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Science Applications International Corporation (SAIC): Marketing Mix Analysis [Dec-2025 Updated] |
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Science Applications International Corporation (SAIC) Bundle
You're trying to get a clear read on one of the government's most critical technology partners as we head into late 2025, and frankly, the sheer scale of their operation can be dizzying. Well, after years of running analyst teams, I can tell you the near-term story for this defense giant boils down to aggressive AI adoption-fueled by deals like the $203 million SilverEdge buy-and managing a truly massive $23.79 billion contract backlog while targeting a $7.3 billion revenue year. I've mapped out exactly how their Product strategy, Place in the market, Promotion efforts, and Price structure are aligned to capture that value, so dive in below to see the four P's in action.
Science Applications International Corporation (SAIC) - Marketing Mix: Product
The product element for Science Applications International Corporation (SAIC) centers on delivering secure, high-end solutions that modernize and enable critical national imperatives for defense, space, civilian, and intelligence markets.
Science Applications International Corporation's offerings are structured around four primary service categories, supporting a workforce of approximately 24,000 professionals.
| Service Category | Focus Area | Relevant Metric/Context |
| Mission IT | Secure, high-end solutions integration | Supports multi-domain warfighting technologies |
| Enterprise IT | Modernization and optimization | Supports digital transformation initiatives |
| Engineering Services | Digital Engineering, Modeling and Simulation | Leveraged in the COBRA task order |
| Professional Services | Expertise deployment | Contributes to overall annual revenue guidance of approximately $7.3 billion for Fiscal Year 2025 at the midpoint |
The core product strategy emphasizes advanced technology integration across key domains. Science Applications International Corporation is committed to delivering solutions in Digital Transformation, Cloud, and Cybersecurity.
- Cloud capabilities include offerings like Cloud Migration, Security and Management, and the CNAPP (Cloud Security Posture Management) solution leveraging Orca Security.
- Cybersecurity solutions utilize zero trust architecture for a secure and resilient environment.
- Data and AI solutions focus on unlocking actionable insights from operations centers to the mission's edge.
Rapid deployment is facilitated through internal innovation models, which are evidenced by the speed required for major contract execution. For instance, the company secured the $1.4 billion COBRA (Collaborative Operations for Battlespace Resilient Architecture) task order, a five-year award set for a late 2025 start, to rapidly develop and field multi-domain warfighting technologies.
AI/ML capabilities were significantly enhanced by the acquisition of SilverEdge Government Solutions. Science Applications International Corporation agreed to purchase SilverEdge for a preliminary purchase price of $203 million in cash, net of $6 million cash acquired, as announced in the third quarter ended October 31, 2025. This acquisition integrates SilverEdge's products, including MynAI, an agentic AI platform built for secure government environments, and SOAR, a software-as-a-service product suite for rapid prototyping.
The product portfolio is further strengthened by strategic alliances, such as the one with Google Public Sector, aimed at operationalizing AI at the tactical edge. This alliance includes a commitment to training 1,000 Science Applications International Corporation employees on the Google cloud platform.
As of the third quarter ended October 31, 2025, Science Applications International Corporation reported total backlog of approximately $23.8 billion, with net bookings for that quarter reaching $2.2 billion.
Science Applications International Corporation (SAIC) - Marketing Mix: Place
Science Applications International Corporation (SAIC) distribution strategy is entirely predicated on direct engagement with its primary customer base, the U.S. Government, specifically the Department of Defense (DoD), Intelligence Community, and Civilian agencies.
The physical location of Science Applications International Corporation (SAIC) is anchored by its headquarters in Reston, Virginia. The operational area served is worldwide, supporting federal clients across the United States and internationally.
Science Applications International Corporation (SAIC) consolidates its business operations into two reportable segments for financial reporting, which align with the prompt's customer focus areas:
- Defense and Intelligence
- Civilian
The Defense and Intelligence segment is the primary revenue driver. For the three months ended August 1, 2025 (Q2 FY2026), the segment generated revenues of $1,374 million. The Civilian segment generated revenues of $495 million for the same period.
| Metric | Amount (as of October 31, 2025) |
| Total Backlog | $23.788 billion |
| Funded Backlog | $4.339 billion |
| Negotiated Unfunded Backlog | $19.449 billion |
Distribution is executed directly through the award and execution of large, long-term government contract vehicles. Science Applications International Corporation (SAIC) maintains prime contract positions on vehicles that grant access to federal government customers.
Key contract vehicles utilized for market access include:
- Indefinite-Delivery/Indefinite-Quantity (IDIQ) contracts
- Blanket Purchase Agreements (BPA)
- General Services Administration (GSA) Multiple Award Schedule (MAS) contracts
The strength of this direct distribution model is evidenced by recent large contract awards:
- $1.4 billion Collaborative Operations for Battlespace Resilient Architecture task order with the U.S. Air Force (Q3 FY2026).
- Approximately $515 million of contract awards from space and intelligence organizations (Q3 FY2025).
Strategic placement is also achieved through targeted acquisitions, such as the October 2025 purchase of SilverEdge Government Solutions for a preliminary purchase price of $203 million, net of $6 million cash acquired.
Science Applications International Corporation (SAIC) - Marketing Mix: Promotion
You're communicating the value proposition of a premier Fortune 500 mission integrator and technology driver. This involves consistently reinforcing your position in the market through targeted outreach.
Thought leadership promotion centers on external validation of your technical capabilities. For instance, Science Applications International Corporation (SAIC) secured recognition as a Worldwide Leader in AI Services in the IDC MarketScape: Worldwide AI Services for National Civilian Government 2025 Vendor Assessment. Furthermore, the company was named a Leader in the IDC MarketScape: U.S. Defense and Intelligence Agencies AI Services 2025 Vendor Assessment and the IDC MarketScape: AI Services for U.S. National Security, Defense, and Intelligence Agencies 2025 Vendor Assessment.
Investor Relations serves as a critical promotional channel, keeping the financial community informed on performance and strategy. This is executed through frequent earnings calls and conference participation, which communicate operational discipline and financial outlook. For example, following the third quarter of fiscal year 2026, Science Applications International Corporation (SAIC) provided updated guidance for the full 2026 fiscal year.
Here are some of the key financial metrics communicated to the investment community:
| Metric | Reported/Guidance Value (Late 2025) |
| FY2025 Annual Revenue | Approximately $7.48 billion |
| FY2026 Revenue Guidance Midpoint | Approximately $7.30 billion |
| FY2026 Adjusted EBITDA Guidance Midpoint | Approximately $695 million |
| Total Estimated Backlog (Q3 FY2026 End) | Approximately $23.8 billion |
| Year-to-Date Book-to-Bill Ratio (FY2026) | 1.3 |
| Recent Major Contract Win (COBRA) | $1.4 billion |
Public relations activity heavily features announcements of significant contract wins, which directly validate the company's market relevance and execution capability. Recent announcements included:
- A $1.4 billion task order with the U.S. Air Force for the Collaborative Operations for Battlespace Resilient Architecture (COBRA).
- A $413 million Open Source Intelligence Enterprise (OSINT) task order for the U.S. Army.
- The $1.8 billion System Software Lifecycle Engineering recompete win.
- A $242 million contract from the U.S. Navy announced November 24, 2025.
Messaging across these channels emphasizes tangible results from cost-saving initiatives, directly tying operational changes to shareholder benefit. This was underscored by the November 2025 announcement of a strategic organizational restructuring, effective January 31, 2026, consolidating five business groups into three: Army Navy (ANG), Air Force, Space and Intelligence (AFSI), and Civilian. Interim CEO Jim Reagan stated the goal was optimizing the organization for speed, flexibility, and efficiency to better serve customers and accelerate growth, positioning Science Applications International Corporation (SAIC) for shareholder value creation.
The capital allocation strategy itself is a promotional point, highlighting disciplined deployment:
- Share repurchases totaled $94 million in the third quarter of fiscal year 2026.
- Cash dividends paid during the quarter amounted to $17 million.
- The declared subsequent cash dividend was $0.37 per share.
The company also promoted its portfolio enhancement through M&A, completing the acquisition of SilverEdge Government Solutions for a net purchase price of $203 million in October 2025.
Science Applications International Corporation (SAIC) - Marketing Mix: Price
Price, in the context of Science Applications International Corporation (SAIC), is reflected in the expected financial performance and the structure of its contract portfolio, which dictates revenue realization and margin capture. The company's pricing strategy is inherently tied to the nature of its government services contracts.
The forward-looking financial expectations for Fiscal Year 2026 provide a clear picture of the expected top-line realization and shareholder return assumptions built into the pricing of their services.
| Financial Metric | Guidance Value (Midpoint/Threshold) | Context |
| Full FY2026 Revenue Guidance | $7.3 billion | Midpoint of the $7.275B - $7.325B range as of late 2025. |
| Full FY2026 Adjusted Diluted EPS Guidance | $9.90 | Midpoint of the $9.80 - $10.00 range. |
| FY2026 Free Cash Flow Guidance | >$550 million | Guidance for capital deployment capacity. |
| Estimated Total Backlog (Q3 FY2026 End) | $23.8 billion | Indicates revenue visibility supporting current pricing. |
The structure of Science Applications International Corporation (SAIC)'s contract base directly influences the realized price and margin on its services. The pricing model is a strategic mix designed to balance risk and reward across its portfolio.
- Pricing model is a mix of stable cost-type contracts, such as cost-plus-fixed-fee, cost-plus-award-fee, and cost-plus-incentive-fee arrangements.
- This is balanced with higher-margin fixed-price work, including firm-fixed price (FFP) contracts.
- The mix also includes time-and-materials (T&M) contracts, including fixed-price-level-of-effort types.
The total estimated backlog as of the end of the third quarter of Fiscal Year 2026 stands robustly at approximately $23.8 billion, with about $3.8 billion of that amount being funded. This substantial backlog provides significant revenue visibility, which underpins the confidence in the current pricing structure and future earnings expectations.
The company's capital deployment strategy, which includes the Free Cash Flow guidance of >$550 million for FY2026, suggests that pricing strategies are sufficient to cover operational costs, reinvestment needs, and provide value back to shareholders through dividends and repurchases.
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