Science Applications International Corp. (SAIC)
NASDAQ:SAIC
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Science Applications
(NASDAQ:SAIC)
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Rating:68Neutral
Price Target:
$107.00
▲(16.66% Upside)
Action:ReiteratedDate:04/10/26
The score is driven primarily by resilient financials led by strong free cash flow and solid cash conversion, partially offset by soft revenue trends and elevated leverage. Guidance supports profitability and cash flow durability, but points to continued near-term top-line contraction and execution/timing risk. Technicals are moderately constructive and valuation appears reasonable.
Positive Factors
Free cash flow strength
Sustained, high free cash flow that closely tracks earnings provides durable internal funding for dividends, buybacks, debt reduction, and reinvestment. Strong FCF conversion (~0.93–0.98 of net income) signals earnings quality and reduces reliance on external capital over the medium term.
Negative Factors
Top-line contraction
Persistent organic revenue declines, driven by deliberate no-bids on low-margin work and recompete losses, shrink the addressable revenue base. Slower top-line growth increases reliance on margin and cost levers to deliver earnings and may limit scale benefits and long-term growth optionality.
Read all positive and negative factors
Positive Factors
Negative Factors
Free cash flow strength
Sustained, high free cash flow that closely tracks earnings provides durable internal funding for dividends, buybacks, debt reduction, and reinvestment. Strong FCF conversion (~0.93–0.98 of net income) signals earnings quality and reduces reliance on external capital over the medium term.
Read all positive factors
Science Applications (SAIC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.98B
Dividend Yield1.69%
Average Volume (3M)656.14K
Price to Earnings (P/E)13.5
Beta (1Y)0.38
Revenue Growth-0.38%
EPS Growth31.38%
CountryUS
Employees24,000
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)2.62
Shares Outstanding43,419,310
10 Day Avg. Volume477,968
30 Day Avg. Volume656,142
Financial Highlights & Ratios
PEG Ratio1.90
Price to Book (P/B)3.14
Price to Sales (P/S)0.65
P/FCF Ratio8.17
Enterprise Value/Market Cap1.67
Enterprise Value/Revenue0.92
Enterprise Value/Gross Profit7.64
Enterprise Value/Ebitda10.10
Forecast
1Y Price Target
$105.16Price Target Upside14.65% Upside
Rating ConsensusHold
Number of Analyst Covering9
EPS Forecast (FY)9.62
Revenue Forecast (FY)$7.15B
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 modernizati...
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 spend...
Science Applications Key Performance Indicators (KPIs)
Any
Total Backlog
Indicates the total value of contracted work yet to be completed, highlighting future revenue streams and the company's ability to secure long-term projects.
Indicates the total value of contracted work yet to be completed, highlighting future revenue streams and the company's ability to secure long-term projects.
Data provided by:
The Fly
The FlyScience Applications Earnings Call Summary
Earnings Call Date:Mar 16, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Jun 08, 2026
Earnings Call Sentiment Neutral
The call presents a balanced picture: strong margin performance, exceptional free cash flow, and a clear strategic repositioning toward higher-margin, mission-focused work are notable positives. However, meaningful near-term revenue headwinds — driven by deliberate no-bids on low-margin work, recompete losses (~$400M headwind), and slower-than-expected ramps on some new wins — keep growth constrained. Management’s disciplined pipeline, cost-reduction targets, and transformation initiatives provide a credible path to margin expansion and long-term value creation, but execution and timing risk remain material in the near term.Positive Updates
Leadership Continuity and Strategic Focus
Jim Reagan appointed permanent CEO after serving as interim; leadership emphasis on sharpening focus, hiring a Chief Growth Officer, prioritizing higher-return opportunities, and a bottoms-up enterprise transformation to improve processes and free capacity for investment.
Negative Updates
Top-Line Contraction and Missed Revenue Expectations
Q4 revenue of $1.75B with organic contraction of ~6% in the quarter; FY2026 revenue $7.26B declined ~3% organically. Management noted Q4 and FY revenue finished below initial expectations and FY2026 revenue was ~5% below initial guidance from last year.
Read all updates
Q4-2026 Updates
Positive
Negative
Leadership Continuity and Strategic Focus
Jim Reagan appointed permanent CEO after serving as interim; leadership emphasis on sharpening focus, hiring a Chief Growth Officer, prioritizing higher-return opportunities, and a bottoms-up enterprise transformation to improve processes and free capacity for investment.
Read all positive updates
Company Guidance
Management reaffirmed FY2027 guidance calling for total revenue of $7.0–$7.2 billion (organic decline of 2%–4%), adjusted EBITDA of $705–$715 million (9.9%–10.1% margin, ~10% at the midpoint and ~30 bps YoY margin improvement), adjusted diluted EPS of $9.50–$9.70, and free cash flow of at least $600 million (translating to >$14 of FCF per share and including roughly $70 million of nonrecurring cash tax benefits); they expect FY2028 FCF of at least $530 million (~$13/sh). Management noted about $400 million of recompete headwinds in FY2027, is targeting $25–$28 billion of submissions in FY2027, is executing $100 million of cost reductions, and expects the large enterprise IT mix to shrink from 17% of company revenues in FY2025 to ~10% in FY2027. For context, FY2026 results included full‑year revenue of $7.26 billion (Q4 revenue $1.75 billion), Q4 adjusted EBITDA of $181 million (Q4 margin 10.3%), full‑year adjusted EBITDA margin 9.7%, adjusted EPS $10.75 for the year ($2.62 in Q4), and free cash flow of $577 million (Q4 FCF $336 million), with FCF exceeding prior guidance by ~10% while revenue finished about 5% below initial guidance.Science Applications Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
64
Positive
Cash Flow
78
Positive
| 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 | 2.71B | 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 | 577.00M | 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
Negative
91.72
Price Trends
93.78
Negative
96.58
Negative
101.01
Negative
Market Momentum
0.53
Positive
41.98
Neutral
24.95
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 91.72 is below the 20-day moving average (MA) of 96.02, below the 50-day MA of 93.78, and below the 200-day MA of 101.01, indicating a bearish trend. The MACD of 0.53 indicates Positive momentum. The RSI at 41.98 is Neutral, neither overbought nor oversold. The STOCH value of 24.95 is Neutral, 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $11.80B | 23.70 | 13.16% | ― | 12.61% | 11.85% | |
73 Outperform | $5.80B | 14.72 | 21.81% | 1.41% | 7.40% | -14.45% | |
72 Outperform | $1.82B | 4.18 | 69.72% | 0.80% | 6.98% | -4.56% | |
68 Neutral | $3.98B | 13.47 | 23.73% | 1.69% | -0.38% | 31.38% | |
68 Neutral | $19.25B | 16.69 | 31.07% | 0.87% | 6.48% | 22.17% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
53 Neutral | $2.76B | 26.53 | 20.43% | ― | -1.90% | ― |
* Technology Sector Average
SAIC
Science Applications
91.72
-24.18
-20.86%
CACI
Caci International
534.49
110.44
26.04%
FORTY
Formula Systems
121.31
35.32
41.08%
G
Genpact
34.18
-13.04
-27.62%
LDOS
Leidos Holdings
152.88
11.27
7.96%
KD
Kyndryl Holdings Incorporation
12.23
-17.62
-59.03%
Science Applications Corporate Events
Business Operations and StrategyExecutive/Board Changes
Science Applications Adds AI and Cybersecurity Leaders to Board
Positive
Apr 9, 2026
On April 9, 2026, Science Applications International Corporation announced the appointment of technologist Paul Eremenko and retired Admiral Michael Rogers to its Board of Directors for a term beginning April 8, 2026 and running until the 2026 ann...
Dividends
Science Applications Declares Quarterly Cash Dividend for Shareholders
Positive
Mar 13, 2026
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 ...
Business Operations and StrategyExecutive/Board Changes
Science Applications Names Jim Reagan as Permanent CEO
Positive
Feb 17, 2026
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, ...
Business Operations and StrategyFinancial Disclosures
SAIC Cuts Revenue Outlook But Boosts Profitability Guidance
Negative
Feb 11, 2026
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 unfavorab...
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.