Townes-Whitley out as SAIC’s CEO after two years

Toni Townes-Whitley is out as CEO of Fortune 500 government contractor Science Applications International Corp. (SAIC), the Reston-based business announced late Thursday.

Jim Reagan, former Leidos executive vice president and chief financial officer, has been installed as interim CEO, effective immediately. He has been part of SAIC’s board since 2023.

Townes-Whitley joined SAIC in 2023 as its chief executive and was one of only two current Fortune 500 CEOs who are Black women. She ranked No. 82 on Fortune’s 100 Most Powerful Women in Business list this year.

SAIC did not give a specific reason for Townes-Whitley’s departure.

Before coming to SAIC, she served as president of Microsoft’s U.S.-regulated industries, president of CGI Federal and held management roles at Unisys.

“It has been a privilege to lead SAIC and work with the company’s dedicated and talented people,” Townes-Whitley said in a statement. “I have collaborated closely with Jim during my time here, and I have the utmost confidence in his and the team’s ability to capitalize on and fully realize the company’s growth prospects. With its talented employees, SAIC is in good hands until a permanent CEO is appointed.”

Reagan previously held executive positions at Vencore, PAE, Aspect Communications, MCI Telecommunications, Nextel and AMS.

“Jim’s experience as a member of the SAIC board, together with his impressive track record in senior leadership roles across the industry, provides a cross-section of skills that make him well suited to serve as interim CEO,” said Donna Morea, the board’s chair. “SAIC has a solid, customer-focused foundation in place, supported by a strong qualified pipeline and planned submit levels and a backlog of pending awards. We are confident that under Jim’s stewardship, the company will improve performance while continuing to serve its valued customers by advancing the power of technology and innovation to serve and protect our world.”

SAIC employs about 24,000 people and has annual revenues of approximately $7.5 billion.

“It is an honor to be named interim CEO of SAIC,” Reagan said in a statement. “SAIC is well respected as a mission critical provider of technology and innovation, and I am excited to leverage my experience and expertise in the defense and government services industries at this terrific organization.

“With compelling opportunities ahead and continued momentum in our business development efforts, I am confident that SAIC is poised to deliver attractive growth and value creation. I look forward to working closely with the board, management and the whole SAIC team to deliver wins and shareholder value while strengthening the company’s foundation as we continue to position SAIC for the future.”

In June, SAIC received a $928 million U.S. Air Force contract to help provide warfighting prototypes for rapid acquisition. However, in July, SAIC lost a protest to remain in competition for a $972 million Air Force modeling and simulation contract.

Reston-based Fortune 500 contractor CACI International sued SAIC in July 2024, alleging breach of a subcontracting agreement, but the case was dismissed days before trial in September.

In its second quarter 2026 earnings report released Sept. 4, the contractor reported $1.77 billion in earnings, approximately 3% lower than the same quarter in 2024, and Townes-Whitley said that “slower on-contract growth and continued delays in new business awards and new program ramps are contributing to a more challenging revenue environment than previously forecasted.”

She added in the September statement that the company anticipated the financial environment to remain stable but not improve this year.

The company’s stock performance also has lagged this year, opening Jan. 2 at $112.15 a share, dipping to $95.77 on March 3 and remaining well below its heights in the $140 to $150 range in late 2024. As of 11:15 a.m. Friday, SAIC’s stock price was at a low of $92.41 per share, down from $100.64 at Thursday’s close of trading.

In October, SAIC announced it had entered an agreement to acquire SilverEdge Government Solutions, a Maryland tech firm, for $205 million from private equity firm Godspeed Capital.

Townes-Whitley spoke at the Fortune Most Powerful Women Summit on Oct. 13, addressing her professional background and path to leadership of SAIC, as well as current trends in national security, including President Donald Trump’s proposed Golden Dome for America, to protect U.S. air space.

Asked about the unofficial name change from the Department of Defense to the Department of War, she said, “What’s important is that we respect the service, that we respect the individuals. Whatever we call the department, it’s important that we respect what these individuals do. The name — we can go left or right on the name — my whole focus is on support[ing] the warfighter.”