Science Applications International (SAIC) risk factors, FY2025 10-K

Industry and Economic Risks

1. 01We depend on U.S. government agencies as our primary customers and, if our reputation or relationships with these agencies were to be harmed, it could adversely impact our financial performance
2. 02We face aggressive competition that can impact our ability to obtain contracts and may affect our future revenues, profitability, and growth prospects
3. 03Our earnings and profitability may vary based on the mix of our contracts and may be adversely impacted if we fail to estimate and manage costs, time, and resources accurately
4. 04We use estimates in recognizing revenues, and our profitability may be adversely affected if we make changes to those estimates

Legal and Regulatory Risks

1. 05Our failure to comply with the laws and regulations governing organizational conflicts of interest (“OCIs”) could lead to penalties including, potentially, termination of one or more of our U.S. government contracts
2. 06The U.S. government may issue or revise existing rules, regulations, and directives at any time, creating uncertainty and requiring unanticipated investments in related compliance efforts
3. 07We are subject to government audits, cost adjustments, reviews, and investigations that could adversely affect our profitability, cash flows, or growth prospects
4. 08Our business is subject to governmental review and investigation, which could adversely affect our profitability, cash position and growth prospects
5. 09The U.S. government may terminate, cancel, modify, or curtail our contracts at any time and, if we do not replace them, we may be unable to achieve or sustain revenue growth and may suffer a decline in revenues and profitability
6. 10Our use of net operating loss carryforwards and other tax attributes to offset future taxable income may become limited if we or the IRS determine that we have experienced an ownership change
7. 11Changes in tax laws and regulations or exposure to additional tax liabilities could adversely affect our financial results
8. 12Legal disputes could require us to pay potentially large damage awards and could be costly to defend, which could adversely affect our cash balances and profitability, and could damage our reputation
9. 13Our business is subject to numerous legal and regulatory requirements, and any violation of these requirements, or any misconduct by our employees, subcontractors, agents, or business partners, could harm our business and reputation

Business and Operational Risks

1. 14A failure to attract, train, retain, and utilize skilled employees and our senior management team would adversely affect our ability to execute our strategy and may disrupt our operations
2. 15We may make acquisitions, investments, joint ventures, and divestitures in the future that involve numerous risks, which, if realized, may adversely affect our business and financial performance
3. 16If any acquisitions, investments, or joint ventures fail, perform poorly, or their value is otherwise impaired for any reason, including contractions in credit markets and global economic conditions, our business and financial results could be adversely affected
4. 17We use and deploy AI solutions for our customers that could harm our reputation or create liability if they do not function as predicted
5. 18We face various risks related to health epidemics, pandemics, and similar outbreaks, which may have material adverse effects on our business, financial position, results of operations, and/or cash flows
6. 19Customer systems failures could damage our reputation and adversely affect our revenues and profitability
7. 20We depend on our teaming arrangements and relationships with other contractors and subcontractors. If we are not able to maintain these relationships, or if these parties fail to satisfy their obligations to us or the customer, our revenues, profitability, and growth prospects could be adversely affected
8. 21We have only a limited ability to protect our intellectual property rights, which are important to our success. Our failure to adequately protect our proprietary information and intellectual property rights could adversely affect our competitive position
9. 22We face risks related to climate change if extreme weather events adversely affect our ability to work or our customers’ requirements or priorities
10. 23to meet our contractual obligations. Climate-related limitations on individual employees may also create obstacles to meeting customer requirements or our contractual obligations
11. 24We could incur significant liabilities and suffer negative publicity if our detection systems fail to operate as intended or our assessment reports prove to be inaccurate
12. 25Our services and operations sometimes involve using, handling, or disposing of hazardous substances or dangerous materials, which could expose us to potentially significant liabilities
13. 26We face risks associated with our international business
14. 27Pension funding and costs are dependent upon several economic assumptions, which, if changed, may cause our future earnings and cash flow to fluctuate significantly
15. 28Goodwill and intangible assets represent a significant amount of our total assets and any impairment of these assets would negatively affect our results of operations
16. 29We maintain our cash at financial institutions, often in balances that exceed federally insured limits

Cybersecurity Risks

1. 30Our business and financial results could be negatively affected by cyber or other security threats
2. 31Actual or perceived cybersecurity vulnerabilities may lead to claims against us. Our customers, their employees, or third parties may seek to hold us liable for any costs or other damages associated with unauthorized access to sensitive information for which we are responsible under customer contracts
3. 32Because of the rapidly evolving nature of these threats, there can be no assurance that our policies, procedures and security controls will detect or prevent them, mitigate their affects and we cannot predict their full impact
4. 33Forward-Looking Statement Risks