Science Applications International is a Reston mission integrator that already absorbed the Enterprise IT losses the market priced in February, then used a first-half organic rebound to raise fiscal twenty twenty-seven guidance. The investment debate is no longer whether the company can walk away from commoditized network work. It is whether on-contract growth and a thinner book replace the Army RITS rollover without another year of shrinkage. Jim Reagan, made permanent chief executive in March after an October interim stint, is running that test beside a three-year efficiency program called Project ORBIT. The fiscal second quarter ended July 31, 2026.
Second-quarter revenue reached almost $1.9 billion. Organic growth cleared five percent once SilverEdge is removed. Adjusted earnings before interest, taxes, depreciation, and amortization printed at $193 million, a double-digit margin that underwrote the raise. Net bookings, however, were only $1.2 billion. Quarterly book-to-bill landed at 0.6. Trailing twelve-month coverage sits at 0.8. Current revenue is coming out of a backlog of $22.1 billion faster than new work is replacing it. That bookings gap is the honest counterargument to the guidance raise.
The February preliminary release recast fiscal twenty twenty-seven from modest growth to organic decline after two lost recompetes and slower awards. August lifted revenue and margin ranges and still left free cash flow above $600 million. Management still flags the RITS rollover as a second-half drag of roughly three hundred fifty basis points. The open question is whether mix and on-contract growth hold once that work leaves the book, or whether bookings have to climb back toward replacement first.