Science Applications (SAIC) AI Stock Analysis

• Market Cap: $4.83B
• Dividend Yield: 1.41%
• Average Volume (3M): 419.24K
• Price to Earnings (P/E): 12.7
• Beta (1Y): 0.40
• Revenue Growth: 2.23%
• EPS Growth: 48.38%
• Country: US
• Employees: 24,000
• Sector: Technology
• Sector Strength: 82
• Industry: Information Technology Services
• EPS (TTM): 3.63
• Shares Outstanding: 46,022,000
• 10 Day Avg. Volume: 604,110
• 30 Day Avg. Volume: 419,235
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.57
• Enterprise Value/Revenue: 1.02
• Enterprise Value/Gross Profit: 8.48
• Enterprise Value/Ebitda: 10.96
• 1Y Price Target: $115.71
• Price Target Upside: 10.27% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 8

• Rating: 60 Neutral
• Price Target: $112.00 ▲(6.74% Upside)

SAIC's overall stock score reflects stable financial performance and attractive valuation, but is weighed down by bearish technical indicators and revenue challenges highlighted in the earnings call. Positive corporate events provide some support, but operational and market uncertainties remain significant.

Positive Factors

Bookings

SAIC posted a 1Q quarterly B2B of 1.3x and highlighted approximately $2B in bookings since the start of the new quarter, indicating a strong start to F2Q bookings.

Cash Flow

A new law boosts cash flow significantly for SAIC, with a notable reduction in the effective tax rate.

Free Cash Flow

The fiscal 2027 free cash flow per share outlook was raised from $12 to $13.50.

Negative Factors

Contract Awards

The primary reasons behind the guidance reduction were slower on-contract growth, delays in new business awards, and delays in new program ramps.

Guidance Reduction

Shares of SAIC, one of the leading providers of defense IT services, are trading down 6% after the company reported mixed second-quarter results and a sizable guidance reduction for fiscal 2026 and 2027.

Revenue

Second-quarter revenue was below consensus. SAIC reported revenue of $1.77 billion, compared with consensus of $1.86 billion.

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 through a combination of government contracts and commercial services. A significant portion of its income comes from long-term contracts with U.S. government agencies, including the Department of Defense and other federal entities, which require specialized engineering and IT services. Additionally, the company earns revenue by providing consulting services, system integration, and cybersecurity solutions to commercial clients. Key revenue streams include fixed-price contracts, cost-reimbursable contracts, and time-and-materials contracts. Partnerships with technology providers and participation in large-scale government programs also contribute to its earnings, allowing SAIC to leverage advanced technologies and enhance its service offerings.

Science Applications Financial Statement Overview

Summary

SAIC exhibits solid financial health with strong operating margins and cash flow efficiencies. The company maintains a stable leverage profile, though revenue growth and asset management could be optimized further for enhanced performance.

Income Statement

The company shows a stable gross profit margin, indicating cost management efficiency, with a slight improvement in net profit margin. EBIT and EBITDA margins are robust, reflecting solid operational performance. However, the revenue growth rate is modest, suggesting steady but not aggressive expansion.

Balance Sheet

The balance sheet reflects a moderate debt-to-equity ratio, indicating a balanced leverage approach. ROE is reasonable, demonstrating effective equity utilization. The equity ratio is stable, though there's room for improvement in asset management.

Cash Flow

The company has demonstrated strong free cash flow growth, supported by consistent operating cash flow. Ratios of cash flows to net income are healthy, showcasing efficient cash management and conversion of profits into cash.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	7.46B	7.48B	7.44B	7.70B	7.39B	7.06B
Gross Profit	893.00M	892.00M	872.00M	888.00M	859.00M	792.00M
EBITDA	691.00M	694.00M	882.00M	650.00M	628.00M	572.00M
Net Income	399.00M	362.00M	477.00M	300.00M	277.00M	209.00M
Balance Sheet
Total Assets	5.20B	5.25B	5.31B	5.54B	5.75B	5.72B
Cash, Cash Equivalents and Short-Term Investments	48.00M	56.00M	94.00M	109.00M	106.00M	171.00M
Total Debt	601.00M	2.39B	2.25B	2.53B	2.71B	2.72B
Total Liabilities	3.68B	3.67B	3.53B	3.84B	4.12B	4.17B
Stockholders Equity	1.52B	1.58B	1.78B	1.69B	1.62B	1.54B
Cash Flow
Free Cash Flow	456.00M	458.00M	369.00M	507.00M	482.00M	709.00M
Operating Cash Flow	480.00M	494.00M	396.00M	532.00M	518.00M	755.00M
Investing Cash Flow	-41.00M	-35.00M	314.00M	-36.00M	-292.00M	-1.23B
Financing Cash Flow	-439.00M	-498.00M	-725.00M	-493.00M	-301.00M	464.00M

Science Applications Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 104.93
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: 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 104.93 is below the 20-day moving average (MA) of 116.57, below the 50-day MA of 114.99, and below the 200-day MA of 112.50, indicating a bearish trend. The MACD of -1.03 indicates Positive momentum. The RSI at 26.13 is Positive, neither overbought nor oversold. The STOCH value of 14.41 is Positive, 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
G	79 Outperform	$7.82B	14.89	21.86%	1.44%	7.37%	-14.64%
LDOS	78 Outperform	$22.97B	16.93	30.76%	0.88%	6.53%	230.23%
FORTY	76 Outperform	$2.06B	26.72	11.46%	1.43%	9.16%	16.38%
CACI	68 Neutral	$10.43B	21.23	13.49%	―	12.64%	19.79%
Sector *	61 Neutral	$35.55B	8.91	-10.55%	1.87%	8.47%	-8.26%
SAIC	60 Neutral	$4.83B	12.68	25.40%	1.41%	2.23%	48.38%
KD	48 Neutral	$7.57B	26.78	26.55%	―	-3.44%	―

Science Applications Corporate Events

SAIC Declares Quarterly Cash Dividend Announcement

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.

Science Applications Appoints David Urban to Board

On July 24, 2025, Science Applications International Corporation announced the appointment of David Urban to its Board of Directors, effective September 15, 2025, increasing the board size from eleven to twelve members. Mr. Urban, who brings extensive leadership experience from various sectors including legal, business, and military, will also join the Audit Committee. This strategic appointment is expected to enhance the company’s governance and leverage Mr. Urban’s diverse expertise to strengthen its industry positioning.

Science Applications Holds Virtual Annual Stockholders Meeting

On June 4, 2025, Science Applications International Corporation held its virtual Annual Meeting of Stockholders, where 82.7% of the outstanding shares were represented. During the meeting, all nominees to the Board of Directors were elected for one-year terms, the executive compensation was approved in a non-binding vote, and Ernst & Young LLP was ratified as the independent registered public accounting firm for the fiscal year ending January 30, 2026.