Science Applications (SAIC) AI Stock Analysis

• Market Cap: $3.95B
• Dividend Yield: 1.69%
• Average Volume (3M): 637.60K
• Price to Earnings (P/E): 11.0
• Beta (1Y): 0.45
• 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: 910,653
• 30 Day Avg. Volume: 637,595
• 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: 1.71
• Enterprise Value/Revenue: 0.92
• Enterprise Value/Gross Profit: 7.65
• Enterprise Value/Ebitda: 10.19
• 1Y Price Target: $116.00
• Price Target Upside: 32.45% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 8
• EPS Forecast (FY): 9.61
• Revenue Forecast (FY): $7.38B

• Rating: 64 Neutral
• Price Target: $93.00 ▲(6.19% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

SAIC scores as a moderate-quality opportunity: financial fundamentals are solid (profitability, cash conversion, improving leverage) and valuation is supportive, but the stock’s technical picture is weak and recent results/guidance point to ongoing revenue pressure despite improving margins and strong cash flow.

Positive Factors

Improving margins and cash conversion

SAIC has sustained operating efficiency with improving net margins and strong operating-cash-flow-to-net-income conversion. That structural profitability supports reinvestment, debt reduction and shareholder capital returns, cushioning the business through top-line cyclicality.

Strong bookings and multi‑year awards

A book-to-bill above 1 and recent multi‑year Defense awards indicate a durable backlog of contracted work. Multi-year government contracts create predictable revenue streams, support utilization and enable long-term planning despite near-term procurement timing swings.

Accretive M&A and cost-efficiency actions

SilverEdge and targeted $100M+ efficiency measures are structural moves to lift margins and improve competitive differentiation on bids. Accretive M&A plus reinvestment into higher-ROI areas can sustainably boost EBITDA and long-term EPS if integration and capture execution hold.

Negative Factors

Recent revenue contraction

SAIC faces a durable top-line headwind: recent quarters show revenue declines and guidance implies limited organic growth. Prolonged revenue weakness constrains operating leverage, makes margin gains harder to sustain, and raises pressure on management to convert pipeline into funded wins.

Weak capture and BD execution

Persistent shortcomings in capture and business development reduce the ROI from investments in technology and innovation. If SAIC cannot reliably convert proposals into awards, long-term revenue and EBITDA growth will be limited despite margin and efficiency initiatives.

Exposure to procurement delays and commoditized programs

Dependence on government procurement cycles and commoditized enterprise IT work makes revenue lumpy and sensitive to shutdowns, weather and award timing. Structural exposure to lower‑value, competitive programs pressures top-line resilience and strategic upward margin mobility.

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

Solid profitability and operating efficiency (improving net margin; healthy EBIT/EBITDA), improving leverage and strong ROE, and good cash conversion. Offsetting this, recent revenue and free-cash-flow growth have been negative, signaling top-line and cash growth pressure.

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	TTM	Jan 2025	Jan 2024	Jan 2023	Jan 2022	Jan 2021
Income Statement
Total Revenue	7.35B	7.48B	7.44B	7.70B	7.39B	7.06B
Gross Profit	883.00M	892.00M	872.00M	888.00M	859.00M	792.00M
EBITDA	663.00M	694.00M	882.00M	650.00M	628.00M	572.00M
Net Income	371.00M	362.00M	477.00M	300.00M	277.00M	209.00M
Balance Sheet
Total Assets	5.42B	5.25B	5.31B	5.54B	5.75B	5.72B
Cash, Cash Equivalents and Short-Term Investments	45.00M	56.00M	94.00M	109.00M	106.00M	171.00M
Total Debt	2.81B	2.39B	2.25B	2.53B	2.71B	2.72B
Total Liabilities	3.91B	3.67B	3.53B	3.84B	4.12B	4.17B
Stockholders Equity	1.51B	1.58B	1.78B	1.69B	1.62B	1.54B
Cash Flow
Free Cash Flow	459.00M	458.00M	369.00M	507.00M	482.00M	709.00M
Operating Cash Flow	466.00M	494.00M	396.00M	532.00M	518.00M	755.00M
Investing Cash Flow	-257.00M	-35.00M	314.00M	-36.00M	-292.00M	-1.23B
Financing Cash Flow	-210.00M	-498.00M	-725.00M	-493.00M	-301.00M	464.00M

Science Applications Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 87.58
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 87.58 is below the 20-day moving average (MA) of 93.95, below the 50-day MA of 100.87, and below the 200-day MA of 103.96, indicating a bearish trend. The MACD of -4.35 indicates Positive momentum. The RSI at 37.89 is Neutral, neither overbought nor oversold. The STOCH value of 40.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	$1.78B	24.38	8.18%	0.80%	6.98%	-4.56%
G	73 Outperform	$6.54B	11.99	22.37%	1.41%	7.40%	-14.45%
CACI	72 Outperform	$12.94B	25.09	13.18%	―	12.61%	11.85%
LDOS	72 Outperform	$22.01B	15.44	31.05%	0.87%	6.48%	22.17%
SAIC	64 Neutral	$3.95B	11.03	23.75%	1.69%	-0.38%	31.38%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
KD	53 Neutral	$2.63B	11.11	21.77%	―	-1.90%	―

Science Applications Corporate Events

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.