Science Applications International Corporation (SAIC): History, Ownership, Mission, How It Works & Makes Money

Science Applications International Corporation (SAIC) is a premier Fortune 500 mission integrator, but how does a company with an estimated backlog of approximately $23.6 billion keep its technological edge in the rapidly evolving defense and intelligence landscape? Honestly, the answer lies in its ability to secure massive, forward-looking deals, like the $1.4 billion COBRA task order awarded in late 2025 to accelerate warfighting technology from concept to combat. When you look at its full Fiscal Year 2025 revenue of $7.48 billion, you see a business that's less about small contracts and more about deep, mission-critical integration for the U.S. government. We need to defintely unpack the core business model that drives an adjusted diluted EPS of $9.13 to understand where the next growth opportunities are coming from.

Science Applications International Corporation (SAIC) History

You want to understand the foundation of Science Applications International Corporation (SAIC), and honestly, it's a classic case of a small scientific idea turning into a multi-billion-dollar government services giant. The core takeaway is that SAIC's trajectory was set by a founder-led culture of employee ownership and a transformative 2013 split that sharpened its focus entirely on technology integration for the U.S. government.

This history isn't just a list of dates; it's the story of strategic pivots that led to its current financial strength, reporting full fiscal year 2025 revenues of $7.48 billion and an estimated backlog of approximately $21.9 billion. That's a serious pipeline.

Given Company's Founding Timeline

Year established

Science Applications International Corporation (SAIC) was established in 1969.

Original location

The company started in La Jolla, California, part of the greater San Diego area.

Founding team members

The company was founded by Dr. J. Robert Beyster, a physicist who had previously worked at General Atomic.

Initial capital/funding

Dr. Beyster started SAIC with a mere $500 of his own money. The company quickly secured its first contract, valued at $30,000, to study the effects of underwater explosions on naval equipment.

Given Company's Evolution Milestones

Given Company's Transformative Moments

The company's history is defintely defined by two major structural shifts and a consistent focus on capital deployment for shareholder value.

The most crucial moment was the 2013 split, where the original company changed its name to Leidos, and the spin-off, which focused on direct support and technical advice to government organizations, became the current Science Applications International Corporation (SAIC). This separation was a necessary, strategic move to navigate Federal Acquisition Regulation conflicts of interest, allowing both entities to bid on a wider range of government contracts.

• Employee-Ownership Culture: Dr. Beyster's initial vision fostered an employee-ownership model where stock was widely distributed. This culture drove innovation and loyalty for decades, though the 2006 IPO changed the structure, it built the foundation of technical excellence.
• Acquisition Strategy: SAIC has used targeted acquisitions to rapidly expand its capabilities. The acquisitions of Engility Holdings and Unisys US Federal were key, adding significant scale and expertise in areas like engineering, logistics, and IT modernization for government clients.
• Capital Deployment in 2025: The company deployed $638 million of capital in the full fiscal year 2025, which included $527 million in share repurchases. This aggressive repurchase strategy shows management's confidence in the company's valuation and its commitment to returning capital to shareholders.

To be fair, understanding these shifts is critical for assessing future performance. You can dig deeper into the numbers by checking out Breaking Down Science Applications International Corporation (SAIC) Financial Health: Key Insights for Investors.

Science Applications International Corporation (SAIC) Ownership Structure

Science Applications International Corporation (SAIC) operates with a classic public company structure, meaning its ownership is highly dispersed, but it is overwhelmingly controlled by large financial institutions.

This structure means the firm's strategic direction, while overseen by the Board of Directors, is defintely influenced by the voting power of a few mega-asset managers.

Science Applications International Corporation's Current Status

Science Applications International Corporation is a publicly traded company, listed on the Nasdaq Stock Market under the ticker symbol SAIC. This status subjects the company to rigorous reporting requirements from the Securities and Exchange Commission (SEC), which provides the transparency you need to analyze its governance.

For the fiscal year 2025, the company reported total revenues of $7.48 billion, demonstrating its scale as a premier Fortune 500 mission integrator in the defense, space, and intelligence markets. The company's estimated backlog at the end of fiscal year 2025 was approximately $21.9 billion, which is a clear indicator of future revenue stability. You can dig deeper into the shareholder base and trading activity by Exploring Science Applications International Corporation (SAIC) Investor Profile: Who's Buying and Why?

Science Applications International Corporation's Ownership Breakdown

The company's ownership profile is typical for a large government services contractor: institutional investors hold the vast majority of shares. This means that funds like BlackRock, Inc. and Vanguard Group Inc. are the de facto controlling entities, not individual retail investors.

Here's the quick math for the breakdown based on the most recent filings for the 2025 fiscal year:

Science Applications International Corporation's Leadership

The leadership team steering Science Applications International Corporation as of November 2025 is focused on a recent internal reorganization designed to simplify the structure and sharpen its market focus. This is a critical move to better serve customers and accelerate growth.

The key players at the top of the organization are:

• Chair of the Board: Donna S. Morea. She is the Independent, Non-Executive Chair, meaning she provides crucial oversight without being involved in day-to-day executive management.
• Interim Chief Executive Officer (CEO): James Reagan. He stepped into the role to guide the company through its strategic realignment.
• Key Business Group Leaders: The company is consolidating its five current business groups into three, effective in early 2026, with these executives leading the charge:
  • Barbara Supplee, leading the new Army Navy Business Group (ANG).
  • Vinnie DiFronzo, leading the new Air Force, Space and Intelligence Business Group (AFSI).
  • Srini Attili, continuing to lead the Civilian Business Group.

The fact that the CEO role is currently Interim and an internal reorganization was just announced on November 13, 2025, tells you the company is in a period of transition. That's an opportunity, but also a near-term risk to watch closely for execution.

Science Applications International Corporation (SAIC) Mission and Values

Science Applications International Corporation (SAIC) stands for more than just its impressive fiscal year 2025 revenue of nearly $7.5 billion; its core mission is to act as a technology integrator, solving the nation's most complex challenges. This purpose is built on a cultural DNA of integrity, innovation, and inclusion, which drives its approximately 24,000 employees.

Honestly, understanding this mission is crucial because it explains why SAIC consistently secures massive contracts, like the $1.4 billion COBRA task order awarded in late 2025 to accelerate warfighting technologies. You're investing in a company that is fundamentally tied to U.S. national imperatives. It's a mission-driven business, not just a contractor. Exploring Science Applications International Corporation (SAIC) Investor Profile: Who's Buying and Why?

Science Applications International Corporation's Core Purpose

The company's core purpose goes beyond simply delivering IT services; it's about digital transformation for the U.S. government, which is a massive and defintely complex undertaking. They aim to leverage their talent and technology to address critical national needs across defense, space, civilian, and intelligence markets.

Official Mission Statement

SAIC's formal mission statement is a clear directive, focusing on partnership and digital evolution for its government clients. It's a commitment to being a strategic partner, not just a vendor.

• Partner with our customers to transform government, by creating and integrating digital solutions that address national imperatives with our diverse talent and innovative tech.

Vision Statement

The vision statement maps out their long-term ambition: to be the most trusted and essential partner in securing and modernizing U.S. critical missions. This focus on 'trusted' is key, especially when their backlog of submitted bids is valued at approximately $20 billion, showing the scale of trust they seek to maintain.

• We will be our nation's most trusted solutions integrator to secure and digitally evolve U.S. critical missions with our customers.

Science Applications International Corporation Slogan/Tagline

Their tagline is a concise summary of the value proposition they bring to the table, linking their technical capability with the non-negotiable requirement of their client base.

• Advancing the Power of Technology and Trust.

This dual focus-technology advancement and client trust-is what underpins their ability to operate in highly sensitive sectors. The business is built on a foundation of Integrity, Innovation, and Inclusion, which are the stated core values that guide their operational decisions and culture.

Science Applications International Corporation (SAIC) How It Works

Science Applications International Corporation (SAIC) operates as a premier Fortune 500 mission integrator, essentially acting as the critical technology backbone for the U.S. government by translating complex national security and civilian needs into secure, high-end digital solutions. The company generates revenue by winning and executing large, multi-year contracts, which drove its fiscal year 2025 revenue to approximately $7.48 billion.

Given Company's Product/Service Portfolio

Given Company's Operational Framework

SAIC creates value by aligning its deep technical expertise with the government's long-term, mission-critical spending priorities, essentially acting as a trusted partner that can deliver complex, secure solutions at scale. This is a people-driven business, so over 70% of the company's cost structure is labor-related and variable, allowing for flexibility.

To be defintely more efficient, the company is executing a strategic organizational restructuring, announced in November 2025, to consolidate five business groups into three: Army Navy (ANG), Air Force, Space and Intelligence (AFSI), and Civilian. This simplified structure, effective January 31, 2026, aims to improve speed and flexibility in responding to market demands and customer needs.

The core business process follows an Enterprise Growth Strategy: Bid More, Bid Better, Win More.

• Bid More: Significantly increase the total value of contract submissions to align with growth targets.
• Bid Better: Aligning the pipeline and bidding processes with key strategic and financial objectives, focusing on high-growth sectors like enterprise and mission IT.
• Win More: Convert the strong pipeline into bookings and backlog growth, which then translates into future revenue.

Given Company's Strategic Advantages

The company's competitive edge comes down to three things: its massive contract backlog, its unique position as a technology integrator, and its deep institutional knowledge within the U.S. government. You're buying stability and access when you invest here.

• Durable Revenue Visibility: The company exited fiscal year 2025 with an estimated total backlog of approximately $21.9 billion, of which $3.4 billion was funded. This huge, sticky backlog provides a clear, multi-year revenue floor.
• Premier Mission Integrator Status: SAIC is positioned as a Fortune 500 mission integrator, meaning it specializes in securely integrating emerging technologies-like AI, cloud, and autonomy-into existing, mission-critical government operations. For example, it is the largest cloud provider for the Air Force.
• Deep Customer Entrenchment: The company's long-standing relationships and performance on complex programs, such as the $928 million HOPE 2.0 contract, make it difficult for competitors to displace. This familiarity is a major barrier to entry for new players.

For a deeper dive into who is betting on this model, check out Exploring Science Applications International Corporation (SAIC) Investor Profile: Who's Buying and Why?

Science Applications International Corporation (SAIC) How It Makes Money

Science Applications International Corporation (SAIC) primarily makes money by acting as a premier technology integrator and solutions provider for the U.S. government, delivering complex, mission-critical services across the defense, space, civilian, and intelligence markets.

The company secures nearly all its revenue-98% in fiscal year 2025-from long-term contracts with federal agencies, essentially operating as a high-tech partner for national security and public service missions.

Science Applications International Corporation's Revenue Breakdown

The company's revenue engine is heavily tilted toward the national security sector, which is typical for a Fortune 500 government contractor. Here's the breakdown of the $7.48 billion in total revenue for the fiscal year 2025, segmented by its primary customer base.

The Defense and Intelligence segment, which includes the Department of Defense (DoD), Intelligence Community, and NASA, brought in approximately $5.83 billion in FY2025 revenue. This segment is the core business, but its growth is tempered by contract completions and the timing of new awards.

The Civilian segment, serving agencies like the Department of Veterans Affairs and the U.S. Treasury, generated about $1.65 billion and is showing a clear upward trend, with revenue increasing by 8% in the quarter immediately following the fiscal year end. That's a strong signal for diversification.

Business Economics

You need to understand that SAIC's economic model is built on massive, multi-year government contracts, which means revenue visibility is high. The estimated total backlog at the end of FY2025 was approximately $21.9 billion, which is a huge buffer against short-term market volatility.

• Pricing Strategy Shift: The company is strategically moving away from traditional cost-plus contracts (where the government pays costs plus a fee) toward fixed-price contracts. This is a crucial move because fixed-price programs, where SAIC assumes more risk but can capture greater efficiencies, are generating adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) margins greater than 12% on their current portfolio.
• Cost Structure: Over 70% of the company's cost structure is labor-related, which is a variable cost. This flexibility allows management to adjust staffing and investment spending to mitigate revenue pressure and protect profitability.
• Capital Deployment: SAIC is using its cash flow to aggressively return capital to shareholders. In fiscal year 2025 alone, the company deployed $527 million for share repurchases and paid out $75 million in cash dividends. Capital allocation is focused on maximizing long-term shareholder value.

The shift to fixed-price work is defintely the margin story to watch here.

Science Applications International Corporation's Financial Performance

The full fiscal year 2025 results show a solid, if not explosive, financial picture, built on consistent contract execution and a focus on profitability over pure top-line growth.

• Total Revenue: $7.48 billion, reflecting 3.1% organic growth for the year.
• Adjusted EBITDA: $710 million, translating to a healthy 9.5% adjusted EBITDA margin, demonstrating effective cost control and program performance.
• Net Income: $362 million for the year.
• Adjusted Diluted EPS: $9.13 per share, a key metric showing strong earnings power benefiting from share repurchases.
• Operating Cash Flow: Strong cash generation with $494 million provided by operating activities.
• Book-to-Bill Ratio: The ratio for FY2025 was approximately 0.9, meaning new contract bookings of about $6.6 billion were slightly less than the revenue recognized. This is a near-term headwind, but the massive pipeline of submitted bids-over $28 billion in FY2025-suggests a rebound in this ratio is likely in FY2026 as those bids convert to wins.

For a deeper dive into how these numbers impact the stock, you can read Breaking Down Science Applications International Corporation (SAIC) Financial Health: Key Insights for Investors. Your next step should be to model the impact of the new $1.4 billion COBRA task order, set to begin in late 2025, on the Defense and Intelligence segment's revenue for FY2026.

Science Applications International Corporation (SAIC) Market Position & Future Outlook

Science Applications International Corporation (SAIC) holds a solid, though mid-tier, position in the highly competitive U.S. government technology services market, but it faces near-term headwinds that have tempered its growth outlook. The company's strategic pivot toward mission-critical digital modernization and its considerable $21.9 billion backlog as of the end of fiscal year 2025 (FY25) provide a durable revenue base, still, management revised its FY26 revenue guidance down in September 2025 due to market volatility.

Competitive Landscape

The federal IT and defense services market is mature and highly concentrated, with SAIC competing against larger players like Leidos and Booz Allen Hamilton and a strong mid-cap peer like CACI International. SAIC's core competitive advantage lies in its mission-centric integration of emerging commercial technologies into complex government systems, particularly within the Defense and Intelligence sectors.

Here's the quick math: These percentages represent the relative share of the combined LTM/FY25 revenue of the four largest publicly traded, pure-play government IT contractors, which is the most precise way to visualize their competitive standing today. For example, SAIC's FY25 revenue was $7.48 billion, while Leidos's LTM revenue was $17.3 billion.

Opportunities & Challenges

The company's future performance hinges on converting its substantial backlog into revenue while navigating a challenging procurement environment. You can find a deeper dive into the financials here: Breaking Down Science Applications International Corporation (SAIC) Financial Health: Key Insights for Investors

Industry Position

SAIC is positioned as a top-tier technology integrator for the U.S. government, particularly strong in the Defense and Intelligence sectors where it generates roughly 75% of its revenue. It is consistently ranked as a top-three services provider to the U.S. Government by industry analysts. The company's recent strategic moves, including a major organizational restructuring set for early 2026, are defintely aimed at improving efficiency and aligning capabilities more closely with high-growth areas like cyber and space.

• Sustained profitability: Full FY25 adjusted EBITDA was $710 million, representing a 9.5% margin.
• Focus on digital transformation: Emphasis on embedding commercial digital technologies to modernize federal IT infrastructure.
• Capital deployment: Continues to prioritize share repurchases and capability-focused mergers and acquisitions (M&A) to drive shareholder value.

The challenge is maintaining growth momentum against larger, more diversified competitors while the federal contracting environment remains choppy. Finance: monitor the book-to-bill ratio closely in the next two quarters for signs of stabilization.