Science Applications International (NASDAQ:SAIC) Posts Earnings Results

Science Applications International (NASDAQ:SAIC) issued its quarterly earnings data on Monday. The company reported $3.23 EPS for the quarter, topping analysts’ consensus estimates of $2.26 by $0.97, FiscalAI reports. Science Applications International had a net margin of 4.93% and a return on equity of 33.15%. The business had revenue of $1.91 billion during the quarter, compared to analysts’ expectations of $1.82 billion. During the same period last year, the company posted $1.42 EPS. The business’s revenue was up 1.5% on a year-over-year basis. 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 Trading Up 10.4%

Shares of SAIC opened at $115.08 on Tuesday. Science Applications International has a 1-year low of $81.08 and a 1-year high of $123.41. The company has a 50-day moving average of $96.79 and a 200 day moving average of $96.91. The firm has a market capitalization of $5.00 billion, a price-to-earnings ratio of 14.96 and a beta of 0.28. The company has a debt-to-equity ratio of 1.65, a current ratio of 1.20 and a quick ratio of 1.20.

Science Applications International Dividend Announcement

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

Analysts Set New Price Targets

A number of equities analysts have commented on the stock. BNP Paribas Exane assumed coverage on shares of Science Applications International in a research note on Wednesday, May 27th. They issued a “neutral” rating and a $95.00 price objective for the company. The Goldman Sachs Group dropped their price target on shares of Science Applications International from $94.00 to $82.00 and set a “sell” rating for the company in a research note on Thursday, February 12th. Citigroup dropped their price target on shares of Science Applications International from $133.00 to $120.00 and set a “buy” rating for the company in a research note on Thursday, April 2nd. Weiss Ratings reaffirmed a “hold (c-)” rating on shares of Science Applications International in a research note on Friday, March 27th. Finally, Truist Financial dropped their price target on shares of Science Applications International from $110.00 to $95.00 and set a “hold” rating for the company in a research note on Tuesday, March 17th. Three research analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, Science Applications International currently has an average rating of “Hold” and an average target price of $109.20.

Key Science Applications International News

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

• Positive Sentiment: SAIC beat expectations on both earnings and revenue, reporting adjusted EPS of $3.23 versus $2.26 expected and revenue of $1.91 billion versus $1.82 billion expected. SAIC Announces First Quarter of Fiscal Year 2027 Results
• Positive Sentiment: Margins improved sharply, with adjusted EBITDA margin rising to 11.6% from 8.4% a year ago, showing stronger profitability and better cost control. Science Applications International Corp (SAIC) Q1 2027 Earnings Call Highlights: Strong Margins …
• Positive Sentiment: The company raised FY2027 guidance for adjusted EBITDA, margin, and adjusted EPS, signaling management confidence that the better operating performance will continue. SAIC raises profit outlook after improved quarter, shares jump
• Positive Sentiment: Bookings remained healthy at $2.1 billion with a 1.1 book-to-bill ratio and backlog increased to $22.9 billion, supporting future revenue visibility. Science Applications International Corporation Reports 2% Revenue Growth and Increases Fiscal Year 2027 Guidance

Institutional Investors Weigh In On Science Applications International

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Los Angeles Capital Management LLC bought a new stake in Science Applications International during the 4th quarter valued at about $25,000. Transamerica Financial Advisors LLC lifted its holdings in Science Applications International by 477.8% during the 4th quarter. Transamerica Financial Advisors LLC now owns 260 shares of the company’s stock valued at $26,000 after buying an additional 215 shares in the last quarter. Wexford Capital LP bought a new stake in Science Applications International during the 3rd quarter valued at about $29,000. Rakuten Securities Inc. lifted its holdings in Science Applications International by 1,915.4% during the 2nd quarter. Rakuten Securities Inc. now owns 262 shares of the company’s stock valued at $30,000 after buying an additional 249 shares in the last quarter. Finally, Global Retirement Partners LLC bought a new stake in Science Applications International during the 4th quarter valued at about $35,000. Institutional investors own 76.00% of the company’s stock.

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.