Science Applications International (NASDAQ:SAIC) Announces Earnings Results

Science Applications International (NASDAQ:SAIC) issued its quarterly earnings results on Monday. The company reported $3.01 earnings per share for the quarter, topping the consensus estimate of $2.31 by $0.70, FiscalAI reports. Science Applications International had a net margin of 5.13% and a return on equity of 34.68%. The company had revenue of $1.88 billion during the quarter, compared to analysts’ expectations of $1.76 billion. During the same period last year, the business earned $3.63 EPS. The business’s quarterly revenue was up 6.3% on a year-over-year basis.

Here are the key takeaways from Science Applications International’s conference call:

• SAIC raised FY27 guidance, increasing revenue expectations to a midpoint of $7.25 billion, adjusted EBITDA guidance by 4%, and margin guidance to 10.3%–10.5%; free cash flow remains expected at least $600 million.
• Second-quarter revenue rose organically approximately 5% to $1.9 billion, while adjusted EBITDA was $193 million with a 10.3% margin; on-contract growth reached 9%, supported by improving customer outlays and program execution.
• Project ORBIT is entering implementation and is expected to generate approximately $150 million in annualized savings within three years, with about two-thirds reinvested in growth and capacity; management sees a path toward roughly 11% margins by FY30.
• Award timing remains uneven, with quarterly book-to-bill at 0.6 and trailing-12-month book-to-bill at 0.8 as large opportunities, RFPs, and recompetes slipped; management expects book-to-bill could finish the year near 1.0 despite a strong qualified pipeline.
• SAIC reported a recompete win rate above 90%, expects new-business win rates at or above 30%, and booked more than $1.6 billion of intelligence and space awards in the first half, strengthening confidence in future growth.

Science Applications International Trading Down 1.1%

SAIC opened at $126.78 on Wednesday. The company has a quick ratio of 1.16, a current ratio of 1.20 and a debt-to-equity ratio of 1.71. Science Applications International has a twelve month low of $81.08 and a twelve month high of $142.66. The stock has a market capitalization of $5.36 billion, a price-to-earnings ratio of 14.83 and a beta of 0.30. The company has a 50-day simple moving average of $119.01 and a 200 day simple moving average of $105.08.

Science Applications International Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Friday, October 23rd. Investors of record on Friday, October 9th will be paid a $0.37 dividend. This represents a $1.48 dividend on an annualized basis and a yield of 1.2%. The ex-dividend date of this dividend is Friday, October 9th. Science Applications International’s payout ratio is 17.31%.

Institutional Trading of Science Applications International

Institutional investors and hedge funds have recently made changes to their positions in the company. Goldman Sachs Group Inc. raised its position in Science Applications International by 22.2% during the first quarter. Goldman Sachs Group Inc. now owns 146,555 shares of the company’s stock valued at $16,454,000 after purchasing an additional 26,633 shares in the last quarter. Empowered Funds LLC raised its holdings in shares of Science Applications International by 93.2% during the 1st quarter. Empowered Funds LLC now owns 10,722 shares of the company’s stock worth $1,204,000 after buying an additional 5,173 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its position in shares of Science Applications International by 5.5% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 150,204 shares of the company’s stock worth $16,863,000 after buying an additional 7,816 shares during the last quarter. Focus Partners Wealth boosted its stake in Science Applications International by 3.3% in the first quarter. Focus Partners Wealth now owns 2,900 shares of the company’s stock valued at $326,000 after buying an additional 94 shares in the last quarter. Finally, Baird Financial Group Inc. boosted its stake in Science Applications International by 1.0% in the second quarter. Baird Financial Group Inc. now owns 17,335 shares of the company’s stock valued at $1,952,000 after buying an additional 171 shares in the last quarter. Institutional investors own 76.00% of the company’s stock.

Analyst Ratings Changes

A number of equities research analysts have recently issued reports on the company. TD Cowen reiterated a “hold” rating on shares of Science Applications International in a research note on Monday. JPMorgan Chase & Co. upped their price target on shares of Science Applications International from $110.00 to $125.00 and gave the stock a “neutral” rating in a research report on Tuesday, June 2nd. Truist Financial lifted their price objective on shares of Science Applications International from $110.00 to $130.00 and gave the company a “hold” rating in a research report on Tuesday. Weiss Ratings raised shares of Science Applications International from a “hold (c)” rating to a “hold (c+)” rating in a report on Monday, August 24th. Finally, Jefferies Financial Group lifted their price target on Science Applications International from $130.00 to $140.00 and gave the stock a “hold” rating in a report on Tuesday. Two equities research analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat, Science Applications International currently has an average rating of “Hold” and a consensus price target of $124.44.

Key Stories Impacting Science Applications International

Here are the key news stories impacting Science Applications International this week:

• Positive Sentiment: Quarterly results exceeded expectations. SAIC reported fiscal Q2 adjusted earnings of $3.01 per share versus the $2.31 consensus estimate, while revenue rose 6.3% year over year to $1.88 billion, above the $1.76 billion forecast. SAIC Analysts Raise Their Forecasts After Better-Than-Expected Q2 Earnings
• Positive Sentiment: Management raised fiscal 2027 guidance. SAIC now expects revenue of approximately $7.2 billion to $7.3 billion and adjusted EPS of $10.65 to $10.75. Second-quarter bookings were about $1.2 billion, and backlog reached roughly $22.1 billion, supporting confidence in future government-contract demand. SAIC rises after quarterly beat and higher fiscal 2027 guidance
• Positive Sentiment: Analysts increased their price targets. Jefferies lifted its target from $130 to $140, while Truist raised its target from $110 to $130. The revisions reflect improved estimates following the earnings beat and stronger outlook. SAIC Analysts Raise Their Forecasts After Better-Than-Expected Q2 Earnings
• Neutral Sentiment: Analyst sentiment remains cautious. Jefferies and Truist maintain “hold” ratings, and UBS raised its target from $108 to $123 while retaining a “neutral” rating. With SAIC trading above UBS’s target and near Truist’s target, some investors may see valuation upside as relatively limited. SAIC Analysts Raise Their Forecasts After Better-Than-Expected Q2 Earnings
• Negative Sentiment: Profitability weakened year over year. Despite higher revenue and a strong adjusted EPS beat, quarterly EPS declined from $3.63 in the prior-year period. Reports attributed the earnings decline to higher taxes, while adjusted EBITDA margin also slipped, tempering the otherwise favorable outlook. SAIC’s Earnings Dip In Second Quarter On Higher Taxes

About Science Applications International

Science Applications International Corp. (SAIC) is a leading provider of technical, engineering, and enterprise IT services to the U.S. government, including the Department of Defense, the intelligence community, and civilian agencies. The company’s core offerings encompass systems engineering and integration, mission support, cybersecurity, data analytics, and cloud solutions. SAIC’s work spans the full program lifecycle, from research and development to deployment and sustainment, addressing complex defense, space, and national security challenges.

Founded in 1969 by J.