Science Applications International (NASDAQ:SAIC) Posts Earnings Results, Beats Estimates By $0.97 EPS

Science Applications International (NASDAQ:SAIC) issued its quarterly earnings results on Monday. The company reported $3.23 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.26 by $0.97, FiscalAI reports. The business had revenue of $1.91 billion for the quarter, compared to the consensus estimate of $1.82 billion. Science Applications International had a return on equity of 36.96% and a net margin of 5.55%.The business’s quarterly revenue was up 1.5% on a year-over-year basis. During the same period in the prior year, the firm posted $1.42 earnings per share. Science Applications International updated its FY 2027 guidance to 9.900-10.100 EPS.

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

• SAIC reported a record first-quarter EBITDA margin and $118 million of free cash flow, with management saying strong program execution and cost discipline continue to support industry-leading cash conversion.
• The company raised full-year guidance for adjusted EBITDA margin to 10.1%-10.3% and adjusted EPS to $9.90-$10.10, while keeping free cash flow outlook unchanged at greater than $600 million.
• Revenue grew 0.5% organically in the quarter, but management remained cautious on the full-year outlook because of timing benefits in Q1, recompete roll-offs, and ongoing environmental uncertainty; they expect to revisit guidance next quarter.
• Bookings were solid at $2.1 billion with a 1.1x book-to-bill, highlighted by a $200 million DHS recompete win, and management said the qualified pipeline remains large at about $85 billion.
• SAIC is shifting portfolio focus away from more commoditized enterprise IT and toward mission, engineering, hardware/software, AI, radar, and autonomous systems, while also reviewing potential additions and subtractions to the portfolio.

Science Applications International Price Performance

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

Science Applications International Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, July 24th. Shareholders of record on Friday, July 10th will be issued a $0.37 dividend. This represents a $1.48 annualized dividend and a yield of 1.3%. The ex-dividend date of this dividend is Friday, July 10th. Science Applications International’s dividend payout ratio is presently 19.25%.

Wall Street Analysts Forecast Growth

Several research firms recently issued reports on SAIC. Stifel Nicolaus cut their target price on Science Applications International from $128.00 to $120.00 and set a “buy” rating on the stock in a research report on Tuesday, March 17th. The Goldman Sachs Group cut their target price on Science Applications International from $94.00 to $82.00 and set a “sell” rating on the stock in a research report on Thursday, February 12th. Weiss Ratings reissued a “hold (c-)” rating on shares of Science Applications International in a research report on Friday, March 27th. Truist Financial reissued a “hold” rating and issued a $110.00 target price (up from $95.00) on shares of Science Applications International in a research report on Tuesday. Finally, BNP Paribas Exane began coverage on Science Applications International in a research report on Wednesday, May 27th. They issued a “neutral” rating and a $95.00 target price on the stock. Three investment analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the company has a consensus rating of “Hold” and an average target price of $113.40.

Institutional Investors Weigh In On Science Applications International

Several hedge funds have recently added to or reduced their stakes in SAIC. Fuller & Thaler Asset Management Inc. boosted its holdings in 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 valued at $264,429,000 after purchasing an additional 441,296 shares during the last quarter. First Trust Advisors LP boosted its holdings in Science Applications International by 25.9% in the fourth quarter. First Trust Advisors LP now owns 1,912,390 shares of the company’s stock valued at $192,501,000 after purchasing an additional 393,344 shares during the last quarter. AQR Capital Management LLC boosted its holdings in Science Applications International by 36.3% in the second quarter. AQR Capital Management LLC now owns 1,303,894 shares of the company’s stock valued at $143,578,000 after purchasing an additional 347,456 shares during the last quarter. Balyasny Asset Management L.P. purchased a new stake in Science Applications International in the second quarter valued at $31,271,000. Finally, Dimensional Fund Advisors LP boosted its holdings in Science Applications International by 15.0% in the fourth quarter. Dimensional Fund Advisors LP now owns 1,350,222 shares of the company’s stock valued at $135,920,000 after purchasing an additional 176,160 shares during the last quarter. 76.00% of the stock is owned by hedge funds and other institutional investors.

Science Applications International News Summary

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.

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.