v3.26.1
Revenues
 3 Months Ended
May 01, 2026
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 Ended
May 1,
2026		May 2,
2025
(in millions, except per share amounts)
Net favorable (unfavorable) adjustments
$8 $(2)
Net favorable (unfavorable) adjustments, after tax
6 (2)
Basic and Diluted EPS impact$0.14 $(0.04)
Revenues were $3 million higher for the three months ended May 1, 2026 and were unchanged for the three months ended May 2, 2025, due to net revenue recognized 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
May 1, 2026
May 2, 2025
Defense and Intelligence
Civilian
Total SAIC
Defense and Intelligence
Civilian
Total SAIC
(in millions)
Department of War$981 $1 $982 $982 $3 $985 
Intelligence and other federal government agencies
479 396 875 445 408 853 
Commercial, state and local governments and international
6 43 49 6 33 39 
Total$1,466 $440 $1,906 $1,433 $444 $1,877 
Disaggregated revenues by contract type were as follows:
Three Months Ended
May 1, 2026
May 2, 2025
Defense and Intelligence
Civilian
Total SAIC
Defense and Intelligence
Civilian
Total SAIC
(in millions)
Cost reimbursement$1,164 $8 $1,172 $1,134 $20 $1,154 
Time and materials ("T&M")
138 306 444 141 292 433 
Firm-fixed price ("FFP")
164 126 290 158 132 290 
Total$1,466 $440 $1,906 $1,433 $444 $1,877 
Disaggregated revenues by prime versus subcontractor were as follows:
Three Months Ended
May 1, 2026May 2, 2025
Defense and Intelligence
Civilian
Total SAIC
Defense and Intelligence
Civilian
Total SAIC
(in millions)
Prime contractor to federal government$1,339 $371 $1,710 $1,299 $372 $1,671 
Subcontractor to federal government121 26 147 128 39 167 
Other6 43 49 6 33 39 
Total$1,466 $440 $1,906 $1,433 $444 $1,877 
Contract Balances
Contract balances for the periods presented were as follows:
Balance Sheet line itemMay 1,
2026		January 30,
2026
 (in millions)
Billed and billable receivables, net(1)
Receivables, net$554 $490 
Contract assets - unbillable receivablesReceivables, net408 363 
Contract assets - unbillable receivables
Other assets
22 23 
Contract assets - contract retentionsOther assets18 18 
Contract liabilities - current
Other accrued liabilities
36 41 
Contract liabilities - non-current
Other long-term liabilities
$2 $2 
(1)    Net of allowance of $2 million as of May 1, 2026 and January 30, 2026.
During the three months ended May 1, 2026 and May 2, 2025, the Company recognized revenues of $18 million and $17 million relating to amounts that were included in the opening balance of contract liabilities as of January 30, 2026 and January 31, 2025, respectively.
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 May 1, 2026, the Company had approximately $6.6 billion of RPO. The Company expects to recognize revenue on approximately 76% of the RPO over the next 12 months and approximately 90% over the next 24 months, with the remaining recognized thereafter.