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SAIC’s Profitability at Risk: Rising Labor and Subcontractor Costs Threaten Financial Stability

SAIC’s Profitability at Risk: Rising Labor and Subcontractor Costs Threaten Financial Stability

Science Applications International Corp. (SAIC) has disclosed a new risk, in the Regulation category.

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Science Applications International Corp. faces a potential risk due to fluctuations in its cost structure, particularly related to labor and subcontractor expenses. The company’s financial performance could be impacted by the rising labor-related costs, which consistently account for 59% of the total cost of revenues. Additionally, the subcontractor-related costs, which vary between 29% and 32%, add another layer of financial uncertainty. These cost dynamics could affect SAIC’s profitability, especially in the defense and intelligence sectors.

Overall, Wall Street has a Hold consensus rating on SAIC stock based on 2 Buys, 1 Sell and 5 Holds.

To learn more about Science Applications International Corp.’s risk factors, click here.

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