Science Applications International Corp. (SAIC)
NASDAQ:SAIC
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Science Applications (SAIC) AI Stock Analysis

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SAIC

Science Applications

(NASDAQ:SAIC)

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Neutral 61 (OpenAI - 4o)
Rating:61Neutral
Price Target:
$95.00
▲(9.08% Upside)
The overall stock score reflects a stable financial position and attractive valuation, but is tempered by bearish technical indicators and mixed earnings call results. The company faces challenges in revenue growth and cash flow generation, which need to be addressed to improve its outlook.
Positive Factors
Strong Book-to-Bill Ratio
A strong book-to-bill ratio indicates robust demand for SAIC's services, ensuring future revenue stability and growth potential.
Artificial Intelligence Integration
AI integration can enhance operational efficiency and cost savings, strengthening SAIC's competitive position and margin sustainability.
New CEO Appointment
Leadership change with a new CEO can bring fresh strategic direction and potentially improve management quality and business execution.
Negative Factors
Revenue Decline
A decline in revenue reflects challenges in converting growth opportunities and securing new contracts, impacting long-term growth prospects.
Challenging Revenue Environment
Reduced revenue guidance indicates ongoing market challenges and potential difficulties in achieving growth targets, affecting future performance.
Potential Government Shutdown Impact
Government shutdowns can disrupt contract execution and cash flow, posing risks to SAIC's financial stability and operational continuity.

Science Applications (SAIC) vs. SPDR S&P 500 ETF (SPY)

Science Applications Business Overview & Revenue Model

Company DescriptionScience 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 MoneySAIC generates revenue primarily through government contracts, particularly with the Department of Defense and various federal agencies. The company's revenue model is built around providing technical services, systems engineering, and IT solutions, often under multi-year contracts that ensure a steady stream of income. Key revenue streams include consulting services, software development, and maintenance contracts. Additionally, SAIC benefits from partnerships with leading technology firms and defense contractors, allowing it to enhance its service offerings and expand its market reach. The company's focus on emerging technologies, such as artificial intelligence and cloud services, further contributes to its earnings by tapping into growing market demands.

Science Applications Earnings Call Summary

Earnings Call Date:Sep 04, 2025
(Q2-2026)
|
% Change Since: |
Next Earnings Date:Dec 08, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook. While there are positive developments in profit margins, book-to-bill ratios, and AI integration, the revenue decline and challenging environment due to delays in new business awards and on-contract growth uncertainties are significant concerns.
Q2-2026 Updates
Positive Updates
Strong Book-to-Bill Ratio
The company reported a book-to-bill ratio comfortably over 1.0 for the second consecutive quarter, with a year-to-date book-to-bill of 1.4.
Improved Profit Margins
Profit margins rebounded well from the first quarter, with an adjusted EBITDA margin of 10.5%, reflecting improved profitability across the contract portfolio.
Effective Cost Efficiency Initiatives
The company is implementing cost efficiency initiatives to mitigate the impact on EBITDA and free cash flow, increasing confidence in margin improvement plans.
Artificial Intelligence Integration
Increased opportunities to drive greater efficiency through AI adoption in core operations expected to be a tailwind for margins and customer savings.
Positive Political Support
Encouraged by political support for funding in areas like border security, FAA modernization, and homeland missile defense.
Negative Updates
Revenue Decline
Revenue declined 2.7% year over year due to slower conversion of on-contract growth opportunities, program disruptions, and delays in new business awards.
Challenging Revenue Environment
Lowered fiscal year 2026 revenue guidance to a range of $7.25 billion to $7.325 billion, representing an organic contraction of 2% to 3%.
Delayed New Business Awards
New business awards, including a key program with the Navy valued at $350 million, will contribute modestly this year with more impact in fiscal year 2027.
Uncertainty in On-Contract Growth
On-contract revenue growth impacted by funding uncertainty and added scrutiny related to government spending reductions.
Potential Government Shutdown Impact
Concerns over potential government shutdown impacting revenue and cash flow, with historical shutdowns causing revenue impacts of less than 1% per month.
Company Guidance
In the second quarter of fiscal year 2026, Science Applications International Corporation (SAIC) reported a 2.7% year-over-year decline in revenue, attributed to slower conversion of on-contract growth opportunities, increased program disruptions, and delays in new business awards. Despite these challenges, the company achieved a book-to-bill ratio comfortably over 1.0 for the second consecutive quarter, bringing the year-to-date ratio to 1.4. Adjusted EBITDA reached $185 million, with a margin of 10.5%, while adjusted diluted earnings per share stood at $3.63, benefiting from a favorable tax settlement. Free cash flow improved to $150 million. SAIC revised its fiscal year 2026 revenue guidance to a range of $7.25 billion to $7.325 billion, reflecting organic contraction of 2% to 3%, and adjusted its fiscal year 2027 revenue guidance to 0% to 3% growth. The company also increased its fiscal year 2026 adjusted EPS guidance to $9.40 to $9.60 and expects free cash flow to exceed $550 million, with plans to deliver nearly $12 in free cash flow per share in fiscal year 2026.

Science Applications Financial Statement Overview

Summary
Science Applications demonstrates a stable financial position with strong equity utilization and improved leverage. However, recent periods show pressure on profitability and cash flow generation, which could pose challenges if not addressed.
Income Statement
65
Positive
Science Applications has shown consistent revenue generation with a slight decline in the TTM period. The gross profit margin remains stable around 11.9%, indicating efficient cost management. However, the net profit margin has decreased to 5.35% in the TTM, reflecting some pressure on profitability. The EBIT and EBITDA margins have also seen a decline, suggesting challenges in operational efficiency.
Balance Sheet
70
Positive
The company's debt-to-equity ratio has improved significantly in the TTM period, dropping to 0.40 from higher levels in previous years, indicating better leverage management. Return on equity remains strong at 25.7%, showcasing effective use of equity capital. The equity ratio is stable, reflecting a balanced asset structure.
Cash Flow
60
Neutral
Operating cash flow and free cash flow have shown a decline in the TTM period, with negative growth rates, indicating potential liquidity challenges. The free cash flow to net income ratio remains robust at 0.95, suggesting that the company is still generating healthy cash flows relative to its net income.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue7.46B7.48B7.44B7.70B7.39B7.06B
Gross Profit893.00M892.00M872.00M888.00M859.00M792.00M
EBITDA691.00M694.00M882.00M650.00M628.00M572.00M
Net Income399.00M362.00M477.00M300.00M277.00M209.00M
Balance Sheet
Total Assets5.20B5.25B5.31B5.54B5.75B5.72B
Cash, Cash Equivalents and Short-Term Investments48.00M56.00M94.00M109.00M106.00M171.00M
Total Debt601.00M2.39B2.25B2.53B2.71B2.72B
Total Liabilities3.68B3.67B3.53B3.84B4.12B4.17B
Stockholders Equity1.52B1.58B1.78B1.69B1.62B1.54B
Cash Flow
Free Cash Flow456.00M458.00M369.00M507.00M482.00M709.00M
Operating Cash Flow480.00M494.00M396.00M532.00M518.00M755.00M
Investing Cash Flow-41.00M-35.00M314.00M-36.00M-292.00M-1.23B
Financing Cash Flow-439.00M-498.00M-725.00M-493.00M-301.00M464.00M

Science Applications Technical Analysis

Technical Analysis Sentiment
Negative
Last Price87.09
Price Trends
50DMA
97.17
Negative
100DMA
105.80
Negative
200DMA
107.71
Negative
Market Momentum
MACD
-2.68
Positive
RSI
30.31
Neutral
STOCH
7.35
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SAIC, the sentiment is Negative. The current price of 87.09 is below the 20-day moving average (MA) of 92.56, below the 50-day MA of 97.17, and below the 200-day MA of 107.71, indicating a bearish trend. The MACD of -2.68 indicates Positive momentum. The RSI at 30.31 is Neutral, neither overbought nor oversold. The STOCH value of 7.35 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SAIC.

Science Applications Risk Analysis

Science Applications disclosed 30 risk factors in its most recent earnings report. Science Applications reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Science Applications Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
$24.47B17.8529.51%0.84%6.48%22.17%
78
Outperform
$13.05B25.8913.14%12.61%11.85%
78
Outperform
$7.74B14.4722.32%1.51%7.40%-14.45%
76
Outperform
$2.28B28.7711.46%1.21%9.16%16.38%
64
Neutral
$5.88B14.2135.51%-1.90%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
61
Neutral
$4.08B10.7125.40%1.70%2.23%48.38%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SAIC
Science Applications
87.09
-31.33
-26.46%
CACI
Caci International
586.31
138.31
30.87%
FORTY
Formula Systems
156.88
75.11
91.85%
G
Genpact
43.74
-0.30
-0.68%
LDOS
Leidos Holdings
188.79
31.61
20.11%
KD
Kyndryl Holdings Incorporation
24.12
-3.94
-14.04%

Science Applications Corporate Events

Business Operations and StrategyExecutive/Board Changes
Science Applications Appoints James C. Reagan as Interim CEO
Neutral
Oct 23, 2025

On October 23, 2025, Science Applications International Corporation announced the appointment of James C. Reagan as Interim Chief Executive Officer, succeeding Toni Townes-Whitley. Reagan, with extensive experience in the defense and government services industries, previously served as CFO at Leidos Holdings and other organizations. The transition reflects SAIC’s commitment to maintaining its strong market position and growth prospects. The company reaffirmed its fiscal year 2026 guidance, although potential impacts from a federal government shutdown were noted. The Board is actively seeking a permanent CEO while Reagan’s leadership is expected to sustain operational performance and shareholder value.

The most recent analyst rating on (SAIC) stock is a Hold with a $115.00 price target. To see the full list of analyst forecasts on Science Applications stock, see the SAIC Stock Forecast page.

Business Operations and StrategyM&A Transactions
SAIC Acquires SilverEdge to Boost National Security
Positive
Oct 6, 2025

On October 6, 2025, SAIC announced its acquisition of SilverEdge Government Solutions for $205 million in cash, a move aimed at enhancing its capabilities in delivering mission-focused, IP-based solutions. This acquisition is expected to bolster SAIC’s role in national security by integrating SilverEdge’s expertise in cybersecurity, software development, and intelligence solutions, thereby strengthening its position as a premier mission integrator.

The most recent analyst rating on (SAIC) stock is a Hold with a $115.00 price target. To see the full list of analyst forecasts on Science Applications stock, see the SAIC Stock Forecast page.

Private Placements and Financing
Science Applications Secures New $2.1 Billion Credit Facilities
Positive
Oct 1, 2025

On September 30, 2025, SAIC entered into an Eighth Amendment to its Credit Agreement, establishing a new $1.1 billion senior secured term loan and a $1 billion revolving credit facility, both maturing in 2030. These new credit facilities, which maintain similar interest rate margins and covenants as previous loans, were used to repay existing loans and enhance the company’s financial flexibility, potentially strengthening its market position.

The most recent analyst rating on (SAIC) stock is a Hold with a $115.00 price target. To see the full list of analyst forecasts on Science Applications stock, see the SAIC Stock Forecast page.

Private Placements and Financing
Science Applications Completes $500M Senior Notes Offering
Neutral
Sep 25, 2025

On September 25, 2025, Science Applications completed a private offering of $500 million in senior notes due 2033, receiving approximately $493 million after expenses. The proceeds will be used to repay existing debt, cover offering expenses, and support general corporate purposes, including growth and strategic projects. The notes are senior unsecured obligations, guaranteed by the company’s subsidiaries, with restrictions on additional debt and other financial activities. Redemption options are available under specific conditions, and the notes were sold to qualified institutional buyers and non-U.S. persons.

The most recent analyst rating on (SAIC) stock is a Hold with a $115.00 price target. To see the full list of analyst forecasts on Science Applications stock, see the SAIC Stock Forecast page.

Business Operations and StrategyPrivate Placements and Financing
SAIC Announces $500 Million Senior Notes Offering
Positive
Sep 22, 2025

On September 22, 2025, SAIC announced the pricing of a $500 million private offering of senior notes due 2033, aimed at repaying existing debt and funding growth initiatives. The offering, expected to close on September 25, 2025, will support SAIC’s strategic projects and enhance its market positioning by providing additional working capital.

The most recent analyst rating on (SAIC) stock is a Hold with a $115.00 price target. To see the full list of analyst forecasts on Science Applications stock, see the SAIC Stock Forecast page.

Private Placements and Financing
Science Applications Announces $500 Million Senior Notes Offering
Neutral
Sep 22, 2025

On September 22, 2025, SAIC announced a private offering of $500 million in senior notes due 2033, aimed at repaying existing debts and funding growth initiatives. Concurrently, SAIC seeks to amend its credit agreement to refinance its existing facilities with new credit facilities, although the completion of these financial maneuvers is subject to market conditions and not guaranteed.

The most recent analyst rating on (SAIC) stock is a Hold with a $115.00 price target. To see the full list of analyst forecasts on Science Applications stock, see the SAIC Stock Forecast page.

SAIC Earnings Call: Mixed Sentiments Amid Revenue Challenges
Sep 6, 2025

The recent earnings call of Science Applications International Corp. (SAIC) painted a mixed picture for investors. While the company showcased positive developments in profit margins, book-to-bill ratios, and AI integration, it also highlighted significant concerns regarding revenue decline and the challenging environment caused by delays in new business awards and uncertainties in on-contract growth.

SAIC’s Profitability at Risk: Rising Labor and Subcontractor Costs Threaten Financial Stability
Sep 5, 2025

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.

SAIC Reports Q2 FY2026 Earnings with Strategic Adjustments
Sep 5, 2025

Science Applications International Corporation (SAIC) is a leading technology integrator that specializes in providing high-end solutions across the defense, space, civilian, and intelligence sectors. Headquartered in Reston, Virginia, SAIC is recognized for its role in driving digital transformation and innovation within these critical markets.

Dividends
SAIC Declares Quarterly Cash Dividend Announcement
Positive
Aug 29, 2025

On August 28, 2025, SAIC’s Board of Directors declared a cash dividend of $0.37 per share, payable on October 24, 2025, to stockholders of record on October 10, 2025. This announcement reflects SAIC’s commitment to providing quarterly dividends, subject to the board’s evaluation of earnings, financial conditions, and capital requirements. This decision underscores the company’s stable financial health and its strategic approach to shareholder returns.

The most recent analyst rating on (SAIC) stock is a Buy with a $134.00 price target. To see the full list of analyst forecasts on Science Applications stock, see the SAIC Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Nov 13, 2025