--- ticker: SAIC company: SAIC filing_type: 10-K year_current: 2026 year_prior: 2025 risks_added: 4 risks_removed: 0 risks_modified: 8 risks_unchanged: 27 source: SEC EDGAR url: https://riskdiff.com/saic/2026-vs-2025/ markdown_url: https://riskdiff.com/saic/2026-vs-2025/index.md generated: 2026-05-10 --- # SAIC: 10-K Risk Factor Changes 2026 vs 2025 > Source: U.S. Securities and Exchange Commission (EDGAR) > Generated: 2026-05-10 > All data extracted directly from official filings. No hallucinated content. > **[AI-Generated Summary]** The paragraph below was produced by a language > model and may contain errors. All other content on this page is deterministically > extracted from the original SEC filing. > SAIC added four new risk factors in its 2026 10-K while maintaining all 27 previously disclosed risks, indicating an expansion of risk disclosures without elimination of existing concerns. The company substantively modified eight risk factors, including heightened disclosures on climate change impacts, AI solution deployment risks, and M&A transaction risks, reflecting evolving operational and strategic challenges. These changes suggest SAIC is addressing emerging risks in artificial intelligence governance and environmental exposure while refining its treatment of business combination activities. --- ## Summary | Status | Count | |--------|-------| | New risks added | 4 | | Risks removed | 0 | | Risks modified | 8 | | Unchanged | 27 | --- ## New in Current Filing: SCIENCE APPLICATIONS INTERNATIONAL CORPORATION implementing sustainability initiatives aimed at reducing the environmental impact of our operations. However, the full extent of these risks and their potential impact on our business remains uncertain and could materially affect its financial performance. --- ## New in Current Filing: SCIENCE APPLICATIONS INTERNATIONAL CORPORATION or obtain adequate insurance in the future. The outcome of litigation and other claims, including those described under "Legal Proceedings" in Part I, Item 3 of this report, is inherently uncertain, and management's view of these matters may change in the future. --- ## New in Current Filing: SCIENCE APPLICATIONS INTERNATIONAL CORPORATION meet our contractual obligations. It is impossible to predict the impact that these regulatory, geopolitical, and other factors may have on our business in the future. --- ## New in Current Filing: SCIENCE APPLICATIONS INTERNATIONAL CORPORATION other issues in the banking industry, including changes in legislation and regulation, it may have an adverse impact on our operational and financial performance. --- ## Modified: We face risks related to climate change if extreme weather events adversely affect our ability to work or our customers' requirements or priorities. **Key changes:** - Reworded sentence: "In the shorter term, a climate-related event could temporarily impede our ability to do the 16 16 16 Table of ContentsSCIENCE APPLICATIONS INTERNATIONAL CORPORATION Table of Contents" **Prior (2025):** Severe storms, increased precipitation and flooding, heat waves, forest fires, and other natural disasters tied to climate change could adversely affect our ability to execute our strategy and may disrupt our operations. Any climate event limiting our employees' ability to work could potentially impair our capability to perform and meet our contractual obligations, address our customers' needs, and ultimately win new business, all of which could adversely affect our business, financial position, results of operations, and/or cash flows. While we have a distributed workforce with employees working remotely across the U.S., we do have employees who, because of client requirements or contractual obligations, must work at specified locations. In these instances, if there were a severe weather event that impacted such a location, we might not be able to meet the client's requirements or our contractual obligations. In the shorter term, a climate-related event could temporarily impede our ability to do the required work in person, produce operational or other unforeseen challenges, and in the longer term, threaten our performance of contracts, any of which could harm our business and its results. Although we have business continuity plans and other safeguards in place, there is no assurance that such plans and safeguards will be effective in preventing adverse impacts on our operations or long-term plans. Local conditions and regulations may delay the return of employees to business sites, which could undermine our efforts 16 16 16 Table of ContentsSCIENCE APPLICATIONS INTERNATIONAL CORPORATION Table of Contents **Current (2026):** Severe storms, increased precipitation and flooding, heat waves, forest fires, and other natural disasters tied to climate change could adversely affect our ability to execute our strategy and may disrupt our operations. Any climate event limiting our employees' ability to work could potentially impair our capability to perform and meet our contractual obligations, address our customers' needs, and ultimately win new business, all of which could adversely affect our business, financial position, results of operations, and/or cash flows. While we have a distributed workforce with employees working remotely across the U.S., we do have employees who, because of client requirements or contractual obligations, must work at specified locations. In these instances, if there were a severe weather event that impacted such a location, we might not be able to meet the client's requirements or our contractual obligations. In the shorter term, a climate-related event could temporarily impede our ability to do the 16 16 16 Table of ContentsSCIENCE APPLICATIONS INTERNATIONAL CORPORATION Table of Contents --- ## Modified: We use and deploy AI solutions for our customers that could harm our reputation, create liability if they do not function as predicted, or we are required to discontinue their use. **Key changes:** - Reworded sentence: "We use some AI solutions that we develop and other AI solutions that we obtain from third parties." - Reworded sentence: "If we deploy AI solutions that have unintended consequences or are more controversial than we anticipate, our customers may seek redress, and we may experience reputational harm that could affect our business or financial results, including increased costs, schedule delays, or operational disruptions." **Prior (2025):** We deploy and integrate AI solutions for our business operations and for customers, including AI solutions that assist with the design, deployment, and management of AI applications that allow customers to work with their complex and sensitive data to power the most demanding analytics, data science, and AI use cases. These AI solutions may be vulnerable to misuse or cyberattack. Additionally, because this technology is developing so rapidly, we may be unable to keep up with new AI developments. We use some AI solutions that we develop and some that we obtain others from third parties. The development methods and algorithms of these solutions could be flawed, and the datasets could contain incorrect or biased information. Content or code generated by AI systems may be vulnerable to cyberattack, require human review, be unreliable, illegal, or offensive, and could result in the AI solution not working as intended. If we deploy AI solutions that have unintended consequences or are more controversial than we anticipate, our customers may seek redress, and we may experience reputational harm that could affect our business or financial results. Our use of AI solutions could be limited by, or subject to regulatory action or legal liability under, proposed rules or legislation regarding privacy, intellectual property, and other laws. **Current (2026):** We deploy and integrate AI solutions for our business operations and for customers, including AI solutions that assist with the design, deployment, and management of AI applications that allow customers to work with their complex and sensitive data to power the most demanding analytics, data science, and AI use cases. These AI solutions may be vulnerable to misuse or cyberattack. Additionally, because this technology is developing so rapidly, we may be unable to keep up with new AI developments. We use some AI solutions that we develop and other AI solutions that we obtain from third parties. The development methods and algorithms of these solutions could be flawed, and the datasets could contain incorrect or biased information, which may require us to discontinue use of certain AI technology immediately or within short timelines. Content or code generated by AI systems may be vulnerable to cyberattack, require human review, be unreliable, illegal, or offensive, and could result in the AI solution not working as intended. If we deploy AI solutions that have unintended consequences or are more controversial than we anticipate, our customers may seek redress, and we may experience reputational harm that could affect our business or financial results, including increased costs, schedule delays, or operational disruptions. Our use and deployment of AI solutions and capabilities could be limited by, or subject to regulatory action, supply chain risk, or legal liability under, proposed rules or legislation regarding privacy, intellectual property, and other laws, which could ultimately affect our competitiveness in bids or impair our performance on existing contracts. --- ## Modified: We may make acquisitions, divestitures, investments, or enter into joint ventures in the future that involve numerous risks, which, if realized, may adversely affect our business and financial performance. **Key changes:** - Reworded sentence: "Subject to the limitations of our credit facility (as further described in "Management's Discussion and Analysis of Financial Condition and Results of Operations" in Part II, Item 7 of this report), we may make strategic acquisitions or investments, engage in joint ventures, or divest existing businesses, which could cause unforeseen expenses, disrupt our business, fail to yield the anticipated benefits, or pose other risks that could adversely affect our reputation, operations, or financial results, including: •we may not retain key employees (including those with needed security clearances), customers, and business partners of an acquired business in the future; •we may fail to successfully integrate acquired businesses, such as failing to successfully implement IT and other control systems relating to the operations of any acquired business; 14 14 14 Table of ContentsSCIENCE APPLICATIONS INTERNATIONAL CORPORATION Table of Contents" **Prior (2025):** Subject to the limitations of our credit facility (as further described in "Management's Discussion and Analysis of Financial Condition and Results of Operations" in Part II, Item 7 of this report), we may make strategic acquisitions or investments, engage in joint ventures, or divest existing businesses, which could cause unforeseen expenses, disrupt our business, fail to yield the anticipated benefits, or pose other risks that could adversely affect our reputation, operations, or financial results, including: •we may not retain key employees (including those with needed security clearances), customers, and business partners of an acquired business in the future; •we may fail to successfully integrate acquired businesses, such as failing to successfully implement IT and other control systems relating to the operations of any acquired business; •we may not generate sufficient earnings to meet the required Leverage Ratio under the Credit Facility, which would give lenders the right to, among other things, foreclose on our assets; 14 14 14 Table of ContentsSCIENCE APPLICATIONS INTERNATIONAL CORPORATION Table of Contents **Current (2026):** Subject to the limitations of our credit facility (as further described in "Management's Discussion and Analysis of Financial Condition and Results of Operations" in Part II, Item 7 of this report), we may make strategic acquisitions or investments, engage in joint ventures, or divest existing businesses, which could cause unforeseen expenses, disrupt our business, fail to yield the anticipated benefits, or pose other risks that could adversely affect our reputation, operations, or financial results, including: •we may not retain key employees (including those with needed security clearances), customers, and business partners of an acquired business in the future; •we may fail to successfully integrate acquired businesses, such as failing to successfully implement IT and other control systems relating to the operations of any acquired business; 14 14 14 Table of ContentsSCIENCE APPLICATIONS INTERNATIONAL CORPORATION Table of Contents --- ## Modified: SCIENCE APPLICATIONS INTERNATIONAL CORPORATION **Key changes:** - Reworded sentence: "required work in person, produce operational or other unforeseen challenges, and in the longer term, threaten our performance of contracts, any of which could harm our business and its results." **Prior (2025):** to meet our contractual obligations. Climate-related limitations on individual employees may also create obstacles to meeting customer requirements or our contractual obligations. Additionally, our customers could change priorities or direction due to a direct climate-change impact, concerns about long-term sustainability, legislative or regulatory pressure, or market factors such as investor, consumer, or societal requests or demands. Such changes and responses by our customers have the potential to adversely impact our future revenues, profitability, and prospects. **Current (2026):** required work in person, produce operational or other unforeseen challenges, and in the longer term, threaten our performance of contracts, any of which could harm our business and its results. Although we have business continuity plans and other safeguards in place, there is no assurance that such plans and safeguards will be effective in preventing adverse impacts on our operations or long-term plans. Local conditions and regulations may delay the return of employees to business sites, which could undermine our efforts to meet our contractual obligations. Climate-related limitations on individual employees may also create obstacles to meeting customer requirements or our contractual obligations. Additionally, our customers could change priorities or direction due to a direct climate-change impact, concerns about long-term sustainability, legislative or regulatory pressure, or market factors such as investor, consumer, or societal requests or demands. Such changes and responses by our customers have the potential to adversely impact our future revenues, profitability, and prospects. --- ## Modified: SCIENCE APPLICATIONS INTERNATIONAL CORPORATION **Key changes:** - Reworded sentence: "Except where required by law, we expressly disclaim a duty to update or revise any forward-looking statements after the date of this Form 10-K to reflect subsequent events, changed circumstances or expectations, or revised estimates and assumptions." **Prior (2025):** estimates and assumptions. The forward-looking statements in this Form 10-K are intended to be subject to the safe harbor protections in the federal securities laws. **Current (2026):** Except where required by law, we expressly disclaim a duty to update or revise any forward-looking statements after the date of this Form 10-K to reflect subsequent events, changed circumstances or expectations, or revised estimates and assumptions. The forward-looking statements in this Form 10-K are intended to be subject to the safe harbor protections in the federal securities laws. --- ## Modified: Customer systems failures could damage our reputation and adversely affect our revenues and profitability. **Key changes:** - Reworded sentence: "15 15 15 Table of ContentsSCIENCE APPLICATIONS INTERNATIONAL CORPORATION Table of Contents" **Prior (2025):** Many of the systems and networks that we develop, install, and maintain for our customers involve managing and protecting personal information and information relating to national security and other sensitive government functions. While we have programs designed to comply with relevant privacy and security laws and restrictions, if a system or network that we develop, install, or maintain were to fail or experience a security breach or service interruption (whether caused by us, third-party service providers, cybersecurity threats, or other events), we may 15 15 15 Table of ContentsSCIENCE APPLICATIONS INTERNATIONAL CORPORATION Table of Contents **Current (2026):** 15 15 15 Table of ContentsSCIENCE APPLICATIONS INTERNATIONAL CORPORATION Table of Contents --- ## Modified: SCIENCE APPLICATIONS INTERNATIONAL CORPORATION **Key changes:** - Reworded sentence: "Many of the systems and networks that we develop, install, and maintain for our customers involve managing and protecting personal information and information relating to national security and other sensitive government functions." **Prior (2025):** experience loss of revenue, remediation costs, claims for damages, or contract termination. This could cause serious harm to our reputation and prevent us from having access to, or being eligible for, further work involving these systems and networks. Our errors and omissions liability insurance may not adequately compensate us for the damages that we incur, and our results could be adversely affected. **Current (2026):** Many of the systems and networks that we develop, install, and maintain for our customers involve managing and protecting personal information and information relating to national security and other sensitive government functions. While we have programs designed to comply with relevant privacy and security laws and restrictions, if a system or network that we develop, install, or maintain were to fail or experience a security breach or service interruption (whether caused by us, third-party service providers, cybersecurity threats, or other events), we may experience loss of revenue, remediation costs, claims for damages, or contract termination. This could cause serious harm to our reputation and prevent us from having access to, or being eligible for, further work involving these systems and networks. Our errors and omissions liability insurance may not adequately compensate us for the damages that we incur, and our results could be adversely affected. --- ## Modified: Changes in tax laws and regulations or exposure to additional tax liabilities could adversely affect our financial results. **Key changes:** - Reworded sentence: "We are subject to income and other taxes in the U.S." **Prior (2025):** Changes in federal or state tax regulations or in their interpretation and application, including those with retroactive effect, could cause increases in our tax expense and affect profitability and cash flows. For example, beginning in fiscal 2023, the Tax Cuts and Jobs Act of 2017 eliminated the option to deduct research and development expenditures in the year incurred, instead requiring taxpayers to amortize such expenditures over five years for tax purposes. The impact of this change is dependent on the amount of research and development expenses we incur, as well as the potential for Congress to modify or repeal the provision or for the U.S. Treasury Department to release new guidance or interpretive rules. The impact to our income taxes payable was most significant in fiscal 2023 decreasing over the five-year amortization period. By year six, we anticipate any impact to be immaterial. **Current (2026):** We are subject to income and other taxes in the U.S. and various foreign jurisdictions. Our future effective tax rates, profitability, cash flows, and financial position could be adversely affected by changes in applicable domestic or foreign tax laws, regulations, treaties, or policies (including those with retroactive effect), or their interpretation and application. This includes unanticipated changes in our tax provisions, increases in tax liabilities from final determinations of tax audits, disputes, litigation, or agreements, reevaluation of uncertain tax positions, or other factors requiring significant judgment. In July 2025, the One Big Beautiful Bill Act (the "Act") was enacted, making permanent or extending many provisions from the prior Tax Cuts and Jobs Act ("TCJA") while introducing key changes such as the repeal of mandatory capitalization of research and development expenditures, restoration of 100% depreciation for qualified property placed in service after January 19, 2025, and other modifications to deductions, credits, and incentives. These provisions have favorably affected our fiscal year 2026 results, including lower tax payments, improved cash flows from accelerated deductions on R&D, and an overall reduction in near-term cash tax liabilities compared to prior years impacted by TCJA amortization requirements. --- *Data sourced from SEC EDGAR. Last updated 2026-05-10.*