What changed in this filing

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Item 1. Financial Statements

2026-06-01 compared with 2025-12-04 · 132 added, 331 removed, 394 unchanged (54% of the section changed)

2 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

Three Months Ended Nine Months Ended

2025 November 1,

2024 October 31,

2025 November 1,

Three Months Ended

(in millions, except per share amounts)

3 unchanged sentences

Other operating (income) expense

( 2 ) ( 6 ) ( 2 ) ( 10 )

Operating income 179 121

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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

Three Months Ended Nine Months Ended

2025 November 1,

2024 October 31,

2025 November 1,

Three Months Ended

(in millions)

1 unchanged sentence

Other comprehensive (loss) income, net of tax:

Defined benefit obligation adjustment ( 1 ) —

Net unrealized (loss) gain on derivative instruments

( 1 ) ( 1 ) ( 4 ) ( 6 )

Total other comprehensive (loss) income, net of tax

( 1 ) ( 1 ) ( 4 ) ( 6 )

Comprehensive income $ 114 $ 67

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Intangible assets, net 729 761

Property, plant, and equipment (net of accumulated depreciation of $ 212 million and $ 200 million at October 31, 2025 and January 31, 2025, respectively)

Property, plant, and equipment (net of accumulated depreciation of $ 221 million and $ 215 million at May 1, 2026 and January 30, 2026, respectively)

Operating lease right of use assets 184 193

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Commitments and contingencies (Note 11)

Common stock, $ 0.0001 par value, 1 billion shares authorized, 45 million and 48 million shares issued and outstanding as of October 31, 2025 and January 31, 2025, respectively

Common stock, $ 0.0001 par value, 1 billion shares authorized, 43 million and 44 million shares issued and outstanding as of May 1, 2026 and January 30, 2026, respectively

Additional paid-in capital — —

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(in millions)

Balance at August 1, 2025 46 $ — $ 1,508 $ 9 $ 1,517

Net income — — 78 — 78

Issuances of stock — 4 — — 4

Other comprehensive loss, net of tax — — — ( 1 ) ( 1 )

Cash dividends of $ 0.37 per share

— — ( 17 ) — ( 17 )

Stock-based compensation, net of shares withheld for taxes (1)

Repurchases of stock ( 1 ) ( 30 ) ( 65 ) — ( 95 )

Balance at October 31, 2025 45 $ — $ 1,504 $ 8 $ 1,512

Balance at January 30, 2026 44 $ — $ 1,492 $ 8 $ 1,500

5 unchanged sentences

Stock-based compensation, net of shares withheld for taxes (1)

Repurchases of stock ( 3 ) ( 48 ) ( 281 ) — ( 329 )

Balance at October 31, 2025 45 $ — $ 1,504 $ 8 $ 1,512

Balance at August 2, 2024 50 $ 63 $ 1,551 $ 11 $ 1,625

Net income — — 106 — 106

Issuances of stock — 5 — — 5

Other comprehensive loss, net of tax

— ( 4 ) — — ( 4 )

Cash dividends of $ 0.37 per share

— — ( 18 ) — ( 18 )

Stock-based compensation, net of shares withheld for taxes (1)

Repurchases of stock ( 2 ) ( 1 ) ( 175 ) — ( 176 )

Balance at November 1, 2024 49 $ — $ 1,602 $ 10 $ 1,612

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

Balance at May 1, 2026 43 $ — $ 1,416 $ 7 $ 1,423

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

Net income — — 68 — 68

1 unchanged sentence

Other comprehensive loss, net of tax — — — ( 1 ) ( 1 )

— — — ( 6 ) ( 6 )

Cash dividends of $ 0.37 per share

1 unchanged sentence

Stock-based compensation, net of shares withheld for taxes (1)

— ( 2 ) — — ( 2 )

Repurchases of stock ( 1 ) ( 4 ) ( 121 ) — ( 125 )

Balance at November 1, 2024 49 $ — $ 1,602 $ 10 $ 1,612

(1) During the three months ended October 31, 2025, there were no shares withheld for taxes related to stock-based compensation arrangements.

During the three months ended November 1, 2024, shares withheld for taxes related to stock-based compensation arrangements amounted to $ 2 million.

During the nine months ended October 31, 2025 and November 1, 2024, shares withheld for taxes related to stock-based compensation arrangements amounted to $ 19 million and $ 25 million, respectively.

Balance at May 2, 2025 47 $ — $ 1,494 $ 11 $ 1,505

(1) During the three months ended May 1, 2026 and May 2, 2025, shares withheld for taxes related to stock-based compensation arrangements amounted to $ 17 million.

See accompanying notes to condensed consolidated financial statements.

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Nine Months Ended

2025 November 1,

Three Months Ended

(in millions)

5 unchanged sentences

Deferred income taxes 21 ( 1 )

Gain on sale of equity method investments

Gain on sales of investments

Other ( 2 ) 1

Increase (decrease) resulting from changes in operating assets and liabilities, net of the effect of acquisitions:

Increase (decrease) resulting from changes in operating assets and liabilities:

Receivables ( 109 ) ( 9 )

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Cash flows from investing activities:

Cash paid for acquisitions, net of cash acquired ( 203 ) —

Expenditures for property, plant, and equipment ( 24 ) ( 21 )

Purchases of marketable securities ( 5 ) ( 11 )

Proceeds from sales of investments

Sales of marketable securities 5 3

Proceeds from sale of equity method investments — 10

Purchases of marketable securities ( 4 ) ( 4 )

Expenditures for property, plant, and equipment ( 9 ) ( 8 )

Contributions to investments

Net cash used in investing activities

( 237 ) ( 15 )

Net cash provided by (used in) investing activities

Cash flows from financing activities:

Proceeds from borrowings 2,745 1,114

Principal payments on borrowings ( 2,473 ) ( 1,056 )

Stock repurchased and retired or withheld for taxes on equity awards ( 188 ) ( 142 )

Dividend payments to stockholders ( 17 ) ( 19 )

Principal payments on borrowings ( 1 ) ( 689 )

Proceeds from borrowings — 750

Issuances of stock 5 6

Debt issuance costs ( 9 ) —

Net cash used in financing activities ( 201 ) ( 94 )

Net decrease in cash, cash equivalents and restricted cash ( 73 ) ( 9 )

( 11 ) ( 49 )

Cash, cash equivalents and restricted cash at beginning of period 190 64

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Note 1—Business Overview and Summary of Significant Accounting Policies:

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 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.

The Company provides these services for large, complex projects with a targeted emphasis on higher-end, differentiated technology services and solutions that accelerate and transform secure and resilient digital environments through system development, modernization, integration, and sustainment to drive enterprise and mission outcomes.

The Company has five customer facing business groups supported by the enterprise organizations, including the Innovation Factory.

The Company's five business groups, which are also its operating segments, are aggregated into two reportable segments for financial reporting purposes given the similarity in economic and qualitative characteristics, and based on the nature of the customers they serve.

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

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

The consolidated business groups will be led by three Executive Vice Presidents.

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

The reorganization did not have an impact on the Company's reportable segments.

The Company now has three customer facing business groups which are also its operating segments.

They are aggregated into two reportable segments for financial reporting purposes given the similarity in economic and qualitative characteristics, and based on the nature of the customers they serve.

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

The 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 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.

This includes integrating solutions into a spectrum of public service missions that impact travel, trade, health and the economy.

The offerings of both reportable segments entail the integration of emerging technologies into mission critical operations that modernize and enable national imperatives, including IT modernization, digital engineering, artificial intelligence ("AI"), mission systems support and advisory, training and simulation, and ground vehicles support.

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.

The Company's Innovation Factory supports the operating segments by developing enterprise-class solutions which are delivered to the Company's customers as stand-alone solutions or integrated with and aligned to the Company's product offerings through the operations of the business to meet complex customer needs and accelerate digital transformation.

The Innovation Factory includes designated teams focused on AI, application development, network services, platforms and cloud, engineering, and cybersecurity.

It uses a highly automated, cloud-hosted tool set to rapidly build, test and deploy solutions and works with customers to enhance solutions going forward.

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, supporting a variety of missions across land, sea, air, and space.

The Civilian segment provides solutions to the civilian markets, encompassing federal, state, and local governments.

This includes integrating solutions into a spectrum of public service missions that impact travel, security, trade, health and the economy.

The offerings of both reportable segments entail the integration of emerging technologies into mission critical operations that modernize and enable national imperatives.

These services include end-to-end solutions spanning the design, development, integration, deployment, management, operation, sustainment, and security of customer hardware and software platforms.

The Company's Solutions and Technology Group ("STG") supports the operating segments by developing enterprise-class solutions to meet complex customer needs and accelerate digital transformation.

These capabilities are delivered to the Company's customers as stand-alone solutions, or integrated with the Company's product offerings through the operations of the business.

The STG includes teams focused on artificial intelligence, application development, network services, platforms and cloud, engineering, and cybersecurity.

It uses a highly automated, cloud-hosted tool set to rapidly build, test, deploy, and continuously enhance solutions.

Costs associated with corporate functions that are not allocable to the reportable segments are presented as Corporate activities.

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

The results reported in these financial statements are not necessarily indicative of results that may be expected for the entire year and should be read in conjunction with the information contained in the Company’s Annual Report on Form 10-K for the year ended January 31, 2025.

SCIENCE APPLICATIONS INTERNATIONAL CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Use of Estimates

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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 ends on January 30, 2026, while fiscal 2025 began on February 3, 2024 and ended on January 31, 2025.

Fiscal 2027 began on January 31, 2026 and ends on January 29, 2027, while fiscal 2026 began on February 1, 2025 and ended on January 30, 2026.

Operating Cycle

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

Derivative Instruments Designated as Cash Flow Hedges

Derivative instruments are recorded on the condensed consolidated balance sheets at fair value.

Unrealized gains and losses on derivatives designated as cash flow hedges are reported in other comprehensive income (loss) and reclassified to earnings in a manner that matches the timing of the earnings impact of the hedged transactions.

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

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.

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.

The fair value is an estimate of the amount that the Company would pay or receive as of a measurement date if the agreements were transferred to a third party.

See Note 8—Derivative Instruments Designated as Cash Flow Hedges for further discussion on the Company’s derivative instruments designated as cash flow hedges.

Marketable Securities

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 October 31, 2025 and January 31, 2025, the fair value of the Company's investments totaled $ 39 million and $ 36 million, respectively, and are included in "Other assets" on the condensed consolidated balance sheets.

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

SCIENCE APPLICATIONS INTERNATIONAL CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Investments in Equity Securities

The Company invests in certain companies that advance or develop new technologies applicable to its business.

Each investment is evaluated for consolidation under the variable interest entities model and/or the voting interest model.

As of May 1, 2026, none of the Company's investments in equity securities were consolidated.

On April 20, 2026, the Company sold all of its equity in one of its investments, which resulted in a gain of $ 12 million recognized within "Other operating (income) expense" on the condensed consolidated statements of income and $ 15 million in cash proceeds, recognized within "Proceeds from sales of investments" on the condensed consolidated statements of cash flows.

Cash, Cash Equivalents and Restricted Cash

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Accounting Standards Updates

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.

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

See Note 11—Business Segments Information for additional information.

Accounting Standards Updates Recently Issued But Not Yet Adopted

In December 2023, the FASB issued ASU No.

2023-09, Income Taxes (Topic 740):

Improvements to Income Tax Disclosures.

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.

In November 2024, the FASB issued ASU No.

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Disaggregation of Income Statement Expenses.

The standard includes new disclosure requirements relating to specified categories of expenses (purchases of inventory, employee compensation, depreciation, and amortization) that are included in certain expense captions presented on the face of the income statement.

The standard includes new disclosure requirements relating to specified categories of expenses (purchases of inventory,

SCIENCE APPLICATIONS INTERNATIONAL CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

employee compensation, depreciation, and amortization) that are included in certain expense captions presented on the face of the income statement.

Early adoption is permitted.

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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

SCIENCE APPLICATIONS INTERNATIONAL CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

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

Early adoption is permitted.

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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:

Three Months Ended Nine Months Ended

2025 November 1,

2024 October 31,

2025 November 1,

Three Months Ended

(in millions)

Basic weighted-average number of shares outstanding

45.9 49.4 46.7 50.6

Dilutive common share equivalents - stock options and other stock-based awards 0.3 0.2

Diluted weighted-average number of shares outstanding

46.1 49.8 46.9 51.1

Antidilutive stock awards excluded from the weighted-average number of shares outstanding used to compute diluted EPS for the three and nine months ended October 31, 2025 and November 1, 2024 were immaterial .

Antidilutive stock awards excluded from the weighted-average number of shares outstanding used to compute diluted EPS for the three months ended May 1, 2026 and May 2, 2025 were immaterial .

Share Repurchases

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When repurchases for the period exceed total additional paid-in capital, the excess repurchases are recorded as a reduction to retained earnings.

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

During the nine months ended October 31, 2025, the Company repurchased approximately 3.0 million shares of its common stock from the open market under its existing share repurchase plan for approximately $ 325 million.

As of October 31, 2025, the Company has repurchased approximately 27.5 million shares of its common stock under the plan for approximately $ 2.4 billion.

The Company declared and paid a quarterly dividend of $ 0.37 per share of its common stock during the three months ended October 31, 2025.

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

During the three months ended May 1, 2026, the Company repurchased approximately 1.9 million shares of its common stock from the open market under its existing share repurchase plan for approximately $ 175 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.

As of May 1, 2026, the Company has repurchased approximately 30.4 million shares of its common stock under the plan for approximately $ 2.7 billion, which included amounts previously authorized under the plan prior to December 2024.

SCIENCE APPLICATIONS INTERNATIONAL CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

The Company declared and paid a quarterly dividend of $ 0.37 per share of its common stock during the three months ended May 1, 2026.

Subsequent to the end of the quarter, on May 28, 2026, the Company's Board of Directors declared a quarterly dividend of $ 0.37 per share of the Company's common stock payable on July 24, 2026 to stockholders of record on July 10, 2026.

Note 3—Revenues:

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and performance being better or worse than previously estimated.

SCIENCE APPLICATIONS INTERNATIONAL CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

A significant portion of the Company's contracts recognize revenue on performance obligations using a cost input measure (cost-to-cost), which requires estimates of total costs at completion.

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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:

Three Months Ended Nine Months Ended

2025 November 1,

2024 October 31,

2025 November 1,

Three Months Ended

(in millions, except per share amounts)

Net favorable (unfavorable) adjustments

$ 4 $ 15 $ 7 $ 15

Net favorable (unfavorable) adjustments, after tax

Diluted EPS impact $ 0.09 $ 0.26 $ 0.15 $ 0.23

Revenues were $ 8 million and $ 15 million higher for the three and nine months ended October 31, 2025, respectively, and $ 13 million and $ 14 million higher for the three and nine months ended November 1, 2024, respectively, due to net revenue recognized from performance obligations satisfied in prior periods.

Basic and Diluted EPS impact $ 0.14 $ ( 0.04 )

Revenues were $ 3 million higher for the three months ended May 1, 2026 and were unchanged for the three months ended May 2, 2025, due to net revenue recognized from performance obligations satisfied in prior periods.

SCIENCE APPLICATIONS INTERNATIONAL CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Disaggregation of Revenues

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Three Months Ended

October 31, 2025

November 1, 2024

Defense and Intelligence

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Total $ 1,466 $ 440 $ 1,906 $ 1,433 $ 444 $ 1,877

Nine Months Ended

October 31, 2025

November 1, 2024

Defense and Intelligence

(in millions)

Department of War $ 2,872 $ 7 $ 2,879 $ 2,916 $ 15 $ 2,931

Intelligence and other federal government agencies

1,351 1,155 2,506 1,430 1,158 2,588

Commercial, state and local governments and international

23 104 127 20 102 122

Total $ 4,246 $ 1,266 $ 5,512 $ 4,366 $ 1,275 $ 5,641

SCIENCE APPLICATIONS INTERNATIONAL CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Disaggregated revenues by contract type were as follows:

Three Months Ended

October 31, 2025

November 1, 2024

Defense and Intelligence

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Total $ 1,466 $ 440 $ 1,906 $ 1,433 $ 444 $ 1,877

Nine Months Ended

October 31, 2025

November 1, 2024

Defense and Intelligence

(in millions)

Cost reimbursement $ 3,375 $ 48 $ 3,423 $ 3,464 $ 69 $ 3,533

Time and materials ("T&M")

387 856 1,243 430 819 1,249

Firm-fixed price ("FFP")

484 362 846 472 387 859

Total $ 4,246 $ 1,266 $ 5,512 $ 4,366 $ 1,275 $ 5,641

Disaggregated revenues by prime versus subcontractor were as follows:

Three Months Ended

October 31, 2025 November 1, 2024

Defense and Intelligence

(in millions)

Prime contractor to federal government $ 1,316 $ 352 $ 1,668 $ 1,384 $ 385 $ 1,769

Subcontractor to federal government 116 37 153 125 41 166

Other 7 38 45 6 35 41

Total $ 1,439 $ 427 $ 1,866 $ 1,515 $ 461 $ 1,976

Nine Months Ended

October 31, 2025

November 1, 2024

May 1, 2026 May 2, 2025

Defense and Intelligence

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Contract balances for the periods presented were as follows:

Balance Sheet line item October 31,

Balance Sheet line item May 1,

2026 January 30,

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Other long-term liabilities

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

During the three and nine months ended October 31, 2025, the Company recognized revenues of $ 2 million and $ 27 million, respectively, relating to amounts that were included in the opening balance of contract liabilities as of January 31, 2025.

During the three and nine months ended November 1, 2024, the Company recognized revenues of $ 3 million and $ 33 million, respectively, relating to amounts that were included in the opening balance of contract liabilities as of February 2, 2024.

(1) Net of allowance of $ 2 million as of May 1, 2026 and January 30, 2026.

During the three months ended May 1, 2026 and May 2, 2025, the Company recognized revenues of $ 18 million and $ 17 million relating to amounts that were included in the opening balance of contract liabilities as of January 30, 2026 and January 31, 2025, respectively.

Remaining Performance Obligations

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RPO does not include unexercised option periods and future task orders expected to be awarded under IDIQ contracts.

As of October 31, 2025, the Company had approximately $ 6.5 billion of RPO.

As of May 1, 2026, the Company had approximately $ 6.6 billion of RPO.

The Company expects to recognize revenue on approximately 76 % of the RPO over the next 12 months and approximately 90 % over the next 24 months, with the remaining recognized thereafter.

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

The Company funded the transaction from increased borrowings (see Note 7—Debt Obligations for additional information) and cash on hand.

As of October 31, 2025, the Company is in the process of obtaining the information required to complete the valuation and purchase price allocation related to this acquisition.

The Company funded the transaction from increased borrowings and cash on hand.

As of May 1, 2026, the Company has substantially completed the purchase price allocation related to this acquisition, primarily subject to the finalization of working capital adjustments.

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

Substantially all of the goodwill recorded is tax deductible.

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

The intangible assets consist of customer relationships of $ 44 million, developed technology of $ 36 million, and backlog of $ 7 million that will be amortized over a period of thirteen years, eight years, and one year, respectively.

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 the three months ended May 1, 2026, revenues of $ 19 million related to SilverEdge were recorded to the Defense and Intelligence reportable segment.

SCIENCE APPLICATIONS INTERNATIONAL CORPORATION

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$ 2,944 $ 2,944

During the three months ended October 31, 2025, goodwill increased by $ 109 million in the Defense and Intelligence reportable segment due to the acquisition of SilverEdge (see Note 4—Acquisitions for additional information).

Goodwill is not amortized, but rather tested for potential impairment annually or whenever events or changes in circumstances indicate that the carrying value may not be recoverable.

The goodwill impairment test is performed at the reporting unit level.

There were no impairments of goodwill during the periods presented.

As a result of the internal reorganization on January 31, 2026, the Company reallocated its goodwill to its three new goodwill reporting units.

The Company performed a goodwill impairment test immediately before and after the reorganization, both of which resulted in no impairment.

For the goodwill impairment test immediately after the reorganization, the Company performed a quantitative assessment of its goodwill as of January 31, 2026 for its three new goodwill reporting units.

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.

Intangible Assets

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

October 31, 2025 January 31, 2025

May 1, 2026 January 30, 2026

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

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Developed technology 19 ( 7 ) 12 19 ( 6 ) 13

Trade name — — — 1 ( 1 ) —

2 ( 1 ) 1 2 ( 1 ) 1

Total intangible assets $ 1,572 $ ( 843 ) $ 729 $ 1,572 $ ( 811 ) $ 761

During the three months ended October 31, 2025, the gross carrying value of intangible assets increased by $ 87 million due to the acquisition of SilverEdge (see Note 4—Acquisitions for additional information).

Amortization expense related to intangible assets was $ 29 million and $ 87 million for the three and nine months ended October 31, 2025 and November 1, 2024, respectively.

Amortization expense related to intangible assets was $ 32 million and $ 29 million for the three months ended May 1, 2026 and May 2, 2025, respectively.

There were no intangible asset impairment losses during the periods presented.

As of October 31, 2025, the estimated future annual amortization expense related to intangible assets is as follows:

SCIENCE APPLICATIONS INTERNATIONAL CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

As of May 1, 2026, the estimated future annual amortization expense related to intangible assets is as follows:

Fiscal Year (in millions)

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Thereafter 216

SCIENCE APPLICATIONS INTERNATIONAL CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Actual amortization expense in future periods could differ from these estimates as a result of future acquisitions, divestitures, impairments, and other factors.

Note 6—Income Taxes:

The Company's effective income tax rate was 16.7 % and 5.2 % for the three and nine months ended October 31, 2025, respectively, and 15.6 % and 17.8 % for the three and nine months ended November 1, 2024, respectively.

The effective tax rate for the three months ended October 31, 2025 increased compared to the same period last year primarily due to the impacts of the One Big Beautiful Bill Act (“the Act”).

The effective tax rate for the nine months ended October 31, 2025 decreased compared to the same period last year primarily due to a $ 47 million benefit from an IRS audit settlement, pending final administrative approvals, covering fiscal years 2016 through 2019, and reductions in liabilities for uncertain tax positions for the remaining open tax years.

Additionally, the Company’s effective tax rate further differs from the statutory tax rate due to research and development tax credits and tax benefits from employee share-based compensation.

On July 4, 2025, the Act was enacted, introducing several significant changes to U.S.

corporate income tax law.

One key provision of the Act is the permanent reinstatement of the immediate expensing of U.S.

research and development expenditures which the Company expects will result in a cash tax benefit in the current year.

Based on the Company's interpretation of the Act, there will be an immaterial increase to the Company's effective tax rate for the year.

The Company is awaiting interpretive guidance from the IRS, and therefore the current estimated impacts of the Act are subject to change.

The Company's effective income tax rate was 20.9 % and 20.6 % for the three months ended May 1, 2026 and May 2, 2025, respectively.

The rate for both periods was below the Company's combined federal and state statutory tax rate, primarily due to research and development tax credits and the tax deduction for foreign-derived deduction eligible income.

Note 7—Debt Obligations:

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

October 31, 2025 January 31, 2025

May 1, 2026 January 30, 2026

rate Effective

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(dollars in millions)

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

Term Loan A Facility due September 2030

4 unchanged sentences

5.88 % 6.09 % 500 ( 6 ) 494 500 ( 6 ) 494

Revolving Credit Facility due June 2027

$ 2,500 $ ( 14 ) $ 2,486 $ 2,501 $ ( 14 ) $ 2,487

$ 2,503 $ ( 16 ) $ 2,487 $ 2,228 $ ( 8 ) $ 2,220

Less current portion 26 — 26 19 — 19

1 unchanged sentence

$ 2,474 $ ( 14 ) $ 2,460 $ 2,482 $ ( 14 ) $ 2,468

Credit Facility

As of October 31, 2025, 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 Revolving Credit Facility due September 2030 (the "Revolving Credit Facility").

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

SCIENCE APPLICATIONS INTERNATIONAL CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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.

During the nine months ended October 31, 2025, the Company made scheduled principal payments of $ 46 million on the Term Loan A Facility due June 2027.

During the three months ended October 31, 2025, the Company made no scheduled principal payments on the Term Loan A Facility due June 2027 or the Term Loan A Facility due September 2030.

During the three and nine months ended October 31, 2025, the Company made scheduled principal payments of $ 2 million and $ 4 million on the Term Loan B3 Facility due February 2031, respectively.

During the three and nine months ended October 31, 2025, the Company borrowed $ 275 million and $ 1.6 billion, respectively, and repaid $ 595 million and $ 1.8 billion, respectively, under the Revolving Credit Facility due June 2027.

During the three months ended October 31, 2025, the Company borrowed $ 320 million and repaid $ 320 million under the Revolving Credit Facility due September 2030.

There was no balance outstanding on the Revolving Credit Facility as of October 31, 2025.

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 October 31, 2025, the Company was in compliance with the covenants under its Credit Facility.

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

As of May 1, 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 Revolving Credit Facility due September 2030 (the "Revolving Credit Facility").

During the three months ended May 1, 2026, the Company made a scheduled principal payment of $ 1 million on the Term Loan B3 Facility due February 2031.

During the three months ended May 1, 2026, the Company made no borrowings or repayments under the Revolving Credit Facility, and as of May 1, 2026 and January 30, 2026, there were no borrowings outstanding.

As of May 1, 2026, the Company was in compliance with the covenants under its Credit Facility.

SCIENCE APPLICATIONS INTERNATIONAL CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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.

As of October 31, 2025 and January 31, 2025, the carrying value of the Company’s outstanding debt obligations approximated its fair value.

As of May 1, 2026 and January 30, 2026, the carrying value of the Company’s outstanding debt obligations approximated its fair value.

The fair value of debt is calculated using Level 2 inputs, based on interest rates available for debt with terms and maturities similar to the Company’s Term Loan Facilities and Senior Notes.

Maturities of debt as of October 31, 2025 are:

Maturities of debt as of May 1, 2026 are:

Fiscal Year Total

3 unchanged sentences

Total principal payments $ 2,500

Note 8—Derivative Instruments Designated as Cash Flow Hedges:

The Company’s derivative instruments designated as cash flow hedges consist of:

Fair Value of Asset (1) at

Rate Settlement and

Termination October 31,

2025 January 31, 2025

(in millions)

Interest rate swaps

2.96 % 1-month Term SOFR Monthly through October 31, 2025 $ — $ 6

(1) The fair value of the fixed interest rate swap asset is included in "Other assets" on the condensed consolidated balance sheets.

On October 31, 2025, the Company's interest rate swaps expired.

Through October 31, 2025, 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 9—Changes in Accumulated Other Comprehensive Income (Loss) 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.

SCIENCE APPLICATIONS INTERNATIONAL CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note 8—Changes in Accumulated Other Comprehensive Income (Loss) by Component:

The following table presents the changes in accumulated other comprehensive income (loss) attributable to the Company’s fixed interest rate swap cash flow hedges that are discussed in Note 8—Derivative Instruments Designated as Cash Flow Hedges and the Company's defined benefit plans.

The following table presents the changes in accumulated other comprehensive income (loss) attributable to the Company’s fixed interest rate swap cash flow hedges and the Company's defined benefit plans.

Defined Benefit

Adjustment (1)

Unrealized Gains

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Swap Cash Flow

Defined Benefit

Adjustment Total

(in millions)

Three months ended October 31, 2025

Balance at August 1, 2025 $ 1 $ 8 $ 9

Other comprehensive income before reclassifications — — —

Amounts reclassified from accumulated other comprehensive income ( 2 ) — ( 2 )

Income tax impact 1 — 1

Net other comprehensive loss ( 1 ) — ( 1 )

Balance at October 31, 2025 $ — $ 8 $ 8

Three months ended November 1, 2024

Balance at August 2, 2024 $ 6 $ 5 $ 11

Other comprehensive income before reclassifications

Amounts reclassified from accumulated other comprehensive income

( 4 ) — ( 4 )

Income tax impact — — —

Net other comprehensive loss

( 1 ) — ( 1 )

Balance at November 1, 2024 $ 5 $ 5 $ 10

Nine months ended October 31, 2025

Three months ended May 1, 2026

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

3 unchanged sentences

Net other comprehensive loss ( 1 ) — ( 1 )

Balance at October 31, 2025 $ — $ 8 $ 8

Nine months ended November 1, 2024

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

Balance at May 1, 2026 $ 7 $ — $ 7

Three months ended May 2, 2025

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

Other comprehensive income before reclassifications

4 unchanged sentences

— ( 1 ) ( 1 )

Balance at November 1, 2024 $ 5 $ 5 $ 10

Balance at May 2, 2025 $ 8 $ 3 $ 11

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

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

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Note 9—Sales 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.

During the three and nine months ended October 31, 2025, the Company incurred purchase discount fees of approximately $ 3 million and $ 10 million, respectively.

During the three and nine months ended November 1, 2024, the Company incurred purchase discount fees of $ 4 million and $ 11 million, respectively.

The purchase discount fees are presented in "Other (income) expense, net" on the condensed consolidated statements of income and are reflected as cash flows from operating activities on the condensed consolidated statements of cash flows.

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.

MARPA Facility activity consisted of the following:

Nine Months Ended

2025 November 1,

Three Months Ended

(in millions)

2 unchanged sentences

Cash collections ( 814 ) ( 1,107 )

Outstanding balance sold to Purchaser (1)

Cash collected, not remitted to Purchaser (2)

Outstanding balance sold (1)

Cash collected, not remitted (2)

( 48 ) ( 109 )

Remaining sold receivables (3)

(1) For the nine months ended October 31, 2025 and November 1, 2024, the Company recorded a net increase of $ 86 million and $ 95 million, respectively, to cash flows from operating activities from sold receivables.

(2) Primarily represents the cash collected on behalf of but not yet remitted to the Purchaser as of October 31, 2025 and November 1, 2024.

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

(1) For the three months ended May 1, 2026, there was no net impact to cash flows from operating activities from sold receivables.

For the three months ended May 2, 2025, the Company recorded a net increase of $ 136 million to cash flows from operating activities from sold receivables.

(2) The Cash collected, not remitted balance is included in "Accounts payable" on the condensed consolidated balance sheets.

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

Note 10—Business Segments Information:

The Company has five customer facing business groups supported by the enterprise organizations, including the Innovation Factory.

The five business groups, which are also its operating segments, are aggregated into two reportable segments for financial reporting purposes given the similarity in economic and qualitative characteristics, and based on the nature of the customers they serve.

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

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

The consolidated business groups will be led by three Executive Vice Presidents.

The three business groups will continue to report directly to the Company’s CEO, the CODM.

The reorganization did not have an impact on the Company's reportable segments.

The Company now has three customer facing business groups which are also its operating segments.

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

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

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

This includes integrating solutions into a spectrum of public service missions that impact travel, trade, health and the economy.

The offerings of both reportable segments entail the integration of emerging technologies into mission critical operations that modernize and enable national imperatives, including IT modernization, digital engineering, AI, mission systems support, training and simulation, and ground vehicles support.

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

The Defense and Intelligence segment provides a diverse portfolio of national security solutions to the DoW and the Intelligence Community of the United States Government, supporting a variety of missions across land, sea, air, and space.

The Civilian segment provides solutions to the civilian markets, encompassing federal, state, and local governments.

This includes integrating solutions into a spectrum of public service missions that impact travel, security, trade, health and the economy.

The offerings of both reportable segments entail the integration of emerging technologies into mission critical operations that modernize and enable national imperatives.

These services include end-to-end solutions spanning the design, development, integration, deployment, management, operation, sustainment, and security of customer hardware and software platforms.

Costs associated with corporate functions that are not allocable to the reportable segments are presented as Corporate.

7 unchanged sentences

The segment information for the periods presented was as follows:

Three Months Ended October 31, 2025

Defense and Intelligence

(in millions)

Revenues $ 1,439 $ 427 $ — $ 1,866

Labor base 423 127 — 550

Other operating expenses (income) (1)

898 238 ( 3 ) 1,133

Adjusted operating income (loss) $ 118 $ 62 $ 3 $ 183

Three Months Ended November 1, 2024

Defense and Intelligence Civilian Corporate Total SAIC

(in millions)

Revenues $ 1,515 $ 461 $ — $ 1,976

Labor base 423 127 — 550

Other operating expenses (income) (1)

944 285 2 1,231

Adjusted operating income (loss) $ 148 $ 49 $ ( 2 ) $ 195

Nine Months Ended October 31, 2025

Three Months Ended May 1, 2026

Defense and Intelligence

5 unchanged sentences

Adjusted operating income (loss) $ 146 $ 68 $ 7 $ 221

Nine Months Ended November 1, 2024

Three Months Ended May 2, 2025

Defense and Intelligence Civilian Corporate Total SAIC

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

The table below includes a reconciliation of total "Adjusted operating income" to "Income before income taxes" for the three and nine months ended October 31, 2025 and November 1, 2024.

The table below includes a reconciliation of total "Adjusted operating income" to "Income before income taxes" for the three months ended May 1, 2026 and May 2, 2025.

Three Months Ended

Nine Months Ended

2025 November 1,

2024 October 31,

2025 November 1,

(in millions)

Adjusted operating income

$ 183 $ 195 $ 523 $ 529

Depreciation of property, plant, and equipment

2 unchanged sentences

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

— — ( 2 ) ( 2 )

Costs related to the settlement of federal tax audits

Executive transition costs, net of recoveries

Interest expense, net

1 unchanged sentence

Income before income taxes

$ 94 $ 126 $ 288 $ 321

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

9 unchanged sentences

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 July 2025, the Company executed a favorable settlement agreement with all parties.

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

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

Government Investigations, Audits and Reviews

The Company is routinely subject to investigations and reviews relating to compliance with various laws and regulations with respect, in particular, to its role as a contractor to federal, state and local government customers and in connection with performing services in countries outside of the United States.

government agencies, including the Defense Contract Audit Agency ("DCAA"), the Defense Contract Management Agency and others, routinely audit and review a contractor’s performance on government contracts, indirect rates and pricing practices,

SCIENCE APPLICATIONS INTERNATIONAL CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

and compliance with applicable contracting and procurement laws, regulations and standards.

They also review the adequacy of the contractor’s compliance with government standards for its business systems.

1 unchanged sentence

Due to the Company’s reliance on government contracts, adverse findings could also have a material impact on the Company’s business, including its financial position, results of operations and cash flows.

SCIENCE APPLICATIONS INTERNATIONAL CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

The indirect cost audits by the DCAA of the Company’s business remain open for certain prior years and the current year.

1 unchanged sentence

If future completed audit adjustments exceed the Company’s reserves for potential adjustments, the Company’s profitability could be materially adversely affected.

As of October 31, 2025, the Company believes it has adequately reserved for estimated net amounts to be refunded to customers for potential adjustments for indirect cost audits and compliance with U.S.

As of May 1, 2026, the Company believes it has adequately reserved for estimated net amounts to be refunded to customers for potential adjustments for indirect cost audits and compliance with U.S.

government Cost Accounting Standards.

Letters of Credit and Surety Bonds

The Company has outstanding obligations relating to letters of credit of $ 8 million as of October 31, 2025, principally related to guarantees on insurance policies.

The Company has outstanding obligations relating to letters of credit of $ 8 million as of May 1, 2026, principally related to guarantees on insurance policies.

The Company also has outstanding obligations relating to surety bonds of $ 19 million, principally related to performance and payment bonds on the Company’s contracts.

Note 13—Subsequent Events:

Business Reorganization

On November 13, 2025, the Company announced a strategic reorganization, effective January 31, 2026, the first day of fiscal 2027, that will consolidate the Company's five business groups into three .

The Company is currently evaluating the impact of the reorganization on its segment reporting.

The Company's Innovation Factory will be more closely aligned with the three business groups and markets it serves.

Quarterly Dividend Declared

On December 2, 2025, the Company's Board of Directors declared a quarterly dividend of $ 0.37 per share of the Company's common stock payable on January 28, 2026 to stockholders of record on January 14, 2026.

SCIENCE APPLICATIONS INTERNATIONAL CORPORATION

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-Q

Item 1. Financial Statements