Science Applications International (NASDAQ:SAIC) Issues Earnings Results, Beats Estimates By $0.83 EPS

Science Applications International (NASDAQ:SAIC) issued its earnings results on Monday. The company reported $2.62 earnings per share for the quarter, topping the consensus estimate of $1.79 by $0.83, FiscalAI reports. The firm had revenue of $1.75 billion for the quarter, compared to analyst estimates of $1.78 billion. Science Applications International had a return on equity of 33.15% and a net margin of 4.93%.The firm’s revenue for the quarter was down 4.8% on a year-over-year basis. During the same period last year, the company earned $2.57 earnings per share.

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

• Jim Regan was named permanent CEO, emphasizing continuity, sharper business?development discipline and portfolio focus to lift win rates and execution.
• Management reiterated FY2027 guidance with a goal of roughly 10% adjusted EBITDA margin at midpoint (the first full?year double?digit margin) and free cash flow of at least $600 million, building on FY2026 FCF of $577 million.
• Top?line headwinds persist—SAIC expects organic revenue contraction of ~2%–4% in FY2027 driven by about a $400 million recompete loss, the decision to no?bid low?margin Cloud One work, and ongoing procurement/customer timing issues.
• The company is executing operational changes to improve margins and reinvest (targeting $100 million in cost reductions, a bottoms?up enterprise transformation, hiring a chief growth officer, and focusing submissions on $25B–$28B of opportunities skewed to higher?margin mission and engineering work).

Science Applications International Stock Performance

Shares of SAIC opened at $94.58 on Wednesday. The firm has a market capitalization of $4.27 billion, a PE ratio of 12.30 and a beta of 0.31. The company has a quick ratio of 1.20, a current ratio of 1.20 and a debt-to-equity ratio of 1.65. The firm has a 50-day moving average price of $97.89 and a 200 day moving average price of $97.91. Science Applications International has a 52-week low of $81.08 and a 52-week high of $124.11.

Science Applications International Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, April 24th. Investors of record on Friday, April 10th will be given a $0.37 dividend. This represents a $1.48 dividend on an annualized basis and a yield of 1.6%. The ex-dividend date is Friday, April 10th. Science Applications International’s dividend payout ratio is currently 19.25%.

Analyst Upgrades and Downgrades

Several research firms have recently commented on SAIC. Citigroup upped their price target on shares of Science Applications International from $122.00 to $133.00 and gave the stock a “buy” rating in a research report on Tuesday, January 13th. UBS Group lifted their price objective on shares of Science Applications International from $110.00 to $113.00 and gave the company a “neutral” rating in a research report on Monday, December 8th. Weiss Ratings reissued a “hold (c-)” rating on shares of Science Applications International in a research note on Monday, December 29th. The Goldman Sachs Group decreased their target price on shares of Science Applications International from $94.00 to $82.00 and set a “sell” rating for the company in a research report on Thursday, February 12th. Finally, JPMorgan Chase & Co. lifted their price target on Science Applications International from $115.00 to $125.00 and gave the company a “neutral” rating in a report on Friday, December 5th. Three analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, Science Applications International presently has a consensus rating of “Hold” and a consensus target price of $113.89.

Institutional Trading of Science Applications International

A number of institutional investors have recently made changes to their positions in SAIC. Goldman Sachs Group Inc. boosted its holdings in shares of Science Applications International by 22.2% in the first quarter. Goldman Sachs Group Inc. now owns 146,555 shares of the company’s stock valued at $16,454,000 after acquiring an additional 26,633 shares in the last quarter. Empowered Funds LLC raised its holdings in Science Applications International by 93.2% during the first quarter. Empowered Funds LLC now owns 10,722 shares of the company’s stock worth $1,204,000 after purchasing 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 Science Applications International by 5.5% in the first 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 purchasing an additional 7,816 shares during the period. Focus Partners Wealth lifted its position in Science Applications International by 3.3% in the first quarter. Focus Partners Wealth now owns 2,900 shares of the company’s stock worth $326,000 after purchasing an additional 94 shares during the period. Finally, Baird Financial Group Inc. boosted its stake in Science Applications International by 1.0% during the 2nd quarter. Baird Financial Group Inc. now owns 17,335 shares of the company’s stock valued at $1,952,000 after purchasing an additional 171 shares in the last quarter. 76.00% of the stock is owned by institutional investors and hedge funds.

Science Applications International News Roundup

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

• Positive Sentiment: EPS beat and strong profitability metrics: SAIC reported $2.62 GAAP EPS, well above consensus, and showed solid return on equity and margin stability — a key reason investors are focusing on earnings quality over falling sales. Read More.
• Positive Sentiment: FY?2027 outlook targets growth and margin expansion: Management outlined a $7.0B–$7.2B revenue target for FY?27 and emphasized portfolio optimization and margin improvement initiatives, which supports medium?term earnings power. Read More.
• Positive Sentiment: Wall Street support remains on some desks: Stifel lowered its target but kept a “buy” rating, signaling confidence that shares have meaningful upside on the company’s margin and cash?flow story. Read More.
• Neutral Sentiment: Analyst reactions are mixed: Some firms cut price targets (including Truist) while others maintain constructive views — producing ambivalence in near?term sentiment despite the EPS beat. Read More.
• Negative Sentiment: Revenue miss and sales decline: Revenue of about $1.75B fell short of some estimates and was down ~4–5% year?over?year, driven by civilian market weakness and enterprise IT headwinds — a headwind for multiple quarters if those end markets remain soft. Read More.
• Negative Sentiment: Near?term skepticism from a major shop: Truist cut its target to $95 and moved to “hold,” signaling limited near?term upside absent clearer top?line recovery. That reduces conviction for some investors. Read More.

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.