Science Applications International Corporation $(SAIC)$ has reported its financial results for the second quarter of fiscal year 2026. The company announced revenues of $1.77 billion, reflecting a 3% contraction compared to the same period in the previous year, when revenues were $1.818 billion. Net income for the quarter was $127 million, while adjusted EBITDA stood at $185 million, representing 10.5% of revenues. Diluted earnings per share were reported at $2.71, with adjusted diluted earnings per share at $3.63. SAIC's net bookings for the quarter were $2.6 billion, resulting in a book-to-bill ratio of 1.5. The year-to-date net bookings reached $5.0 billion, with a year-to-date book-to-bill ratio of 1.4. Cash flows from operating activities amounted to $122 million, and free cash flow was $150 million. In light of current business conditions, SAIC has adjusted its full-year fiscal 2026 guidance. The company has lowered its revenue forecast to a range of $7.250 billion to $7.325 billion, down from the previous guidance of $7.60 billion to $7.75 billion. Adjusted EBITDA guidance has also been reduced to between $680 million and $690 million, compared to prior expectations of $715 million to $735 million. However, the company has raised its guidance for free cash flow to exceed $550 million, along with an increase in adjusted diluted earnings per share guidance to a range of $9.40 to $9.60, up from $9.10 to $9.30. SAIC CEO Toni Townes-Whitley noted that while the company has shown strong program performance and momentum in business development, challenges such as slower on-contract growth and delays in new business awards have contributed to a more challenging revenue environment. The company is taking steps to align its cost structure while maintaining key investments for long-term value creation.