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

Science Applications International (NASDAQ:SAIC) issued its quarterly earnings results on Monday. The company reported $2.62 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.79 by $0.83, FiscalAI reports. Science Applications International had a net margin of 5.05% and a return on equity of 33.19%. The business had revenue of $1.75 billion during the quarter, compared to analyst estimates of $1.78 billion. During the same quarter in the previous year, the firm earned $2.57 earnings per share. The business’s revenue was down 4.8% compared to the same quarter last year.

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 Trading Up 1.2%

NASDAQ:SAIC opened at $93.05 on Tuesday. The firm has a market capitalization of $4.20 billion, a P/E ratio of 11.90 and a beta of 0.31. The business has a 50 day simple moving average of $98.17 and a 200 day simple moving average of $98.07. The company has a debt-to-equity ratio of 1.64, a current ratio of 1.20 and a quick ratio of 1.20. Science Applications International has a 12-month low of $81.08 and a 12-month high of $124.11.

Science Applications International Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, April 24th. Investors of record on Friday, April 10th will be given a dividend of $0.37 per share. The ex-dividend date is Friday, April 10th. This represents a $1.48 dividend on an annualized basis and a yield of 1.6%. Science Applications International’s payout ratio is currently 18.93%.

Analysts Set New Price Targets

Several equities research analysts have recently weighed in on SAIC shares. Zacks Research downgraded shares of Science Applications International from a “strong-buy” rating to a “hold” rating in a research report on Monday, February 2nd. The Goldman Sachs Group reduced their price target on shares of 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. Citigroup boosted their price objective on Science Applications International from $122.00 to $133.00 and gave the company a “buy” rating in a report on Tuesday, January 13th. UBS Group upped their price objective on Science Applications International from $110.00 to $113.00 and gave the company a “neutral” rating in a research note on Monday, December 8th. Finally, Weiss Ratings reaffirmed a “hold (c-)” rating on shares of Science Applications International in a report on Monday, December 29th. Three research 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, the company currently has a consensus rating of “Hold” and an average target price of $116.44.

Hedge Funds Weigh In On Science Applications International

Several hedge funds and other institutional investors have recently modified their holdings of the company. Fuller & Thaler Asset Management Inc. increased its holdings in shares of Science Applications International by 20.2% in the 4th 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 period. First Trust Advisors LP grew its position in Science Applications International by 25.9% in the 4th quarter. First Trust Advisors LP now owns 1,912,390 shares of the company’s stock worth $192,501,000 after purchasing an additional 393,344 shares during the last quarter. Dimensional Fund Advisors LP increased its stake in shares of 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 period. AQR Capital Management LLC raised its holdings in shares of Science Applications International by 36.3% during the second quarter. AQR Capital Management LLC now owns 1,303,894 shares of the company’s stock valued at $143,578,000 after buying an additional 347,456 shares during the last quarter. Finally, Invesco Ltd. boosted its position in shares of Science Applications International by 3.1% during the third quarter. Invesco Ltd. now owns 910,936 shares of the company’s stock worth $90,520,000 after buying an additional 27,548 shares during the period. Institutional investors and hedge funds own 76.00% of the company’s stock.

Trending Headlines about Science Applications International

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

• Positive Sentiment: Q4 EPS materially beat consensus—SAIC reported $2.62 EPS, above street estimates, supporting profitability metrics and beating revised analyst expectations. SAIC Announces Fourth Quarter and Full Fiscal Year 2026 Results
• Positive Sentiment: Management provided FY‑2027 targets of $7.0B–$7.2B in revenue and reiterated a push on portfolio focus and margin expansion — a forward-looking signal that could improve investor confidence if execution continues. SAIC targets $7B–$7.2B revenue in FY ’27
• Positive Sentiment: Key profitability metrics remain healthy (net margin ~5% and ROE >30%), which helps cushions concerns from a softer top line and supports free‑cash/return expectations. MarketBeat: Q4 results and metrics
• Neutral Sentiment: Street context shifted ahead of the release—analysts had trimmed expectations into the print; that headroom amplified the EPS beat but also made forward guidance scrutiny more important. Analyst expectations ahead of Q4
• Neutral Sentiment: Full earnings materials and the call transcript/presentation are available for details on backlog, contract timing and margins—important for investors to parse one‑time vs. structural issues. Earnings call transcript & presentation
• Negative Sentiment: Revenue missed estimates: Q4 sales were ~$1.75B vs. ~1.78B expected and were down ~4.8% year‑over‑year, reflecting softer billings and contract timing that could pressure near‑term top‑line growth. Revenue miss reported
• Negative Sentiment: Management cited specific headwinds—government shutdown impacts and enterprise IT softness weighed on Q4 sales, which introduces execution risk if these dynamics persist. DefenseDaily: shutdown and IT headwinds

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.