SAIC announced a $1.4 billion, five‑year task order under the Collaborative Operations for Battlespace Resilient Architecture (COBRA) program, a key component of the U.S. military’s Combined Joint All‑Domain Command and Control (CJADC2) modernization effort. The award, which is set to begin in late 2025, will enable SAIC to leverage its command‑and‑control expertise to develop and deliver multi‑domain warfighting technologies that can be integrated across existing and new platforms.
The contract represents a significant addition to SAIC’s defense portfolio. In fiscal 2024 the company generated $7.4 billion in revenue and maintained a backlog of $22.8 billion. The $1.4 billion COBRA award accounts for roughly 19% of the 2024 revenue figure and will provide a predictable, long‑term revenue stream that supports the company’s broader growth and margin expansion strategy.
SAIC’s revenue mix is heavily weighted toward defense and intelligence, which comprise about 70% of total sales, with the remaining 30% coming from civilian government and commercial segments. The COBRA contract, being a defense‑focused award, will further strengthen the defense portion of the business and reinforce the company’s positioning in the high‑margin Mission and Enterprise IT space.
Executive Vincent DiFronzo, Executive Vice President of the Air Force and Combatant Commands Business Group, emphasized the contract’s importance: “COBRA highlights the urgent need to deliver integrated, all‑domain capabilities to our warfighters. SAIC will use our proven experience, speed, and flexibility to fast‑track warfighting technologies from concept to combat.” Chief Technology Officer Bob Ritchie added, “This $1.4 billion award demonstrates the importance of technology‑enabled decision superiority and mission outcomes for our customers.”
The award aligns with SAIC’s strategic pivot toward higher‑margin Mission and Enterprise IT solutions and positions the company ahead of peers such as Leidos and Booz Allen Hamilton. While the company recently reported an earnings‑per‑share beat in Q2 FY2026, it also missed revenue estimates, underscoring the need for new, high‑value contracts to sustain top‑line growth. The COBRA task order is expected to help offset that revenue shortfall and reinforce investor confidence in SAIC’s long‑term trajectory.
Analysts have noted that the long‑term nature of the COBRA award provides a stable revenue base that can support future investments in emerging technologies, although specific market reaction data following the announcement is not available. The contract’s alignment with the CJADC2 initiative signals continued U.S. defense spending in advanced command‑and‑control capabilities, which is likely to benefit SAIC’s defense segment in the coming years.
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