Science Applications International CorpSAIC
Science Applications International Corp Revenue Disclosure
Note 3—Revenues:
Changes in Estimates on Contracts
Aggregate net changes in estimates on contracts accounted for using the cost-to-cost method of accounting were recognized in operating income as follows:
| Year Ended | |||||||||||||||||
| January 30, 2026 | January 31, 2025 | February 2, 2024 | |||||||||||||||
| (in millions, except per share amounts) | |||||||||||||||||
| Favorable adjustments | $ | 22 | $ | 33 | $ | 32 | |||||||||||
| Unfavorable adjustments | (21) | (18) | (32) | ||||||||||||||
| Net favorable adjustments | 1 | 15 | — | ||||||||||||||
| Income tax effect | — | (2) | — | ||||||||||||||
| Net favorable adjustments, after tax | 1 | 13 | — | ||||||||||||||
Basic and Diluted EPS impact | $ | 0.02 | $ | 0.26 | $ | — | |||||||||||
Revenues were $9 million, $14 million and $2 million higher for fiscal 2026, 2025 and 2024, respectively, due to net revenue recognized from performance obligations satisfied in prior periods.
Disaggregation of Revenues
The Company's revenues are generated primarily from long-term contracts with the U.S. government including subcontracts with other contractors engaged in work for the U.S. government. The Company disaggregates revenues by customer, contract type and prime versus subcontractor to the federal government for each of its reportable segments.
Disaggregated revenues by customer were as follows:
Year Ended January 30, 2026 | |||||||||||||||||
Defense and Intelligence | Civilian | Total SAIC | |||||||||||||||
| (in millions) | |||||||||||||||||
Department of War | $ | 3,770 | $ | 8 | $ | 3,778 | |||||||||||
Intelligence and other federal government agencies | 1,782 | 1,521 | 3,303 | ||||||||||||||
Commercial, state and local governments and international | 29 | 152 | 181 | ||||||||||||||
| Total | $ | 5,581 | $ | 1,681 | $ | 7,262 | |||||||||||
Year Ended January 31, 2025 | |||||||||||||||||
| Defense and Intelligence | Civilian | Total SAIC | |||||||||||||||
| (in millions) | |||||||||||||||||
Department of War | $ | 3,856 | $ | 17 | $ | 3,873 | |||||||||||
Intelligence and other federal government agencies | 1,841 | 1,601 | 3,442 | ||||||||||||||
Commercial, state and local governments and international | 29 | 135 | 164 | ||||||||||||||
| Total | $ | 5,726 | $ | 1,753 | $ | 7,479 | |||||||||||
Year Ended February 2, 2024 | |||||||||||||||||
| Defense and Intelligence | Civilian | Total SAIC | |||||||||||||||
| (in millions) | |||||||||||||||||
Department of War | $ | 3,814 | $ | 26 | $ | 3,840 | |||||||||||
Intelligence and other federal government agencies | 1,986 | 1,464 | 3,450 | ||||||||||||||
Commercial, state and local governments and international | 17 | 137 | 154 | ||||||||||||||
| Total | $ | 5,817 | $ | 1,627 | $ | 7,444 | |||||||||||
Disaggregated revenues by contract type were as follows:
Year Ended January 30, 2026 | |||||||||||||||||
Defense and Intelligence | Civilian | Total SAIC | |||||||||||||||
| (in millions) | |||||||||||||||||
| Cost reimbursement | $ | 4,429 | $ | 56 | $ | 4,485 | |||||||||||
Time and materials ("T&M") | 510 | 1,123 | 1,633 | ||||||||||||||
Firm-fixed price ("FFP") | 642 | 502 | 1,144 | ||||||||||||||
| Total | $ | 5,581 | $ | 1,681 | $ | 7,262 | |||||||||||
Year Ended January 31, 2025 | |||||||||||||||||
| Defense and Intelligence | Civilian | Total SAIC | |||||||||||||||
| (in millions) | |||||||||||||||||
| Cost reimbursement | $ | 4,548 | $ | 88 | $ | 4,636 | |||||||||||
Time and materials ("T&M") | 559 | 1,088 | 1,647 | ||||||||||||||
Firm-fixed price ("FFP") | 619 | 577 | 1,196 | ||||||||||||||
| Total | $ | 5,726 | $ | 1,753 | $ | 7,479 | |||||||||||
Year Ended February 2, 2024 | |||||||||||||||||
| Defense and Intelligence | Civilian | Total SAIC | |||||||||||||||
| (in millions) | |||||||||||||||||
| Cost reimbursement | $ | 4,442 | $ | 85 | $ | 4,527 | |||||||||||
Time and materials ("T&M") | 491 | 972 | 1,463 | ||||||||||||||
Firm-fixed price ("FFP") | 884 | 570 | 1,454 | ||||||||||||||
| Total | $ | 5,817 | $ | 1,627 | $ | 7,444 | |||||||||||
Disaggregated revenues by prime versus subcontractor were as follows:
Year Ended January 30, 2026 | |||||||||||||||||
Defense and Intelligence | Civilian | Total SAIC | |||||||||||||||
| (in millions) | |||||||||||||||||
| Prime contractor to federal government | $ | 5,073 | $ | 1,391 | $ | 6,464 | |||||||||||
| Subcontractor to federal government | 479 | 138 | 617 | ||||||||||||||
| Other | 29 | 152 | 181 | ||||||||||||||
| Total | $ | 5,581 | $ | 1,681 | $ | 7,262 | |||||||||||
Year Ended January 31, 2025 | |||||||||||||||||
| Defense and Intelligence | Civilian | Total SAIC | |||||||||||||||
| (in millions) | |||||||||||||||||
| Prime contractor to federal government | $ | 5,198 | $ | 1,471 | $ | 6,669 | |||||||||||
| Subcontractor to federal government | 499 | 147 | 646 | ||||||||||||||
| Other | 29 | 135 | 164 | ||||||||||||||
| Total | $ | 5,726 | $ | 1,753 | $ | 7,479 | |||||||||||
Year Ended February 2, 2024 | |||||||||||||||||
| Defense and Intelligence | Civilian | Total SAIC | |||||||||||||||
| (in millions) | |||||||||||||||||
| Prime contractor to federal government | $ | 5,355 | $ | 1,367 | $ | 6,722 | |||||||||||
| Subcontractor to federal government | 445 | 123 | 568 | ||||||||||||||
| Other | 17 | 137 | 154 | ||||||||||||||
| Total | $ | 5,817 | $ | 1,627 | $ | 7,444 | |||||||||||
Contract Balances
Contract balances for the periods presented were as follows:
| Balance Sheet line item | January 30, 2026 | January 31, 2025 | ||||||||||||
| (in millions) | ||||||||||||||
Billed and billable receivables, net(1) | Receivables, net | $ | 490 | $ | 526 | |||||||||
| Contract assets - unbillable receivables | Receivables, net | 363 | 474 | |||||||||||
Contract assets - unbillable receivables | Other assets | 23 | 29 | |||||||||||
| Contract assets - contract retentions | Other assets | 18 | 15 | |||||||||||
| Contract liabilities - current | Other accrued liabilities | 41 | 38 | |||||||||||
| Contract liabilities - non-current | Other long-term liabilities | $ | 2 | $ | — | |||||||||
(1) Net of allowance of $2 million and $3 million as of January 30, 2026 and January 31, 2025 respectively.
The changes in the Company's contract assets and contract liabilities during the current period primarily result from timing differences between the Company's performance, invoicing and customer payments. During fiscal 2026 and 2025, the Company recognized revenues of $28 million and $35 million relating to amounts that were included in the opening balance of contract liabilities as of January 31, 2025 and February 2, 2024, respectively.
Deferred Costs
Deferred costs for the periods presented were as follows:
| Balance Sheet line item | January 30, 2026 | January 31, 2025 | ||||||||||||
| (in millions) | ||||||||||||||
| Pre-contract costs | Other current assets | $ | 3 | $ | — | |||||||||
Prepaid contract costs | Prepaid expenses | 16 | 9 | |||||||||||
Fulfillment costs | Other assets | 4 | 4 | |||||||||||
| Costs to obtain | Other assets | $ | 8 | $ | 6 | |||||||||
Pre-contract costs expensed in fiscal 2026 were immaterial, and pre-contract costs of $9 million were expensed during fiscal 2025. Prepaid contract costs of $34 million and $36 million were amortized during fiscal 2026 and 2025, respectively. Fulfillment costs of $3 million were amortized during fiscal 2026 and 2025. Costs to obtain of $2 million were amortized during fiscal 2026 and 2025.
Remaining Performance Obligations
Remaining performance obligations ("RPO") represent the transaction price of exercised contracts (both funded and unfunded) less inception to date revenue recognized. RPO does not include unexercised option periods and future task orders expected to be awarded under IDIQ contracts. As of January 30, 2026, the Company had approximately $6.2 billion of RPO. The Company expects to recognize revenue on approximately 78% of the RPO over the next 12 months and approximately 89% over the next 24 months, with the remaining recognized thereafter.
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2026 | Mar 16, 2026 | Showing above |
| 2025 | Mar 17, 2025 | |
| 2024 | Mar 20, 2024 | |
| 2023 | Apr 3, 2023 | |
| 2022 | Mar 28, 2022 | |
| 2021 | Mar 26, 2021 | |
| 2020 | Mar 27, 2020 | |
| 2019 | Mar 29, 2019 | |
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.