Science Applications International Corp (NASDAQ:SAIC) stock rose 1.82% (As on June 3, 11:20:49 AM UTC-4, Source: Google Finance) after the company posted mixed results for the first quarter of FY26. Operating income for the quarter declined by 8% to $121 million, and the operating margin declined by 70 basis points to 6.4%, primarily due to timing and volume mix in the contract portfolio. Adjusted EBITDA decreased 5% to $157 million with an adjusted EBITDA margin of 8.4%, a 60 basis points decline. Net bookings for the quarter were approximately $2.4 billion, which reflects a book-to-bill ratio of 1.3. SAIC’s estimated backlog at the end of the quarter was approximately $22.3 billion. Of the total backlog amount, approximately $3.3 billion was funded.

Moreover, the quarter’s operating cash flow totaled $100 million. Free cash flow was an outflow of $44 million. SAIC’s estimated backlog for the quarter was approximately $22.3 billion, of which $3.3 billion was funded. As of May 2, 2025, the company held $47 million in cash and equivalents. Cash flows provided by operating activities for the first quarter increased $2 million compared to the prior year quarter, primarily due to higher cash provided by the Master Accounts Receivable Purchase Agreement (“MARPA Facility”) and lower incentive-based compensation payments in the current year, partially offset by timing of vendor payments and other changes in working capital. During the quarter, SAIC deployed $152 million of capital, primarily consisting of $125 million of plan share repurchases and $19 million in cash dividends.

SAIC in the first quarter of FY26 has reported the adjusted earnings per share of $1.92, missing the analysts’ estimates for the adjusted earnings per share of $2.22. The company had reported the adjusted revenue growth of 2 percent to $1.88 billion in the first quarter of FY26, beating the analysts’ estimates for revenue of $1.87 billion. This is primarily due to ramp up in volume in existing and new contracts, partially offset by contract completions.

Additionally, the company has declared a cash dividend of $0.37 per share of the Company’s common stock payable on July 25, 2025 to stockholders of record on July 11, 2025.

Science Applications reiterated the 2026 revenue outlook of $7.60 billion-$7.75 billion, below the analyst consensus estimate of $7.93 billion. The company maintained an annual adjusted EPS outlook of $9.10-$9.30 below the analyst consensus estimate of $10.24.