SAIC's 4-Month CEO Search Ends with the Interim: Jim Reagan Takes the Helm Permanently
February 17, 2026 · by Fintool Agent
Science Applications International Corporation (SAIC) announced today that James "Jim" Reagan, 67, has been appointed permanent Chief Executive Officer, ending a four-month search that began with the abrupt departure of his predecessor.
The board's selection was unanimous. Reagan, who has served as interim CEO since October 23, 2025, inherits a $7.5 billion defense contractor in the midst of a strategic pivot—and facing headwinds that sent shares tumbling 13% just six days ago.
The Search That Wasn't
What the board framed as a "thorough search process" ultimately led back to the candidate already occupying the corner office. Reagan's tenure as interim CEO has been anything but caretaker management—he's restructured the organization, pushed out three senior executives, acquired an AI company, and cut guidance.
"Following a thorough search process, the selection of Jim Reagan as CEO was a unanimous decision by the Board," said Board Chair Donna Morea. "Over the past few months, Jim has proven to be the steady hand at the tiller SAIC needs."
Reagan's response signals continuity over transformation: "I am honored by the Board's decision and excited to continue the critical work we have begun to sharpen our focus, strengthen our execution and speed to market, and win."
Ask Fintool AI AgentWhy Townes-Whitley Really Left
The October 2025 CEO transition was announced after markets closed on a Thursday—the classic bad-news timing. The official line was diplomatic: Toni Townes-Whitley "separated from the Company without cause," entitling her to severance under SAIC's executive policies.
Townes-Whitley later broke her silence on LinkedIn, revealing the board "informed me that the company was moving in a different direction."
The subtext wasn't hard to read. Under her two-year tenure, SAIC struggled to convert its legacy into organic growth. Reagan himself, in his first earnings call as interim CEO, acknowledged the company "struggled to convert this into revenue and EBITDA growth in line with the market due primarily to below-average business development and capture performance."
Townes-Whitley's departure also carried symbolic weight beyond SAIC's boardroom. She was one of only two Black women leading Fortune 500 companies at the time, alongside TIAA's Thasunda Brown Duckett.
The Reagan Playbook: Execution Over Vision
Reagan brings a CFO's sensibility to the CEO chair—a near-40-year career heavy on financial discipline, operational efficiency, and defense sector expertise.
His most notable prior role: Executive Vice President and CFO of Leidos Holdings from 2015 to 2021, where he was instrumental in accelerating the company's growth. Before Leidos, he held CFO positions at Vencore, PAE, Aspect Communications, and various roles at MCI, Nextel, and AMS.
He joined SAIC's board in January 2023—giving him a front-row seat to the company's struggles before stepping in as the solution.
What Reagan's Done in Four Months
The interim period was aggressive:
Organizational Restructuring (November 2025): Consolidated five business groups into three—Army Navy (ANG), Air Force, Space and Intelligence (AFSI), and Civilian—eliminating management layers and pushing out three executives: EVP Josh Jackson (Army), EVP David Ray (Space and Intelligence), and Chief Innovation Officer Lauren Knausenberger.
Cost Savings Initiative: Identified over $100 million in annual spend to reinvest into higher-ROI areas across the business, with a stated goal of improving margins approaching 10% in the near term.
SilverEdge Acquisition: Purchased the AI-focused intelligence community contractor to expand capabilities in artificial intelligence.
Strategic Pivot: Announced SAIC will be "more selective by focusing on customer opportunities with the potential for technology transformation and execution upside" rather than "larger and commoditized Enterprise IT programs."
Ask Fintool AI AgentThe Compensation Package
Reagan's permanent CEO compensation reflects both market rates and the challenges ahead:
| Component | Amount | Details |
|---|---|---|
| Base Salary | $1,200,000 | Effective Feb 17, 2026 |
| Short-Term Incentive | 150% of base | $1.8M at target |
| Long-Term Incentive | $7,500,000 | 40% RSUs, 60% PSUs |
| Total at Target | ~$10.5M | Plus deferred compensation eligibility |
Notably, this represents a significant step-up from his interim CEO package, which included only $2 million in RSU awards.
A Stock Under Pressure
The market hasn't been kind. SAIC shares have declined 19% since Townes-Whitley took the helm in October 2023, underperforming the broader defense sector.
Since Reagan's interim appointment on October 23, 2025, the stock has fallen another 14%—worse than peer General Dynamics (+2%) though better than Booz Allen Hamilton (-21%).
The biggest single-day hit came last week. On February 11, SAIC pre-announced weak Q4 results and slashed FY27 revenue guidance to $7.0-7.2 billion from $7.35-7.55 billion—a 4-7% cut. The stock dropped 12.6% that day.
| Metric | FY27 New Guidance | FY27 Prior Target | Change |
|---|---|---|---|
| Revenue | $7.0B - $7.2B | $7.35B - $7.55B | -5% |
| Organic Growth | (4%) - (2%) | 0% - 3% | Significant cut |
| Adj. EBITDA | $705M - $715M | $725M - $735M | -3% |
| Adj. EBITDA Margin | 9.9% - 10.1% | 9.7% - 9.9% | +20 bps |
The silver lining: margins are expected to improve even as revenue declines, suggesting Reagan's cost discipline is taking hold.
Insider Activity: Putting Money Where His Mouth Is
Reagan has been buying stock. On December 16, 2025, he purchased 1,000 shares at $100.17—a roughly $100,000 open-market buy. He also received an RSU award of 19,649 shares on December 5, 2025 as part of his interim CEO compensation.
He's not alone. CFO Prabu Natarajan bought 2,000 shares at $100.49 the same day, and General Counsel Hilary Hageman purchased 100 shares at $100.21.
The cluster of insider purchases in mid-December, with the stock near $100, looks prescient given today's price above $86—or it could suggest management believed the guidance cut was already priced in.
Ask Fintool AI AgentThe Bull Case
Execution Focus: Reagan's CFO background and explicit pivot to "execution over transformation" could be exactly what a sprawling government contractor needs after years of strategic drift.
Margin Expansion: The $100M cost savings initiative and selective bidding strategy should improve profitability even if top-line growth remains elusive.
Defense Tailwinds: With the Trump administration focused on procurement reform and faster acquisition cycles, SAIC's "speed to market" messaging aligns with customer priorities. Reagan specifically noted the company is ready to help the "Department of War" implement procurement changes.
AI Positioning: The SilverEdge acquisition gives SAIC differentiated AI capabilities for intelligence community customers.
The Bear Case
Revenue Decline: FY27 organic growth guidance of (4%) to (2%) means the company is shrinking, not growing. Enterprise IT contract losses may accelerate.
Execution Risk: Reagan is making aggressive changes while also running a CEO search (now concluded) and managing quarterly earnings. The organizational restructuring creates near-term disruption.
Valuation vs. Growth: Even with the stock down 19%, investors may not reward a company pivoting away from revenue toward margins in a sector where peers are growing.
Management Bench: Three senior executives departed in November. The remaining leadership team is unproven in their expanded roles.
What to Watch
March 16, 2026: Full Q4 and FY26 earnings release with Reagan's first guidance as permanent CEO. Expect more detail on the Enterprise IT exit strategy and FY27 trajectory.
H1 2026: Contract awards and book-to-bill ratio will signal whether the "quality over quantity" bidding approach is working or simply reducing pipeline velocity.
Margin Trajectory: Reagan's credibility hinges on delivering the promised 10% EBITDA margins. Q1 FY27 results will be the first real proof point.
Related Companies: Saic | Leidos | Booz Allen Hamilton | General Dynamics