Science Applications International (NASDAQ:SAIC) Updates FY 2027 Earnings Guidance

Science Applications International (NASDAQ:SAIC) updated its FY 2027 earnings guidance on Monday. The company provided EPS guidance of 9.900-10.100 for the period. The company issued revenue guidance of $7.0 billion-$7.2 billion.

Analysts Set New Price Targets

SAIC has been the topic of a number of recent analyst reports. BNP Paribas Exane initiated coverage on Science Applications International in a research note on Wednesday, May 27th. They issued a “neutral” rating and a $95.00 price objective on the stock. Wall Street Zen downgraded Science Applications International from a “buy” rating to a “hold” rating in a research note on Sunday, April 12th. JPMorgan Chase & Co. boosted their price objective on Science Applications International from $110.00 to $125.00 and gave the stock a “neutral” rating in a report on Tuesday. Truist Financial reaffirmed a “hold” rating and issued a $110.00 target price (up from $95.00) on shares of Science Applications International in a report on Tuesday. Finally, Citigroup upped their target price on Science Applications International from $120.00 to $132.00 and gave the company a “buy” rating in a report on Tuesday. Three 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 presently has a consensus rating of “Hold” and an average price target of $113.40.

Science Applications International Trading Down 1.5%

NASDAQ:SAIC opened at $113.36 on Wednesday. The company has a market cap of $4.92 billion, a P/E ratio of 12.77 and a beta of 0.30. The stock’s fifty day moving average price is $96.79 and its two-hundred day moving average price is $96.91. Science Applications International has a 1 year low of $81.08 and a 1 year high of $123.41. The company has a debt-to-equity ratio of 1.73, a current ratio of 1.16 and a quick ratio of 1.20.

Science Applications International (NASDAQ:SAIC) last posted its earnings results on Monday, June 1st. The company reported $3.23 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.26 by $0.97. Science Applications International had a return on equity of 36.96% and a net margin of 5.55%.The firm had revenue of $1.91 billion for the quarter, compared to the consensus estimate of $1.82 billion. During the same quarter in the prior year, the business posted $1.42 earnings per share. The business’s quarterly revenue was up 1.5% on a year-over-year basis. Science Applications International has set its FY 2027 guidance at 9.900-10.100 EPS. As a group, analysts expect that Science Applications International will post 10 EPS for the current year.

Science Applications International Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, July 24th. Investors of record on Friday, July 10th will be given a $0.37 dividend. This represents a $1.48 dividend on an annualized basis and a dividend yield of 1.3%. The ex-dividend date is Friday, July 10th. Science Applications International’s dividend payout ratio (DPR) is 19.25%.

Key Stories Impacting Science Applications International

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

• Positive Sentiment: SAIC delivered a major earnings beat, reporting adjusted EPS of $3.23 versus $2.26 expected and revenue of $1.91 billion versus $1.82 billion expected, highlighting better-than-expected operating performance.
• Positive Sentiment: The company raised FY2027 guidance for adjusted EBITDA, margin, and adjusted EPS, signaling management confidence in continued profitability improvement and stronger shareholder returns.
• Positive Sentiment: Margins expanded sharply, with adjusted EBITDA margin rising to 11.6% from 8.4% a year ago, driven by improved profitability across the contract portfolio and lower SG&A expenses.
• Positive Sentiment: Bookings remained healthy at $2.1 billion with a book-to-bill ratio of 1.1, and backlog increased to about $22.9 billion, supporting future revenue visibility.
• Positive Sentiment: Several analysts turned more constructive after the report: Citigroup raised its target to $132 and kept a buy rating, while JPMorgan lifted its target to $125, reinforcing the positive earnings reaction.
• Neutral Sentiment: Truist reaffirmed its hold rating but increased its price target to $110, suggesting the stock may already reflect much of the near-term upside.
• Neutral Sentiment: One leadership change in the Civilian business group was disclosed, but it appears to be an organizational update rather than a major fundamental issue.
• Negative Sentiment: Organic revenue growth was only 0.5% after adjusting for the SilverEdge acquisition, showing that underlying top-line growth remains modest despite the earnings strength.

Institutional Investors Weigh In On Science Applications International

Institutional investors and hedge funds have recently made changes to their positions in the business. Los Angeles Capital Management LLC purchased a new stake in shares of Science Applications International in the fourth quarter worth $25,000. Transamerica Financial Advisors LLC raised its position in shares of Science Applications International by 477.8% in the fourth quarter. Transamerica Financial Advisors LLC now owns 260 shares of the company’s stock worth $26,000 after buying an additional 215 shares in the last quarter. Wexford Capital LP purchased a new stake in shares of Science Applications International in the third quarter worth $29,000. Rakuten Securities Inc. raised its position in shares of Science Applications International by 1,915.4% in the second quarter. Rakuten Securities Inc. now owns 262 shares of the company’s stock worth $30,000 after buying an additional 249 shares in the last quarter. Finally, Global Retirement Partners LLC purchased a new stake in shares of Science Applications International in the fourth quarter worth $35,000. Hedge funds and other institutional investors own 76.00% of the company’s stock.

Science Applications International Company Profile

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.