Science Applications International (NASDAQ:SAIC) Issues Quarterly 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 analysts’ consensus estimates of $2.31 by $0.70, FiscalAI reports. Science Applications International had a return on equity of 36.96% and a net margin of 5.55%.The business had revenue of $1.88 billion for the quarter, compared to analyst estimates of $1.76 billion. During the same quarter in the previous year, the firm earned $3.63 earnings per share. The company’s 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 Price Performance

Shares of NASDAQ SAIC opened at $128.22 on Tuesday. The firm has a market cap of $5.42 billion, a PE ratio of 14.44 and a beta of 0.28. The firm has a fifty day moving average of $118.57 and a 200 day moving average of $104.76. The company has a debt-to-equity ratio of 1.73, a quick ratio of 1.16 and a current ratio of 1.16. Science Applications International has a one year low of $81.08 and a one year high of $142.66.

Science Applications International Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, October 23rd. Stockholders of record on Friday, October 9th will be paid a dividend of $0.37 per share. The ex-dividend date of this dividend is Friday, October 9th. This represents a $1.48 dividend on an annualized basis and a dividend yield of 1.2%. Science Applications International’s dividend payout ratio (DPR) is presently 16.67%.

Institutional Investors Weigh In On Science Applications International

Several large investors have recently bought and sold shares of SAIC. Fuller & Thaler Asset Management Inc. boosted its stake in shares of Science Applications International by 20.2% in the fourth quarter. Fuller & Thaler Asset Management Inc. now owns 2,626,951 shares of the company’s stock worth $264,429,000 after acquiring an additional 441,296 shares during the last quarter. Empowered Funds LLC grew its holdings in shares of Science Applications International by 6.1% during the fourth quarter. Empowered Funds LLC now owns 6,358 shares of the company’s stock worth $640,000 after buying an additional 368 shares in the last quarter. XTX Topco Ltd purchased a new stake in shares of Science Applications International during the fourth quarter worth $914,000. VARCOV Co. acquired a new stake in shares of Science Applications International in the fourth quarter valued at about $224,000. Finally, Old West Investment Management LLC acquired a new stake in shares of Science Applications International in the fourth quarter valued at about $463,000. 76.00% of the stock is currently owned by hedge funds and other institutional investors.

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 2027 revenue of $1.88 billion, up 6.3% year over year and ahead of the $1.76 billion consensus estimate. Adjusted EPS of $3.01 also topped analyst expectations of approximately $2.25-$2.31. SAIC Tops Q2 Earnings and Revenue Estimates
• Positive Sentiment: Management raised its fiscal 2027 outlook. SAIC now expects revenue of approximately $7.2 billion to $7.3 billion and adjusted diluted EPS of $10.65 to $10.75, supporting investor confidence in continued growth and earnings generation. SAIC Q2 Profit Falls Despite Higher Revenue; Raises FY27 Outlook
• Positive Sentiment: Growth was broad-based and contract visibility remained strong. Organic growth accelerated to 5.3%, with Defense and Intelligence revenue up 5% and Civilian revenue up 9%. Second-quarter net bookings were roughly $1.2 billion, estimated backlog reached $22.1 billion, and a Homeland Security recompete worth about $740 million was disclosed after the quarter. A Better Quarter Strengthens the Value Case
• Neutral Sentiment: SAIC’s earnings quality was mixed. Operating income and operating margin improved, but adjusted EBITDA margin declined, while net income fell 20% year over year. Higher taxes were identified as a key factor behind the lower reported profit. SAIC’s Earnings Dip in Second Quarter on Higher Taxes

Wall Street Analyst Weigh In

Several equities analysts recently commented on the stock. Citigroup increased their price objective on shares of Science Applications International from $120.00 to $132.00 and gave the company a “buy” rating in a research report on Tuesday, June 2nd. Stifel Nicolaus set a $154.00 price target on shares of Science Applications International in a research note on Tuesday. Jefferies Financial Group raised their price target on shares of Science Applications International from $115.00 to $130.00 and gave the stock a “hold” rating in a report on Wednesday, August 19th. Truist Financial reiterated a “hold” rating and set a $110.00 price objective (up from $95.00) on shares of Science Applications International in a research note on Tuesday, June 2nd. Finally, Wall Street Zen raised shares of Science Applications International from a “buy” rating to a “strong-buy” rating in a report on Sunday. Two analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the company currently has an average rating of “Hold” and an average price target of $120.67.

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.