Science Applications International Corporation Common Stock
Science Applications International Corporation provides technical, engineering, and mission and enterprise IT services in the United States. It operates through two segments: Defense and Intelligence, and Civilian. The company offers IT modernization, digital engineering, AI solutions, mission systems support, training and simulation, and ground vehicle support for the armed forces. It also provides IT infrastructure services, mission IT solutions, enterprise IT solutions, engineering services, and professional services. Its customers include military forces, federal agencies, and civilian markets. The company was formerly known as SAIC Gemini, Inc. and changed its name to Science Applications International Corporation in September 2013. It was founded in 1969 and is headquartered in Reston, Virginia.
Jacobs Solutions Leads Government Consulting Peers With 8.3% Q2 Revenue Growth
Jacobs Solutions reported Q2 revenues of $2.42 billion, up 8.3% year on year, the fastest growth among the seven government and technical consulting stocks tracked, though full-year EPS guidance came in merely in line with analysts' estimates. SAIC posted the group's biggest estimate beat, with revenues of $1.88 billion up 6.3% year on year and 7.1% above consensus, alongside beats on EPS and full-year EPS guidance. Amentum was the weakest performer, reporting revenues of $3.49 billion, down 2% year on year and 2.2% short of expectations, with a significant EPS miss. Booz Allen Hamilton recorded revenues of $2.8 billion, down 4.2% year on year and 0.5% below expectations, but still beat on EPS, while UL Solutions reported revenues of $816 million, up 5.2% and in line with expectations, also beating on EPS. As a group, the seven stocks' revenues matched consensus and share prices have fallen 3% on average since the latest results.
SAIC Revenue Up 6% but Book-to-Bill Ratio Falls to 0.6
Science Applications International Corporation reported second-quarter fiscal 2027 revenue of $1.88 billion, up 6.3% year over year, but net bookings of approximately $1.2 billion produced a quarterly book-to-bill ratio of 0.6, with a trailing 12-month ratio of 0.8. Total backlog stood at approximately $22.1 billion, including $3.8 billion of funded backlog and $18.3 billion of negotiated unfunded backlog, down from $22.6 billion at the end of fiscal 2026. The company's non-GAAP organic revenue growth was 5.3%, and management raised fiscal 2027 revenue guidance to $7.2 billion to $7.3 billion from $7.0 billion to $7.2 billion. Operating cash flow rose 20% to $146 million, but adjusted diluted EPS fell 17% to $3.01, partly due to a prior-year tax benefit, and adjusted free cash flow declined 13% to $131 million. A subsequent five-year, approximately $740 million recompete award from the U.S. Department of Homeland Security is expected to strengthen next quarter's bookings, though the backlog remains mostly unfunded and the book-to-bill ratio below one.
SAIC Beats Q2 Estimates and Raises Full-Year Guidance
Science Applications International Corporation reported second-quarter revenue of $1.88 billion, up 6.3% year over year and 7.1% above analyst estimates, while adjusted earnings per share of $3.01 beat expectations by 30.4%. The company raised its full-year revenue guidance to $7.25 billion at the midpoint, a 2.1% increase from the prior $7.1 billion, and lifted adjusted EPS guidance to $10.70, up 7%. Management attributed the outperformance to operational efficiency gains, robust contract execution, and a recompete win rate above 90%, and highlighted Project Orbit, a multi-year cost-reduction initiative expected to generate about $150 million in annual run-rate savings, as a key driver for future margin expansion. The company also noted a gradual shift toward higher-margin fixed-price contracts, particularly in the civil segment, and expects to reach mid-10% margins next year with a path to roughly 11% longer term.
Pinterest Inc.'s shares tumbled 6.4% after the company announced that its CFO Julia Brau Donnelly will leave at the end of October. Apple Inc. shares fell 0.9% following a Bloomberg report that the leader of its App Store and product events stepped down. CrowdStrike Holdings Inc. shares climbed 5.8% after unveiling its new Falcon IQ solution along with several platform integrations and strategic partnerships. Science Applications International Corp.'s shares rose 1.8% after posting second-quarter fiscal 2027 adjusted earnings of $3.01 per share, beating the Zacks Consensus Estimate of $2.25 per share.
Science Applications International (SAIC) reported fiscal 2027 second-quarter revenue of $1.9 billion, up about 5% organically, with adjusted EBITDA of $193 million and free cash flow of $131 million, beating expectations. The company raised its full-year guidance to $7.25 billion in revenue, adjusted EBITDA margins of 10.3% to 10.5%, and at least $600 million in free cash flow, despite a second-half headwind from the RITS contract rollover. CEO Jim Reagan cited strong on-contract growth and over $1.6 billion in intelligence and space awards, while procurement remains uneven. SAIC's Project ORBIT efficiency program targets $150 million in annual run-rate savings, supporting a path toward approximately 11% margins by fiscal 2030.
Science Applications Q2 EPS and Revenue Beat Estimates
Science Applications reported second-quarter non-GAAP earnings per share of $3.01, beating estimates by $0.70, and revenue of $1.88 billion, up 6.2% year over year and $120 million above expectations. The revenue increase was driven by higher volume on existing and new contracts and the SilverEdge acquisition, which contributed $20 million, partially offset by contract completions. Net bookings were $1.2 billion, with a quarterly book-to-bill ratio of 0.6 and a trailing twelve-month ratio of 0.8. The company raised its fiscal year 2027 guidance, now expecting revenue between $7.2 billion and $7.3 billion, up from the prior range of $7.0 billion to $7.2 billion, and adjusted diluted EPS of $10.65 to $10.75, up from $9.90 to $10.10.
SAIC Q2 Earnings Preview: Analysts Expect EPS Drop to $2.31
Science Applications International Corporation will release its second quarter earnings report before the opening bell on Monday, Aug. 31, with analysts expecting earnings of $2.31 per share, down from $3.63 per share a year ago, and revenue of $1.76 billion, compared to $1.77 billion last year. The company recently named David Benson and David Cush to its board of directors on Aug. 10. SAIC offers a quarterly dividend of 37 cents per share, translating to an annual yield of 1.15%. To earn $500 per month from dividends alone, an investor would need approximately $522,804 or about 4,054 shares, while a $100 monthly income would require about $104,587 or 811 shares. Dividend yields fluctuate with stock price and payment changes, so investors should monitor these factors.
Science Applications International Corporation, a government IT services provider, will announce its earnings results this Monday before market hours. Last quarter, SAIC beat analysts' revenue expectations with $1.91 billion in revenue, up 1.5% year on year, and also exceeded EPS and full-year guidance estimates. This quarter, the market expects revenue to be flat year on year, an improvement from the 2.7% decline in the same quarter last year. Analysts have generally reconfirmed their estimates over the past 30 days, though SAIC has missed revenue estimates multiple times in the last two years. Peers Booz Allen Hamilton and ICF International reported mixed results, with Booz Allen's revenue down 4.2% and ICF flat, both missing expectations, yet their shares rose 8.8% and 11.4% respectively. SAIC's stock is up 8.1% over the last month, trading at $126.57 against an average analyst price target of $121.50.
SAIC Outperforms Accenture as Better IT Services Pick
Zacks Investment Research compares Accenture and Science Applications International Corporation, concluding that SAIC is the more attractive IT services stock. Accenture lowered the upper end of its fiscal 2026 revenue growth forecast to 3% to 4% in local currency, down from 3% to 5%, and reported a 2% decline in new bookings in U.S. dollars for its fiscal third quarter. SAIC reported better-than-expected first-quarter fiscal 2027 results, with a $22.9 billion backlog and the SilverEdge acquisition contributing about $19 million in revenues. SAIC trades at 0.75 times forward sales versus Accenture's 1.62 times, and SAIC carries a Zacks Rank #2 (Buy) while Accenture has a Zacks Rank #3 (Hold).
SAIC and NetApp go ex-dividend July 10, today is the last day to buy for July payouts
Science Applications International and NetApp both go ex-dividend on July 10, making today the final day to buy shares and qualify for their upcoming quarterly dividends. SAIC will pay $0.37 per share on July 24, while NetApp will pay $0.52 per share on July 29. Bank OZK offers a slightly longer window, with an ex-dividend date of July 13 and a payment of $0.48 per share on July 20, meaning investors must buy by July 10. SAIC recently raised its full-year earnings guidance and trades at a forward price-to-earnings ratio of 10, while NetApp reported a 40% jump in free cash flow to $1.87 billion for its last fiscal year, driven by all-flash storage and its NVIDIA co-engineered AI Data Engine. Bank OZK yields 3.59% and has increased its dividend for eight straight quarters, though its heavy commercial real estate exposure contributed to a nearly 7% share price decline last week.
Science Applications International Corporation shares have fallen 2.6% since its last earnings report, underperforming the S&P 500. The company reported fiscal first-quarter 2027 non-GAAP earnings of $3.23 per share, beating the Zacks Consensus Estimate of $2.26 by 42.9%, while revenues rose 1.5% year over year to $1.91 billion, surpassing the $1.78 billion estimate. SAIC raised its full-year adjusted EBITDA guidance to a range of $720 million to $730 million and adjusted EPS to $9.90 to $10.10. Despite the strong results, analyst estimates have trended downward over the past month, and the stock currently carries a Zacks Rank of 3, or Hold.
Government and Technical Consulting Stocks Fall 7.7% After Mixed Q1 Earnings
Government and technical consulting stocks tracked by StockStory fell an average of 7.7% since their latest earnings results, despite reporting revenues in line with analyst consensus estimates. SAIC posted revenues of $1.91 billion, up 1.5% year on year and beating expectations by 4.1%, but its stock still declined 1.7%. UL Solutions, the best performer in the group, reported revenues of $758 million, up 7.5% year on year, while Amentum, the weakest, saw flat revenues of $3.48 billion and a significant EPS miss, sending its shares down 10.2%. ICF International and Maximus also missed revenue estimates, with ICF's revenues falling 10.3% year on year and Maximus's declining 4.1%, contributing to their respective stock declines of 10.7% and 9.3%.
USA