Bert Subin's questions to Science Applications International (SAIC) leadership • Q2 2025
Question
Bert Subin of Stifel requested a breakdown of the drivers behind the 2% organic growth, which is ~7% excluding recompete headwinds, and asked for early indications for Q3 given strong government outlays.
Answer
CEO Toni Townes-Whitley attributed the growth to the ramp-up of existing programs like T-Cloud and Cloud One, as well as on-contract growth, particularly in the civilian and Army businesses. CFO Prabu Natarajan added that the DTAMM program and a new Air Force Combat and Command win are also expected to ramp in the second half. Regarding outlays, Prabu noted a pickup in July, which typically translates to higher revenue with a 3-to-6-month lag, aligning with their guidance for stronger growth in Q4.