SAIC announced on November 13, 2025 that it will consolidate its five existing business groups into three effective January 31, 2026. The new structure merges the Army and Navy groups into a single Army‑Navy Group (ANG), combines the Air Force, Space, and Intelligence groups into an Air Force, Space and Intelligence Group (AFSI), and keeps the Civilian Business Group unchanged. Barbara Supplee will lead the ANG, Vinnie DiFronzo will head the AFSI, and Srini Attili will continue as head of the Civilian Group. Departing executives include Executive Vice Presidents Josh Jackson and David Ray, and Chief Innovation Officer Lauren Knausenberger, who will pursue other opportunities.
The restructuring follows a period of mixed financial results for SAIC. In the second quarter of fiscal 2025 the company reported revenue of $1.77 billion, falling short of the $1.86 billion consensus estimate, while adjusted earnings per share of $3.63 beat the $2.24 estimate. The earnings beat was largely driven by disciplined cost management and operational leverage, which helped offset the revenue shortfall. In the third quarter, revenue grew 4.3% to $1.98 billion and adjusted EPS rose to $2.61, reflecting stronger demand in core defense and intelligence segments. These results highlight the company’s ongoing challenge of sustaining revenue growth while maintaining profitability.
Chief Executive Officer Jim Reagan said the reorganization is designed to improve speed, flexibility, and efficiency, and to align the innovation office more closely with the new business groups. By embedding the innovation function within each group, SAIC aims to accelerate the development of AI‑driven solutions and digital transformation initiatives that can generate higher‑margin opportunities for its defense, space, intelligence, and civilian customers.
Market analysts have noted that SAIC’s stock has hit a 52‑week low of $90.11, and the consensus rating remains “Hold” with a wide range of price targets. The company’s gross profit margin of 11.97% and mixed quarterly results have raised concerns about revenue growth and cash‑flow generation. The restructuring is viewed as a strategic response to these headwinds, with the expectation that a leaner organization will better capture high‑margin contracts and improve operational performance.
The company’s leadership change—following the departure of former CEO Toni Townes‑Whitley and the appointment of interim CEO James Reagan—underscores the urgency of the restructuring. By consolidating business groups and realigning the innovation office, SAIC seeks to streamline operations, reduce complexity, and position itself to capitalize on emerging opportunities in the defense and technology markets. The success of this initiative will be measured in the coming quarters through improved revenue growth, margin expansion, and the execution of high‑value contracts.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.