v3.26.1
Business Segments Information
 3 Months Ended
May 01, 2026
Segment Reporting [Abstract]  
Business Segments Information
Note 10—Business Segments Information:
Effective January 31, 2026, the first day of fiscal 2027, the Company completed a business reorganization that consolidated its five previous business groups into three. The reorganization was designed to simplify the Company's organization structure and optimize operations and customer focus for growth. The consolidated business groups will be led by three Executive Vice Presidents. The three business groups will continue to report directly to the Company’s CEO, the CODM. The reorganization did not have an impact on the Company's reportable segments.
The Company now has three customer facing business groups which are also its operating segments. They are aggregated into two reportable segments for financial reporting purposes given the similarity in economic and qualitative characteristics, and based on the nature of the customers they serve. The Company’s two reportable segments are the Defense and Intelligence segment and the Civilian segment. The Company defines its operating segments based on the way the CODM manages the operations for the purpose of allocating resources and assessing performance.
The Defense and Intelligence segment provides a diverse portfolio of national security solutions to the DoW and the Intelligence Community of the United States Government, supporting a variety of missions across land, sea, air, and space.
The Civilian segment provides solutions to the civilian markets, encompassing federal, state, and local governments. This includes integrating solutions into a spectrum of public service missions that impact travel, security, trade, health and the economy.
The offerings of both reportable segments entail the integration of emerging technologies into mission critical operations that modernize and enable national imperatives. These services include end-to-end solutions spanning the design, development, integration, deployment, management, operation, sustainment, and security of customer hardware and software platforms.
Costs associated with corporate functions that are not allocable to the reportable segments are presented as Corporate.
The CODM reviews and evaluates segment operating performance using segment "Revenues" and "Adjusted operating income (loss)". Adjusted operating income is a performance measure that primarily excludes the impact of non-recurring transactions and activities that the Company does not consider to be indicative of its ongoing operating performance. Adjusted operating income is calculated by taking operating income and excluding depreciation and amortization, acquisition, integration, restructuring, and impairment costs, and any other material non-recurring costs. The CODM uses revenues and adjusted operating income to assess the financial performance of each operating segment against pre-established performance targets and to allocate resources for strategic business decisions, including investments in certain products or services, potential acquisitions or divestitures, and capital deployment. Labor base is the significant expense that is regularly provided to the CODM, and primarily includes direct labor on customer contracts.
The segment information for the periods presented was as follows:

Three Months Ended May 1, 2026
Defense and Intelligence
Civilian
Corporate
Total SAIC
 (in millions)
Revenues$1,466 $440 $— $1,906 
Labor base436 128 — 564 
Other operating expenses (income)(1)
884 244 (7)1,121 
Adjusted operating income (loss)$146 $68 $7 $221 

Three Months Ended May 2, 2025
Defense and IntelligenceCivilianCorporateTotal SAIC
 (in millions)
Revenues$1,433 $444 $— $1,877 
Labor base431 133 — 564 
Other operating expenses (income)(1)
887 259 9 1,155 
Adjusted operating income (loss)$115 $52 $(9)$158 
(1)    "Other operating expenses (income)" includes cost of revenues, selling, general and administrative expenses, and other operating income or expenses which are not regularly provided to the CODM. This excludes labor base which is presented separately.
The table below includes a reconciliation of total "Adjusted operating income" to "Income before income taxes" for the three months ended May 1, 2026 and May 2, 2025.
Three Months Ended
 May 1,
2026		May 2,
2025
 
(in millions)
Adjusted operating income
$221 $158 
Depreciation of property, plant, and equipment
8 7 
Amortization of intangible assets
32 29 
Acquisition, integration, restructuring and impairment costs
2 3 
Recovery of acquisition, integration, restructuring and impairment costs(1)
(1)(2)
Costs related to the settlement of federal tax audits
1 — 
Interest expense, net
33 30 
Other (income) expense, net
1 5 
Income before income taxes
$145 $86 
(1)    Adjustment reflects the portion of acquisition, integration, restructuring and impairment costs recovered through the Company's indirect rates in accordance with U.S. government Cost Accounting Standards.
Asset information by segment is not a key measure of performance used by the CODM.