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Research Alert: Saic Q1 Fy 27: Margin Expansion And Share Repurchases Drive Eps Beat

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CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

SAIC delivered Q1 FY 27 (Jan.) revenue of $1.91B (+2% Y/Y), beating the consensus by $90M, with organic growth of approximately 0.5% marking stabilization after recent revenue contraction trends. Adjusted EBITDA margin expanded significantly to 11.6% (up 320 bps) while adjusted EPS of $3.23 beat expectations by $0.95, due to margin improvement and aggressive share repurchase activity. The quarter demonstrated meaningful progress in operational efficiency and business mix optimization, with operating margin reaching 9.4% (up 300 bps from the prior year). Net bookings of $2.1B yielded a quarterly book-to-bill ratio of 1.1x, including notable multi-year recompete contract wins totaling approximately $970M within the U.S. Space and Intelligence Community. We believe the substantial margin expansion and improved booking momentum signal strengthening fundamentals, though we expect revenue growth to remain modest given the challenging government contracting environment and budget uncertainties.

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