v3.25.2
Revenues
 6 Months Ended
Aug. 01, 2025
Revenue from Contract with Customer [Abstract]  
Revenues
Note 3—Revenues:
Changes in Estimates on Contracts
Changes in estimates of revenues, cost of revenues or profits related to performance obligations satisfied over time are recognized in operating income in the period in which such changes are made for the inception-to-date effect of the changes. Changes in these estimates can occur routinely over the performance period for a variety of reasons, which include: changes in scope; changes in cost estimates due to unanticipated cost growth or reassessments of risks impacting costs; changes in the estimated transaction price, such as variable amounts for incentive or award fees; and performance being better or worse than previously estimated.
A significant portion of the Company's contracts recognize revenue on performance obligations using a cost input measure (cost-to-cost), which requires estimates of total costs at completion. In cases when total expected costs exceed total estimated revenues for a performance obligation, the Company recognizes the total estimated loss in the quarter identified. Total estimated losses are inclusive of any unexercised options that are probable of award, only if they increase the amount of the loss.
Aggregate net changes in estimates on contracts accounted for using the cost-to-cost method of accounting were recognized in operating income as follows:
Three Months EndedSix Months Ended
August 1,
2025		August 2,
2024		August 1,
2025		August 2,
2024
(in millions, except per share amounts)
Net favorable (unfavorable) adjustments
$5 $(1)$3 $— 
Net favorable (unfavorable) adjustments, after tax
6 (1)3 — 
Diluted EPS impact$0.13 $(0.02)$0.06 $— 
Revenues were $7 million higher for the three and six months ended August 1, 2025, and $1 million higher for the six months ended August 2, 2024, due to net revenue recognized from performance obligations satisfied in prior periods. There was no revenue recognized during the three months ended August 2, 2024 from performance obligations satisfied in prior periods.
Disaggregation of Revenues
The Company's revenues are generated primarily from long-term contracts with the U.S. government including subcontracts with other contractors engaged in work for the U.S. government. The Company disaggregates revenues by customer, contract type and prime versus subcontractor to the federal government for each of its reportable segments.
Disaggregated revenues by customer were as follows:
Three Months Ended
August 1, 2025
August 2, 2024
Defense and Intelligence
Civilian
Total SAIC
Defense and Intelligence
Civilian
Total SAIC
(in millions)
Department of Defense$920 $2 $922 $950 $— $950 
Intelligence and other federal government agencies
444 360 804 455 369 824 
Commercial, state and local governments and international
10 33 43 10 34 44 
Total$1,374 $395 $1,769 $1,415 $403 $1,818 
Six Months Ended
August 1, 2025
August 2, 2024
Defense and Intelligence
Civilian
Total SAIC
Defense and Intelligence
Civilian
Total SAIC
(in millions)
Department of Defense$1,902 $5 $1,907 $1,924 $2 $1,926 
Intelligence and other federal government agencies
889 768 1,657 913 745 1,658 
Commercial, state and local governments and international
16 66 82 14 67 81 
Total$2,807 $839 $3,646 $2,851 $814 $3,665 
Disaggregated revenues by contract type were as follows:
Three Months Ended
August 1, 2025
August 2, 2024
Defense and Intelligence
Civilian
Total SAIC
Defense and Intelligence
Civilian
Total SAIC
(in millions)
Cost reimbursement$1,093 $13 $1,106 $1,085 $20 $1,105 
Time and materials ("T&M")
117 276 393 162 264 426 
Firm-fixed price ("FFP")
164 106 270 168 119 287 
Total$1,374 $395 $1,769 $1,415 $403 $1,818 
Six Months Ended
August 1, 2025
August 2, 2024
Defense and Intelligence
Civilian
Total SAIC
Defense and Intelligence
Civilian
Total SAIC
(in millions)
Cost reimbursement$2,227 $33 $2,260 $2,219 $41 $2,260 
Time and materials ("T&M")
258 568 826 311 532 843 
Firm-fixed price ("FFP")
322 238 560 321 241 562 
Total$2,807 $839 $3,646 $2,851 $814 $3,665 
Disaggregated revenues by prime versus subcontractor were as follows:
Three Months Ended
August 1, 2025August 2, 2024
Defense and Intelligence
Civilian
Total SAIC
Defense and Intelligence
Civilian
Total SAIC
(in millions)
Prime contractor to federal government$1,239 $329 $1,568 $1,283 $335 $1,618 
Subcontractor to federal government125 33 158 122 34 156 
Other10 33 43 10 34 44 
Total$1,374 $395 $1,769 $1,415 $403 $1,818 
Six Months Ended
August 1, 2025
August 2, 2024
Defense and Intelligence
Civilian
Total SAIC
Defense and Intelligence
Civilian
Total SAIC
(in millions)
Prime contractor to federal government$2,538 $701 $3,239 $2,592 $677 $3,269 
Subcontractor to federal government253 72 325 245 70 315 
Other16 66 82 14 67 81 
Total$2,807 $839 $3,646 $2,851 $814 $3,665 
Contract Balances
Contract balances for the periods presented were as follows:
Balance Sheet line itemAugust 1,
2025		January 31,
2025
 (in millions)
Billed and billable receivables, net(1)
Receivables, net$500 $526 
Contract assets - unbillable receivablesReceivables, net451 474 
Contract assets - unbillable receivables
Other assets
29 29 
Contract assets - contract retentionsOther assets16 15 
Contract liabilities - current
Other accrued liabilities
27 38 
Contract liabilities - non-current
Other long-term liabilities
1 — 
(1)    Net of allowance of $2 million and 3 million, respectively, as of August 1, 2025 and January 31, 2025.
During the three and six months ended August 1, 2025, the Company recognized revenues of $8 million and $25 million, respectively, relating to amounts that were included in the opening balance of contract liabilities as of January 31, 2025. During the three and six months ended August 2, 2024, the Company recognized revenues of $10 million and $30 million, respectively, relating to amounts that were included in the opening balance of contract liabilities as of February 2, 2024.
Remaining Performance Obligations
Remaining performance obligations ("RPO") represent the transaction price of exercised contracts (both funded and unfunded) less inception to date revenue recognized. RPO does not include unexercised option periods and future task orders expected to be awarded under IDIQ contracts. As of August 1, 2025, the Company had approximately $6.1 billion of RPO. The Company expects to recognize revenue on approximately 79% of the RPO over the next 12 months and approximately 89% over the next 24 months, with the remaining recognized thereafter.