SAIC

Technology

Management highlighted delays in government funding and increased scrutiny as key factors impacting on-contract revenue growth.
The company experienced a 2.7% revenue decline in Q2 2026, primarily due to slower conversion of opportunities into revenue.
Delays in new business awards and increased program disruptions are contributing to the revised revenue outlook for FY 2026 and FY 2027.
Management expects these headwinds to be temporary, but they have led to a strategic shift towards cost efficiency and portfolio acceleration.
The company is preparing for a prolonged challenging environment, with a focus on maintaining margins and shareholder value despite revenue headwinds.

Technology

Adjusted EBITDA profit was $6.4 million, representing the third consecutive quarter of adjusted EBITDA profitability.
Backlog increased to $736.1 million, up 245% year-over-year, providing strong revenue visibility for the next 12 to 24 months.
Civil government sector revenue declined about 4% year-over-year due to contract expirations, notably Norway NICFI.
Commercial sector revenue grew approximately 6% year-over-year and 13% quarter-over-quarter, driven by agriculture and energy.
Defense and Intelligence sector revenue grew approximately 41% year-over-year and 14% quarter-over-quarter.
Free cash flow was positive for the second consecutive quarter, with year-to-date free cash flow of $54.3 million and a margin of approximately 39%.
Non-GAAP gross margin improved to 61% from 58% a year ago, driven by high-margin usage-based data subscription revenue.
Q2 revenue reached $73.4 million, marking approximately 20% year-over-year growth and a quarter of growth reacceleration.

SNPS

Technology

$428 million, down 8% year over year

Design IP segment revenue was down due to export restrictions in China, foundry customer challenges, and roadmap/resource allocation decisions.

SNPS

Technology

Backlog stood at $10.1 billion including ANSYS, indicating business resilience.
Design automation segment revenue grew 23% to $1.31 billion, with a 44.5% adjusted operating margin.
Design IP segment revenue declined 8% to $428 million, impacted by export restrictions, foundry customer challenges, and roadmap/resource decisions.
Free cash flow was approximately $632 million; cash and short-term investments totaled $2.6 billion with $14.3 billion in debt.
Non-GAAP EPS was $3.39, with GAAP EPS at $1.50 for the quarter.
Non-GAAP operating margin for the quarter was 38.5%, reflecting headwinds in IP and tailwinds from ANSYS and design automation.
Q3 revenue reached $1.74 billion, a 14% year-over-year increase, driven by strong design automation growth and the ANSYS acquisition.

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