What changed in this filing

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Item 9A. Controls and Procedures

2026-03-16 compared with 2025-03-17 · 386 added, 507 removed, 1255 unchanged (42% of the section changed)

15 unchanged sentences

Our management has assessed in its evaluation the effectiveness of our internal control over financial reporting as of January 30, 2026 and has concluded that our internal control over financial reporting was effective.

SCIENCE APPLICATIONS INTERNATIONAL CORPORATION

Ernst & Young LLP, an independent registered public accounting firm, audited our consolidated financial statements included in this report and our internal control over financial reporting, and the firm’s report on our internal control over financial reporting are set forth below this report.

SCIENCE APPLICATIONS INTERNATIONAL CORPORATION

Although our management, including the Chief Executive Officer and the Chief Financial Officer, is responsible for establishing and maintaining adequate internal control over financial reporting, because of inherent limitations, our management does not expect that our internal controls over financial reporting will prevent or detect all errors and all fraud.

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In our opinion, Science Applications International Corporation (the Company) maintained, in all material respects, effective internal control over financial reporting as of January 30, 2026, based on the COSO criteria.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of the Company as of January 31, 2025 and February 2, 2024, the related consolidated statements of income, comprehensive income, equity and cash flows for each of the three years in the period ended January 31, 2025, and the related notes and our report dated March 17, 2025 expressed an unqualified opinion thereon.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of the Company as of January 30, 2026 and January 31, 2025, the related consolidated statements of income, comprehensive income, equity and cash flows for each of the three years in the period ended January 30, 2026, and the related notes and our report dated March 16, 2026 expressed an unqualified opinion thereon.

Basis for Opinion

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Other Information

During the three months ended January 31, 2025, neither the Company nor any director or officer of the Company adopted, modified or terminated a "Rule 10b5-1 trading arrangement" or a "non-Rule 10b5-1 trading arrangement," as such terms are defined in Item 408 of Regulation S-K.

During the three months ended January 30, 2026, no director or officer of the Company adopted, modified or terminated a "Rule 10b5-1 trading arrangement" or a "non-Rule 10b5-1 trading arrangement," as such terms are defined in Item 408 of Regulation S-K.

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

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Name of officer Age Position(s) with the Company and prior business experience

Toni Townes-Whitley

61 Chief Executive Officer since October 2023.

Prior to this role, Ms.

Townes-Whitley served as President of U.S.

Regulated Industries at Microsoft from July 2018 to September 2021 and as Corporate Vice President of Industry from March 2015 to July 2018.

Before joining Microsoft, she served as President of CGI Federal from 2011 to 2015 and as Vice President, Core Agencies from 2010 until 2011.

Previously, she held several management roles with Unisys Corporation, leading global and commercial-sector system integration and the Federal Civilian group, as well as with Arthur Andersen LLP, a former accounting firm.

67 Chief Executive Officer since February 2026.

Reagan previously served as Interim Chief Executive Officer for the Company from October 2025 to February 2026 and served as Executive Vice President and Chief Financial Officer of Leidos Holdings, Inc.

from July 2015 until July 2021.

Prior to joining Leidos, Mr.

Reagan served as Chief Financial Officer for several organizations including Vencore, Inc., a defense contractor serving the Intelligence Community and Department of Defense, and at PAE, Inc., a defense and government services engineering contractor.

Reagan was also Chief Financial Officer of Aspect Communications and held several senior roles at MCI Telecommunications, Nextel and AMS.

Reagan has served as an independent member of the Board from January 2023 to October 2025, and has continued to serve on the Board since October 2025 in an Employee Director capacity.

Prabu Natarajan 55 Executive Vice President and Chief Financial Officer since January 2021.

Prior to joining SAIC, Mr.

Natarajan was Vice President of Financial Planning and Merger and Acquisition for Northrop Grumman from January 2016 to December 2020.

Natarajan joined Northrop Grumman in August 2011 and was also Vice President of Business Management and CFO for the Information Systems Sector from August 2014 to January 2016 and Vice President, Treasurer and Taxes from August 2011 to August 2014.

Natarajan has held positions at The AES Corporation and PricewaterhouseCoopers LLP.

Hageman 57 Executive Vice President, General Counsel and Corporate Secretary since July 2022.

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Hageman has also held other senior legal roles at CACI and at the U.S.

Department of Defense.

Prabu Natarajan 54 Executive Vice President and Chief Financial Officer (CFO) since January 2021.

Prior to joining us, Mr.

Natarajan was Vice President of Financial Planning and Merger and Acquisition for Northrop Grumman from January 2016 to December 2020.

Natarajan has held positions at The AES Corporation and PricewaterhouseCoopers LLP.

Department of War.

61 Executive Vice President and Chief Human Resources Officer since May 2025.

Prior to joining SAIC, Ms.

McCarthy served as Chief Human Resources Officer for the Defense & Systems and GE Aviation businesses of GE Aerospace from February 2021 to May 2025.

Prior to that, she was Chief Human Resources Officer of GE Digital from January 2019 to February 2021.

McCarthy also held HR leadership roles across American Express and Thomson Reuters.

Srinivas Attili

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Attili was a principal at Deloitte from July 2017 to February 2021, was at IBM for over 14 years from October 2002 to June 2017, and served as a consultant at PwC from November 2000 to October 2002.

Attili received an MBA from the University of Maryland, College Park, a Master of Science in computer science from the New Jersey Institute of Technology and a Bachelor of Engineering in computer technology from Nagpur University.

66 Executive Vice President of the Air Force and Combatant Commands Business Group since February 2024.

67 Executive Vice President of the Air Force, Space and Intelligence Business Group since January 2026 and Executive Vice President of the Air Force and Combatant Commands Business Group from February 2024 until January 2026.

Previously, Mr.

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DiFronzo served as Assistant Vice President at Alion Science and Technology Corporation from December 2013 to May 2015 and as Senior Program Manager at Scientific Research Corporation from November 2008 through December 2010.

49 Executive Vice President of the Army Business Group since February 2024.

Jackson served as Senior Vice President of the Army Business Unit from February 2023 to January 2024 and Senior Vice President of the Navy and U.S.

Marine Corps Portfolio from August 2020 until February 2023;

as Senior Vice President for the Solutions and Technology Group from July 2018 to July 2020;

as Senior Vice President for the Engineering, Integration and Mission Solutions Market Segment from November 2014 until June 2018;

as Vice President of Training and Simulation from November 2010 until November 2014;

and Vice President and Division Manager from March 2008 through October 2011.

SCIENCE APPLICATIONS INTERNATIONAL CORPORATION

Name of officer Age Position(s) with the Company and prior business experience

49 Executive Vice President of the Space and Intelligence Business Group since February 2024.

Ray served as Senior Vice President for the Space Business Unit from February 2021 through January 2024.

Before joining SAIC, he served as President of Government and Defense at FLIR Systems from January 2018 until June 2020.

Previously, he held several positions at Raytheon, including Vice President for Global Business Development and Strategy, October 2015 until December 2017;

Senior Director of Business Development and Strategy, August 2013 until October 2015;

Senior Director and General Manager of Civil Mission Solutions, September 2011 until August 2013;

and Director of Maritime and Littoral Systems, September 2018 until November 2011.

55 Executive Vice President of the Navy Business Group since February 2024 and SAIC Senior Vice President from March 2023 until February 2024.

56 Executive Vice President of the Army Navy Business Group since January 2026, Executive Vice President of the Navy Business Group from February 2024 until January 2026, and SAIC Senior Vice President from March 2023 until February 2024.

Before joining SAIC, Ms.

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For additional information required by Item 10 with respect to executive officers and directors, including audit committee and audit committee financial experts, procedures by which stockholders may recommend nominees to the Board of Directors, and compliance with Section 16(a) of the Securities Exchange Act of 1934, see the information set forth under the captions “Proposal 1—Election of Directors,” “Corporate Governance” and “Other Information” in the 2026 Definitive Proxy Statement, which information is incorporated by reference into this report.

We have adopted a code of conduct, which describes our standards for protecting SAIC and customer assets, fostering a safe and healthy work environment, dealing fairly with customers and others, conducting international business properly, reporting misconduct and protecting employees from retaliation.

This code applies to all executive officers and employees and forms the foundation of our corporate policies and procedures designed to promote ethical behavior in all aspects of our business.

To obtain copies of the Code of Conduct, visit our website at www.saic.com and click on the links titled “Corporate Governance” then "Governance Documents" and then “Code of Conduct.” We intend to post on our website any material changes to or waivers from our code of business ethics.

We have adopted a Code of Conduct, which describes our standards for protecting SAIC and customer assets, fostering a safe and healthy work environment, dealing fairly with customers and others, conducting business properly, reporting misconduct and protecting employees from retaliation.

This Code applies to all directors, executive officers and employees and forms the foundation of our corporate policies and procedures designed to promote ethical behavior in all aspects of our business.

To obtain copies of the Code of Conduct, visit our website at investors.saic.com and click on the links titled “Governance” then "Governance Documents" and then “Code of Conduct.” We intend to post on our website any material changes to or waivers from our Code of Conduct.

The information on our website is not incorporated by reference into and is not a part of this report.

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A copy of our insider trading policy is filed as Exhibit 19 to this report.

The Company complies with the federal securities laws and the applicable exchange listing requirements, including those that govern trading by a company in its own securities.

We comply with the federal securities laws and the applicable exchange listing requirements, including those that govern trading by a company in its own securities.

Executive Compensation

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For information required by Item 12 with respect to the security ownership of certain beneficial owners and management, see the information set forth under the caption “Other Information” in the 2026 Definitive Proxy Statement, which information is incorporated by reference into this report.

SCIENCE APPLICATIONS INTERNATIONAL CORPORATION

We currently maintain three shareholder-approved equity compensation plans that issue stock-based awards including the 2023 Equity Incentive Plan ("2023 EIP"), the Management Stock Compensation Plan, and the Amended and Restated 2013 Employee Stock Purchase Plan ("ESPP").

For summaries of these plans, see Note 8—Stock-Based Compensation to the consolidated financial statements contained within this report.

SCIENCE APPLICATIONS INTERNATIONAL CORPORATION

The following table provides the number of shares of our common stock to be issued, the weighted-average exercise price of the outstanding stock options and the number of shares remaining for future award grants as of January 30, 2026:

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This amount does not include shares to be issued pursuant to purchase rights under the ESPP.

Performance share awards under the 2013 EIP and 2023 EIP assume the maximum payout at the end of the three-year performance period.

(2) Does not include shares to be issued for stock-based awards, other than stock options, which will not require any payment upon issuance of those shares.

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Incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K as filed with the SEC on September 5, 2024.

Indenture, dated September 25, 2025, by and among Science Applications International Corporation, the guarantors party thereto and U.S.

Bank National Association, as trustee.

Incorporated by reference to Exhibit 4.1 to the Company's Current Report on Form 8-K filed with the SEC on September 25, 2025.

Description of Securities.

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Incorporated by reference to Exhibit 4.1 to the Company’s Current Report on Form 8-K filed with the SEC on March 16, 2020.

Offer Letter, dated February 18 , 202 6 .

Offer Letter , date d October 23, 2025.

Incorporated by reference to Exhibit 10.

3 to the Company's Current Report on Form 10 - Q filed with the SEC on December 5 , 2025.

SAIC Executive Severance, Change in Control and Retirement Policy, effective September 5, 2023.

Incorporated by reference to Exhibit 10.

2 to the Company's Current Report on Form 10 - Q filed with the SEC on December 5 , 2025.

Eighth Amendment to the Third Amended and Restated Credit Agreement, dated September 30, 2025, by and among SAIC, Citibank N.A., as administrative agent and collateral agent, and certain other lenders and parties thereto.

Incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed with the SEC on October 1, 2025.

Seventh Amendment to the Third Amended and Restated Credit Agreement, dated October 18, 2024, by and among SAIC, Citibank N.A., as administrative agent and collateral agent, and certain other lenders and parties thereto.

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Incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed with the SEC on June 30, 2022.

Fourth Amendment to the Third Amended and Restated Credit Agreement, dated July 2, 2021, by and among SAIC, Citibank N.A., as administrative agent and collateral agent, and certain other lenders and parties thereto.

Incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed with the SEC on July 7, 2021.

Third Amended and Restated Credit Agreement by and among SAIC, Citibank, as administrative agent and collateral agent, and certain other agents and lenders party thereto, dated October 31, 2018.

Incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K as filed with the SEC on November 5, 2018.

First Amendment to the Third Amended and Restated Credit Agreement by and among SAIC, Citibank, as administrative agent and collateral agent, and certain other agents and lenders party thereto, dated February 19, 2020.

Incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed with the SEC on February 24, 2020.

SCIENCE APPLICATIONS INTERNATIONAL CORPORATION

Description of Exhibit

Second Amendment, dated March 13, 2020, to the Third Amended and Restated Credit Agreement, dated October 31, 2018 by and among Science Applications International Corporation, Citibank, N.A., as administrative agent and collateral agent, and certain other agents and lenders party thereto.

Incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed with the SEC on March 16, 2020.

Incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed with the SEC on July 7, 2021.

Third Amendment to the Third Amended and Restated Credit Agreement, dated March 1, 2021, by and among SAIC, Citibank N.A., as administrative agent and collateral agent, and certain other lenders and parties thereto.

Incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed with the SEC on March 5, 2021.

Second Amended and Restated Credit Agreement, dated May 4, 2015 by and among the Company, Citibank N.A.

as administrative agent and collateral agent, and Bank of America, N.A., as a syndication agent, and certain other lenders and parties thereto.

Incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K as filed with the SEC on May 4, 2015.

First Amendment to the Second Amended and Restated Credit Agreement, dated August 23, 2016 by and among the Company, Citibank N.A.

as administrative agent and collateral agent, and certain other lenders and parties thereto.

Incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K as filed with the SEC on August 25, 2016.

Second Amendment to the Third Amended and Restated Credit Agreement, dated March 13, 2020, by and among Science Applications International Corporation, Citibank, N.A., as administrative agent and collateral agent, and certain other agents and lenders party thereto.

Incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed with the SEC on March 16, 2020.

First Amendment to the Third Amended and Restated Credit Agreement, dated February 19, 2020, by and among SAIC, Citibank, as administrative agent and collateral agent, and certain other agents and lenders party thereto.

Incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed with the SEC on February 24, 2020.

Third Amended and Restated Credit Agreement, dated October 31, 2018, by and among SAIC, Citibank, as administrative agent and collateral agent, and certain other agents and lenders party thereto.

Incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K as filed with the SEC on November 5, 2018.

Second Amendment to the Second Amended and Restated Credit Agreement, dated February 7, 2018 by and among the Company, Citibank N.A.

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Incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K as filed with the SEC on February 9, 2018.

First Amendment to the Second Amended and Restated Credit Agreement, dated August 23, 2016 by and among the Company, Citibank N.A.

as administrative agent and collateral agent, and certain other lenders and parties thereto.

Incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K as filed with the SEC on August 25, 2016.

Second Amended and Restated Credit Agreement, dated May 4, 2015 by and among the Company, Citibank N.A.

as administrative agent and collateral agent, and Bank of America, N.A., as a syndication agent, and certain other lenders and parties thereto.

Incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K as filed with the SEC on May 4, 2015.

Master Accounts Receivable Purchase Agreement, dated January 21, 2020, among Science Applications International Corporation, Engility Services, LLC, and MUFG Bank, Ltd.

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Incorporated by reference to Exhibit 4.5 to the Company’s Registration Statement on Form S-8 as filed with the SEC on September 27, 2013.

SCIENCE APPLICATIONS INTERNATIONAL CORPORATION

Description of Exhibit

Science Applications International Corporation 401(k) Excess Deferral Plan, effective September 27, 2013.

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Incorporated by reference to Appendix A to the Company’s Definitive Proxy Statement on Schedule 14A as filed with the SEC on April 24, 2014.

SCIENCE APPLICATIONS INTERNATIONAL CORPORATION

Description of Exhibit

Form of Restricted Stock Unit Award Agreement of the Science Applications International Corporation 2013 Equity Incentive Plan.

Incorporated by reference to Exhibit 10.12 to the Company’s Annual Report on Form 10-K as filed with the SEC on April 9, 2014.

Form of Nonstatutory Stock Option Agreement of the Science Applications International Corporation 2013 Equity Incentive Plan.

Incorporated by reference to Exhibit 10.14 to the Company’s Annual Report on Form 10-K as filed with the SEC on April 9, 2014.

Form of Performance Share Award Agreement of the Science Applications International Corporation 2013 Equity Incentive Plan.

Incorporated by reference to Exhibit 10.15 to the Company’s Annual Report on Form 10-K as filed with the SEC on April 9, 2014.

Form of Restricted Stock Unit Award Agreement of the Science Applications International Corporation 2013 Amended and Restated Equity Incentive Plan.

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Incorporated by reference to Exhibit 10.17 of the Company’s Annual Report on Form 10-K as filed with the SEC on March 31, 2015.

SAIC Executive Severance, Change in Control and Retirement Policy, effective July 1, 2020.

Incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K as filed with the SEC on July 2, 2020.

Science Applications International Corporation Third Amended and Restated 2012 Long Term Performance Plan.

Incorporated by reference to Exhibit 10.19 to the Company's Annual Report on Form 10-K as filed with the SEC on March 29, 2019.

Master Transitional Contracting Agreement between the Company (formerly SAIC Gemini, Inc.) and Leidos Holdings, Inc.

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Incorporated by reference to Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q as filed with the SEC on December 13, 2013.

Form of Performance Unit Award Agreement of the Science Applications International Corporation 2012 Long Term Performance Plan.

Incorporated by reference to Exhibit 10.21 to the Company's Annual Report on Form 10-K as filed with the SEC on March 29, 2019.

Form of Restricted Stock Unit Agreement of the Science Applications International Corporation 2012 Long Term Performance Plan.

Incorporated by reference to Exhibit 10.22 to the Company's Annual Report on Form 10-K as filed with the SEC on March 29, 2019.

Transition Letter, dated May 15, 2023.

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Incorporated by reference to Exhibit 10.2 to the Company's Current Report on Form 8-K filed with the SEC on June 13, 2023.

SCIENCE APPLICATIONS INTERNATIONAL CORPORATION

Description of Exhibit

Form of Performance Stock Unit Award Agreement of the Science Applications International Corporation 2023 Equity Incentive Plan.

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Insider Trading Policies and Procedures.

Incorporated by reference to Exhibit 19 to the Company's Annual Report on Form 10-K as filed with the SEC on March 17, 2025.

SCIENCE APPLICATIONS INTERNATIONAL CORPORATION

Description of Exhibit

Subsidiaries of Registrant.

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Signature Title Date

/s/ Toni Townes-Whitley

Principal Executive Officer and Director March 17, 2025

Toni Townes-Whitley

Reagan Principal Executive Officer and Director March 16, 2026

/s/ Prabu Natarajan Principal Financial Officer and

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McGuirt Director March 16, 2026

Reagan Director March 17, 2025

/s/ Steven R.

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Director March 16, 2026

SCIENCE APPLICATIONS INTERNATIONAL CORPORATION

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Note 3—Revenues

Note 4—Divestitures

Note 5—Restructuring and Impairment

Note 4— Acquisitions and Divestitures

Note 5—Restructuring, Impairment and Other Exit Costs

Note 6—Goodwill and Intangible Assets

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Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of Science Applications International Corporation (the Company) as of January 31, 2025 and February 2, 2024, the related consolidated statements of income, comprehensive income, equity and cash flows for each of the three years in the period ended January 31, 2025, and the related notes (collectively referred to as the “consolidated financial statements”).

In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at January 31, 2025 and February 2, 2024, and the results of its operations and its cash flows for each of the three years in the period ended January 31, 2025, in conformity with U.S.

We have audited the accompanying consolidated balance sheets of Science Applications International Corporation (the Company) as of January 30, 2026 and January 31, 2025, the related consolidated statements of income, comprehensive income, equity and cash flows for each of the three years in the period ended January 30, 2026, and the related notes (collectively referred to as the “consolidated financial statements”).

In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at January 30, 2026 and January 31, 2025, and the results of its operations and its cash flows for each of the three years in the period ended January 30, 2026, in conformity with U.S.

generally accepted accounting principles.

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We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matters

The critical audit matters communicated below are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that:

(1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments.

The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.

Critical Audit Matter

The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that:

(1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments.

The communication of the critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

SCIENCE APPLICATIONS INTERNATIONAL CORPORATION

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Description of the Matter

The Company recognizes a portion of its revenues using a cost input measure of progress (cost-to-cost).

The Company recognizes a significant portion of its revenues using a cost input measure of progress (cost-to-cost).

Under the cost-to-cost measure of progress, revenue is recognized based on the ratio of costs incurred to the total estimated costs at completion.

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We also evaluated whether a lack of change in estimate was appropriate, where applicable, on contracts.

SCIENCE APPLICATIONS INTERNATIONAL CORPORATION

Certain unrecognized tax benefits that, if recognized, would materially affect the effective income tax rate

Description of the Matter

As described in Notes 1 and 10 to the consolidated financial statements, the Company files income tax returns in the U.S.

and in various foreign jurisdictions.

The Company recognizes liabilities for uncertainty in income taxes when it is more likely than not that a tax position will not be sustained on examination and settlement with various taxing authorities.

Auditing these liabilities associated with unrecognized tax benefits that, if recognized, would affect the effective income tax rate was complex due to the significant judgment in applying the relevant tax laws and inherent uncertainty involved in predicting the ultimate resolution of such matters with the taxing authority.

Changes to these liabilities resulting from ongoing or future audits by the taxing authorities could have a material effect on the Company’s results of operations.

How We Addressed the Matter in Our Audit

We obtained an understanding, evaluated the design and tested the operating effectiveness of controls over the Company’s process of accounting for income taxes, including unrecognized tax benefits.

For example, we tested the Company’s controls over management’s review of tax positions taken by the Company to determine whether the positions met the threshold for recognition within the consolidated financial statements, as well as determination of the measurement of the liabilities for unrecognized tax benefits.

To test the recognition of the Company’s unrecognized tax benefits that, if recognized, would materially affect the effective tax rate and measurement of these unrecognized tax benefits, we involved tax professionals with specialized skills and knowledge to assess the technical merits of the Company’s material tax positions.

We performed audit procedures that included, among others, evaluating communications with relevant taxing authorities, evaluating whether management appropriately considered new information that could significantly change the recognition, measurement, or disclosure of these unrecognized tax benefits, and testing the assumptions used by management in estimating the valuation of any associated liabilities.

/s/ Ernst & Young LLP

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CONSOLIDATED STATEMENTS OF INCOME

2025 February 2,

2026 January 31,

2025 February 2,

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Net income $ 358 $ 362 $ 477

Net income attributable to non-controlling interest — — 3

Net income attributable to common stockholders $ 362 $ 477 $ 300

Earnings per share:

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

January 31, 2025 February 2, 2024 February 3, 2023

January 30, 2026 January 31, 2025 February 2, 2024

(in millions)

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Comprehensive income $ 354 $ 358 $ 471

Comprehensive income attributable to non-controlling interest — — 3

Comprehensive income attributable to common stockholders $ 358 $ 471 $ 359

See accompanying notes to consolidated financial statements.

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CONSOLIDATED BALANCE SHEETS

2025 February 2,

2026 January 31,

(in millions)

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Commitments and contingencies (Note 17)

Common stock, $ 0.0001 par value, 1 billion shares authorized, 48 million shares and 52 million shares issued and outstanding as of January 31, 2025 and February 2, 2024, respectively

Common stock, $ 0.0001 par value, 1 billion shares authorized, 44 million shares and 48 million shares issued and outstanding as of January 30, 2026 and January 31, 2025, respectively

Additional paid-in capital — —

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(in millions)

Balance at January 28, 2022 56 $ 838 $ 818 $ ( 37 ) $ 10 $ 1,629

Balance at February 3, 2023 54 $ 637 $ 1,035 $ 22 $ 10 $ 1,704

Net income — — 477 — — 477

Issuances of stock 1 18 — — — 18

Other comprehensive income, net of tax

Other comprehensive loss, net of tax

— — — ( 6 ) — ( 6 )

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Repurchases of stock ( 3 ) ( 363 ) — — — ( 363 )

Distributions to non-controlling interest — — — — ( 3 ) ( 3 )

Deconsolidation of non-controlling interest

— — — — ( 10 ) ( 10 )

Balance at February 2, 2024 52 337 1,432 16 — 1,785

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Repurchases of stock ( 4 ) ( 379 ) ( 154 ) — — ( 533 )

Deconsolidation of non-controlling interest

— — — — ( 10 ) ( 10 )

Balance at February 2, 2024 52 337 1,432 16 — 1,785

Balance at January 31, 2025 48 — 1,565 12 — 1,577

Net income — — 358 — — 358

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Other comprehensive loss, net of tax — — — ( 4 ) — ( 4 )

— — — ( 4 ) — ( 4 )

Dividends of $ 1.48 per share

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CONSOLIDATED STATEMENTS OF CASH FLOWS

2025 February 2,

2026 January 31,

2025 February 2,

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( 44 ) 24 ( 43 )

Other assets 1 ( 14 ) 6

Accounts payable and accrued liabilities 48 13 ( 9 )

Accounts payable and other accrued liabilities

( 101 ) 48 13

Accrued payroll and employee benefits ( 28 ) ( 31 ) 49

Operating lease assets and liabilities, net ( 2 ) ( 6 ) ( 4 )

Other long-term liabilities ( 1 ) 24 15

Other assets and other long-term liabilities, net ( 30 ) — 10

Net cash provided by operating activities 609 494 396

Cash flows from investing activities:

Cash paid for acquisition, net of cash acquired

Expenditures for property, plant, and equipment ( 32 ) ( 36 ) ( 27 )

Contributions to investments ( 11 ) ( 7 ) ( 10 )

Purchases of marketable securities ( 9 ) ( 14 ) ( 8 )

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Cash divested upon deconsolidation of joint venture — — ( 8 )

Other ( 7 ) ( 5 ) ( 8 )

Net cash (used in) provided by investing activities

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Cash flows from financing activities:

Principal payments on borrowings ( 1,381 ) ( 441 ) ( 990 )

Proceeds from borrowings 2,745 1,499 160

Principal payments on borrowings ( 2,474 ) ( 1,381 ) ( 441 )

Stock repurchased and retired or withheld for taxes on equity awards ( 445 ) ( 558 ) ( 382 )

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Net cash used in financing activities ( 235 ) ( 498 ) ( 725 )

( 498 ) ( 725 ) ( 493 )

Net (decrease) increase in cash, cash equivalents and restricted cash ( 39 ) ( 15 ) 3

Net increase (decrease) in cash, cash equivalents and restricted cash 126 ( 39 ) ( 15 )

Cash, cash equivalents and restricted cash at beginning of period 64 103 118

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Cash paid for interest $ 101 $ 121 $ 125

Cash paid for income taxes $ 66 $ 165 $ 70

Non-cash investing activities:

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Description of Business.

Science Applications International Corporation (collectively, with its consolidated subsidiaries, the “Company”) is a leading provider of technical, engineering and enterprise information technology ("IT") services primarily to the U.S.

Science Applications International Corporation (collectively, with its consolidated subsidiaries, the “Company”) is a leading provider of technical, engineering and mission and enterprise information technology ("IT") services primarily to the U.S.

The Company integrates emerging technology securely and in real-time into mission critical operations that modernize and enable national imperatives.

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The Company’s two reportable segments are the Defense and Intelligence segment and the Civilian segment.

The Defense and Intelligence segment provides a diverse portfolio of national security solutions to the Department of Defense ("DoD") and Intelligence Community of the United States Government.

The Defense and Intelligence segment provides a diverse portfolio of national security solutions to the Department of War ("DoW", formerly referred to as the Department of Defense) and the Intelligence Community of the United States Government.

The Civilian segment provides solutions to the civilian markets, encompassing federal, state, and local governments, in order to deliver services for citizen well-being, border security, and protecting lives.

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See Note 16—Business Segments Information for additional information.

Within this report, the Company has recast historical financial information to reflect the new reportable segments.

The recast historical information has no impact on the Company's previously reported consolidated financial statements.

Effective January 31, 2026, the first day of fiscal 2027, the Company completed a business reorganization that consolidated its five business groups into three .

The reorganization is designed to simplify the Company's structure and optimize operations and customer focus for growth.

The consolidated business groups will continue to report directly to the Company’s Chief Executive Officer (“CEO”) who will continue to be the chief operating decision maker (“CODM”).

The Company does not expect the reorganization to have an impact on its reportable segments.

Principles of Consolidation and Basis of Presentation

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All intercompany transactions and account balances within the Company have been eliminated.

Certain amounts in the prior year financial statements have been reclassified to conform to the current year presentation.

"Acquisition and integration costs" are now presented within "Other operating (income) expense" on the consolidated statements of income.

"Inventories, net" are now presented within "Other current assets" on the consolidated balance sheets.

"Amortization of off-market customer contracts," "Amortization of debt issuance costs,"

SCIENCE APPLICATIONS INTERNATIONAL CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

and "Impairment of assets" are now presented in "Other" within "Adjustments to reconcile net income to net cash provided by operating activities" on the consolidated statements of cash flows.

"Distributions to non-controlling interest are now presented in "Other" within "Cash flows from financing activities" on the consolidated statements of cash flows.

Non-controlling Interest.

On February 4, 2023, the Company sold 0.1 % of its 50.1 % majority ownership interest in Forfeiture Support Associates J.V.

("FSA") to its sole joint venture partner for a nominal amount.

As a result of the sale and amendment to the joint venture operating agreement of FSA, the Company no longer controls the joint venture and accounts for its retained interest as an equity method investment as of the date of the transaction.

Prior to February 4, 2023, the Company held a 50.1 % majority interest in FSA.

For fiscal 2023, the results of operations of FSA were included in the Company's consolidated statements of income and comprehensive income and statements of cash flows.

Certain amounts in the prior year financial statements have been reclassified to conform to the current year presentation.

"Contributions to investments" was previously presented in "Other" within "Cash flows from investing activities" on the consolidated statements of cash flows.

Reporting Periods

The Company utilizes a 52/53 week fiscal year ending on the Friday closest to January 31, with fiscal quarters typically consisting of 13 weeks.

Fiscal 2026 began on February 1, 2025 and ended on January 30, 2026, fiscal 2025 began on February 3, 2024 and ended on January 31, 2025, and fiscal 2024 began on February 4, 2023 and ended on February 2, 2024.

Operating Cycle

The Company’s operating cycle may be greater than one year and is represented by the average time intervening between the inception and the completion of contracts.

Use of Estimates

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Estimates have been prepared by management on the basis of the most current and best available information at the time of estimation and actual results could differ from those estimates.

Reporting Periods

The Company utilizes a 52/53 week fiscal year ending on the Friday closest to January 31, with fiscal quarters typically consisting of 13 weeks.

Fiscal 2025 began on February 3, 2024 and ended on January 31, 2025, fiscal 2024 began on February 4, 2023 and ended on February 2, 2024, and fiscal 2023 began on January 29, 2022 and ended on February 3, 2023.

Fiscal 2025 and 2024 consisted of 52 weeks, while fiscal 2023 consisted of 53 weeks.

Revenue Recognition

The Company provides technical, engineering and enterprise IT services under long-term service arrangements primarily with the U.S.

The Company provides technical, engineering and mission and enterprise IT services under long-term service arrangements primarily with the U.S.

government, including subcontracts with other contractors engaged in work for the U.S.

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The majority of the Company’s contracts contain a single performance obligation involving a significant integration of various activities that are performed together to deliver a combined service or solution.

Performance obligations may be satisfied over time or at a point in time, but the majority of the

Performance obligations may be satisfied over time or at a point in time, but the majority of the Company’s performance obligations are satisfied over time.

The Company selects the appropriate measure of progress for revenue recognition based on the nature of the performance obligation, contract type and other pertinent contract terms.

SCIENCE APPLICATIONS INTERNATIONAL CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Company’s performance obligations are satisfied over time.

The Company selects the appropriate measure of progress for revenue recognition based on the nature of the performance obligation, contract type and other pertinent contract terms.

Performance obligations satisfied over time may involve a series of recurring services, such as network operations and maintenance, operation and program support services, IT outsourcing services, and other IT arrangements where the Company is standing ready to provide support, when-and-if needed.

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The Company issues stock-based awards as compensation to employees and directors.

Stock-based awards include stock options, vesting stock awards and performance share awards.

Stock-based awards include vesting stock awards, performance share awards, and stock options.

These awards are accounted for as equity awards.

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The provision for federal, state, local and foreign income taxes is calculated on income before income taxes based on current tax law and includes the cumulative effect of any changes in tax rates from those used previously in determining deferred tax assets and liabilities.

Such provision differs from the amounts currently payable because certain items of income and expense are recognized in different reporting periods for financial reporting purposes than for income tax purposes.

Such provisions differ from the amounts currently payable because certain items of income and expense are recognized in different reporting periods for financial reporting purposes than for income tax purposes.

Recording the provision for income taxes requires management to make significant judgments and estimates for matters for which the ultimate resolution may not become known until the final resolution of an examination by taxing authorities or the statute of limitations lapses.

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The Company records the largest amount of benefit that is more likely than not to be realized when the tax position is settled.

To the extent the Company prevail in matters for which accruals have been established or are required to pay amounts in excess of reserves, the Company's effective tax rate in a given financial period may be materially impacted.

To the extent the Company prevails in matters for which accruals have been established or is required to pay amounts in excess of reserves, the Company's effective tax rate in a given financial period may be materially impacted.

Deferred tax assets and liabilities are netted by taxable jurisdiction and classified as noncurrent on the consolidated balance sheets.

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Cash and cash equivalents are comprised of cash in banks and highly liquid instruments, which primarily consist of bank deposits and investments in institutional money market funds.

The Company includes outstanding payments within "Cash and cash equivalents" and "Accounts payable" on the consolidated balance sheets and as of January 31, 2025 and February 2, 2024 these amounts were $ 33 million and $ 26 million, respectively.

The Company includes outstanding payments within "Cash and cash equivalents" and "Accounts payable" on the consolidated balance sheets and as of January 30, 2026 and January 31, 2025 these amounts were $ 25 million and $ 33 million, respectively.

The Company does not invest in high yield or high risk securities.

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The following table provides a reconciliation of cash, cash equivalents and restricted cash to amounts reported within the consolidated balance sheets for the periods presented:

January 31, 2025 February 2, 2024

January 30, 2026 January 31, 2025

(in millions)

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The Company’s receivables are primarily due from the U.S.

government, or from prime contractors on which we are subcontractors and the end customer is the U.S.

government, or from prime contractors to which we are subcontractors and the end customer is the U.S.

government, and are generally considered collectable from the perspective of the customer’s ability to pay.

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government on the Company’s receipt of progress payments.

Progress payments received of $ 82 million and $ 90 million offset unbilled receivables as of January 31, 2025 and February 2, 2024, respectively.

Progress payments received of $ 86 million and $ 82 million offset unbilled receivables as of January 30, 2026 and January 31, 2025, respectively.

Contract retentions are billed when contract conditions have been met and may relate to uncompleted indirect cost negotiations with the U.S.

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Receivable balances are written-off in the period during which management determines they are uncollectable, and, at that time, such balances are removed from billed receivables and, if previously reserved, from the allowance.

Inventory is substantially comprised of finished goods and is valued at the lower of cost or net realizable value, generally using the average cost method.

The Company evaluates current inventory against historical and planned usage to estimate the appropriate provision for obsolete inventory.

Business Combinations

The Company records all tangible and intangible assets acquired and liabilities assumed in a business combination at fair value as of the acquisition date, which is determined using a cost, market or income approach.

The Company records substantially all assets acquired and liabilities assumed in a business combination at fair value as of the acquisition date, which is determined using a cost, market or income approach.

The excess amount of the aggregated purchase consideration paid over the fair value of the net of assets acquired and liabilities assumed is recorded as goodwill.

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These costs typically include transaction-related costs, such as finder’s fees, legal, accounting and other professional costs.

Integration-related

SCIENCE APPLICATIONS INTERNATIONAL CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

costs represent costs directly related to combining the Company and its acquired businesses.

Integration-related costs represent costs directly related to combining the Company and its acquired businesses.

Integration-related costs typically include strategic consulting services, facility consolidation, employee related costs, such as retention and severance, costs to integrate information technology infrastructure, enterprise planning systems, processes, and other non-recurring integration-related costs.

Acquisition and integration costs are presented within "Other operating (income) expense" on the consolidated statements of income.

The Company's acquisition and integration costs were as follows for the periods presented:

2025 February 2,

2024 February 3,

(in millions)

Acquisition (1)

$ ( 2 ) $ — $ ( 2 )

Total acquisition and integration costs $ ( 2 ) $ 1 $ 13

(1) Acquisition costs in fiscal 2025 include a reversal of immaterial costs related to the fiscal 2022 Koverse acquisition.

Acquisition costs in fiscal 2023 reflect adjustments to the fair value of the Koverse earnout liability.

SCIENCE APPLICATIONS INTERNATIONAL CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Restructuring Costs

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Other employee related termination costs include the impact of accelerated stock compensation expense for terminated employees that have a reduction in the requisite service period for their stock-based awards.

Costs to consolidate or close facilities primarily include lease obligation charges for exited facilities, including the impact of accelerated lease expense for right of use assets and accelerated depreciation expense for leasehold improvements with reductions in their estimated useful lives due to exited facilities.

Costs to consolidate or close facilities primarily include lease obligation charges for exited facilities, including the impact of accelerated lease expense for right of use ("ROU") assets and accelerated depreciation expense for leasehold improvements with reductions in their estimated useful lives due to exited facilities.

The Company occupies most of its facilities under operating leases.

Certain equipment is also leased under short-term or cancelable operating leases.

The Company recognizes a right of use ("ROU") asset and a lease liability upon the commencement of its operating leases.

The Company recognizes ROU assets and a lease liabilities upon the commencement of its operating leases.

The initial lease liability is equal to the future fixed minimum lease payments discounted using the Company’s incremental borrowing rate on a secured basis.

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ROU assets are evaluated for impairment as a long-lived asset.

The Company leases IT equipment and hardware to its customers.

All of the Company’s lessor arrangements are operating leases.

Operating lease income is recognized on a straight-line basis over the term of the lease and is presented in "Revenues" on the consolidated statements of income.

SCIENCE APPLICATIONS INTERNATIONAL CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Goodwill and Intangible Assets

Goodwill is recorded as the difference, if any, between the aggregate consideration paid for an acquisition and the fair value of the net tangible and intangible assets acquired and liabilities assumed.

Goodwill is recorded as the difference, if any, between the aggregate consideration paid for an acquisition and the fair value of the assets acquired and liabilities assumed.

Goodwill and indefinite-lived intangible assets are not amortized, but rather are tested for potential impairment annually at the beginning of the Company's fourth quarter, or whenever events or changes in circumstances indicate that the carrying value may not be recoverable.

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If the fair value is less than the carrying value, the amount of impairment expense is equal to the difference between the reporting unit’s fair value and the reporting unit’s carrying value.

SCIENCE APPLICATIONS INTERNATIONAL CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Intangible assets with finite lives are amortized using the method that best reflects how their economic benefits are utilized or, if a pattern of economic benefits cannot be reliably determined, on a straight-line basis over their estimated useful lives.

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In circumstances in which the Company does not have the ability or intent to sublease an exited facility, the Company adjusts the estimated useful life of the facility related assets to end on the cease use date and recognizes accelerated depreciation and amortization.

SCIENCE APPLICATIONS INTERNATIONAL CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Commitments and Contingencies

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inputs other than the quoted prices in active markets that are observable either directly or indirectly (Level 2);

and unobservable inputs in which there is little or no market data, which requires the Company to develop its own assumptions (Level 3).

SCIENCE APPLICATIONS INTERNATIONAL CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

unobservable inputs in which there is little or no market data, which requires the Company to develop its own assumptions (Level 3).

The carrying amounts of cash and cash equivalents, receivables, accounts payable and other amounts included in other current assets and current liabilities that meet the definition of a financial instrument approximate fair value due to the short-term nature of these amounts.

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Investments in marketable securities consist of equity securities, which are recorded at fair value using observable inputs such as quoted prices in active markets (Level 1).

As of January 31, 2025 and February 2, 2024, the fair value of the Company's investments totaled $ 36 million and $ 32 million, respectively, and are primarily included in "Other assets" on the consolidated balance sheets.

The Company's investments are primarily held in a custodial account, which includes investments to fund its deferred compensation plan liabilities.

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Settlement amounts related to derivatives designated as cash flow hedges are presented within operating activities on the consolidated statement of cash flows.

SCIENCE APPLICATIONS INTERNATIONAL CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

The Company’s fixed interest rate swaps are considered over-the-counter derivatives, and their fair value is calculated using a standard pricing model for interest rate swaps with contractual terms for maturities, amortization and interest rates.

The Company’s fixed interest rate swaps which expired in fiscal 2026 were considered over-the-counter derivatives, and their fair value was calculated using a standard pricing model for interest rate swaps with contractual terms for maturities, amortization and interest rates.

Level 2, or market observable inputs (such as yield and credit curves), are used within the standard pricing models in order to determine fair value.

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See Note 12—Derivative Instruments Designated as Cash Flow Hedges for further discussion on the Company’s derivative instruments designated as cash flow hedges.

Operating Cycle

The Company’s operating cycle may be greater than one year and is represented by the average time intervening between the inception and the completion of contracts.

Research and Development

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The Company applies the equity method of accounting to its unconsolidated investments when it has the ability to exercise significant influence over the entity and recognizes its proportionate share of the entities’ net income or loss within "Other operating (income) expense" on the consolidated statements of income.

Equity investments in entities over which the Company does not have the ability to exercise significant influence and whose securities do not have a readily determinable fair value are carried at cost or cost net of other-than-temporary impairments.

SCIENCE APPLICATIONS INTERNATIONAL CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Sale of Equity Method Investment

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Accounting Standards Updates Recently Adopted

In November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No.

2023-07, Segment Reporting (Topic 280):

Improvements to Reportable Segment Disclosures, to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses.

Amongst other amendments, the standard requires annual and interim disclosures of significant segment expenses that are regularly provided to the chief operating decision maker ("CODM"), and interim disclosures about a reportable segment’s profit or loss and assets that are currently required annually.

This standard does not change how an entity identifies its operating segments, aggregates those operating segments, or applies the quantitative thresholds to determine its reportable segments.

The standard was effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024.

SCIENCE APPLICATIONS INTERNATIONAL CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Company adopted the annual disclosure requirements in fiscal 2025 and will adopt the interim disclosure requirements in fiscal 2026.

See Note 16—Business Segments Information for additional information.

Accounting Standards Updates Recently Issued But Not Yet Adopted

In December 2023, the FASB issued ASU No.

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The standard includes amendments that enhance annual income tax disclosures, primarily through standardization and disaggregation of rate reconciliation categories and income taxes paid by jurisdiction.

The standard is effective for fiscal years beginning after December 15, 2024.

Early adoption is permitted.

The amendments can be applied on a prospective or retrospective basis.

The Company plans to adopt this standard prospectively in fiscal 2026 and does not expect it to have a material impact on its consolidated financial statements and related disclosures.

The standard was effective for fiscal years beginning after December 15, 2024.

The Company adopted this standard prospectively in fiscal 2026.

Accounting Standards Updates Recently Issued But Not Yet Adopted

In November 2024, the FASB issued ASU No.

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The Company is currently evaluating the impact of adoption of this standard on its financial statement disclosures.

In September 2025, the FASB issued ASU No.

2025-06, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40):

Targeted Improvements to the Accounting for Internal-Use Software.

The standard modernizes the accounting for internal-use software costs by removing all references to project stages and defining a probable-to-complete threshold to begin capitalizing costs.

The standard also clarifies the disclosure requirements for capitalized internal-use software costs.

The standard is effective for annual reporting periods, including interim reporting periods within those annual reporting periods, beginning after December 15, 2027.

The amendment can be applied prospectively, retrospectively, or on a modified transition approach.

Early adoption is permitted.

The Company is currently evaluating the impact of adoption of this standard on its consolidated financial statements and related disclosures.

Note 2—Earnings Per Share, Share Repurchases and Dividends:

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The dilutive effect of outstanding stock options and other stock-based awards is computed using the treasury stock method.

SCIENCE APPLICATIONS INTERNATIONAL CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

The following table provides a reconciliation of the weighted-average number of shares outstanding used to compute basic and diluted EPS for the periods presented:

2025 February 2,

2026 January 31,

2025 February 2,

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Antidilutive stock awards excluded from the weighted-average number of shares outstanding used to compute diluted EPS for fiscal 2026, 2025, and 2024 were immaterial .

SCIENCE APPLICATIONS INTERNATIONAL CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Share Repurchases

The Company may repurchase shares in accordance with established repurchase plans.

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The Company has not made any material purchases of common stock other than in connection with established share repurchase plans.

During fiscal 2026, the Company repurchased approximately 4.0 million shares of its common stock from the open market under its existing share repurchase plan for approximately $ 422 million.

In December 2024, the Company's Board of Directors authorized the repurchase of up to $ 1.2 billion of the Company's outstanding common stock under its existing share repurchase plan.

This authorization was effective as of December 16, 2024 and has no expiration date.

Since the program’s inception in December of 2013, the Company has repurchased approximately 24.5 million shares of its common stock from the open market for approximately $ 2.1 billion, which included amounts previously authorized under the plan prior to December 2024.

As of January 30, 2026, the Company has repurchased approximately 28.5 million shares of its common stock under the plan for approximately $ 2.5 billion, which included amounts previously authorized under the plan prior to December 2024.

The Company declared and paid quarterly dividends of $ 0.37 per share every quarter for the years presented.

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Aggregate net changes in estimates on contracts accounted for using the cost-to-cost method of accounting were recognized in operating income as follows:

2025 February 2,

2026 January 31,

2025 February 2,

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Net favorable adjustments, after tax 1 13 —

Basic EPS impact $ 0.26 $ — $ 0.05

Diluted EPS impact $ 0.26 $ — $ 0.05

Basic and Diluted EPS impact

$ 0.02 $ 0.26 $ —

Revenues were $ 9 million, $ 14 million and $ 2 million higher for fiscal 2026, 2025 and 2024, respectively, due to net revenue recognized from performance obligations satisfied in prior periods.

SCIENCE APPLICATIONS INTERNATIONAL CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Disaggregation of Revenues

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Disaggregated revenues by customer were as follows:

SCIENCE APPLICATIONS INTERNATIONAL CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Year Ended January 30, 2026

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(in millions)

Department of Defense $ 3,856 $ 17 $ 3,873

Department of War

$ 3,770 $ 8 $ 3,778

Intelligence and other federal government agencies

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Total $ 5,581 $ 1,681 $ 7,262

Year Ended February 2, 2024

Year Ended January 31, 2025

Defense and Intelligence Civilian Total SAIC

(in millions)

Department of Defense $ 3,814 $ 26 $ 3,840

Department of War

$ 3,856 $ 17 $ 3,873

Intelligence and other federal government agencies

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(in millions)

Department of Defense $ 3,772 $ 34 $ 3,806

Department of War

$ 3,814 $ 26 $ 3,840

Intelligence and other federal government agencies

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Total $ 5,581 $ 1,681 $ 7,262

Year Ended February 2, 2024

SCIENCE APPLICATIONS INTERNATIONAL CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Year Ended January 31, 2025

Defense and Intelligence Civilian Total SAIC

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Total $ 5,726 $ 1,753 $ 7,479

SCIENCE APPLICATIONS INTERNATIONAL CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Year Ended February 2, 2024

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Total $ 5,581 $ 1,681 $ 7,262

Year Ended February 2, 2024

Year Ended January 31, 2025

Defense and Intelligence Civilian Total SAIC

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Balance Sheet line item January 30,

2025 February 2,

2026 January 31,

(in millions)

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Contract liabilities - non-current Other long-term liabilities $ 2 $ —

(1) Net of allowance of $ 3 million as of January 31, 2025 and February 2, 2024.

(1) Net of allowance of $ 2 million and $ 3 million as of January 30, 2026 and January 31, 2025 respectively.

The changes in the Company's contract assets and contract liabilities during the current period primarily result from timing differences between the Company's performance, invoicing and customer payments.

As of January 31, 2025, the Company classified $ 29 million of unbillable receivables that are expected to be billed and collected beyond one year within "Other assets" on the consolidated balance sheets.

During fiscal 2025 and 2024, the Company recognized revenues of $ 35 million and $ 40 million relating to amounts that were included in the opening balance of contract liabilities as of February 2, 2024 and February 3, 2023, respectively.

During fiscal 2026 and 2025, the Company recognized revenues of $ 28 million and $ 35 million relating to amounts that were included in the opening balance of contract liabilities as of January 31, 2025 and February 2, 2024, respectively.

Deferred Costs

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Balance Sheet line item January 30,

2025 February 2,

2026 January 31,

(in millions)

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Costs to obtain Other assets $ 8 $ 6

Pre-contract costs of $ 9 million were expensed during fiscal 2025 and 2024 .

Prepaid contract costs of $ 36 million and $ 46 million were amortized during fiscal 2025 and 2024, respectively.

Fulfillment costs of $ 3 million and $ 5 million were amortized during fiscal 2025 and 2024, respectively.

Costs to obtain of $ 2 million and $ 1 million were amortized during fiscal 2025 and 2024, respectively.

Pre-contract costs expensed in fiscal 2026 were immaterial , and pre-contract costs of $ 9 million were expensed during fiscal 2025 .

Prepaid contra ct costs of $ 34 million and $ 36 million were amortized during fiscal 2026 and 2025 , respectively.

Fulfillment costs of $ 3 million were amortized during fiscal 2026 and 2025.

Costs to obtain of $ 2 million were amortized during fiscal 2026 and 2025.

Remaining Performance Obligations

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The Company expects to recognize revenue on approximately 78 % of the RPO over the next 12 months and approximately 89 % over the next 24 months, with the remaining recognized thereafter.

Note 4—Acquisitions and Divestitures:

Acquisition of SilverEdge Government Solutions (“SilverEdge”)

On October 15, 2025, the Company acquired SilverEdge, an innovative provider of mission-driven technology solutions and products, for a preliminary purchase price of $ 203 million, net of $ 6 million cash acquired, subject to post-closing adjustments.

The acquisition advances the Company's strategy to provide mission focused solutions and commercial products to its customers.

The Company funded the transaction from increased borrowings (see Note 11—Debt Obligations for additional information) and cash on hand.

SCIENCE APPLICATIONS INTERNATIONAL CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Note 4—Divestitures:

As of January 30, 2026, the Company is in the process of finalizing the valuation and purchase price allocation related to this acquisition.

The Company has preliminarily recorded goodwill and amortizable intangible assets of $ 93 million and $ 101 million, respectively.

During the fourth quarter of fiscal 2026, the Company decreased goodwill by $ 16 million which consisted of $ 14 million in estimated fair value adjustments for acquired intangible assets and $ 2 million in other adjustments to operating assets and liabilities.

Substantially all of the goodwill recorded is tax deductible.

The goodwill is primarily associated with intellectual capital and acquired assembled workforce.

The intangible assets consist of customer relationships of $ 90 million, developed technology of $ 9 million, and backlog of $ 2 million that will be amortized over a period of ten years, eight years, and one year, respectively.

During fiscal 2026, revenues of $ 27 million related to SilverEdge were recorded to the Defense and Intelligence reportable segment.

FSA Amendment

On February 4, 2023, the Company sold 0.1 % of its 50.1 % majority ownership interest in FSA to its sole joint venture partner for a nominal amount.

On February 4, 2023, the Company sold 0.1 % of its 50.1 % majority ownership interest in Forfeiture Support Associates J.V.

("FSA") to its sole joint venture partner for a nominal amount.

In conjunction with the sale, the Company remeasured its retained investment in FSA to a fair value of $ 14 million.

The equity method investment is included within "Other assets" on the consolidated balance sheets.

The remeasurement resulted in a gain of $ 7 million which is included within "(Gain) loss on divestitures, net of transaction costs" on the consolidated statements of income and is reflected within "Gain on divestitures" on the consolidated statements of cash flows in fiscal 2024.

The Company estimated the fair value of its retained investment in FSA based on Level 3 inputs of the fair value hierarchy.

The Company used the income approach which involves the use of estimates and assumptions, including revenue growth rates, projected operating margins, discount rates and terminal growth rates.

Sale of Logistics and Supply Chain Management Business

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Total liabilities divested $ 65

In connection with the sale, the Company and ASRC Federal entered into certain transition services agreements pursuant to which the Company provided certain services to ASRC Federal through the first quarter of fiscal 2025 on a cost reimbursable basis.

The transition services included certain IT, finance and other services necessary to support the transition of the sale.

SCIENCE APPLICATIONS INTERNATIONAL CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Note 5—Restructuring and Impairment:

Restructuring and impairment costs recognized were as follows:

January 31, 2025 February 2, 2024 February 3, 2023

Note 5—Restructuring, Impairment and Other Exit Costs:

Restructuring, impairment and other exit costs recognized were as follows:

January 30, 2026 January 31, 2025 February 2, 2024

(in millions)

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Impairment of assets

Total restructuring costs and impairment $ 8 $ 23 $ 24

(1) Restructuring costs included in the table above are recorded in Corporate "Selling, general and administrative expenses."

(2) Impairment charges in fiscal 2023 relate to assets associated with exited facilities.

Executive transition costs (2)

Total restructuring, impairment and other exit costs

$ 35 $ 8 $ 23

(1) Restructuring costs in fiscal 2026 include $ 7 million recorded in the Defense and Intelligence reportable segment "Cost of revenues" and $ 5 million recorded in Corporate "Selling, general and administrative expenses." Restructuring costs in fiscal 2025 and fiscal 2024 were recorded in Corporate "Selling, general and administrative expenses."

(2) Executive transition costs are recorded in Corporate and are included in "Selling, general and administrative expenses."

During fiscal 2026, the Company incurred costs related to restructuring activities associated with the reorganization of its business groups and the optimization and consolidation of certain facilities.

As part of these activities, the Company incurred severance and other employee costs and costs related to the consolidation and exit of certain facilities.

Other employee costs include the impact of accelerated stock compensation expense for terminated employees.

Executive transition costs represent costs associated with the immediate departure of the Company's CEO and other executives.

During fiscal 2025 and 2024, the Company incurred costs related to restructuring activities associated with the reorganization of its business sectors into business groups and for the optimization and consolidation of certain facilities.

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Other employee costs include the impact of accelerated stock compensation expense for terminated employees.

During fiscal 2023, the Company incurred costs related to restructuring activities associated with the optimization of business processes and incurred consulting costs, severance and other employee costs, and other costs related to the consolidation of certain facilities.

The Company completed these activities in fiscal 2024.

During fiscal 2024 and 2023, cash paid for consulting costs was $ 2 million and $ 5 million, respectively, and there was no remaining liability for these costs as of February 2, 2024.

Note 6—Goodwill and Intangible Assets:

The following table presents the carrying value of goodwill by reportable segment:

2025 February 2,

2026 January 31,

(in millions)

Defense and Intelligence $ 2,094 $ 2,001

$ 2,001 $ 2,001

$ 2,851 $ 2,851

Civilian 850 850

Total $ 2,944 $ 2,851

During fiscal 2026, goodwill increased by $ 93 million in the Defense and Intelligence reportable segment due to the acquisition of SilverEdge (see Note 4—Acquisitions and Divestitures for additional information).

As a result of the internal reorganization on February 3, 2024, the Company reallocated its goodwill to its five new goodwill reporting units.

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The Company estimated the fair value of each reporting unit using a 50:50 weighting of fair values derived from an income approach and market approach.

Under the income approach, the Company estimated the fair value of its reporting units using a multi-year discounted cash flow model involving assumptions about projected future revenue growth, operating margins, income tax rates, capital expenditures, discount rate, and terminal value.

Under the market approach, the Company estimated the fair value of its reporting units based on multiples of earnings derived from observable market data of comparable public companies.

SCIENCE APPLICATIONS INTERNATIONAL CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Under the market approach, the Company estimated the fair value of its reporting units based on multiples of earnings derived from observable market data of comparable public companies.

During the fourth quarter of fiscal 2026, the Company completed its annual goodwill impairment testing using a qualitative assessment and determined that it was more likely than not that an impairment did not exist and that a quantitative analysis was not necessary.

1 unchanged sentence

Intangible assets, all of which were finite-lived, consisted of the following:

January 31, 2025 February 2, 2024

January 30, 2026 January 31, 2025

Gross carrying value Accumulated amortization Net carrying value Gross carrying value Accumulated amortization Net carrying value

2 unchanged sentences

Developed technology 19 ( 6 ) 13 10 ( 5 ) 5

2 ( 1 ) 1 — — —

Trade name — — — 1 ( 1 ) —

Total intangible assets $ 1,572 $ ( 811 ) $ 761 $ 1,473 $ ( 694 ) $ 779

Amortization expense related to intangible assets was $ 115 million for fiscal 2025 and 2024 and $ 125 million for fiscal 2023.

During fiscal 2026, the gross carrying value of intangible assets increased by $ 99 million primarily due to the acquisition of SilverEdge (see Note 4—Acquisitions for additional information).

Amortization expense related to intangible assets was $ 119 million for fiscal 2026 and $ 115 million for fiscal 2025 and 2024.

There were no impairments of intangible assets during the periods presented.

10 unchanged sentences

Estimated useful lives (in years) January 30,

2025 February 2,

2026 January 31,

(in millions)

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Capitalized software

Straight-line or

declining balance 3- 6

Straight-line

Leasehold improvements Straight-line Shorter of lease term or 12

Office furniture and fixtures Straight-line or

declining balance 4 - 10

Office furniture and fixtures Straight-line

Buildings and improvements Straight-line 40 7 7

7 unchanged sentences

As of January 30, 2026, the Company had stock-based compensation awards outstanding under the following plans:

“2023 Equity Incentive Plan” ("2023 EIP"), “2013 Equity Incentive Plan” ("2013 EIP"), “Management Stock Compensation Plan”, and the “Amended and Restated 2013 Employee Stock Purchase Plan” ("ESPP") which are herein referred to together as the “Plans.” The Company issues new shares on the vesting of stock awards or exercise of stock options under these Plans.

“2023 Equity Incentive Plan” ("2023 EIP"), “2013 Equity Incentive Plan” ("2013 EIP"), “Management Stock Compensation Plan” ("MSCP"), "Key Executive Stock Deferral Plan" ("KESDP"), and the “Amended and Restated 2013 Employee Stock Purchase Plan” ("ESPP") which are herein referred to together as the “Plans.” The Company issues new shares on the vesting of stock awards or exercise of stock options under these Plans.

During fiscal year 2024, the Company terminated the Third Amended and Restated 2012 Long Term Performance Plan ("LTPP") and deregistered all remaining unissued shares thereunder.

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As of January 30, 2026, the total authorized shares of common stock for issuance under the 2023 EIP is 1.5 million.

SCIENCE APPLICATIONS INTERNATIONAL CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

The 2023 EIP and 2013 EIP both provide the Company’s employees and directors the opportunity to receive various types of stock-based compensation and cash awards.

The terms of the stock-based awards granted to employees and directors are the same, except that those for directors cliff vest within one year of the grant date.

As of January 31, 2025, the Company has unvested stock and performance share awards under the 2023 EIP and 2013 EIP and outstanding stock options under the 2013 EIP.

As of January 30, 2026, the Company has unvested stock awards under the 2023 EIP and 2013 EIP, unvested performance shares under the 2023 EIP, and outstanding stock options under the 2013 EIP.

Vesting stock awards granted in fiscal 2020 and thereafter generally vest equally over three years, while vesting stock awards granted prior to fiscal 2020 generally vest equally over four years.

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The maximum contractual term for stock options is ten years , but historically the Company has granted stock options with a seven-year contractual term.

As of January 30, 2026, remaining stock options expected to be exercised are immaterial.

The requisite service period for stock-based awards is accelerated for employees meeting certain retirement eligibility conditions.

Certain officers are eligible for continued vesting of previously granted awards upon termination of employment or voluntary retirement, subject to the conditions set forth in the Company’s Executive Severance, Change in Control and Retirement Policy effective July 1, 2020.

Certain officers are eligible for continued vesting of previously granted awards upon termination of employment or voluntary retirement, subject to the conditions set forth in the Company’s

SCIENCE APPLICATIONS INTERNATIONAL CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Executive Severance, Change in Control and Retirement Policy effective September 5, 2023.

Stock-based awards generally provide for accelerated vesting if there is a change in control (as defined in the 2023 EIP and 2013 EIP, as applicable).

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Performance shares are rights to receive shares of the Company’s stock upon satisfaction of certain requirements.

Performance-based stock awards granted prior to fiscal 2022 include service and performance conditions.

Performance-based stock awards granted in fiscal 2022 and thereafter also include market conditions.

For performance-based stock awards granted prior to fiscal 2023, the performance metrics are based on annual operating cash flows and a three year cumulative measure of earnings.

Performance-based stock awards include service, performance, and market conditions.

For performance-based stock awards granted in fiscal 2023 and thereafter, the performance metrics are based on three year cumulative operating cash flows and a three year cumulative measure of earnings.

The market conditions for awards granted in fiscal 2022 and thereafter are based on the Company's total shareholder return over the three year performance period as compared to the total shareholder return for a specified group of companies over the same period.

The market conditions are based on the Company's total shareholder return over the three year performance period as compared to the total shareholder return for a specified group of companies over the same period.

These awards cliff vest at the end of the third fiscal year following the grant date, subject to meeting the minimum service requirements and the achievement of the Company’s performance metrics and market conditions, with the number of shares ultimately issued, if any, ranging up to 200 % of the specified target shares.

If performance is below a minimum threshold level of performance, no shares will be issued.

The Management Stock Compensation Plan provides for awards in share units to eligible employees.

The Science Applications International Corporation KESDP was closed on December 31, 2014, and no further deferrals are allowed.

Benefits from the KESDP are payable in shares of the Company’s stock that may be held in trust for the purpose of funding benefit payments to KESDP participants.

The MSCP provides for awards in share units to eligible employees.

Benefits are payable in shares of the Company’s stock that are held in a trust for the purpose of funding benefit payments to the participants.

During fiscal 2017, all remaining outstanding awards in the Management Stock Compensation Plan vested.

The Board of Directors may at any time amend or terminate the Management Stock Compensation Plan.

In the event of a change in control of the Company (as defined by the Management Stock Compensation Plan), participant accounts will be immediately distributed, otherwise participant accounts will generally be distributed upon retirement based on the participant’s payout election, or upon termination.

The Management Stock Compensation Plan does not provide for a maximum number of shares available for future issuance.

During fiscal 2017, all remaining outstanding awards in the MSCP vested.

Vested deferred balances in both plans are paid on retirement based on the participant’s payout election, or upon termination.

On June 7, 2023, the Company’s stockholders approved an amended and restated ESPP which limits the total number of shares reserved for issuance to 2.0 million and extends the plan’s expiration date from September 26, 2023 to the earlier of its termination by the Board of Directors or the issuance of all shares available for issuance thereunder.

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As of January 30, 2026, 1.5 million shares of the Company’s common stock are authorized for issuance under the ESPP.

The LTPP provides certain employees of the Company the opportunity to receive various types of stock-based compensation awards.

Vesting stock awards issued under the LTPP generally cliff vest at the end of the third fiscal year following the grant date.

Vesting may be accelerated for employees meeting retirement eligibility conditions.

Vesting stock awards under the LTPP have forfeitable rights to dividends.

SCIENCE APPLICATIONS INTERNATIONAL CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Expense and Related Tax Benefits Recognized

Stock-based compensation expense and related tax benefits recognized under the Plans were:

2025 February 2,

2026 January 31,

2025 February 2,

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Tax benefits recognized from stock-based compensation $ 18 $ 18 $ 25

The Company did not have stock-based compensation expense for stock options for fiscal 2025.

Stock-based compensation expense for stock options was not material for fiscal 2024 and 2023.

The Company did not have stock-based compensation expense for stock options for fiscal 2026 or fiscal 2025.

Stock-based compensation expense for stock options was not material for fiscal 2024.

SCIENCE APPLICATIONS INTERNATIONAL CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Vesting Stock Awards

Vesting stock award activity for the year ended January 31, 2025 was:

Vesting stock award activity for the fiscal year ended January 30, 2026 was:

Shares of stock under vesting stock awards Weighted-average grant date fair value

(in millions)

Unvested at February 2, 2024 0.9 $ 100.51

Unvested at January 31, 2025 0.7 $ 115.43

Awards granted 0.5 109.06

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(in millions)

Unvested at February 2, 2024 0.5 $ 112.86

Unvested at January 31, 2025 0.3 $ 116.97

Awards granted 0.2 136.72

3 unchanged sentences

Unvested at January 30, 2026 0.2 $ 137.76

SCIENCE APPLICATIONS INTERNATIONAL CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

The actual number of shares to be issued upon vesting range between 0 - 200 % of the specified target shares.

The actual number of shares to be issued upon vesting ranges between 0 - 200 % of the specified target shares.

In the table above, the number of performance shares are presented at 100 % of the specified target shares, except for awards that vested and the performance adjustment.

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The primary assumptions included an expected volatility of 27.73 %, 24.16 %, and 27.35 % for fiscal 2026, 2025 and 2024, respectively, and a risk-free interest rate of 3.59 %, 4.46 % and 3.68 % for fiscal 2026, 2025 and 2024, respectively.

The expected volatility was based on the historical volatility of the Company over a period commensurate with the expected term of the award as of the date of grant.

The expected volatility was based on the historical volatility of the Company's stock price over a period commensurate with the expected term of the award as of the date of grant.

The risk-free interest rate was based on the yield curve of a zero-coupon U.S.

Treasury bond with a maturity equal to the expected term of the award on the date of grant.

The fair value of performance share awards that vested in fiscal 2025 was $ 18 million.

As of January 31, 2025 there was $ 19 million of unrecognized compensation cost, net of estimated forfeitures, related to performance share awards, which is expected to be recognized over a weighted-average period of 1.7 years.

Stock Options

Stock options are granted with their exercise price equal to the closing market price of the Company’s common stock on the last trading day preceding the grant date.

Stock option activity for the year ended January 31, 2025 was:

Shares of stock under stock options Weighted-average exercise price Weighted-average remaining contractual term Aggregate intrinsic value

(in millions) (in years) (in millions)

Outstanding at February 2, 2024 0.1 $ 77.85 2.2 $ 6

Options exercised — 77.28

Outstanding at January 31, 2025 0.1 $ 78.10 1.4 $ 2

Exercisable at January 31, 2025 0.1 $ 78.10 1.4 $ 2

Vested and expected to vest at January 31, 2025 0.1 $ 78.10 1.4 $ 2

As of January 31, 2025, the unrecognized compensation cost, net of estimated forfeitures, related to stock options was not material.

The following table summarizes activity related to exercises of stock options:

2025 February 2,

2024 February 3,

(in millions)

Cash received from exercises of stock options $ 1 $ — $ —

Stock exchanged at fair value upon exercises of stock options $ — $ 1 $ 1

Tax benefits from exercises of stock options $ — $ 1 $ 1

Total intrinsic value of options exercised $ 2 $ 9 $ 8

SCIENCE APPLICATIONS INTERNATIONAL CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

The fair value of performance share awards that vested in fiscal 2026 was $ 17 million.

As of January 30, 2026 there was $ 10 million of unrecognized compensation cost, net of estimated forfeitures, related to performance share awards, which is expected to be recognized over a weighted-average period of 1.6 years.

Note 9—Retirement Plans:

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Deferred Compensation Plans

The Company maintains the Science Applications International Corporation Deferred Compensation Plan ("DCP") which provides certain eligible employees and directors an opportunity to defer some or all of their compensation on an unfunded, nonqualified basis.

The Company maintains the Science Applications International Corporation Deferred Compensation Plan ("DCP") which provides certain eligible employees and directors with an opportunity to defer some or all of their compensation on an unfunded, nonqualified basis.

Participant deferrals are fully vested and diversified at the participant’s direction among the investment options offered under the DCP.

3 unchanged sentences

The Company may provide discretionary contributions to participants, but no Company contributions have been made.

The Science Applications International Corporation Key Executive Stock Deferral Plan ("KESDP") was closed on December 31, 2014, and no further deferrals are allowed.

Benefits from the KESDP are payable in shares of the Company’s stock that may be held in trust for the purpose of funding benefit payments to KESDP participants.

Vested deferred balances are paid on retirement based on the participant’s payout election, or upon termination.

The Science Applications International Corporation 401(k) Excess Deferral Plan ("Excess Plan") was also closed on December 31, 2014, and no further deferrals are allowed.

5 unchanged sentences

a Defined Benefit Pension Plan ("Pension Plan") and a Retiree Health Reimbursement Account Plan ("RHRA Benefit Plan").

Membership and participants' calculated pension benefit are frozen in the Pension Plan and membership in the RHRA Benefit Plan is frozen.

The Company's funding policy is to contribute at least the minimum amount required by the Employee Retirement Income Security Act of 1974.

Additional amounts are contributed to assure that plan assets will be adequate to provide retirement benefits.

During fiscal 2026, the Company expects to contribute $ 3 million to fund the Pension Plan and $ 1 million to fund the RHRA Benefit Plan, respectively.

During fiscal 2025 and 2024, the Company recognized a net gain of $ 3 million and $ 1 million, respectively, on its retirement plans within other comprehensive income primarily due to an increase in discount rates and the difference between actual investment return and expected return.

During fiscal 2023, the Company recognized a net gain of $ 4 million on its retirement plans within other comprehensive income.

The gain was comprised of a $ 10 million gain due to an increase in discount rates, partially offset by a $ 6 million loss due to the difference between actual investment return and expected return.

SCIENCE APPLICATIONS INTERNATIONAL CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Net Periodic Benefit Cost

The net periodic benefit (income) cost was as follows:

Pension Plan RHRA Benefit Plan

January 31, 2025 February 2, 2024 February 3, 2023 January 31, 2025 February 2, 2024 February 3, 2023

(in millions)

Interest cost on projected benefit obligation $ 2 $ 2 $ 2 $ 1 $ 1 $ —

Expected return on plan assets ( 2 ) ( 2 ) ( 3 ) — — —

Amortization of (gain) loss

— — — ( 1 ) ( 1 ) —

Net periodic benefit (income) cost $ — $ — $ ( 1 ) $ — $ — $ —

Membership and participants' calculated pension benefits are frozen in the Pension Plan and membership in the RHRA Benefit Plan is frozen.

Obligations and Funded Status

The projected benefit obligation, fair value of plan assets and funded status for each plan are as follows:

Pension Plan RHRA Benefit Plan

January 31, 2025 February 2, 2024 January 31, 2025 February 2, 2024

(in millions)

Change in benefit obligation:

Benefit obligation at beginning of year $ 49 $ 52 $ 10 $ 10

Interest cost 2 2 1 1

Benefits paid ( 5 ) ( 4 ) ( 1 ) ( 1 )

Actuarial gain — ( 1 ) ( 3 ) —

Benefit obligation at end of year $ 46 $ 49 $ 7 $ 10

Change in plan assets:

Fair value of plan assets at beginning of year 45 46 — —

Actual return on plan assets 4 3 — —

Employer contributions — — 1 1

Benefits paid ( 5 ) ( 4 ) ( 1 ) ( 1 )

Fair value of plan assets at end of year $ 44 $ 45 $ — $ —

Unfunded status $ 2 $ 4 $ 7 $ 10

Amounts recognized in the consolidated balance sheets consist of:

Pension Plan RHRA Benefit Plan

January 31, 2025 February 2, 2024 January 31, 2025 February 2, 2024

(in millions)

Other accrued liabilities $ — $ — $ 1 $ 1

Other long-term liabilities 2 4 6 9

Net amount recognized $ 2 $ 4 $ 7 $ 10

The Company uses the spot rate approach to measure liabilities and interest costs for defined benefit obligations.

Under the spot rate approach, the Company uses individual spot rates along the yield curve that correspond with the timing of each benefit payment.

The projected benefit obligation of the Pension Plan was $ 45 million and $ 46 million as of January 30, 2026 and January 31, 2025, respectively, and the fair value of the Pension Plan assets was $ 47 million and $ 44 million as of January 30, 2026 and January 31, 2025, respectively.

The Pension Plan funded status was overfunded $ 2 million and underfunded $ 2 million as of January 30, 2026 and January 31, 2025, respectively.

The projected benefit obligation and underfunded status of the RHRA Benefit Plan was $ 7 million as of January 30, 2026 and January 31, 2025.

The funded status of the Defined Benefit Plans is included in “Other assets,” “Other accrued liabilities,” and “Other long-term liabilities” on the consolidated balance sheets.

SCIENCE APPLICATIONS INTERNATIONAL CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

The Company uses the spot rate approach to measure liabilities and interest costs for defined benefit obligations.

Under the spot rate approach, the Company uses individual spot rates along the yield curve that corresponds with the timing of each benefit payment.

The discount rates represent the estimated rate at which the Company could effectively settle its defined benefit obligations using a high-quality bond yield curve.

4 unchanged sentences

Pension Plan RHRA Benefit Plan

January 31, 2025 February 2, 2024 February 3, 2023 January 31, 2025 February 2, 2024 February 3, 2023

January 30, 2026 January 31, 2025 February 2, 2024 January 30, 2026 January 31, 2025 February 2, 2024

Discount rate 5.21 % 5.50 % 5.16 % 4.85 % 5.29 % 5.08 %

3 unchanged sentences

The Company's investment policy includes a periodic review of the Pension Plan's investment in the various asset classes.

During fiscal 2025, the Company's overall investment strategy was for plan assets to achieve a long-term rate of return of 5.25 %, with a wide diversification of asset types, fund strategies and fund managers.

The target allocation for the plan assets is 44 % in domestic equity securities, 20 % international equity securities, 31 % in fixed income securities and 5 % in cash and cash equivalents.

The risk management practices include regular evaluations of fund managers to ensure the risk assumed is commensurate with the given investment style and objectives.

Risk management practices include regular evaluations of fund managers to ensure the risk assumed is commensurate with the given investment style and objectives.

According to the plan's investment policy, performance will be evaluated across all time periods with a particular emphasis on longer-term returns relative to associated peers and benchmarks.

During fiscal 2026, management approved and implemented a glide path asset allocation strategy that is designed to achieve and maintain a fully funded status, balancing Company contribution requirements with potential market risks.

The glide path strategy provides for a variable asset allocation that is more heavily weighted toward fixed income securities as the Pension Plan’s funding percentage increases.

The fair value measurement of plan assets by category is as follows:

Asset Category Fair Value Hierarchy January 31, 2025 February 2, 2024

Asset Category Fair Value Hierarchy January 30, 2026 January 31, 2025

(in millions)

1 unchanged sentence

Fixed income Level 1 40 7

Collective trust - fixed income

Collective trust - fixed income Level 2 — 7

Guaranteed deposit account Level 3 2 1

Total $ 47 $ 44

SCIENCE APPLICATIONS INTERNATIONAL CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Fair Value Measurement Using Significant Unobservable Inputs (Level 3)

A reconciliation of the beginning and ending balances of the Guaranteed Deposit Account ("GDA") is as follows:

Guaranteed Deposit Account

(in millions)

Balance at February 3, 2023

Balance at February 2, 2024

Balance at January 31, 2025

The GDA is designed to provide liquidity and safety of principal with a competitive guaranteed rate of return.

The fair value of the GDA approximates the market value of underlying investments by discounting expected future investment cash flow from both investment income and repayment of principal for each investment purchased directly for the defined benefit segment of the General Account.

Principal and accumulated interest are fully guaranteed by Prudential Retirement Insurance and Annuity Company ("PRIAC").

The declared interest rate is announced each year in advance and is determined by PRIAC.

The GDA invests in a broadly diversified, fixed-income portfolio within PRIAC's general account.

The portfolio is invested in public bonds, commercial mortgages and private placement bonds.

Estimated Future Benefit Payments

4 unchanged sentences

Five subsequent fiscal years $ 18 $ 2 $ 20

SCIENCE APPLICATIONS INTERNATIONAL CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Note 10—Income Taxes:

1 unchanged sentence

The provision for income taxes for each of the periods presented include the following:

2025 February 2,

2026 January 31,

2025 February 2,

5 unchanged sentences

Total $ 29 $ 66 $ 143

A reconciliation of the provision for income taxes to the amount computed by applying the statutory federal income tax rate to income before income taxes for each of the periods presented was as follows:

2025 February 2,

A reconciliation of the provision for income taxes to the amount computed by applying the statutory federal income tax rate to income before income taxes is as follows, in accordance with prospective adoption of ASU 2023-09:

January 30, 2026

(dollars in millions)

Amount computed at the statutory federal income tax rate

State income taxes, net of federal income tax effect (1)

Research and development credits

( 10 ) ( 2.5 ) %

Other credits

( 1 ) ( 0.4 ) %

Non-taxable or non-deductible items

Non-deductible compensation

( 1 ) ( 0.2 ) %

Changes in unrecognized tax benefits

( 57 ) ( 14.8 ) %

( 3 ) ( 0.7 ) %

Effective income tax rate

(1) State taxes in Virginia and Texas contributed to the majority (greater than 50 percent) of the tax effect in this category.

SCIENCE APPLICATIONS INTERNATIONAL CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

2025 February 2,

(in millions)

(dollars in millions)

Amount computed at the statutory federal income tax rate $ 90 $ 130

7 unchanged sentences

Effective income tax rate 15.5 % 23.1 %

The effective income tax rate for fiscal 2025 is lower than the rate in fiscal 2024 primarily due to the gain from the divestiture of the Supply Chain Business and the associated non-deductible goodwill in the prior year.

The effective income tax rate for fiscal 2026 is lower than the rate for fiscal 2025 primarily due to a $ 47 million benefit from an IRS audit settlement, pending final administrative approvals, covering fiscal years 2016 through 2019, and adjustments in liabilities for uncertain tax positions for the remaining open tax years.

Income taxes paid (net of refunds) consisted of the following:

January 30, 2026

(in millions)

State and Local

Total cash paid for income taxes, net of refunds $ 22

Income taxes paid were $ 66 million and $ 165 million for the years ended January 31, 2025 and February 2, 2024, respectively.

SCIENCE APPLICATIONS INTERNATIONAL CORPORATION

2 unchanged sentences

Deferred tax assets (liabilities) were comprised of:

2025 February 2,

2026 January 31,

(in millions)

Accrued vacation and bonuses $ 25 $ 27

Accrued liabilities 12 12

Deferred compensation 20 20

Stock awards 8 8

Net operating loss and other carryforwards 155 61

Fixed asset basis difference — 1

Lease liability 55 48

3 unchanged sentences

Deferred revenue ( 31 ) ( 40 )

Payroll tax deferral ( 2 ) ( 2 )

Fixed asset basis difference ( 3 ) —

Purchased intangible assets ( 297 ) ( 302 )

Right of use assets ( 48 ) ( 41 )

Accumulated other comprehensive income ( 2 ) ( 4 )

Total deferred tax liabilities ( 388 ) ( 390 )

Net deferred tax (liabilities) assets $ ( 104 ) $ ( 24 )

$ ( 24 ) $ ( 28 )

Deferred tax assets for both periods include state tax credit carryforwards for which the Company has set up a valuation allowance.

As of January 30, 2026, the Company has approximately $ 138 million of tax effected federal loss carryforwards, $ 9 million of tax effected state loss carryforwards and approximately $ 8 million of state credit carryforwards that will begin to expire in fiscal 2027.

The valuation allowance of $ 7 million at January 30, 2026 relates to these state credit carryforwards.

The changes in the unrecognized tax benefits were:

2025 February 2,

2026 January 31,

2025 February 2,

4 unchanged sentences

Reductions for tax positions related to prior years ( 46 ) ( 8 ) ( 59 )

( 8 ) ( 59 ) —

Reductions for settlements with taxing authorities

Reductions for prior year tax positions related to statute expiration ( 5 ) ( 14 ) ( 8 )

Unrecognized tax benefits at end of the year, excluding accrued interest and penalties $ 48 $ 110 $ 117

$ 110 $ 117 $ 158

Unrecognized tax benefits that, if recognized, would affect the effective income tax rate $ 43 $ 104 $ 111

Accrued interest and penalties $ 7 $ 17 $ 13

$ 17 $ 13 $ 8

The Company includes net interest and penalties as a component of income tax expense.

The Company files income tax returns in the United States and various foreign jurisdictions which may be subject to routine compliance reviews by the IRS and other taxing authorities.

While the Company believes it has recorded appropriate accruals for uncertain tax positions in accordance with applicable accounting guidance, it is possible that tax authorities may assess additional taxes beyond the amounts accrued or that the recorded accruals could

SCIENCE APPLICATIONS INTERNATIONAL CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

The Company has filed income tax returns in the U.S.

and in various foreign jurisdictions, which may be subject to routine compliance reviews by the IRS and other taxing authorities.

While the Company believes it has recorded adequate accruals for uncertain tax positions, the tax authorities may determine that the Company owes taxes in excess of recorded accruals or the recorded accruals may be in excess of the final settlement amounts agreed to by tax authorities.

The Company’s tax returns for fiscal years 2016 through 2019 and 2022 through 2024 remain subject to examination by the IRS and various other tax jurisdictions.

The Company is currently under examination by the IRS for fiscal years 2016 through 2019.

As of January 31, 2025, the Company has approximately $ 47 million of tax effected federal loss carryforwards, $ 6 million of tax effected state loss carryforwards and approximately $ 8 million of state credit carryforwards that will begin to expire in fiscal 2026.

The valuation allowance of $ 7 million at January 31, 2025 relates to these state credit carryforwards.

exceed the final settlement amounts reached with those authorities.

The audit of the Company’s federal income tax returns for fiscal years 2016 through 2019 has been effectively settled, pending final administrative approvals from the IRS.

Tax years 2023 through 2025 remain open and subject to examination by the IRS and other foreign and domestic taxing jurisdictions.

Note 11—Debt Obligations :

The Company’s debt as of the periods presented was as follows:

January 31, 2025 February 2, 2024

January 30, 2026 January 31, 2025

Stated interest rate Effective interest rate Principal Unamortized debt issuance costs Net Principal Unamortized debt issuance costs Net

1 unchanged sentence

Term Loan A Facility due June 2027 — % — % $ — $ — $ — $ 1,122 $ ( 2 ) $ 1,120

Term Loan B Facility due October 2025 — % — % — — — 328 ( 1 ) 327

Term Loan B2 Facility due March 2027 — % — % — — — 182 ( 2 ) 180

Term Loan B3 Facility due February 2031

Term Loan A Facility due September 2030

5.07 % 5.15 % 1,100 ( 3 ) 1,097 — — —

Term Loan B3 Facility due February 2031 5.57 % 5.71 % 501 ( 3 ) 498 506 ( 3 ) 503

Senior Notes due April 2028 4.88 % 5.11 % 400 ( 2 ) 398 400 ( 3 ) 397

Revolving Credit Facility due June 2027 (1)

Senior Notes due November 2033

5.88 % 6.09 % 500 ( 6 ) 494 — — —

Revolving Credit Facility due June 2027

— % — % — — — 200 — 200

Total debt $ 2,501 $ ( 14 ) $ 2,487 $ 2,228 $ ( 8 ) $ 2,220

Less current portion 19 — 19 313 — 313

313 — 313 77 — 77

Total debt, net of current portion $ 2,482 $ ( 14 ) $ 2,468 $ 1,915 $ ( 8 ) $ 1,907

$ 1,915 $ ( 8 ) $ 1,907 $ 2,032 $ ( 10 ) $ 2,022

(1) The stated interest rate for the Revolving Credit Facility due June 2027 reflects the weighted-average interest rate for the outstanding borrowings as of January 31, 2025.

As of January 31, 2025, the Company has a $ 2.6 billion secured credit facility (the "Credit Facility") consisting of a Term Loan A Facility due June 2027, a Term Loan B3 Facility due February 2031 (together, the "Term Loan Facilities"), and a $ 1.0 billion secured Revolving Credit Facility due June 2027 (the "Revolving Credit Facility").

Credit Facility

As of January 30, 2026, the Company had a $ 2.6 billion secured credit facility (the "Credit Facility") consisting of a Term Loan A Facility due September 2030, a Term Loan B3 Facility due February 2031 (together, the "Term Loan Facilities"), and a $ 1.0 billion secured Revolving Credit Facility due September 2030 (the "Revolving Credit Facility").

The Company's Third Amended and Restated Credit Agreement ("Third Amended Credit Agreement") contains certain restrictive covenants applicable to the Company and its subsidiaries including a requirement to maintain a Senior Secured Leverage Ratio (as defined in the Third Amended Credit Agreement) of not greater than 4.00 to 1.00, unless a Permitted Acquisition (as defined in the Third Amended Credit Agreement) occurs in which case not greater than 4.25 to 1.00 for three consecutive quarters following such a transaction.

Prior to being paid off in fiscal 2025, borrowings under the Term Loan B Facility due October 2025 and the Term Loan B2 Facility due March 2027 amortized quarterly at 0.25 % of the original borrowed amounts.

On March 1, 2021, the Company executed the Third Amendment to the Third Amended and Restated Credit Agreement, which reduced the applicable margin for the Term Loan B2 Facility due March 2027 for LIBOR loans from 2.25 % to 1.875 % and for base rate loans from 1.25 % to 0.875 %.

SCIENCE APPLICATIONS INTERNATIONAL CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

On July 2, 2021, the Company executed the Fourth Amendment to the Third Amended and Restated Credit Agreement, which established a new senior secured incremental term loan credit facility commitment in the amount of $ 100 million (the "Term Loan A2 Facility due October 2023").

On June 30, 2022, the Company executed the Fifth Amendment to the Third Amended and Restated Credit Agreement ("Fifth Amendment"), which established, among other things, a $ 1,230 million senior secured term loan credit facility ("Term Loan A Facility due June 2027") and increased the Revolving Credit Facility commitment from $ 400 million to $ 1,000 million.

The entire Term Loan A Facility due June 2027 was immediately borrowed by the Company and the proceeds were used to pay in full the outstanding principal balances under the Term Loan A Facility due October 2023 and Term Loan A2 Facility due October 2023 and to prepay $ 400 million of principal on the Term Loan B Facility due October 2025.

Borrowings under the Term Loan A Facility due June 2027 amortize quarterly beginning on October 31, 2023 at 1.250 % of the original borrowed amount thereunder, with such quarterly amortization increasing to 1.875 % on October 31, 2024 and to 2.500 % on October 31, 2025.

The Term Loan A Facility due June 2027 may be prepaid at any time without penalty and is subject to the same mandatory prepayments, including from excess cash flow, as the Company’s existing term loans under the Credit Facility.

As a result of the Fifth Amendment, the maturity date for the Revolving Credit Facility was extended to, and the maturity date of the Term Loan A Facility due June 2027 is, the earlier of June 30, 2027 or 91 days prior to the earliest term loan “B” facility maturity date (subject to acceleration in certain circumstances).

The Term Loan A Facility due June 2027 is secured by substantially all of the assets of the Company and the Company’s wholly owned domestic subsidiaries, and is guaranteed by each of the Company’s wholly owned domestic subsidiaries.

The Term Loan A Facility due June 2027 is subject to the same covenants and events of default as the Company’s existing term loans under the Credit Facility.

Effective with the Fifth Amendment, all interest rates under the Credit Facility transitioned from LIBOR to Term Secured Overnight Financing Rate ("Term SOFR") plus 0.10 % for US dollar denominated loans, Sterling Overnight Index Average ("SONIA") for UK pound sterling denominated loans, and Euro Interbank Offered Rate ("EURIBOR") for Euro denominated loans.

The applicable interest rate margins under the Term Loan A Facility due June 2027 and the Revolving Credit Facility were reduced to a range from 0.75 % to 1.75 % per annum for Term SOFR, SONIA and EURIBOR loans, and from 0 % to 0.75 % per annum for base rate loans, in each case based on the Company’s leverage ratio.

Commitment fees for undrawn amounts under the Revolving Credit Facility were also reduced to a range of 0.125 % to 0.25 % per annum based on the Company’s leverage ratio.

During fiscal 2024, the Company incurred $ 8 million of debt issuance costs associated with the Fifth Amendment, of which $ 2 million was recognized in interest expense, with the remaining $ 6 million deferred and amortized to interest expense through the maturity dates of the facilities utilizing the effective interest rate method.

On February 8, 2024, the Company executed the Sixth Amendment to the Third Amended and Restated Credit Agreement ("Sixth Amendment"), which established a $ 510 million senior secured term loan credit facility ("Term Loan B3 Facility due February 2031").

The entire Term Loan B3 Facility due February 2031 was immediately borrowed by the Company and the proceeds were used to pay in full the outstanding principal balances under the Term Loan B Facility due October 2025 and Term Loan B2 Facility due March 2027.

The Tranche B3 Facility due February 2031 is subject to the same covenants and events of default as the Company's existing Term Loan Facilities.

On October 18, 2024, the Company executed the Seventh Amendment to the Third Amended and Restated Credit Agreement ("Seventh Amendment"), which lowered the applicable margin for the Term Loan B3 Facility due February 2031 from 1.875 % to 1.750 % for Term SOFR loans and from 0.875 % to 0.750 % for base rate loans.

In the event any portion of the Term Loan B3 Facility due February 2031 is repaid prior to April 18, 2025 as a result of a repricing event, the Company will be required to pay a 1.00 % fee of the amount repaid.

After April 18, 2025, the Term Loan B3 Facility due February 2031 may be prepaid at any time without penalty and is subject to the same mandatory prepayments, including from excess cash flow, as the Company’s existing term loans under the Credit Facility.

In fiscal 2025, the Company issued a $ 510 million senior secured term loan credit facility ("Term Loan B3 Facility due February 2031") which is subject to the same covenants and events of default as the Company's existing Term Loan Facilities.

The entire Term Loan B3 Facility due February 2031 was immediately borrowed by the Company and used to settle outstanding term loan facilities.

The Term Loan B3 Facility due February 2031 bears interest at a variable rate of interest equal to a base rate or a Secured Overnight Financing Rate ("SOFR") rate, plus the applicable interest rate margin of 0.75 % for base rate loans and 1.75 % for SOFR rate loans.

Borrowings under the Term Loan B3 Facility due February 2031 amortize quarterly beginning on July 31, 2024 at 0.25 % of the original borrowed amount with the remaining unamortized balance due in full upon its maturity on February 8, 2031 and may be prepaid at any time without penalty and is subject to the same mandatory prepayments, including from excess cash flow, as the Company’s existing term loans under the Credit Facility.

During fiscal 2025, the Company incurred $ 6 million of debt issuance costs, of which $ 4 million was recognized in interest expense and the remaining $ 2 million deferred and amortized to interest expense through the maturity date of the Term Loan B3 Facility due 2031 utilizing the effective interest rate method.

SCIENCE APPLICATIONS INTERNATIONAL CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

During fiscal 2025, the Company incurred $ 6 million of debt issuance costs associated with the Sixth and Seventh Amendments, of which $ 4 million was recognized in interest expense and the remaining $ 2 million deferred and amortized to interest expense through the maturity date of the facility utilizing the effective interest rate method.

On September 30, 2025, the Company executed the Eighth Amendment to the Third Amended and Restated Credit Agreement ("Eighth Amendment"), which established a new $ 1.1 billion senior secured term loan credit facility due on September 30, 2030 ("Term Loan A Facility due September 2030").

The entire Term Loan A Facility due September 2030 was immediately borrowed by the Company and the proceeds were used to pay in full the outstanding principal balance and accrued interest under the Term Loan A Facility due June 2027, transaction related fees and expenses, and for general corporate purposes.

The Term Loan A Facility due September 2030 is secured by substantially all of the assets of the Company and the Company’s wholly owned domestic subsidiaries, and is guaranteed by each of the Company’s wholly owned domestic subsidiaries.

The Term Loan A Facility due September 2030 is subject to the same covenants and events of default as the Company’s existing term loans under the Credit Facility.

Borrowings under the Term Loan A Facility due September 2030 amortize quarterly beginning on October 31, 2026 at 0.625 % of the original borrowed amount, with such quarterly amortization increasing to 1.25 % on October 31, 2027, and to 1.875 % on October 31, 2028, with the remaining unamortized balance due in full upon maturity.

The Term Loan A Facility due September 2030 may be prepaid at any time without penalty and is subject to the same mandatory prepayments, including from excess cash flow, as the Company’s existing term loans under the Credit Facility.

The Eighth Amendment also established a new $ 1.0 billion revolving credit facility with a termination date of September 30, 2030 ("Revolving Credit Facility due September 2030") that replaced the Revolving Credit Facility due June 2027.

The Term Loan A Facility due September 2030 and the Revolving Credit Facility due September 2030 bear interest at a variable rate of interest equal to a base rate or a Secured Overnight Financing Rate (SOFR) rate, plus the applicable interest rate margin of 0 % to 0.75 % for base rate loans and 0.75 % to 1.75 % for SOFR rate loans, dependent on the Company’s leverage ratio.

The Eighth Amendment eliminated the 0.10 % credit spread adjustment used in the calculation of SOFR rate loans on the Term Loan A Facility due 2027 and the Revolving Credit Facility due June 2027.

The scheduled principal repayments for the Term Loan Facilities may be reduced or eliminated by annual mandatory prepayments of a portion of the Company’s Excess Cash Flow (as defined in the Third Amended Credit Agreement).

1 unchanged sentence

During fiscal 2026, the Company made scheduled principal repayments of $ 46 million and $ 5 million on the Term Loan A Facility due June 2027 and the Term Loan B3 Facility due February 2031, respectively.

During fiscal 2025, the Company made scheduled principal repayments of $ 77 million and $ 4 million on the Term Loan A Facility due June 2027 and the Term Loan B3 Facility due February 2031, respectively.

During fiscal 2024, the Company made scheduled principal repayments of $ 31 million on the Term Loan A Facility due June 2027 and voluntary principal prepayments of $ 160 million and $ 90 million on the Term Loan B Facility due October 2025 and the Term Loan B2 Facility due March 2027, respectively.

During fiscal 2024, the Company wrote off deferred debt issuance costs of $ 2 million associated with the voluntary principal prepayments which were recognized in interest expense.

During fiscal 2025 and fiscal 2024, the Company borrowed $ 1.4 billion and $ 160 million and repaid $ 1.2 billion and $ 160 million under the Revolving Credit Facility, respectively.

As of January 31, 2025, the outstanding principal under the Revolving Credit Facility was classified as current portion of debt on the consolidated balance sheets.

Subsequent to year end, the Company repaid $ 100 million of the outstanding principal under the Revolving Credit Facility.

Any obligations under the Credit Facility are secured by liens on substantially all of the assets of the Company and its subsidiaries.

The Revolving Credit Facility is available to the Company through June 2027.

The Company made no principal repayments on the Term Loan A Facility due 2030 in the periods presented.

During fiscal 2026, 2025, and 2024, the Company borrowed $ 1.9 billion, $ 1.4 billion, and $ 160 million and repaid $ 2.1 billion, $ 1.2 billion, and $ 160 million under its revolving credit facilities, respectively.

There was no balance outstanding on the Revolving Credit Facility as of as of January 30, 2026.

Any obligations under the Revolving Credit Facility are secured by liens on substantially all of the assets of the Company and its subsidiaries.

The Revolving Credit Facility is available to the Company through September 2030.

Commitment fees for undrawn amounts under the Revolving Credit Facility range from 0.125 % to 0.25 % per annum based on the Company's leverage ratio.

As of January 30, 2026, the Company was in compliance with the covenants under its Credit Facility.

The Company's Senior Notes due 2028 (the "Senior Notes") have 4.875 % interest payable semi-annually on April 1 and October 1 of each year, and the principal is due April 2028.

SCIENCE APPLICATIONS INTERNATIONAL CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

On September 25, 2025, the Company issued $ 500 million of unsecured 5.875 % Senior Notes due 2033 ("Senior Notes due November 2033") through a private offering.

Proceeds received from the offering were used to repay all indebtedness outstanding under the Revolving Credit Facility due June 2027 and fees and expenses from the offering, with remaining proceeds to be used for general corporate purposes, including working capital to fund growth and strategic projects and transactions.

The Senior Notes due November 2033 were issued pursuant to an indenture, dated September 25, 2025 and are the senior unsecured obligations of the Company and are fully and unconditionally guaranteed by each of the Company’s existing and future domestic subsidiaries that guarantee the Company’s obligations under its credit facilities and certain other indebtedness.

Interest is payable semi-annually on May 1 and November 1 of each year, commencing on May 1, 2026.

The principal is due on November 1, 2033.

At any time prior to November 1, 2028, the Company may redeem some or all of the Senior Notes due November 2033 at a price equal to 100 % of the principal amount, plus accrued and unpaid interest, plus an applicable “make-whole premium.” On or after November 1, 2028, the Company may redeem in whole or in part the Senior Notes due November 2033 at set redemption prices, plus accrued and unpaid interest.

At any time on or prior to November 1, 2028, the Company may redeem up to 40 % of the original aggregate principal amount of the Senior Notes due November 2033 with the net cash proceeds from certain equity offerings at a redemption price equal to 105.875 % of the outstanding principal amount, together with accrued and unpaid interest.

Upon the occurrence of certain events constituting a change of control, the Company may be required to make an offer to repurchase all of the Senior Notes due November 2033 then outstanding at a price equal to 101 % of the principal amount thereof, plus accrued and unpaid interest.

The Company incurred $ 12 million of debt issuance costs associated with the Eighth Amendment and the Senior Notes due November 2033, of which $ 1 million was recognized in interest expense and the remaining $ 11 million deferred and amortized to interest expense through the maturity date of the facility utilizing the effective interest rate method.

The Company's Senior Notes due 2028 have 4.875 % interest payable semi-annually on April 1 and October 1 of each year, and the principal is due April 2028.

Maturities of debt as of January 30, 2026 are:

6 unchanged sentences

Fair Value of Asset (1) at

Notional Amount at January 31, 2025 Pay Fixed Rate Receive Variable Rate Settlement and Termination January 31,

2025 February 2,

(in millions) (in millions)

Pay Fixed Rate Receive Variable Rate Settlement and Termination January 30,

2026 January 31,

(in millions)

Interest rate swaps

3 unchanged sentences

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

The Company is party to fixed interest rate swap instruments that are designated and accounted for as cash flow hedges to manage risks associated with interest rate fluctuations on a portion of the Company’s floating rate debt within the Credit Facility.

The counterparties to all swap agreements are financial institutions.

In fiscal 2026, the Company's interest rate swaps expired.

Prior to the expiration, the Company was party to fixed interest rate swap instruments with a notional value of $ 685 million that were designated and accounted for as cash flow hedges to manage risks associated with interest rate fluctuations on a portion of the Company’s floating rate Credit Facility borrowings.

The counterparties to all swap agreements were financial institutions.

See Note 13—Changes in Accumulated Other Comprehensive Income by Component for the unrealized change in fair values on cash flow hedges recognized in other comprehensive income (loss) and the amounts reclassified from accumulated other comprehensive income (loss) into earnings for the current and comparative periods presented.

During fiscal 2024, Interest Rate Swaps due October 31, 2023 matured which had a notional value of $ 450 million upon maturity.

The Company estimates that it will reclassify $ 6 million of unrealized gains from accumulated other comprehensive income into earnings from January 31, 2025 until the remaining interest rate swaps mature on October 31, 2025.

On June 30, 2022 and in conjunction with the Fifth Amendment, the Company transitioned the variable rate on its interest rate swaps from 1-month LIBOR to 1-month Term SOFR.

Effective with the transition, the Company will pay a fixed rate of 2.96 % on the group of interest rate swaps maturing on October 31, 2025 and paid a fixed rate of 2.36 % on the group interest rate swaps that matured October 31, 2023.

The Company elected to apply the optional expedient in ASC 848, Reference Rate Reform, in connection with transitioning its interest rate swaps from LIBOR to Term SOFR that enabled it to consider the new swaps a continuation of the existing contracts.

As a result, the transition did not have an impact on the Company’s hedge accounting or a material impact to the Company’s consolidated financial statements.

Note 13—Changes in Accumulated Other Comprehensive Income by Component:

3 unchanged sentences

(in millions)

Balance at January 28, 2022 $ ( 38 ) $ 1 $ ( 37 )

Balance at February 3, 2023 $ 18 $ 4 $ 22

Other comprehensive income before reclassifications

Amounts reclassified from accumulated other comprehensive loss 9 — 9

Amounts reclassified from accumulated other comprehensive income

( 24 ) — ( 24 )

Income tax impact 3 ( 1 ) 2

Net other comprehensive income

Net other comprehensive (loss) income

( 7 ) 1 ( 6 )

Balance at February 2, 2024 $ 11 $ 5 $ 16

3 unchanged sentences

Income tax impact 2 ( 1 ) 1

Net other comprehensive loss

Net other comprehensive (loss) income

( 7 ) 3 ( 4 )

Balance at February 2, 2024 $ 11 $ 5 $ 16

Balance at January 31, 2025 $ 4 $ 8 $ 12

Other comprehensive income before reclassifications 1 1 2

2 unchanged sentences

Income tax impact 2 — 2

Net other comprehensive loss ( 7 ) 3 ( 4 )

Net other comprehensive (loss) income

( 4 ) — ( 4 )

Balance at January 30, 2026 $ — $ 8 $ 8

1 unchanged sentence

(2) The amount reclassified from accumulated other comprehensive income (loss) is included in "Other (income) expense, net."

SCIENCE APPLICATIONS INTERNATIONAL CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Note 14—Sale of Receivables:

The Company has a Master Accounts Receivable Purchase Agreement ("MARPA Facility") with MUFG Bank, Ltd.

(the "Purchaser") for the sale of up to a maximum amount of $ 300 million of certain designated eligible receivables with the U.S.

Effective March 31, 2022, the Company amended the MARPA Facility to transition the purchase discount rate defined within the facility agreement from using LIBOR to Term SOFR.

The amendment did not have a material impact on the Company's financial statements.

The Company has a Master Accounts Receivable Purchase Agreement ("MARPA Facility"), for the sale of up to a maximum amount of $ 300 million of certain designated eligible receivables with the U.S.

The receivables sold under the MARPA Facility are without recourse for any U.S.

3 unchanged sentences

The fair value of the sold receivables approximated their book value due to their short-term nature.

SCIENCE APPLICATIONS INTERNATIONAL CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

The Company does not retain an ongoing financial interest in the transferred receivables other than cash collection and administrative services.

The Company estimated that its servicing fee was at fair value and therefore has not recognized a servicing asset or liability as of January 31, 2025 and February 2, 2024.

The Company estimated that its servicing fee was at fair value and therefore has not recognized a servicing asset or liability as of January 30, 2026 and January 31, 2025.

Proceeds from the sale of receivables are reflected as cash flows from operating activities on the consolidated statements of cash flows.

1 unchanged sentence

MARPA Facility activity consisted of the following:

January 31, 2025 February 2, 2024

January 30, 2026 January 31, 2025

(in millions)

2 unchanged sentences

Cash collections ( 4,076 ) ( 4,365 )

Outstanding balance sold to Purchaser (1)

Cash collected, not remitted to Purchaser (2)

Outstanding balance sold (1)

Cash collected, not remitted (2)

( 26 ) ( 49 )

Remaining sold receivables to be collected from customers (3)

(1) For fiscal 2025 and 2024, the Company recorded a net decrease of $ 41 million and $ 45 million to cash flows from operating activities, respectively, from sold receivables.

(2) Primarily represents the cash collected on behalf of but not yet remitted to the Purchaser as of January 31, 2025 and February 2, 2024.

(1) For fiscal 2026, there was no net impact to cash flows from operating activities from sold receivables.

For fiscal 2025, the Company recorded a net decrease of $ 41 million to cash flows from operating activities from sold receivables.

(2) Primarily represents the cash collected on behalf of but not yet remitted as of January 30, 2026 and January 31, 2025.

This balance is included in "Accounts payable" on the consolidated balance sheets.

(3) Remaining sold receivables balance is included in "Receivables, net" on the consolidated balance sheets.

Note 15—Operating Leases:

Total operating lease cost is comprised of the following:

January 31, 2025 February 2, 2024 February 3, 2023

January 30, 2026 January 31, 2025 February 2, 2024

(in millions)

4 unchanged sentences

Lease cost is included primarily in "Cost of revenues" and "Selling, general and administrative expenses" on the consolidated statements of income.

SCIENCE APPLICATIONS INTERNATIONAL CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

The Company's ROU assets and lease liabilities consisted of the following:

Balance Sheet line item January 31, 2025 February 2, 2024

Balance Sheet line item January 30, 2026 January 31, 2025

(in millions)

3 unchanged sentences

Total operating lease liabilities $ 219 $ 193

SCIENCE APPLICATIONS INTERNATIONAL CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Other supplemental operating lease information consists of the following:

January 31, 2025 February 2, 2024 February 3, 2023

January 30, 2026 January 31, 2025 February 2, 2024

(in millions)

8 unchanged sentences

Present value of operating lease liabilities $ 219

The weighted-average remaining lease term and the weighted-average discount rate was 7 years and 5.2 % as of January 31, 2025, respectively, and 5 years and 4.3 % as of February 2, 2024, respectively.

The weighted-average remaining lease term and the weighted-average discount rate was 7 years and 5.3 % as of January 30, 2026, respectively, and 7 years and 5.2 % as of January 31, 2025, respectively.

As of January 30, 2026, the Company had rental commitments of $ 29 million for facility leases that have not yet commenced.

These operating leases have a weighted-average lease term of approximately 11 years.

During fiscal 2025, the Company did not recognize any operating lease income or revenue from the exercise of purchase options under lessor arrangements.

During fiscal 2024, operating lease income and revenue recognized from the exercise of purchase options under lessor arrangements was immaterial .

During fiscal 2023, operating lease income was $ 2 million, and revenue recognized from the exercise of purchase options under certain lessor arrangements was $ 23 million.

Note 16—Business Segments Information :

2 unchanged sentences

The Company defines its operating segments based on the way the CODM, currently the Company's CEO, manages the operations for the purpose of allocating resources and assessing performance.

SCIENCE APPLICATIONS INTERNATIONAL CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

The Defense and Intelligence segment provides a diverse portfolio of national security solutions to the DoD and Intelligence Community of the United States Government.

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.

2 unchanged sentences

These services include end-to-end solutions spanning the design, development, integration, deployment, management and operations, sustainment and security of the customers’ entire IT infrastructure.

SCIENCE APPLICATIONS INTERNATIONAL CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

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 that the Company does not consider to be indicative of the Company's ongoing operating performance.

In fiscal 2025, the Company adopted ASU No.

2023-07, Segment Reporting (Topic 280):

Improvements to Reportable Segment Disclosures.

Amongst other amendments, the standard requires disclosure of significant segment expenses that are regularly provided to the CODM.

Labor base is the significant expense that is regularly provided to the Company's CODM, and primarily includes direct labor on customer contracts.

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:

Year Ended January 30, 2026

Defense and Intelligence

Defense and Intelligence Civilian Corporate Total SAIC

(in millions)

4 unchanged sentences

Adjusted operating income (loss) $ 478 $ 228 $ ( 4 ) $ 702

Year Ended February 2, 2024

Year Ended January 31, 2025

Defense and Intelligence Civilian Corporate Total SAIC

5 unchanged sentences

Adjusted operating income (loss) $ 509 $ 216 $ ( 20 ) $ 705

SCIENCE APPLICATIONS INTERNATIONAL CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Year Ended February 2, 2024

8 unchanged sentences

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 years ended January 31, 2025, February 2, 2024, and February 3, 2023.

2025 February 2,

SCIENCE APPLICATIONS INTERNATIONAL CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

The table below includes a reconciliation of total "Adjusted operating income" to "Income before income taxes" for the years ended January 30, 2026, January 31, 2025, and February 2, 2024.

2026 January 31,

2025 February 2,

1 unchanged sentence

Adjusted operating income $ 702 $ 705 $ 659

$ 705 $ 659 $ 680

Depreciation of property, plant, and equipment 30 25 26

Amortization of intangible assets 119 115 115

Acquisition and integration costs (1)

Restructuring and impairment costs 8 23 24

Acquisition, integration, restructuring and impairment costs 16 6 24

Depreciation included in restructuring and impairment costs ( 1 ) ( 1 ) ( 1 )

( 1 ) ( 1 ) ( 3 )

Recovery of acquisition and integration costs and restructuring and impairment costs (2)

Recovery of acquisition, integration, restructuring and impairment costs (1)

( 6 ) ( 3 ) ( 6 )

Gain on divestitures, net of transaction costs — ( 240 ) —

Executive transition costs, net of recoveries 16 — —

Costs related to the settlement of federal tax audits 7 — —

(Gain) loss on divestitures, net of transaction costs

Interest expense, net

1 unchanged sentence

Income before income taxes $ 387 $ 428 $ 620

$ 428 $ 620 $ 375

(1) Fiscal 2025 adjustment consists of a reversal of immaterial costs related to the fiscal 2022 Koverse acquisition.

(2) Adjustment reflects the portion of acquisition and integration costs and restructuring and impairment costs recovered through our indirect rates in accordance with U.S.

(1) Adjustment reflects the portion of acquisition, integration, restructuring and impairment costs recovered through our indirect rates in accordance with U.S.

government Cost Accounting Standards.

9 unchanged sentences

Department of Justice, Antitrust Division ("DOJ").

As required by the subpoenas, the Company has provided the DOJ with a broad range of documents related to the investigation,

SCIENCE APPLICATIONS INTERNATIONAL CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

and the Company’s collection and production process remains ongoing.

As required by the subpoenas, the Company has provided the DOJ with a broad range of documents related to the investigation, and the Company’s collection and production process remains ongoing.

The Company is fully cooperating with the investigation.

At this time, it is not possible to determine whether the Company will incur, or to reasonably estimate the amount of, any fines, penalties or further liabilities in connection with the investigation pursuant to which the subpoenas were issued.

In June 2017, the Company filed a patent infringement complaint in the United States Court of Federal Claims against the United States and three other parties, alleging infringement of the Company’s Enhanced Rapid Engagement and Vision in Ambient Lighting patents.

In fiscal 2026, the Company executed a favorable settlement agreement with all parties.

As part of the settlement, the Company was awarded $ 15 million and recognized $ 9 million as a recovery for costs previously incurred within "Selling, general and administrative expenses" within the Company’s consolidated statements of income during fiscal 2026.

In addition, the Company recognized $ 6 million of costs that was contingent on the settlement of the patent infringement matter.

SCIENCE APPLICATIONS INTERNATIONAL CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

AAV Termination for Convenience

17 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 9A. Controls and Procedures