineering Services: Provides technical and engineering expertise for various customer needs.
• IT Modernization and Cloud Solutions: Delivers services for updating and transforming IT infrastructure, including cloud migration, infrastructure modernization, and enterprise IT-as-a-service.
• Systems Integration and Management: Offers end-to-end services for designing, developing, integrating, deploying, managing, securing, and sustaining customer IT infrastructure and technology.
• Logistics and Systems Maintenance: Specializes in the maintenance of ground and maritime systems and provides comprehensive logistics support.
• Training and Simulation: Develops and implements training programs and simulation technologies.
• Operations and Program Support: Provides ongoing operational and programmatic assistance to government agencies.

Major Customers of Science Applications International (SAIC)

Science Applications International (SAIC) primarily serves various agencies and departments within the U.S. federal government. Its major customers include:

• The U.S. military (comprising Army, Air Force, Navy, Marines, and Coast Guard)
• Department of Defense (DoD) agencies
• National Aeronautics and Space Administration (NASA)
• U.S. Department of State
• Department of Justice
• Department of Homeland Security
• Various intelligence community agencies
• U.S. federal civilian agencies

• Amazon.com, Inc. (AMZN)
• Microsoft Corporation (MSFT)
• Oracle Corporation (ORCL)
• Alphabet Inc. (GOOGL)

Jim Reagan, Chief Executive Officer

Jim Reagan was appointed Chief Executive Officer of SAIC, effective February 17, 2026, after serving as Interim CEO since October 2025. He has nearly 40 years of experience in the defense and government services industry. Prior to SAIC, he served as Executive Vice President and CFO at Leidos Holdings and held similar roles at various technology and communications firms. Reagan's executive experience also includes positions at Vencore, PAE, Aspect Communications, MCI Telecommunications, Nextel, and AMS.

Prabu Natarajan, Executive Vice President and Chief Financial Officer

Prabu Natarajan became SAIC's Executive Vice President and Chief Financial Officer in January 2021 (some sources state January 2020), overseeing all financial activities, including accounting, financial reporting, treasury, tax, planning and analysis, and investor relations. He has a strong background as a finance executive in the aerospace, defense, and technology markets. Before joining SAIC, Mr. Natarajan was the Vice President of Financial Planning, Mergers and Acquisitions, and Government Compliance at Northrop Grumman, where he also managed the company's M&A process. His prior experience also includes roles at PricewaterhouseCoopers LLP and AES Corporation.

Hilary Hageman, Executive Vice President, General Counsel and Corporate Secretary

Hilary Hageman was appointed Executive Vice President, General Counsel, and Corporate Secretary at SAIC in July 2022. In this role, she is responsible for the company's internal audits, internal controls, risk management activities, ethics, and legal functions. Ms. Hageman possesses extensive legal experience in government contracting and national security law, having previously served in similar executive roles at Terran Orbital Corporation.

Kathleen McCarthy, Executive Vice President and Chief Human Resources Officer

Kathleen McCarthy serves as SAIC's Executive Vice President and Chief Human Resources Officer. She leads the development and implementation of all strategic human resources initiatives, ensuring alignment with SAIC's mission and goals across its customer business groups.

Mark Escobar, Executive Vice President and Chief of Business Operations

Mark Escobar has been SAIC's Executive Vice President and Chief of Business Operations since 2019. He is responsible for the company's Enterprise Solutions and Operations (ESO) organization, which integrates functions such as sales enablement, strategy, solution development, government affairs, corporate communications, infrastructure, program execution, and business enablement. Prior to this role, Mr. Escobar served as SAIC's General for the National Security Group, supporting various intelligence community customers, including Department of Defense offices, the U.S. Air Force, and combatant commands.

The key risks to Science Applications International (SAIC) are primarily driven by its heavy reliance on U.S. government contracts, intense competition within the sector, and the stringent regulatory and legal environment in which it operates.

1. Reliance on U.S. Government Contracts and Spending: SAIC derives a significant majority of its revenue (approximately 98%) from contracts with the U.S. government. This dependence exposes the company to substantial risks, including potential reductions in government defense spending, shifts in acquisition priorities, and delays in the government budget and appropriations processes. Changes in government procurement practices or budgetary allocations could significantly impact SAIC's revenue and growth prospects. For instance, reviews of consulting services contracts by the Department of Defense, with an aim to make cuts, introduce uncertainty, and there is a possibility of a shift from "cost-plus" to fixed-fee models, which could affect profit margins. Additionally, SAIC has faced delays in procurement decisions and turnover of personnel at federal agencies, hindering business development and program funding.
2. Intense Competition and Pricing Pressure: The government contracting market is highly competitive. SAIC operates in an environment characterized by intense bidding for government contracts, leading to increased pricing pressure and the risk of contract protests. This intense competition is expected to intensify for both new work and contract recompetes, potentially impacting SAIC's ability to secure new business and maintain its market position. Slower growth in contracts and pricing pressure from evolving government IT priorities could also challenge the company's valuation.
3. Compliance, Legal, and Regulatory Risks: As a major government contractor, SAIC is subject to complex and evolving government procurement rules and regulations, including those related to organizational conflicts of interest (OCIs). The company faces ongoing risks from government audits and investigations, which can impact profitability and cash flows. Historical instances of contract fraud settlements and whistleblower lawsuits underscore the potential for significant financial penalties and reputational damage if the company fails to comply with legal and ethical standards.

Science Applications International Corporation (SAIC) operates in several substantial addressable markets within the United States, primarily serving federal government and defense agencies.

• U.S. Federal IT Services Market: The market for contractor-supplied Information Technology (IT) products and services to the U.S. federal government is projected to grow from $116.4 billion in fiscal year (FY) 2023 to $137.5 billion in FY 2027. Overall, technology spending for the entire U.S. government sector, including staff costs, is projected to reach $357 billion in 2026.
• U.S. Defense Market: The U.S. defense market size is estimated at $309.77 billion in 2024 and is expected to reach $367.30 billion by 2029. Another estimate placed the market size at approximately $800 billion in 2023. The market was valued at USD 354.48 billion in 2026 and is projected to reach USD 423.87 billion by 2031.
• U.S. Federal Cloud Market: The total available market in federal cloud was estimated at approximately $17 billion in federal fiscal year (FFY) 2024, and is expected to increase to between $20 billion and $21 billion in FFY25. Total federal cloud spending is anticipated to surpass $30 billion by FFY28.
• U.S. Engineering Services Market: The engineering services market in the United States generated a revenue of $407.3 billion in 2024 and is expected to reach $581.0 billion by 2030, growing at a compound annual growth rate (CAGR) of 6.2% from 2025 to 2030. Other estimates for the U.S. market size include $357.9 billion in 2025 and $360.6 billion in 2026.
• U.S. Government and Education Logistics Market: The North America Government and Education Logistics Market is estimated at $137 billion in 2025 and is expected to reach $185.10 billion by 2030, with defense agencies accounting for 32.9% of this market in 2024. The broader Government and Education Logistics Market was valued at $516.90 billion in 2025 and is projected to reach nearly $920.91 billion by 2032.
• U.S. Government Cybersecurity Spending: Government cybersecurity spending across the United States surpassed $10 billion in 2023.

• Strategic Pivots and Innovation Investments: SAIC is executing a multi-year growth strategy launched in April 2024, emphasizing strategic pivots and innovation investments to foster profitable organic growth. This involves integrating leading-edge technologies to advance customer missions.
• Enhanced Customer Alignment and Organizational Restructuring: The company reorganized into five distinct business groups in February 2024, which were further consolidated into three (Army Navy, Air Force, Space and Intelligence, and Civilian) effective January 31, 2026. This restructuring aims to optimize operations, enhance customer focus, and better position SAIC for growth by aligning with customer needs.
• Investment in Emerging Technologies, including AI and IT Modernization: SAIC is integrating advanced technologies, such as artificial intelligence, into mission-critical operations to modernize and enable national imperatives. The company's forward guidance is supported by the incorporation of higher-margin capabilities like AI, indicating a focus on AI-driven efficiency and digital modernization to support revenue growth.
• Strong Backlog and Focus on Contract Wins: SAIC maintains a solid pipeline of anticipated contract awards and is focused on sustaining its recompete win rates while actively pursuing new business opportunities. As of the second quarter of fiscal year 2026, the company reported an estimated total backlog of approximately $23.2 billion.
• Cost Efficiencies and Portfolio Repositioning: Future revenue growth and profitability are expected to be driven by ongoing cost efficiencies and the repositioning of SAIC's portfolio towards higher-margin capabilities. Management anticipates non-GAAP EBITDA margins to approach 10% in the near term, propelled by cost efficiency initiatives and the acquisition of higher-value contracts. SAIC's Interim CEO also highlighted plans to reinvest over $100 million in annual spending into higher return-on-investment areas to further boost margins.

Science Applications International (SAIC) Capital Allocation Decisions (Last 3-5 Years)

Share Repurchases

• Science Applications International repurchased $211 million of shares in fiscal year 2022, accounting for 4% of its diluted shares.
• In the third quarter of fiscal year 2024, the company deployed $101 million for share repurchases.
• SAIC plans to repurchase approximately $1 billion in shares across fiscal years 2026 and 2027, with about $500 million projected for each year, representing around 25% of its market value.

Share Issuance

• No significant share issuances by Science Applications International were identified; the diluted share count has decreased in recent years due to share repurchase activities.

Inbound Investments

• No large inbound investments in Science Applications International by third-parties, such as strategic partners or private equity firms, were identified within the specified timeframe.

Outbound Investments

• In June 2021, Science Applications International acquired Halfaker and Associates, LLC, a federal health IT solutions provider, for $250 million, expanding its digital transformation portfolio.
• SAIC divested its logistics and supply chain management business in 2023 for $350 million.
• In October 2025 (fiscal year 2026), the company acquired SilverEdge Government Solutions for approximately $205 million, aiming to enhance its artificial intelligence, cyber, and specialized software capabilities for the national security sector.

Capital Expenditures

• In the fourth quarter of fiscal year 2022, Science Applications International deployed $9 million in capital expenditures.
• Capital expenditures in the third quarter of fiscal year 2024 amounted to $4 million.
• Current and future capital investments are focused on the Innovation Factory, business development, employee upskilling, and leveraging artificial intelligence for operational efficiency. Management plans to reinvest over $100 million in annual spending into high ROI areas to drive growth and improve margins.