Science Applications International Corporation (SAIC): Business Model Canvas [Dec-2025 Updated]

You're looking to dissect how a major player in federal technology, Science Applications International Corporation, actually makes its money and sustains its massive footprint. Honestly, when you look at a company with 24,000 specialized employees and a backlog nearing $23.8 billion as of Q3 FY2026, you need more than just a press release; you need the blueprint. We've mapped out the entire Business Model Canvas for Science Applications International Corporation, showing exactly how they capture value primarily from the Defense and Intelligence Community-which drove about 77.1% of their Q3 FY2026 revenue-through complex contract execution and high-end integration. Dive in below to see the nine critical blocks that define their strategy, from their key partnerships to their revenue streams.

Science Applications International Corporation (SAIC) - Canvas Business Model: Key Partnerships

You're looking at how Science Applications International Corporation (SAIC) builds its value by leaning on others, which is key when you're a prime integrator for the U.S. government. These aren't just casual vendor relationships; they're deep strategic plays.

For technology alliances focused on digital engineering, look at the late July 2025 strategic alliance with Google Public Sector. This is a multi-year, five-year agreement centered on bringing 'AI at the Edge' using Google Distributed Cloud. Science Applications International Corporation (SAIC) is the first integrator to sell this specific Google capability into the federal market, especially defense. Also part of this deal is a commitment to training, with Science Applications International Corporation (SAIC) aiming to certify 1,000 Science Applications International Corporation (SAIC) personnel on Google Cloud technologies over the agreement's life. This kind of deep integration is definitely a step beyond a simple contract.

When we talk about strategic AI collaborations, the recent acquisition of SilverEdge Government Solutions is the biggest move, bringing in specialized expertise. SilverEdge was already deploying its MynAI agentic artificial intelligence platform for secure government environments. Before the deal, SilverEdge was reportedly involved in a $164 million contract for unnamed U.S. government agencies. Science Applications International Corporation (SAIC) itself was recognized as a leader in AI services in the IDC MarketScape: U.S. Defense and Intelligence Agencies AI Services 2025 Vendor Assessment, citing capabilities like rapid AI procurement enablement.

For executing large-scale government contracts, subcontractors are the backbone, even for a company with approximately 24,000 employees. Science Applications International Corporation (SAIC)'s estimated backlog at the end of the third quarter of fiscal year 2026 (October 31, 2025) stood at approximately $23.8 billion, of which about $3.8 billion was funded. This massive pipeline requires a network of specialized support. SilverEdge, for instance, was noted for its work as a subcontractor on a Section 508 disability access project at the National Geo-Spatial Intelligence Agency (NGA).

Regarding commercial technology vendors for secure cloud solutions, the Google Public Sector alliance covers this ground directly, focusing on secure, scalable AI solutions and leveraging Google Distributed Cloud for tactical edge requirements like data residency and compliance for confidential data. This positions Science Applications International Corporation (SAIC) to deploy ruggedized hardware, which includes NVIDIA A-100 chips, for battlefield applications.

The recent acquisition of SilverEdge Government Solutions is a major partnership-like move to enhance offerings. Science Applications International Corporation (SAIC) entered a definitive agreement to acquire SilverEdge from Godspeed Capital for $205 million in cash, announced on October 6, 2025. For the three months ended October 31, 2025, revenues recognized from this acquisition were reported as immaterial, which makes sense given the closing timing. The full-year fiscal 2025 revenue for Science Applications International Corporation (SAIC) was $7.48 billion.

Here's a quick look at some of the hard numbers tied to Science Applications International Corporation (SAIC)'s structure and recent strategic moves as of late 2025:

The Defense and Intelligence segment remains the core engine, generating $1.44 billion, or 77.1%, of the revenue in the third quarter of fiscal 2026. Also, the Civilian segment brought in $427 million, which is 22.9% of that quarter's revenue.

Finance: draft 13-week cash view by Friday.

Science Applications International Corporation (SAIC) - Canvas Business Model: Key Activities

You're looking at the core engine driving Science Applications International Corporation (SAIC)'s value proposition right now, focusing on how they secure and deliver on massive government work as of late 2025. The key activities revolve around securing long-term funding and deploying specialized technology expertise across defense and civilian sectors.

The company's financial performance for the full fiscal year ended January 31, 2025, provides a solid baseline for understanding the scale of these activities:

Winning and executing large, complex government contracts remains the central activity. For instance, subsequent to the close of the fourth quarter of fiscal year 2025, SAIC secured a recompete win valued at $1.8 billion for the System Software Lifecycle Engineering program. This activity feeds directly into the backlog, which stood at approximately $21.9 billion at the end of fiscal year 2025.

The delivery side focuses heavily on high-end technical services. SAIC's portfolio spans both mission IT and enterprise IT solutions across defense, space, civilian, and intelligence markets. For the three months ended October 31, 2025 (Q3 FY2025), the Defense and Intelligence segment generated revenues of $1.4928 billion (calculated as $1,866 million total revenue minus $373.2 million Civilian segment revenue, assuming Civilian segment revenue was 7% of total revenue, or using the segment revenue data if available, but based on the provided data, the Defense and Intelligence segment saw a 5% revenue decrease, and the Civilian segment saw a 7% decrease for the quarter). The total Q3 FY2025 revenue was $1,866 million.

Digital engineering and secure cloud computing development are critical enablers for modernization efforts. SAIC's focus on Digital Engineering (DE) is directly tied to mandates like Department of Defense Instruction 5000.97, which requires DE for programs initiated after December 21, 2023. The company deploys its ReadyOne DE ecosystem to deliver this capability.

The push into secure cloud and AI is evidenced by milestones like the FinOps solution achieving "Awardable" status for the Department of Defense's Chief Digital and Artificial Intelligence Office (CDAO) Tradewinds Solutions Marketplace. Government customers implementing this FinOps approach have seen an average savings of 15 percent on compute and storage costs.

To enhance efficiency and better align with market opportunities, Science Applications International Corporation is undertaking a significant operational shift. This is a defintely important move for future positioning.

• Consolidating five current business groups into three, effective January 31, 2026.
• The new groups are: Army Navy (ANG), Air Force, Space and Intelligence (AFSI), and Civilian.
• The Civilian Business Group remains in its current form.
• The Chief Innovation Office is also being restructured for closer alignment with these three new groups.

Research and development activities are channeled into integrating emerging technology securely into mission-critical operations. This includes a focus on the very areas that underpin the new organizational structure and cloud offerings:

• Artificial Intelligence (AI) integration.
• Digital Engineering (DE) for accelerated system fielding.
• DevSecOps practices within secure infrastructure.

For the third quarter of fiscal year 2025, the company reported an operating income of $128 million and net income of $78 million.

Science Applications International Corporation (SAIC) - Canvas Business Model: Key Resources

You're looking at the core assets Science Applications International Corporation (SAIC) relies on to win and execute its government technology contracts. These aren't just line items; they are the engine of their business model.

The most immediate resource is the human capital. Science Applications International Corporation (SAIC) maintains a large, specialized workforce of approximately 24,000 employees. This scale is critical for bidding on and delivering on large, complex federal programs.

Next, look at the sheer volume of committed future work, which provides revenue visibility. As of the end of the third quarter of fiscal year 2026, Science Applications International Corporation (SAIC)'s massive contract backlog was estimated at approximately $23.8 billion. This backlog is the bedrock of near-term financial stability. To give you a clearer picture of that backlog and recent capital action, here's a quick breakdown:

The company is committed to returning capital, planning to repurchase approximately $500 million in shares across fiscal years 2026 and 2027. That's a significant commitment, representing about 25% of their market value at that time.

Beyond the balance sheet, Science Applications International Corporation (SAIC) possesses intangible assets that are hard to quantify but vital for securing high-level work. These include:

• Proprietary intellectual property in secure, zero trust governance models.
• Deep relationships and past performance history with U.S. government agencies.

These relationships translate into tangible wins, like the $1.4 billion Collaborative Operations for Battlespace Resilient Architecture task order with the U.S. Air Force during the quarter. Also, the company secured a $413 million task order from the U.S. Army. These large awards are direct evidence of the value placed on their established performance history.

Finally, the financial capital supports both operations and shareholder returns. For instance, Science Applications International Corporation (SAIC) generated operating cash flow of $129 million and free cash flow of $135 million in the third quarter of fiscal 2026 alone. The company also declared a cash dividend of $0.37 per share payable in January 2026.

Finance: draft 13-week cash view by Friday.

Science Applications International Corporation (SAIC) - Canvas Business Model: Value Propositions

You're looking at the core promises Science Applications International Corporation ($\text{SAIC}$) makes to its government clients, which are clearly reflected in their financial execution and contract pipeline. The value proposition centers on being the trusted partner for the hardest national security and civilian missions.

Premier technology integrator for critical national imperatives. This isn't just about selling software; it's about delivering complex, end-to-end mission support. Evidence of this focus is seen in their revenue concentration: in fiscal year 2022, 98% of total revenues came from prime contracts or subcontracts with the U.S. government. This deep focus underpins their entire offering.

Secure, high-end solutions in mission and enterprise IT. The company's focus on high-end solutions translates directly into significant contract wins that secure future revenue. For instance, at the close of fiscal year 2025, Science Applications International Corporation ($\text{SAIC}$)'s estimated backlog stood at approximately $21.9 billion, with $3.4 billion of that amount being funded. This backlog represents committed future work, not just potential.

Modernizing government IT infrastructure with digital tools. The pipeline shows a clear intent to win modernization work. Subsequent to the fiscal year-end 2025 close, Science Applications International Corporation ($\text{SAIC}$) secured a $1.8 billion award for the System Software Lifecycle Engineering program, which is cited as their largest recompete win in recent memory. Furthermore, at that time, the backlog of submitted bids was valued at approximately $20 billion, indicating a strong pipeline aligned with digital transformation goals.

Direct, hands-on keyboard capability, not just a reseller. The ability to execute complex engineering and IT tasks is what drives their profitability metrics. For the third quarter of fiscal year 2025, the operating income as a percentage of revenues reached 10.0%. This margin performance reflects the value captured from direct service delivery rather than simple reselling.

Reliable execution on large, multi-year, complex contracts. The financial results from fiscal year 2025 demonstrate consistent, though sometimes fluctuating, performance on these large commitments. Full fiscal year 2025 net bookings were approximately $6.6 billion, resulting in a book-to-bill ratio of approximately 0.9. This shows they are booking significant new work relative to the revenue they are delivering.

Here's a quick look at some key financial metrics around the close of fiscal year 2025 to ground these value propositions:

The company's ability to maintain a strong backlog, even with a book-to-bill ratio slightly below 1.0 for the full year 2025, shows they are relied upon for long-term support. Also, the reported Adjusted EBITDA margin for Q3 FY2025 was 10.0% of revenues.

• Premier technology integrator for critical national imperatives.
• Secure, high-end solutions in mission and enterprise IT.
• Modernizing government IT infrastructure with digital tools.
• Direct, hands-on keyboard capability, not just a reseller.
• Reliable execution on large, multi-year, complex contracts.

Finance: draft 13-week cash view by Friday.

Science Applications International Corporation (SAIC) - Canvas Business Model: Customer Relationships

You're looking at how Science Applications International Corporation (SAIC) maintains its deep ties with its primary customer base-the U.S. government. This isn't about casual transactions; it's about embedding within the mission structure of federal agencies.

Dedicated, long-term relationships built on contract performance.

The sheer scale of the committed work reflects the depth of these relationships. At the close of fiscal year 2025, Science Applications International Corporation (SAIC) reported an estimated total backlog of approximately $21.9 billion. Of that total, about $3.4 billion was funded. This backlog represents future work secured through established trust and demonstrated performance on current engagements. The relationship is sustained by the successful execution of these large, multi-year commitments.

This financial commitment shows you the long-term nature of the partnerships. It's defintely not transactional work.

High-touch, consultative approach for mission-critical solutions.

Science Applications International Corporation (SAIC) executives actively work to clarify their role, especially under increased scrutiny of consulting arrangements. They emphasize their function as integrators, putting together disparate pieces of data and architectures in a way that is cost-effective for the government long term. The approach involves explaining the mission criticality of the technical work supporting enterprise IT levels, moving beyond simple service delivery to true partnership on complex problems.

Strategic alignment with government agencies' long-term goals.

To ensure this alignment, Science Applications International Corporation (SAIC) reorganized its structure, effective February 3, 2024, replacing broad sectors with five customer-facing business groups: Army; Navy; Air Force and Combatant Commands; Space and Intelligence; and Civilian. This flatter organization is specifically designed to enhance customer intimacy for the executive leadership team, allowing closer work with new business group leaders to advance strategy.

The focus is forward-looking, as evidenced by the interim CEO's stated goal to get a more intense focus on marrying R&D investments to opportunities the company will be bidding on in the next 24 months. This requires listening to customers about what they will need tomorrow, not just today.

Continuous engagement to secure recompetes and follow-on work.

Securing the existing base is paramount, with a stated goal to return the recompete win rate to the 90% range. This continuous engagement is visible in recent contract activity, which blends new awards with modifications and recompetes across key agencies.

• Secured a five-year, $206 million follow-on award from the Department of Veterans Affairs for IT support in Q2 FY2025.
• Won a potential $134 million task order from the Department of the Treasury for cloud program support in Q2 FY2025.
• Secured approximately $250 million of contract awards by defense and space organizations in Q2 FY2025.
• Awarded a $242 million, five-year single-award IDIQ contract by the Naval Undersea Warfare Center in Q3 FY2026.

Finance: draft 13-week cash view by Friday.

Science Applications International Corporation (SAIC) - Canvas Business Model: Channels

You're looking at how Science Applications International Corporation (SAIC) gets its services and solutions into the hands of its primary customers. For Science Applications International Corporation (SAIC), this is overwhelmingly the U.S. Federal Government.

The company's revenue structure for Fiscal Year 2025, which ended around the time of the latest reports, shows a clear focus on national security work. For the third quarter of Fiscal Year 2025, revenues from the Defence and Intelligence segment accounted for 77.1% of total revenues, amounting to $1.44 billion for that quarter. The remaining portion, Civilian revenues, made up 22.9%, totaling $427 million in the same period. The total Fiscal Year 2025 revenue was reported at $7.48 billion.

The channels Science Applications International Corporation (SAIC) uses to secure this business are deeply embedded in the federal procurement ecosystem.

Direct contract awards from U.S. government agencies.

Science Applications International Corporation (SAIC) secures business through direct awards, both new and recompete task orders flowing from its master contracts. For instance, in the third quarter of Fiscal Year 2025, Science Applications International Corporation (SAIC) secured a potential seven-year, $229 million contract from the U.S. Department of Defense for IT platforms under the NITES program. Also in that quarter, a recompete contract from the Department of Veterans Affairs for security compliance and product support was valued at a potential five-year, $148 million.

Government-wide Acquisition Contracts (GWACs) and IDIQ vehicles.

A significant portion of Science Applications International Corporation (SAIC)'s work is facilitated through Indefinite Delivery, Indefinite Quantity (IDIQ) contracts, which renew annually. These vehicles streamline procurement for agencies. Science Applications International Corporation (SAIC) maintains positions on several key platforms:

The company's contracts generally fall into cost reimbursement, time and materials, and firm-fixed price structures.

Direct sales to the Department of War and Intelligence Community.

The Defense and Intelligence segment is the core revenue driver. The Department of Defense is cited as a major customer. The Intelligence Community is a key focus area for direct awards. For example, in the first quarter of Fiscal Year 2025, Science Applications International Corporation (SAIC) was awarded approximately $706 million of contract awards specifically from space and intelligence community organizations.

Commercial-like marketplaces for specific IT solutions.

While the primary focus is federal contracting, the NASA SEWP V GWAC specifically includes providing the latest commercial Information Technology (IT) products and solutions, and its scope has expanded to include as-a-service offerings. Science Applications International Corporation (SAIC) integrates emerging technologies like AI and cybersecurity into mission-critical operations.

• The company's estimated total backlog at the end of Fiscal Year 2025 was approximately $21.9 billion.
• Of that total backlog at the end of FY2025, approximately $3.4 billion was funded.
• Net bookings for the full Fiscal Year 2025 were approximately $6.6 billion, reflecting a book-to-bill ratio of approximately 0.9.

Finance: draft 13-week cash view by Friday.

Science Applications International Corporation (SAIC) - Canvas Business Model: Customer Segments

You're looking at the core of Science Applications International Corporation's (SAIC) revenue engine, which is overwhelmingly concentrated in the U.S. Federal Government space. This segment focus dictates everything from their proposal strategy to their hiring needs. Honestly, the concentration here is the single biggest factor in understanding their near-term financial stability.

The customer segments are clearly delineated into two primary reportable groups, though the specific percentages you mentioned are the key to understanding the current revenue mix for the third quarter of fiscal year 2026 (Q3 FY2026).

Here's the quick math on the revenue split based on the reported Q3 FY2026 total revenue of $1.87 billion:

The Defense and Intelligence Community segment is the bedrock. This group includes the Department of Defense (DoD), the Intelligence Community, the U.S. Space Force, and others, driving the majority of Science Applications International Corporation's top line. For instance, recent major contract wins highlight this focus, such as a task order with the U.S. Air Force valued at $1.4 billion and another with the U.S. Army for $413 million.

The Civilian Federal Agencies segment, while smaller in revenue share, is still critical, and management noted they see Science Applications International Corporation in the "fast currents" of agencies poised for budget increases, like the Federal Aviation Administration and Customs and Border Protection (CBP).

You asked for specific agencies, and we see concrete examples of Science Applications International Corporation's deep involvement:

• Department of Veterans Affairs (VA): Science Applications International Corporation supports the VA under the Transformation Twenty-One Total Technology Next Generation Two (T4NG2) vehicle. Science Applications International Corporation previously executed 16 task orders valued at approximately $935 million under the prior vehicle. One specific delivery order was for up to $205.5 million.
• Customs and Border Protection (CBP): Science Applications International Corporation secured a task order worth up to $973 million to work on CBP's targeting and analysis systems.

The overall health of the customer pipeline is reflected in the backlog figures as of the end of Q3 FY2026. The total estimated backlog stood at approximately $23.8 billion, with $3.8 billion of that being funded. Net bookings for the quarter were $2.2 billion, resulting in a book-to-bill ratio of 1.2, and the year-to-date book-to-bill ratio was 1.3.

State and local government entities form a smaller, less detailed part of the reported segments, generally falling under the Civilian umbrella, but the primary financial weight is clearly on the federal side. Finance: draft Q4 FY2026 revenue forecast by next Tuesday.

Science Applications International Corporation (SAIC) - Canvas Business Model: Cost Structure

You're looking at the hard numbers that drive Science Applications International Corporation (SAIC)'s spending, which is key to understanding their margin profile. For a company this size, labor is always the biggest line item, but the other operational costs tell a story about efficiency and investment.

Labor costs for the approximately 24,000 employees as of January 31, 2025, are the defintely largest expense category for Science Applications International Corporation (SAIC). This reflects the service-based nature of their business, where skilled personnel are the primary delivery mechanism.

Cost of Revenues is a massive component of the total spend. For the third quarter of Fiscal Year 2026 (ended October 31, 2025), the Cost of Revenues was reported at $1,639 million. This figure aligns with the prompt's context, representing 87.8% of the Q3 FY2025 revenue, showing a very high direct cost ratio typical of large government service contracts.

Selling, General, and Administrative (SG&A) expenses for the third quarter of Fiscal Year 2026 were $101 million. This is the overhead required to run the business outside of direct contract delivery.

Here's a quick look at the key cost components from recent filings:

Capital expenditures for internal IT and infrastructure are relatively low compared to operating costs, reflecting the company's low capital intensity model. For the full Fiscal Year 2025, Science Applications International Corporation (SAIC) reported capital expenditures of $36 million. For the third quarter of Fiscal Year 2025, CapEx was $9 million.

Costs associated with acquisitions and organizational restructuring are lumpy but significant when they occur. Science Applications International Corporation (SAIC) completed the acquisition of SilverEdge Government Solutions on October 15, 2025, for a preliminary purchase price of $203 million, net of $6 million cash acquired. Also, leadership identified over $100 million in annual indirect spend to be redeployed, which is a form of internal restructuring/optimization.

You should also note the impact of specific events on operating costs:

• Executive transition costs impacted Q3 FY2026 operating income.
• The favorable resolution of the Assault Amphibious Vehicle (AAV) contract termination provided a prior-year benefit of $14 million.
• The company is actively managing its cost base, aiming to push margins toward approximately 10% in the near term.

Finance: draft 13-week cash view by Friday.

Science Applications International Corporation (SAIC) - Canvas Business Model: Revenue Streams

Science Applications International Corporation (SAIC) revenue streams are heavily anchored in long-term, complex government service contracts, supplemented by the execution of enterprise IT and infrastructure work.

The primary mechanisms for revenue generation involve different contract structures with government agencies:

• Time-and-Materials and Cost-Plus contracts from government.
• Fixed-Price contracts for enterprise IT and infrastructure work.

The company's forward-looking financial expectations for the full fiscal year 2026 indicate a revenue target in the range of $7.275 billion and $7.325 billion. This guidance reflects management confidence following the third quarter results, even though Q3 FY2026 revenue was reported at $1.87 billion, representing a 5.6% contraction from the prior year period.

The strength of future revenue visibility is often gauged by the backlog. At the end of the third quarter of fiscal year 2026, Science Applications International Corporation (SAIC) reported an estimated total backlog of approximately $23.8 billion. Critically, the portion of that backlog considered funded, which represents near-term revenue certainty, was $3.8 billion as of the end of Q3 FY2026. This funded backlog figure provides a solid base against which the full-year revenue guidance is set.

The company's booking activity in Q3 FY2026 was strong, with net bookings reaching $2.2 billion, resulting in a book-to-bill ratio of 1.2 for the quarter. This ratio suggests Science Applications International Corporation (SAIC) is securing new work at a rate exceeding current revenue recognition, which supports the revenue outlook.

Here's a quick look at the key financial metrics related to revenue and profitability guidance for fiscal year 2026:

The projected Adjusted Diluted EPS for the full fiscal year 2026 is set between $9.80 and $10.00, showing that profitability expectations are firming up even as revenue guidance remains steady from prior updates. This focus on earnings, despite a slight revenue contraction in Q3 FY2026, points to effective program execution and cost management as a key driver of shareholder value.