Federal News
SAIC Reshapes Federal IT and Defense Contracts
March 17, 2026
Science Applications International Corp. (SAIC) reported a decline in fiscal 2026 revenue to $7.26 billion and a 13% drop in fourth-quarter net income to $85 million, impacted by the recent federal government shutdown, contract completions, and procurement delays. Under CEO Jim Reagan, SAIC is strategically shifting focus away from commoditized enterprise IT services toward mission-centric IT, engineering, and advanced technology areas such as artificial intelligence, cloud, and cybersecurity to better serve Department of Defense and Intelligence Community customers. The company completed a reorganization and acquired SilverEdge Government Solutions to expand AI capabilities for defense applications. SAIC's success in securing new contracts, particularly in AI and space domains like the Space Development Agency's Tranche 3 satellite constellation integration, will be critical to its future growth amid competitive pressures from firms like Leidos and Booz Allen Hamilton.
- SAIC's strategic pivot signals procurement professionals to anticipate increased demand for mission-focused IT and engineering services over traditional enterprise IT contracts
- The acquisition of SilverEdge enhances SAIC's AI offerings, indicating growing federal investment in AI-enabled defense solutions
- Procurement delays and government shutdown impacts highlight the importance of flexible contract management and risk mitigation strategies
- Competitors such as Leidos, Booz Allen Hamilton, CACI, and General Dynamics remain active in overlapping federal technology markets, intensifying competition for new awards
There are a handful of customers that are buying based on, what I might say, is kind of more of a cookie-cutter recipe for what they are looking for, where it is heavily embedded with network management, network uptime, help desk support, things that are harder to differentiate than the things that blend more of a mission focus in with the IT side.
— Jim Reagan, CEO
The results were inline with an updated financial forecast SAIC provided in February.
— James "Jim" Reagan, CEO of SAIC
Agencies
U.S. Government, Department of Defense, Intelligence Community, Space Development Agency, National Defense Authorization Act
Vendors
Science Applications International Corp., SilverEdge Government Solutions, Leidos, Booz Allen Hamilton, CACI International
Contracts
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Locations
Sources
- Earnings, Sales Fall At SAIC In Fourth Quarter On Shutdown, Enterprise IT Headwinds - Defense Daily · Defense Daily · Mar 16
- Science Applications International 10-K: $7.26B Revenue, EPS impact noted — TradingView News · TradingView · Mar 16
- SAIC's CEO highlights mission IT, engineering work as priorities - Washington Technology · Washington Technology · Mar 17
- The Silent Engine of Federal Modernization: A Deep-Dive Into SAIC (NYSE: SAIC) in 2026 | FinancialContent · FinancialContent · Mar 17