Science Applications (SAIC) AI Stock Analysis

• Market Cap: $4.64B
• Dividend Yield: 1.69%
• Average Volume (3M): 667.30K
• Price to Earnings (P/E): 13.1
• Beta (1Y): 0.36
• Revenue Growth: -0.38%
• EPS Growth: 31.38%
• Country: US
• Employees: 24,000
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 2.58
• Shares Outstanding: 45,127,415
• 10 Day Avg. Volume: 665,637
• 30 Day Avg. Volume: 667,298
• PEG Ratio: -0.77
• Price to Book (P/B): 3.44
• Price to Sales (P/S): 0.73
• P/FCF Ratio: 11.84
• Enterprise Value/Market Cap: 0.97
• Enterprise Value/Revenue: 0.61
• Enterprise Value/Gross Profit: 5.10
• Enterprise Value/Ebitda: 6.79
• 1Y Price Target: $120.60
• Price Target Upside: 17.42% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): 10.01
• Revenue Forecast (FY): $7.29B

• Rating: 71 Outperform
• Price Target: $109.00 ▲(6.12% Upside)

SAIC's overall stock score reflects a solid financial foundation with strong profitability and improving leverage. Positive technical indicators and attractive valuation metrics further support the stock's potential. Recent corporate actions and earnings call insights highlight strategic growth initiatives, though revenue challenges remain a concern.

Positive Factors

Strategic Acquisitions

The acquisition of SilverEdge enhances SAIC's capabilities in cybersecurity and intelligence solutions, strengthening its market position in national security.

Financial Flexibility

The new credit facilities enhance SAIC's financial flexibility, allowing it to repay existing loans and potentially strengthen its market position through strategic investments.

Contract Wins

Winning significant contracts like the $241.65M deal with the U.S. Navy and international partners supports SAIC's revenue stability and growth prospects.

Negative Factors

Revenue Decline

The decline in revenue highlights challenges in maintaining sales growth, which could impact long-term financial performance if not addressed.

Business Development Challenges

Struggles in business development execution can hinder SAIC's ability to capitalize on innovations, affecting long-term growth and competitive positioning.

Civil Segment Decline

A decline in the civil segment indicates potential vulnerabilities in SAIC's market diversification, which could impact overall revenue stability.

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 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 Financial Statement Overview

Summary

Science Applications shows a solid financial position with strong profitability and improving leverage. While revenue growth has been a concern, the company maintains healthy margins and cash flow ratios, indicating operational efficiency. Continued focus on revenue expansion and cash flow management will be crucial for future growth.

Income Statement

Science Applications has demonstrated stable profitability with a consistent gross profit margin around 11.9% and a net profit margin improving to 5.3% in the TTM period. However, the revenue growth rate has been negative recently, indicating a potential challenge in expanding sales. EBIT and EBITDA margins remain healthy, reflecting efficient operational management.

Balance Sheet

The company's debt-to-equity ratio has improved significantly in the TTM period, reducing from previous high levels, which indicates a positive trend in managing leverage. Return on equity remains strong at 25.7%, showcasing effective use of equity to generate profits. However, the equity ratio is not provided, limiting a full assessment of financial stability.

Cash Flow

Operating cash flow to net income ratio is strong, indicating good cash generation relative to reported earnings. However, free cash flow growth has been negative in the TTM period, which could signal potential cash flow challenges. The free cash flow to net income ratio remains robust, suggesting efficient cash management.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	7.48B	7.44B	7.70B	7.39B	7.06B
Gross Profit	892.00M	872.00M	888.00M	859.00M	792.00M
EBITDA	694.00M	882.00M	650.00M	628.00M	572.00M
Net Income	362.00M	477.00M	300.00M	277.00M	209.00M
Balance Sheet
Total Assets	5.25B	5.31B	5.54B	5.75B	5.72B
Cash, Cash Equivalents and Short-Term Investments	56.00M	94.00M	109.00M	106.00M	171.00M
Total Debt	2.39B	2.25B	2.53B	2.71B	2.72B
Total Liabilities	3.67B	3.53B	3.84B	4.12B	4.17B
Stockholders Equity	1.58B	1.78B	1.69B	1.62B	1.54B
Cash Flow
Free Cash Flow	458.00M	369.00M	507.00M	482.00M	709.00M
Operating Cash Flow	494.00M	396.00M	532.00M	518.00M	755.00M
Investing Cash Flow	-35.00M	314.00M	-36.00M	-292.00M	-1.23B
Financing Cash Flow	-498.00M	-725.00M	-493.00M	-301.00M	464.00M

Science Applications Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 102.71
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SAIC, the sentiment is Positive. The current price of 102.71 is above the 20-day moving average (MA) of 97.40, above the 50-day MA of 94.10, and below the 200-day MA of 106.72, indicating a neutral trend. The MACD of 2.98 indicates Negative momentum. The RSI at 65.25 is Neutral, neither overbought nor oversold. The STOCH value of 81.87 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SAIC.

Science Applications Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CACI	78 Outperform	$12.02B	23.93	13.14%	―	12.61%	11.85%
G	78 Outperform	$8.29B	15.50	22.32%	1.41%	7.40%	-14.45%
LDOS	77 Outperform	$23.86B	17.41	29.51%	0.87%	6.48%	22.17%
FORTY	75 Outperform	$2.58B	40.44	8.18%	0.80%	6.98%	-4.56%
SAIC	71 Outperform	$4.64B	13.12	23.75%	1.69%	-0.38%	31.38%
KD	64 Neutral	$6.24B	16.04	35.51%	―	-1.90%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Science Applications Corporate Events

Science Applications Announces Major Internal Reorganization

On November 13, 2025, SAIC announced an internal reorganization, resulting in the consolidation of its five business groups into three, effective January 31, 2026. This restructuring aims to optimize operations for growth and shareholder value, with the Army and Navy groups merging into the Army Navy Business Group, and the Air Force, Space, and Intelligence groups forming the Air Force, Space and Intelligence Business Group. The Civilian Business Group remains unchanged. The reorganization also involves the departure of several executives, including David C. Ray, who will leave on January 30, 2026, and receive severance compensation.

Science Applications Appoints James C. Reagan as Interim CEO

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.

SAIC Acquires SilverEdge to Boost National Security

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.

Science Applications Secures New $2.1 Billion Credit Facilities

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.

Science Applications Completes $500M Senior Notes Offering

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.

SAIC Announces $500 Million Senior Notes Offering

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.

Science Applications Announces $500 Million Senior Notes Offering

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.