The quarter beat a modest market bar by a wide margin. Published pre-release estimates put adjusted EPS at about $2.31 and revenue near $1.76 billion; SAIC delivered $3.01 and $1.88 billion, respectively—roughly 30% above the EPS estimate and 7% above the revenue estimate.
| Metric | Q2 FY2027 reported | Comparison |
|---|---|---|
| Revenue | $1.880B | ~$1.764B consensus; $1.769B prior year |
| Adjusted diluted EPS | $3.01 | ~$2.31 consensus; $3.63 prior year |
| Adjusted EBITDA | $193M | $185M prior year |
| Adjusted EBITDA margin | 10.3% | 10.5% prior year |
| FY2027 revenue guidance | $7.2B–$7.3B | Prior: $7.0B–$7.2B |
| FY2027 adjusted EBITDA guidance | $750M–$755M | Prior: $720M–$730M |
| FY2027 adjusted diluted EPS guidance | $10.65–$10.75 | Prior: $9.90–$10.10 |
| Q2 book-to-bill | 0.6x | Trailing twelve months: 0.8x |
| Total backlog | $22.136B | $22.622B at January 30, 2026 |
Management converted the strong first-half performance into a meaningful outlook upgrade. Revenue, adjusted EBITDA, margin, and adjusted EPS ranges all moved higher, while free-cash-flow guidance stayed above $600 million. The company explicitly said, “We are raising our guidance to reflect our strong year-to-date performance.” (Fiscal 2027 Guidance)
The underlying operating picture improved, but not as cleanly as the adjusted EPS beat suggests. Revenue rose 6% year over year, with approximately 5.3% organic growth, and adjusted EBITDA increased 4%; however, adjusted EBITDA margin slipped 20 basis points to 10.3%. The filing attributes the margin pressure to higher selling, general and administrative costs. “Adjusting for the impact of acquisitions, revenues grew by approximately 5.3%.” 〔0〕 (Results discussion)
Bookings are the material blemish. Q2 net bookings of approximately $1.2 billion produced only a 0.6x book-to-bill ratio, while trailing twelve-month book-to-bill was 0.8x. Total backlog also declined about 2% from January, although funded backlog increased to $3.8 billion from $3.6 billion. The filing says, “Net bookings for the quarter were approximately $1.2 billion which reflects a book-to-bill ratio of 0.6 and a trailing twelve months book-to-bill ratio of 0.8.” (Bookings and backlog)
Net: a clear earnings beat and genuine guidance raise outweigh softer order flow. Cash generation was mixed—operating cash flow rose to $146 million, but free cash flow fell to $131 million from $150 million—while reported net income and adjusted EPS declined year over year against unusually favorable prior-year comparisons. The result is still decisively better than the standing quarterly expectation, but the low book-to-bill ratio leaves execution of the higher full-year targets dependent on converting existing backlog and recent awards.
Read the original 8-K on SEC EDGAR ↗