Science Applications (SAIC) AI Stock Analysis

• Market Cap: $4.11B
• Dividend Yield: 1.69%
• Average Volume (3M): 717.25K
• Price to Earnings (P/E): 13.5
• Beta (1Y): 0.42
• Revenue Growth: -0.38%
• EPS Growth: 31.38%
• Country: US
• Employees: 24,000
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 2.62
• Shares Outstanding: 43,419,310
• 10 Day Avg. Volume: 606,330
• 30 Day Avg. Volume: 717,247
• PEG Ratio: 1.90
• Price to Book (P/B): 3.14
• Price to Sales (P/S): 0.65
• P/FCF Ratio: 7.74
• Enterprise Value/Market Cap: 1.07
• Enterprise Value/Revenue: 0.60
• Enterprise Value/Gross Profit: 5.03
• Enterprise Value/Ebitda: 6.65
• 1Y Price Target: $108.04
• Price Target Upside: 16.11% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 9
• EPS Forecast (FY): 9.61
• Revenue Forecast (FY): $7.34B

• Rating: 64 Neutral
• Price Target: $98.00 ▲(5.32% Upside)
• Action: Reiterated Date: 03/16/26
• Date: Action: Reiterated 03/16/26

SAIC scores as a mid-range opportunity driven primarily by strong free-cash-flow generation and supportive margin/FCF guidance. The score is held back by a guided revenue decline and recompete/ramp headwinds, plus a weaker technical trend with the stock below key longer-term moving averages.

Positive Factors

Cash Generation

SAIC's strong free cash flow and high conversion of earnings to cash provide durable internal funding for opex, strategic M&A, and shareholder returns. Robust FCF cushions the business through revenue cyclicality, supports deleveraging or buybacks, and underpins long-term financial resilience.

Backlog & Contract Wins

Consistent large contract awards and a >1 book-to-bill signal stable demand from core federal customers and multi-year revenue visibility. Strong recompete performance fuels backlog depth, reduces revenue cyclicality, and supports predictable service delivery and cash conversion over multi-year contract cycles.

Capital Allocation & Management Actions

A stated ~$1B buyback program and recent dividend declaration reflect disciplined capital allocation and management confidence in cash flows. Coupled with a permanent CEO appointment focused on transformation, this supports shareholder returns while signaling commitment to margin improvement and strategic reinvestment.

Negative Factors

Revenue Weakness

SAIC shows persistent top-line softness with recent year-over-year declines and revised guidance implying limited or negative organic growth. Structural pressure in commoditized enterprise IT and procurement timing reduces revenue growth runway, making margin and cash gains harder to sustain long term.

Elevated Leverage

An elevated and variable leverage profile constrains financial flexibility, raising sensitivity to interest rates and limiting room for strategic investments. With revenue softness, higher leverage increases refinancing and covenant risk, reducing capacity to absorb shocks or pursue large-scale acquisitions without raising capital.

Business Development Execution

Persistent capture and business-development shortfalls undermine long-term organic growth and force reliance on acquisitions or price-competitive recompetes. Weak conversion efficiency can depress future margins and backlog quality, limiting sustainable expansion in higher-value transformation work.

Science Applications Business Overview & Revenue Model

Company Description

Science Applications International Corporation provides technical, engineering, and enterprise information technology (IT) services primarily in the United States. The company's offerings include engineering; technology integration; IT modernization; maintenance of ground and maritime systems; logistics; training and simulation; operation and program support services; and end-to-end services, such as design, development, integration, deployment, management and operations, sustainment, and security of its customers' IT infrastructure, as well as cloud migration, managed services, infrastructure modernization, and enterprise IT-as-a-service solutions. It serves the U.S. military comprising Army, Air Force, Navy, Marines, and Coast Guard; Department of Defense agencies; National Aeronautics and Space Administration; the U.S. Department of State; Department of Justice; Department of Homeland Security; and various intelligence community agencies, as well as U.S. federal civilian agencies. The company was formerly known as SAIC Gemini, Inc. and changed its name to Science Applications International Corporation in September 2013. Science Applications International Corporation was founded in 1969 and is headquartered in Reston, Virginia.

How the Company Makes Money

SAIC makes money primarily by performing contracted services and delivering solutions to government customers, earning revenue as it fulfills contract requirements. Its core revenue model is contract-based and is largely tied to U.S. federal spending priorities, with the majority of revenue typically derived from U.S. government agencies (especially the Department of Defense and other federal customers). Key revenue streams generally include: (1) Services and solutions delivery under prime contracts, where SAIC is responsible for overall program execution and bills the customer according to the contract structure; (2) Work performed as a subcontractor or teaming partner, where SAIC supports a prime contractor and recognizes revenue for its portion of the work; and (3) Ongoing operations, maintenance, and modernization programs (e.g., IT operations, cybersecurity operations, engineering and logistics support), which can generate multi-year revenue through renewals, options, task orders, or follow-on awards. Revenue recognition and cash flow depend on contract types (for example, cost-reimbursement, time-and-materials, and fixed-price arrangements), which determine whether SAIC is paid based on allowable costs plus fees, labor hours at agreed rates, or delivery of specified outcomes and milestones. The company’s earnings are influenced by its ability to win new awards, retain and recompete existing programs, manage performance and costs on fixed-price work, and maintain compliance with U.S. government contracting regulations. Specific contract mix percentages, named partnerships, and customer concentration figures: null.

Science Applications Financial Statement Overview

Summary

Strong cash generation is the key positive (TTM FCF ~$617M, +34.4% YoY, and solid conversion vs. earnings). Offsetting that, TTM revenue declined (-1.2%) and profitability is steady but modest (TTM gross margin ~12% and net margin ~5%) with some compression vs. 2024. Leverage is meaningful (historically ~1.3x–1.8x debt-to-equity), reducing flexibility.

Income Statement

TTM (Trailing-Twelve-Months) revenue declined (-1.2%), following a relatively flat 2025 and modest volatility in prior years, pointing to a slower top-line backdrop. Profitability remains steady but not high for the sector profile, with TTM gross margin ~12.0% and net margin ~5.0%; margins are below the stronger 2024 level (net margin ~6.4% and higher EBIT/EBITDA margins), indicating some compression off the peak. Overall, earnings power looks resilient, but growth is currently lacking and margins have softened versus 2024.

Balance Sheet

Leverage is meaningful across the historical annual periods (debt-to-equity mostly ~1.3x–1.8x), which reduces balance-sheet flexibility and raises sensitivity to funding costs. Offsetting that, equity remains substantial (~$1.5B–$1.8B) and returns on equity are consistently strong (roughly ~17%–27% annually; ~24% in TTM), suggesting efficient capital use. Key watch item is the elevated leverage profile (and the large swing in reported debt between TTM and 2025), which makes the capital structure look less stable year-to-year.

Cash Flow

Cash generation is a clear strength: TTM operating cash flow (~$609M) and free cash flow (~$617M) are solid and improved versus 2025, with a strong TTM free-cash-flow growth rate (+34.4%). Free cash flow tracks reported earnings closely across periods (free cash flow to net income ~0.93–0.98), indicating generally good earnings quality and conversion. The main weakness is variability in free cash flow growth year-to-year (notably declines in 2022 and 2024), suggesting lumpiness in timing or working-capital/capex dynamics.

Breakdown	Jan 2026	Jan 2025	Jan 2024	Jan 2023	Jan 2022
Income Statement
Total Revenue	7.26B	7.48B	7.44B	7.70B	7.39B
Gross Profit	872.00M	892.00M	872.00M	888.00M	859.00M
EBITDA	664.00M	694.00M	882.00M	650.00M	628.00M
Net Income	358.00M	362.00M	477.00M	300.00M	277.00M
Balance Sheet
Total Assets	5.35B	5.25B	5.31B	5.54B	5.75B
Cash, Cash Equivalents and Short-Term Investments	182.00M	56.00M	94.00M	109.00M	106.00M
Total Debt	217.00M	2.39B	2.25B	2.53B	2.71B
Total Liabilities	3.85B	3.67B	3.53B	3.84B	4.12B
Stockholders Equity	1.50B	1.58B	1.78B	1.69B	1.62B
Cash Flow
Free Cash Flow	609.00M	458.00M	369.00M	507.00M	482.00M
Operating Cash Flow	609.00M	494.00M	396.00M	532.00M	518.00M
Investing Cash Flow	-248.00M	-35.00M	314.00M	-36.00M	-292.00M
Financing Cash Flow	-235.00M	-498.00M	-725.00M	-493.00M	-301.00M

Science Applications Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 93.05
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SAIC, the sentiment is Neutral. The current price of 93.05 is above the 20-day moving average (MA) of 91.54, below the 50-day MA of 98.20, and below the 200-day MA of 101.96, indicating a neutral trend. The MACD of -0.69 indicates Negative momentum. The RSI at 52.80 is Neutral, neither overbought nor oversold. The STOCH value of 64.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SAIC.

Science Applications Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FORTY	75 Outperform	$2.05B	48.04	10.03%	0.80%	6.98%	-4.56%
CACI	74 Outperform	$13.54B	23.70	13.16%	―	12.61%	11.85%
G	73 Outperform	$6.51B	14.72	21.81%	1.41%	7.40%	-14.45%
LDOS	73 Outperform	$21.36B	16.69	31.07%	0.87%	6.48%	22.17%
SAIC	64 Neutral	$4.11B	13.47	23.73%	1.69%	-0.38%	31.38%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
KD	53 Neutral	$2.83B	26.53	20.43%	―	-1.90%	―

Science Applications Corporate Events

Science Applications Declares Quarterly Cash Dividend for Shareholders

On March 12, 2026, SAIC’s board of directors declared a cash dividend of $0.37 per share on its common stock, payable on April 24, 2026 to shareholders of record as of April 10, 2026. The move underscores the company’s ongoing capital return strategy and signals confidence in its financial position while reinforcing its role as a steady income-generating investment for stakeholders, subject to board review each quarter.

The most recent analyst rating on (SAIC) stock is a Hold with a $93.00 price target. To see the full list of analyst forecasts on Science Applications stock, see the SAIC Stock Forecast page.

Science Applications Names Jim Reagan as Permanent CEO

On February 17, 2026, SAIC’s board appointed James “Jim” C. Reagan as chief executive officer, making permanent a role he had held on an interim basis since October 23, 2025. Reagan, 67, brings nearly four decades of experience, including senior finance and transformation roles at Leidos, Vencore, PAE and other telecom and technology firms, and has served on SAIC’s board since 2023.

His CEO compensation package includes a $1.2 million base salary, a target bonus equal to 150% of salary, and $7.5 million in long‑term equity incentives split between restricted and performance stock units, aligning his pay with shareholder returns. SAIC’s board highlighted Reagan’s steady leadership during the interim period and his work with business leaders to drive innovation, speed and efficiency, signaling a push for sustained, profitable growth and sharper competitive positioning in government technology and services.

The most recent analyst rating on (SAIC) stock is a Sell with a $82.00 price target. To see the full list of analyst forecasts on Science Applications stock, see the SAIC Stock Forecast page.

SAIC Cuts Revenue Outlook But Boosts Profitability Guidance

On February 11, 2026, SAIC issued preliminary unaudited results for its fiscal fourth quarter and full year 2026, alongside revised guidance for fiscal 2027, citing procurement delays, a 2025 U.S. government shutdown, adverse weather and unfavorable customer award decisions that are weighing on revenue. For fiscal 2026 it now expects about $7.26 billion in revenue, modestly below prior guidance, but stronger profitability with adjusted EBITDA of roughly $705 million, a margin of 9.7%, higher adjusted EPS and free cash flow above earlier expectations.

Management acknowledged that recent revenue pressures are concentrated in larger, commoditized enterprise IT programs and said the company will shift toward opportunities with greater technology transformation and execution upside. Updated fiscal 2027 guidance now calls for revenue of $7.0–$7.2 billion and an organic decline of 2–4%, down from a prior outlook of flat to modest growth, while adjusted EBITDA of $705–$715 million and margin of 9.9–10.1% reflect improved efficiency and mix, suggesting SAIC aims to defend profitability and cash generation despite a weaker top line.

The most recent analyst rating on (SAIC) stock is a Buy with a $122.00 price target. To see the full list of analyst forecasts on Science Applications stock, see the SAIC Stock Forecast page.