Science Applications (SAIC) Grew Revenue 6% but Posted a 0.6 Book-to-Bill Ratio. Is the $22B Backlog Enough?
Science Applications International Corporation (SAIC) reported Q2 2027 revenue of $1.88B, up 6.3% YoY, with a book-to-bill ratio of 0.6. Total backlog is $22.1B, including $3.8B funded. Organic revenue growth was 5.3%, and cash flow increased 20%. SAIC raised fiscal 2027 revenue guidance to $7.2B-$7.3B. A post-quarter $740M DHS award may boost next quarter's bookings.
How this was made
The 30-second read
Why it matters
Earnings release provides fresh data for valuation models and short‑term trading decisions.
Market read
Earnings and guidance update are primary drivers for SAIC's stock movement.
What to watch
Potential impact of upcoming DHS recompete award and future appropriations on bookings.
Background
SAIC reported Q2 FY2027 results with revenue growth, weak bookings, and updated guidance.
Ticker impact
Q2 FY2027 results show 6.3% revenue growth and revised FY2027 revenue guidance to $7.2‑$7.3B.
Potential modest upside if market values higher guidance despite weak book‑to‑bill.
Revenue growth and guidance lift are positive, but low book‑to‑bill and unfunded backlog pose downside risk.
Market effects
Highlights pressure on defense contractors with low book‑to‑bill ratios.
U.S. defense sector may see mixed sentiment.
Limited to investors tracking government contractor earnings.
Counterpoint
Backlog decline and unfunded contracts could outweigh guidance raise, suggesting caution.
Key entities
- companyScience Applications International Corporation
U.S. defense and intelligence contractor.
