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Months into the war between the United States and Iran, the conflict has entered another period of intensification. The many ups and downs over the last several months, in which a ceasefire has numerous times appeared to be emerging before attacks resume, have provided opportunities for select industries and companies to thrive. Now, with multiple commercial supertankers struck in recent weeks, escalation is prompting a divergence across the market.

As oil remains near multi-week highs, defense contractors are able to benefit from a sustained increase in government outlays. At the same time, concerns about energy security may prompt skittishness among players across the space. Oil refiners are enjoying crack spreads that are close to all-time highs as far as profitability goes. The three companies below represent each of these corners of the market and have responded very differently to the latest round of fighting in the Iran conflict.

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SAIC Is a Steady Compounder in the Defense IT SpaceScience Applications International Today

SAIC

Science Applications International

$127.55 +0.80 (+0.63%)

As of 09/8/2026 04:00 PM Eastern

$81.08▼

$142.661.16%

14.92

$125.22

Science Applications International Corp. NASDAQ: SAIC plays a pivotal role in intelligence systems, cybersecurity, and mission IT, allowing the contractor to benefit across all phases of a war like the one in Iran. Results for its latest quarter—Q2 fiscal 2027, ended July 31, 2026—were strong across the board, including organic revenue growth of about 5%, adjusted EBITDA of $193 at a 10.3% margin, and $131 million in free cash flow. The company also posted an impressive earnings beat with earnings per share (EPS) of $3.01, 70 cents ahead of estimates, despite this metric being lower on a year-over-year (YOY) basis due to a large legal settlement a year earlier.

SAIC also provided insight into its contract pipeline, which helps make the case for its strengths going forward. A $400-million recompute contract for an unspecified U.S. intelligence agency, coupled with a recompute win rate of more than 90% for the latest quarter, means that SAIC is highly capable of generating new business.

Management boosted fiscal 2027 earnings outlook by 75 cents on the low end and 65 cents on the high end, alongside an increase in anticipated revenue as well. The company's backlog is also robust. In short, SAIC appears to be functioning well in an environment practically designed to ensure its success. One thing that may give investors pause, however, is that after climbing nearly 26% year to date (YTD), SAIC stock may not have as much room to rally in the near term.

SolarEdge’s Recovery Still Faces a Difficult SetupSolarEdge Technologies Today

SEDG

SolarEdge Technologies

$36.43 +2.23 (+6.52%)

As of 09/8/2026 04:00 PM Eastern

$28.21▼

$81.25$38.36

After several highly tumultuous years, SolarEdge Technologies NASDAQ: SEDG appeared to be an early beneficiary of the Iran war. Shares climbed in the weeks immediately following the onset of U.S.-Israeli strikes and then spiked in early June as European demand rose amid market volatility.

In the time since, however, the picture has gotten cloudier. Even with fairly strong Q2 2026 results—including 20% YOY revenue improvement to more than $346 million and a non-GAAP operating profit for the first time in multiple years, plus gross margin expansion to 28.6%—shares of SEDG have now fallen significantly from those mid-year highs.

Higher energy prices should help to boost solar adoption, which would be a boon for the company. However, rising Treasury yields due to energy-fueled inflation concerns also mean the cost of financing its projects has soared, potentially harming demand. At the same time, a tepid U.S. residential market may also be a drag on SolarEdge's business. The result is a company that, despite a fairly strong set of fundamentals, has an overall Reduce rating across Wall Street analyses.

Marathon Is the Clearest Winner, But Not a Risk-Free OneMarathon Petroleum Today

MPC

Marathon Petroleum

$398.72 +9.82 (+2.53%)

As of 09/8/2026 03:59 PM Eastern

This is a fair market value price provided by Massive. Learn more.

$161.93▼

$399.621.00%

13.71

$330.50

High gas prices, near-record crack spreads, and concerns about supply have all made for an excellent environment for oil refiners. Marathon Petroleum Corp. NYSE: MPC, one of the world's largest such companies, is no exception.

Marathon's Q2 2026 earnings report was stellar, as Q2 profit surged nearly fourfold to $5.1 billion on a 54% YOY jump in revenue. Adjusted EBITDA more than doubled as well, thanks in large part to excellent crack spreads amid the near-closure of the Strait of Hormuz.

Shares of MPC have predictably shot upward in this environment, climbing over 140% YTD. Analysts remain largely optimistic about MPC's viability for investors, with 12 out of 17 calling shares a Buy even as the stock has surged past the consensus price target of $330.50. Of course, the danger for investors is that the same major catalyst—crack spreads driven by supply concerns—can reverse just as quickly. So while it may seem that Marathon is easily the winner of the three stocks on this list, investors should be mindful that it still carries risks amid a very volatile war.

Should You Invest $1,000 in Science Applications International Right Now?Before you consider Science Applications International, you'll want to hear this.

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Public Employees Retirement System of Ohio bought a new stake in Science Applications International Corporation (NASDAQ:SAIC – Free Report) in the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund bought 12,219 shares of the company’s stock, valued at approximately $1,349,000.

A number of other hedge funds and other institutional investors have also made changes to their positions in the stock. Los Angeles Capital Management LLC bought a new position in Science Applications International during the 4th quarter worth about $25,000. Transamerica Financial Advisors LLC boosted its position in shares of Science Applications International by 477.8% during the fourth quarter. Transamerica Financial Advisors LLC now owns 260 shares of the company’s stock worth $26,000 after buying an additional 215 shares during the period. Rakuten Securities Inc. grew its holdings in shares of Science Applications International by 1,915.4% during the second quarter. Rakuten Securities Inc. now owns 262 shares of the company’s stock worth $30,000 after buying an additional 249 shares in the last quarter. Wexford Capital LP acquired a new stake in Science Applications International in the 3rd quarter valued at approximately $29,000. Finally, Global Retirement Partners LLC acquired a new stake in Science Applications International in the 4th quarter valued at approximately $35,000. 76.00% of the stock is currently owned by institutional investors and hedge funds.

Analysts Set New Price Targets A number of research firms have weighed in on SAIC. Jefferies Financial Group upped their price target on Science Applications International from $130.00 to $140.00 and gave the stock a “hold” rating in a research report on Tuesday, September 1st. TD Cowen reiterated a “hold” rating on shares of Science Applications International in a report on Monday, August 31st. BNP Paribas Exane initiated coverage on shares of Science Applications International in a report on Wednesday, May 27th. They set a “neutral” rating and a $95.00 target price for the company. Wall Street Zen raised shares of Science Applications International from a “buy” rating to a “strong-buy” rating in a research report on Sunday, August 30th. Finally, Truist Financial boosted their price target on shares of Science Applications International from $110.00 to $130.00 and gave the stock a “hold” rating in a research report on Tuesday, September 1st. Two analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, the company currently has an average rating of “Hold” and an average price target of $124.44.

View Our Latest Stock Analysis on Science Applications International Science Applications International Stock Performance Shares of NASDAQ:SAIC opened at $126.75 on Tuesday. Science Applications International Corporation has a 52-week low of $81.08 and a 52-week high of $142.66. The company has a market capitalization of $5.31 billion, a P/E ratio of 14.82 and a beta of 0.30. The company has a 50-day simple moving average of $120.38 and a 200 day simple moving average of $106.24. The company has a debt-to-equity ratio of 1.71, a quick ratio of 1.20 and a current ratio of 1.20.

Science Applications International (NASDAQ:SAIC – Get Free Report) last posted its quarterly earnings results on Monday, August 31st. The company reported $3.01 EPS for the quarter, topping analysts’ consensus estimates of $2.31 by $0.70. The business had revenue of $1.88 billion during the quarter, compared to analysts’ expectations of $1.76 billion. Science Applications International had a return on equity of 34.68% and a net margin of 5.13%.Science Applications International’s quarterly revenue was up 6.3% on a year-over-year basis. During the same quarter last year, the company posted $3.63 earnings per share. Sell-side analysts forecast that Science Applications International Corporation will post 10.73 earnings per share for the current year.

Science Applications International Announces Dividend The firm also recently announced a quarterly dividend, which will be paid on Friday, October 23rd. Investors of record on Friday, October 9th will be issued a dividend of $0.37 per share. The ex-dividend date of this dividend is Friday, October 9th. This represents a $1.48 dividend on an annualized basis and a dividend yield of 1.2%. Science Applications International’s payout ratio is presently 17.31%.

Science Applications International Company Profile (Free Report)

Science Applications International Corp. (SAIC) is a leading provider of technical, engineering, and enterprise IT services to the U.S. government, including the Department of Defense, the intelligence community, and civilian agencies. The company’s core offerings encompass systems engineering and integration, mission support, cybersecurity, data analytics, and cloud solutions. SAIC’s work spans the full program lifecycle, from research and development to deployment and sustainment, addressing complex defense, space, and national security challenges.

Founded in 1969 by J.

Further Reading Five stocks we like better than Science Applications International 3 Under-the-Radar Defense Stocks With Record Backlogs This Korea ETF Has Soared, But the Rally May Not Be Over Why Guidewire’s Post-Earnings Plunge May Not Last Ride-Share Reckoning: Tesla Drives Into Uber’s Lane Want to see what other hedge funds are holding SAIC? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Science Applications International Corporation (NASDAQ:SAIC – Free Report).

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Revenues of $1.88 billion, approximately 6.3% growth; 5.3% organic growth(1)Net income of $102 million; Adjusted EBITDA(1) of $193 million or 10.3% of revenuesDiluted earnings per share of $2.38; Adjusted diluted earnings per share(1) of $3.01Cash flows provided by operating activities of $146 million; Free cash flow(1) of $131 millionNet bookings of $1.2 billion; quarterly book-to-bill ratio of 0.6; trailing twelve months book-to-bill ratio of 0.8Company increases fiscal year 2027 guidance for revenue, adjusted EBITDA(1), adjusted EBITDA margin %(1) and adjusted diluted EPS(1); reiterates free cash flow(1) guidance RESTON, Va., Aug. 31, 2026 (GLOBE NEWSWIRE) -- Science Applications International Corporation (NASDAQ: SAIC), a premier mission integrator driving our nation's digital transformation across the defense, space, intelligence, and civilian markets, today announced results for the second quarter ended July 31, 2026.

"I am proud of our team’s performance this quarter, delivering solid organic growth and double-digit margins as we continue to execute with discipline," said Jim Reagan, SAIC Chief Executive Officer. "These results reflect our focus on operational excellence and our commitment to the targets we set for the year. We are raising our guidance to reflect our strong year-to-date performance, and we are transforming our enterprise to support our customers’ most critical missions, drive long-term growth and margin expansion, while continuing to invest in strengthening our capabilities."

Second Quarter of Fiscal Year 2027: Summary Operating Results

 Three Months Ended July 31,
2026 Percent
change August 1,
2025 (dollars in millions, except per share amounts)Revenues$1,880  6%
 $1,769 Operating income 152  9%
  139 Operating income as a percentage of revenues 8.1% 20bps  7.9%Adjusted operating income(1) 191  5%
  182 Adjusted operating income as a percentage of revenues 10.2% -10bps  10.3%Net income 102  (20)%  127 EBITDA(1) 193  9%
  177 EBITDA as a percentage of revenues 10.3% 30bps  10.0%Adjusted EBITDA(1) 193  4%
  185 Adjusted EBITDA as a percentage of revenues 10.3% -20bps  10.5%Diluted earnings per share$2.38  (12)% $2.71 Adjusted diluted earnings per share(1)$3.01  (17)% $3.63 Net cash provided by operating activities$146  20%
 $122 Free cash flow(1)$131  (13)% $150  (1)Non-GAAP measure, see Schedule 6 for information about this measure.

Second Quarter Summary Results

Revenues for the quarter increased $111 million or approximately 6% compared to the same period in the prior year primarily due to ramp up in volume on existing and new contracts and from the acquisition of SilverEdge Government Solutions ("SilverEdge") of $20 million, partially offset by contract completions. Adjusting for the impact of acquisitions, revenues grew by approximately 5.3%.

Operating income as a percentage of revenues for the quarter increased compared to the same period in the prior year primarily due to improved profitability across our contract portfolio and costs related to the settlement of federal tax audits in the prior year, partially offset by higher selling, general and administrative expenses, including recovery of costs from the settlement of a patent infringement matter in the prior year.

Adjusted EBITDA(1) as a percentage of revenues for the quarter decreased to 10.3% from 10.5% for the same period in the prior year primarily due to higher selling, general and administrative expenses, including recovery of costs from the settlement of a patent infringement matter in the prior year, partially offset by improved profitability across our contract portfolio.

Diluted earnings per share for the quarter was $2.38 compared to $2.71 in the prior year quarter. Adjusted diluted earnings per share(1) for the quarter was $3.01 compared to $3.63 in the prior year quarter. The weighted-average diluted shares outstanding during the quarter decreased to 42.8 million from 46.8 million during the prior year quarter.

(1)Non-GAAP measure, see Schedule 6 for information about this measure.

Cash Generation and Capital Deployment

Cash flows provided by operating activities for the second quarter increased $24 million compared to the prior year quarter primarily due to lower cash outflows from the usage of the Master Accounts Receivable Purchase Agreement ("MARPA") Facility, lower cash incentive-based compensation payments, and other changes in working capital, partially offset by timing of customer collections.

During the quarter, SAIC deployed $106 million of capital, consisting of $90 million of plan share repurchases and $16 million in cash dividends.

Subsequent to quarter end, on August 14, 2026, SAIC amended the MARPA to increase the aggregate facility limit from $300 million to $400 million.

Quarterly Dividend Declared

Subsequent to quarter end, on August 27, 2026, the Company's Board of Directors declared a cash dividend of $0.37 per share of the Company's common stock payable on October 23, 2026 to stockholders of record on October 9, 2026. SAIC intends to continue paying dividends on a quarterly basis, although the declaration of any future dividends will be determined by the Board of Directors each quarter and will depend on earnings, financial condition, capital requirements and other factors.

Backlog and Contract Awards

Net bookings for the quarter were approximately $1.2 billion which reflects a book-to-bill ratio of 0.6 and a trailing twelve months book-to-bill ratio of 0.8. SAIC’s estimated backlog at the end of the quarter was approximately $22.1 billion. Of the total backlog amount, approximately $3.8 billion was funded.

Notable New and Recompete Awards:

U.S. Space and Intelligence Community: During the quarter, SAIC was awarded a five-year (three-year base, plus two, one-year option periods) recompete contract of approximately $400 million supporting a U.S. Intelligence Agency. Under this contract, SAIC will provide advanced systems engineering, technical integration, and mission support services for ground-based Intelligence Community programs that ultimately deliver decisive national advantage.

U.S. Army: During the quarter, SAIC was awarded a five-year contract (three-year base, plus two, one-year option periods) of approximately $330 million supporting all branches of the Armed Services. Under this contract, SAIC will provide engineering and professional services supporting system-of-systems ("SoS"), systems engineering ("SE"), live/virtual/constructive ("LVC"), and associated M&S and multi-domain operations models, simulations, and analysis. The M&S area provides various types of system-of-systems modeling and simulation support development of and improvements of systems.

U.S. Navy: During the quarter, SAIC was awarded a five-year contract (one-year base, plus four, one-year option periods) of approximately $130 million supporting the U.S Navy. Under this contract, SAIC will provide support with acquisition, development, and operational testing of various airborne electronic warfare systems.

Notable Awards Subsequent to Period End (not included in current quarter bookings):

U.S. Department of Homeland Security: Subsequent to the end of the quarter, SAIC was awarded a five-year (one-year base, plus four, one-year option periods) recompete contract of approximately $740 million with the U.S. Department of Homeland Security, in its Civilian business group. Under this task order, SAIC will provide full-scale operations and maintenance support for Customs and Border Protection systems that are essential to assessing security risk from travelers and cargo entering our country.

U.S. Intelligence Community: Subsequent to the end of the quarter, SAIC was awarded a position on the estimated $14 billion Contract Operations for Missile Evaluation and Testing ("COMET") multiple-award, indefinite-delivery, indefinite-quantity ("IDIQ") contract with the Missile and Space Intelligence Center ("MSIC"). If awarded task orders, SAIC would provide expertise to develop, maintain, and enhance hardware, software, systems, and foundational military intelligence capabilities across five mission task areas. Backlog does not include estimates of revenues to be derived from multiple-award, IDIQ contracts, but rather we record backlog and bookings when task orders are awarded.

Fiscal Year 2027 Guidance

The table below summarizes fiscal year 2027 guidance and represents the Company's views as of August 31, 2026.        

 CURRENTPRIOR Fiscal YearFiscal Year 2027 Guidance2027 GuidanceRevenue$7.2B - $7.3B$7.0B - $7.2BOrganic Growth(1)(2%) - (0%)(4%) - (2%)Adjusted EBITDA(1)$750M - $755M$720M - $730MAdjusted EBITDA Margin %(1)10.3% - 10.5%10.1% - 10.3%Adjusted Diluted EPS(1)$10.65 - $10.75$9.90 - $10.10Free Cash Flow(1)>$600M>$600M (1)Non-GAAP measure, see Schedule 6 for information about this measure.

Webcast Information

SAIC management will discuss operations and financial results in an earnings conference call beginning at 10:00 a.m. Eastern time on August 31, 2026. The conference call will be webcast simultaneously to the public through a link on the Investor Relations section of the SAIC website (https://investors.saic.com/). We will be providing webcast access only – “dial-in” access is no longer available. Additionally, a supplemental presentation will be available to the public through links to the Investor Relations section of the SAIC website. After the call concludes, an on-demand audio replay of the webcast can be accessed on the Investor Relations website.

About SAIC

SAIC® is a premier mission integrator focused on advancing the power of technology and innovation to serve and protect our world. Our robust portfolio of offerings across the defense, space, intelligence, and civilian markets includes secure high-end solutions in mission IT, enterprise IT, engineering services and professional services. We integrate emerging technology, rapidly and securely, into mission critical operations that modernize and enable critical national imperatives.

We are approximately 23,000 strong; driven by mission, united by purpose, and inspired by opportunities. Headquartered in Reston, Virginia, SAIC has annual revenues of approximately $7.3 billion. For more information, visit saic.com. For ongoing news, please visit our newsroom.

Media Contact

Darryn James
Director, Media and Brand Reputation
[email protected] 

Investor Relations Contact

Jon Raviv
Vice President, Investor Relations
[email protected] 

GAAP to Non-GAAP Guidance Reconciliation

The Company does not provide a reconciliation of forward-looking adjusted diluted EPS to GAAP diluted EPS, adjusted EBITDA margin to GAAP net income or free cash flow to GAAP net cash flows from operating activities due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliation. Because certain deductions for non-GAAP exclusions used to calculate net income and cash flows from operating activities may vary significantly based on actual events, the Company is not able to forecast GAAP diluted EPS, GAAP net income or GAAP net cash flows from operating activities with reasonable certainty. The variability of the above charges may have an unpredictable and potentially significant impact on our future GAAP financial results.

Forward-Looking Statements

Certain statements in this release contain or are based on “forward-looking” information within the meaning of the Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by words such as “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “guidance,” and similar words or phrases. Forward-looking statements in this release may include, among others, estimates of future revenues, operating income, earnings, earnings per share, charges, total contract value, backlog, outstanding shares and cash flows, as well as statements about future dividends, share repurchases and other capital deployment plans. Such statements are not guarantees of future performance and involve risk, uncertainties and assumptions, and actual results may differ materially from the guidance and other forward-looking statements made in this release as a result of various factors. Risks, uncertainties and assumptions that could cause or contribute to these material differences include those discussed in the “Risk Factors,” “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Legal Proceedings” sections of our Annual Report on Form 10-K, as updated in any subsequent Quarterly Reports on Form 10-Q and other filings with the SEC, which may be viewed or obtained through the Investor Relations section of our website at www.saic.com or on the SEC’s website at www.sec.gov. Due to such risks, uncertainties and assumptions you are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date hereof. SAIC expressly disclaims any duty to update any forward-looking statement provided in this release to reflect subsequent events, actual results or changes in SAIC’s expectations. SAIC also disclaims any duty to comment upon or correct information that may be contained in reports published by investment analysts or others.

Schedule 1:

SCIENCE APPLICATIONS INTERNATIONAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)

 Three Months Ended Six Months Ended July 31,
2026 August 1,
2025 July 31,
2026 August 1,
2025 (in millions, except per share amounts)Revenues$1,880  $1,769 $3,786  $3,646Cost of revenues 1,641   1,554  3,298   3,222Selling, general and administrative expenses 87   75  170   164Other operating (income) expense —   1  (13)  —Operating income 152   139  331   260Interest expense, net 33   31  66   61Other (income) expense, net —   —  1   5Income before income taxes 119   108  264   194Income tax (expense) benefit (17)  19  (47)  1Net income$102  $127 $217  $195        Weighted-average number of shares outstanding:       Basic 42.4   46.7  43.1   47.1Diluted 42.8   46.8  43.4   47.3Earnings per share:       Basic$2.41  $2.72 $5.03  $4.14Diluted$2.38  $2.71 $5.00  $4.12 Schedule 2:

SCIENCE APPLICATIONS INTERNATIONAL CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)

 July 31,
2026 January 30,
2026 (in millions)ASSETS   Current assets:   Cash and cash equivalents$126 $182Receivables, net 996  853Prepaid expenses 129  122Other current assets 28  22Total current assets 1,279  1,179Goodwill 2,943  2,944Intangible assets, net 697  761Property, plant, and equipment, net 122  110Operating lease right of use assets 210  193Other assets 172  167Total assets$5,423 $5,354LIABILITIES AND EQUITY   Current liabilities:   Accounts payable$597 $500Accrued payroll and employee benefits 334  316Other accrued liabilities 98  147Debt, current portion 33  19Total current liabilities 1,062  982Debt, net of current portion 2,452  2,468Operating lease liabilities 220  198Deferred income taxes 147  104Other long-term liabilities 106  102Equity:   Total stockholders' equity 1,436  1,500Total liabilities and stockholders' equity$5,423 $5,354 Schedule 3:

SCIENCE APPLICATIONS INTERNATIONAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 Three Months Ended Six Months Ended July 31,
2026 August 1,
2025 July 31,
2026 August 1,
2025 (in millions)Cash flows from operating activities:       Net income$102  $127  $217  $195 Adjustments to reconcile net income to net cash provided by operating activities:       Depreciation and amortization 39   35   79   71 Stock-based compensation expense 15   10   28   25 Deferred income taxes 22   110   43   109 Gain on sales of investments —   —   (12)  — Other (2)  (1)  (4)  — Increase (decrease) resulting from changes in operating assets and liabilities:       Receivables (34)  58   (143)  49 Prepaid expenses and other current assets (29)  (113)  (14)  (107)Accounts payable and other accrued liabilities (25)  (117)  60   (84)Accrued payroll and employee benefits 56   48   18   (3)Operating lease assets and liabilities, net (1)  (2)  (2)  (4)Other assets and other long-term liabilities, net 3   (33)  3   (29)Net cash provided by operating activities 146   122   273   222 Cash flows from investing activities:       Expenditures for property, plant, and equipment (15)  (7)  (24)  (15)Contributions to investments (3)  (1)  (9)  (7)Purchases of marketable securities (5)  —   (9)  (4)Sales of marketable securities 6   1   11   4 Proceeds from sales of investments —   —   15   — Other 2   —   2   — Net cash used in investing activities (15)  (7)  (14)  (22)Cash flows from financing activities:       Stock repurchased and retired or withheld for taxes on equity awards (98)  (110)  (286)  (252)Dividend payments to stockholders (16)  (17)  (33)  (36)Principal payments on borrowings (1)  (546)  (2)  (1,235)Proceeds from borrowings —   557   —   1,307 Issuances of stock 5   6   10   12 Other (4)  (4)  (4)  (4)Net cash used in financing activities (114)  (114)  (315)  (208)Net increase (decrease) in cash, cash equivalents and restricted cash 17   1   (56)  (8)Cash, cash equivalents and restricted cash at beginning of period 117   55   190   64 Cash, cash equivalents and restricted cash at end of period$134  $56  $134  $56  Schedule 4:

SCIENCE APPLICATIONS INTERNATIONAL CORPORATION
SEGMENT OPERATING RESULTS
(Unaudited)

 Three Months Ended Six Months Ended July 31,
2026 August 1,
2025 July 31,
2026 August 1,
2025 (dollars in millions)Revenues       Defense and Intelligence$1,449  $1,374  $2,915  $2,807 Civilian 431   395   871   839 Total revenues$1,880  $1,769  $3,786  $3,646         Adjusted operating income (loss)       Defense and Intelligence$138  $124  $284  $239 Civilian 56   54   124   106 Corporate (3)  4   4   (5)Total adjusted operating income$191  $182  $412  $340         Adjusted operating margin       Defense and Intelligence 9.5%  9.0%  9.7%  8.5%Civilian 13.0%  13.7%  14.2%  12.6%Total adjusted operating margin 10.2%  10.3%  10.9%  9.3% Second Quarter Defense and Intelligence Results

Revenues for the quarter increased $75 million or 5% compared to the same period in the prior year primarily due to ramp up in volume on existing and new contracts and from the acquisition of SilverEdge of $20 million, partially offset by contract completions.

Adjusted operating income as a percentage of revenues increased compared to the same period in the prior year primarily due to improved profitability across our contract portfolio.

Second Quarter Civilian Results

Revenues for the quarter increased $36 million or 9% compared to the same period in the prior year primarily due to ramp up in volume on existing and new contracts, partially offset by contract completions.

Adjusted operating income as a percentage of revenues decreased compared to the same period in the prior year primarily due to timing and volume mix in our contract portfolio.

Second Quarter Corporate Results

Adjusted operating loss was $3 million for the current quarter compared to an adjusted operating income of $4 million during the same period in the prior year primarily due to higher selling, general and administrative expenses, including recovery of costs from the settlement of a patent infringement matter in the prior year.

Schedule 5:

SCIENCE APPLICATIONS INTERNATIONAL CORPORATION
BACKLOG
(Unaudited)

The estimated value of our total backlog as of the dates presented was:

 July 31, 2026 January 30, 2026 Defense and
IntelligenceCivilianTotal SAIC Defense and
IntelligenceCivilianTotal SAIC (in millions)Funded backlog$2,883$935$3,818 $2,511$1,061$3,572Negotiated unfunded backlog 15,250 3,068 18,318  15,869 3,181 19,050Total backlog$18,133$4,003$22,136 $18,380$4,242$22,622 Backlog represents the estimated amount of future revenues to be recognized under negotiated contracts and task orders as work is performed and excludes contract awards which have been protested by competitors until the protest is resolved in our favor. SAIC segregates backlog into two categories, funded backlog and negotiated unfunded backlog. Funded backlog for contracts with government agencies primarily represents contracts for which funding is appropriated less revenues previously recognized on these contracts, and does not include the unfunded portion of contracts where funding is incrementally appropriated or authorized by the U.S. government and other customers even though the contract may call for performance over a number of years. Funded backlog for contracts with non-government agencies represents the estimated value of contracts which may cover multiple future years under which SAIC is obligated to perform, less revenues previously recognized on these contracts. Negotiated unfunded backlog represents the estimated future revenues to be earned from negotiated contracts for which funding has not been appropriated or authorized, and unexercised priced contract options. Negotiated unfunded backlog does not include any estimate of future potential task orders expected to be awarded under indefinite delivery, indefinite quantity (IDIQ), U.S. General Services Administration (GSA) schedules or other master agreement contract vehicles, with the exception of certain IDIQ contracts where task orders are not competitively awarded and separately priced but instead are used as a funding mechanism, and where there is a basis for estimating future revenues and funding on future anticipated task orders.

Schedule 6:

SCIENCE APPLICATIONS INTERNATIONAL CORPORATION
NON-GAAP FINANCIAL MEASURES
(Unaudited)

This schedule describes the consolidated non-GAAP financial measures included in this earnings release. While we believe that these non-GAAP financial measures provide management and investors with useful information in assessing trends in our ongoing operating performance and may provide greater visibility in understanding our long-term financial performance, they should be considered as supplemental in nature and not as a substitute for financial information prepared in accordance with GAAP. Reconciliations, definitions, and how we believe these measures are useful to management and investors are provided below. Other companies may define similar measures differently.

Non-GAAP Definitions

Organic growth: Organic growth is a performance measure that excludes the impact of acquisitions and divestitures. Organic growth is calculated by taking consolidated revenues and excluding revenues from acquisitions and divestitures during the periods presented, when applicable.

Adjusted operating income: Adjusted operating income is a performance measure that primarily excludes the impact of non-recurring transactions and activities that we do not consider to be indicative of our ongoing operating performance. Adjusted operating income is calculated by taking operating income and excluding amortization of intangible assets, depreciation of property, plant, and equipment, acquisition, integration, restructuring, and impairment costs, and any other material non-recurring costs. Adjusted operating income excludes amortization of intangible assets because we do not have a history of significant acquisition activity, we do not acquire businesses on a predictable cycle, and the amount of an acquisition's purchase price allocated to intangible assets and the related amortization term are unique to each acquisition.

EBITDA and Adjusted EBITDA: EBITDA is a performance measure that is calculated by taking net income and excluding interest and loss on sale of receivables, provision for income taxes, and depreciation and amortization. Adjusted EBITDA is a performance measure that excludes the impact of non-recurring transactions and activities that we do not consider to be indicative of our ongoing operating performance. Adjusted EBITDA is calculated by taking EBITDA and excluding acquisition, integration, restructuring and impairment costs, and any other material non-recurring costs.

Adjusted Diluted Earnings Per Share: Adjusted diluted earnings per share is a performance measure that excludes the impact of non-recurring transactions and activities that we do not consider to be indicative of our ongoing operating performance. Adjusted diluted earnings per share excludes amortization of intangible assets because we do not have a history of significant acquisition activity, we do not acquire businesses on a predictable cycle, and the amount of an acquisition's purchase price allocated to intangible assets and the related amortization term are unique to each acquisition.

Free Cash Flow: Free cash flow is calculated by taking cash flows provided by operating activities less expenditures for property, plant, and equipment and less cash flows from our Master Accounts Receivable Purchasing Agreement ("MARPA") Facility for the sale of certain designated eligible U.S. government receivables. Under the MARPA Facility, the Company can sell eligible receivables up to a maximum amount of $300 million. We believe that free cash flow provides management and investors with useful information in assessing trends in our cash flows and in comparing them to other peer companies, many of whom present similar non-GAAP liquidity measures. This measure should not be considered as a measure of residual cash flow available for discretionary purposes.

Acquisition, integration, restructuring and impairment costs: Acquisition and integration costs represent costs incurred related to our acquisitions and subsequent integration with acquired businesses. Restructuring and impairment costs represent costs incurred related to internal reorganizations and initiatives (e.g., Project Orbit), facilities optimization efforts, and impairments of long-lived assets, along with associated depreciation.

Recovery of acquisition, integration, restructuring and impairment costs: Recovery of acquisition, integration, restructuring and impairment costs represents costs recovered through our indirect rates in accordance with Cost Accounting Standards.

Costs related to the settlement of federal tax audits: Costs related to the settlement of federal tax audits represent costs related to the IRS audit settlement for fiscal years 2016 through 2019.

Gain on divestitures, net of transaction costs: The gain on divestitures includes gains recognized related to divestitures, net of transaction costs.

We believe that these performance measures provide management and investors with useful information in assessing trends in our ongoing operating performance and may provide greater visibility in understanding our long-term financial performance.

Schedule 6 (continued):

SCIENCE APPLICATIONS INTERNATIONAL CORPORATION
NON-GAAP FINANCIAL MEASURES
(Unaudited)
Adjusted Operating Income

 Three Months Ended Six Months Ended July 31,
2026 August 1,
2025 July 31,
2026 August 1,
2025 (dollars in millions)Revenues$1,880  $1,769  $3,786  $3,646 Operating income$152  $139  $331  $260 Operating income as a percentage of revenues 8.1%  7.9%  8.7%  7.1%Depreciation of property, plant and equipment 7   6   15   13 Amortization of intangible assets 32   29   64   58 Acquisition, integration, restructuring and impairment costs 2   1   4   4 Recovery of acquisition, integration, restructuring and impairment costs (1)  —   (2)  (2)Costs related to the settlement of federal tax audits —   7   1   7 Gain on divestitures, net of transaction costs (1)  —   (1)  — Adjusted operating income(1)$191  $182  $412  $340 Adjusted operating income as a percentage of revenues 10.2%  10.3%  10.9%  9.3% (1)Non-GAAP measure, see above for definition.

Schedule 6 (continued):

SCIENCE APPLICATIONS INTERNATIONAL CORPORATION
NON-GAAP FINANCIAL MEASURES
(Unaudited)

EBITDA and Adjusted EBITDA

 Three Months Ended Six Months Ended July 31,
2026 August 1,
2025 July 31,
2026 August 1,
2025 (dollars in millions)Revenues$1,880  $1,769  $3,786  $3,646 Net income$102  $127  $217  $195 Interest expense, net and loss on sale of receivables 35   34   70   68 Income tax expense (benefit) 17   (19)  47   (1)Depreciation and amortization 39   35   79   71 EBITDA(1) 193   177   413   333 EBITDA as a percentage of revenues 10.3%  10.0%  10.9%  9.1%Acquisition, integration, restructuring and impairment costs 2   1   4   4 Recovery of acquisition, integration, restructuring and impairment costs (1)  —   (2)  (2)Costs related to the settlement of federal tax audits —   7   1   7 Gain on divestitures, net of transaction costs (1)  —   (1)  — Adjusted EBITDA(1)$193  $185  $415  $342 Adjusted EBITDA as a percentage of revenues 10.3%  10.5%  11.0%  9.4% (1)Non-GAAP measure, see above for definition.

Schedule 6 (continued):

SCIENCE APPLICATIONS INTERNATIONAL CORPORATION
NON-GAAP FINANCIAL MEASURES
(Unaudited)

Adjusted Diluted Earnings Per Share

 Three Months Ended July 31, 2026 (in millions, except per share amounts) As Reported Amortization of intangible assets Acquisition,
integration,
restructuring and
impairment costs Recovery of
acquisition,
integration,
restructuring and
impairment costs Gain on divestitures,
net of transaction
costs Non-GAAP results(1)Income before income taxes$119  $32  $2 $(1) $(1) $151 Income tax (expense) benefit (17)  (5)  —  —   —   (22)Net income$102  $27  $2 $(1) $(1) $129             Diluted EPS$2.38  $0.63  $0.04 $(0.02) $(0.02) $3.01   Three Months Ended August 1, 2025 (in millions, except per share amounts) As Reported Amortization of intangible assets Acquisition, integration, restructuring and impairment costs Costs related to the settlement of federal tax audits Non-GAAP results(1)Income before income taxes$108 $29 $1 $7 $145Income tax (expense) benefit 19  6  —  —  25Net income$127 $35 $1 $7 $170          Diluted EPS$2.71 $0.75 $0.02 $0.15 $3.63 (1)Non-GAAP measure, see above for definition.

Schedule 6 (continued):

SCIENCE APPLICATIONS INTERNATIONAL CORPORATION
NON-GAAP FINANCIAL MEASURES
(Unaudited)

Adjusted Diluted Earnings Per Share

 Six Months Ended July 31, 2026 (in millions, except per share amounts) As Reported Amortization of intangible assets Acquisition, integration, restructuring and impairment costs Recovery of acquisition, integration, restructuring and impairment costs Costs related to the settlement of federal tax audits Gain on divestitures, net of transaction costs Non-GAAP results(1)Income before income taxes$264  $64  $4 $(2) $1 $(1) $330 Income tax (expense) benefit (47)  (12)  —  —   —  —   (59)Net income$217  $52  $4 $(2) $1 $(1) $271               Diluted EPS$5.00  $1.20  $0.09 $(0.05) $0.02 $(0.02) $6.24   Six Months Ended August 1, 2025 (in millions, except per share amounts) As Reported Amortization of intangible assets Acquisition, integration, restructuring and impairment costs Recovery of acquisition, integration, restructuring and impairment costs Costs related to the settlement of federal tax audits Non-GAAP results(1)Income before income taxes$194 $58 $4 $(2) $7 $261Income tax (expense) benefit 1  —  —  —   —  1Net income$195 $58 $4 $(2) $7 $262            Diluted EPS$4.12 $1.23 $0.08 $(0.04) $0.15 $5.54 (1)Non-GAAP measure, see above for definition.

Schedule 6 (continued):

SCIENCE APPLICATIONS INTERNATIONAL CORPORATION
NON-GAAP FINANCIAL MEASURES
(Unaudited)

Free Cash Flow

 Three Months Ended Six Months Ended July 31,
2026 August 1,
2025 July 31,
2026 August 1,
2025 (in millions)Net cash provided by operating activities$146  $122  $273  $222 Expenditures for property, plant, and equipment (15)  (7)  (24)  (15)Cash used from (provided by) MARPA Facility —   35   —   (101)Free cash flow(1)$131  $150  $249  $106   FY27 GuidanceNet cash provided by operating activities>$635MExpenditures for property, plant, and equipmentApproximately $35MFree cash flow(1)>$600M (1)Non-GAAP measure, see above for definition.

Science Applications International Corporation (SAIC) Q2 2027 Earnings Call Transcript

Science Applications International Is a Wicked Hot Buy in JuneScience Applications International NASDAQ: SAIC reported second-quarter fiscal 2027 revenue of $1.9 billion, up approximately 5% organically, as the company cited broad-based growth across its markets and stronger conversion of existing contract backlog into revenue.

Adjusted EBITDA totaled $193 million, producing a 10.3% margin. Adjusted diluted earnings per share were $3.01, down from the prior year because the previous-year period included a favorable legal settlement, partially offset by a lower share count. Free cash flow was $131 million, while net leverage declined to 3.0 times.

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Chief Executive Officer Jim Reagan said the company’s performance exceeded its expectations, supported by program execution, operational efficiency and on-contract growth. “These results reflect our team’s focus on driving program performance and operational efficiency, resulting in organic growth, double-digit margins, and robust free cash flow,” Reagan said.

Guidance Raised Following First-Half Performance SAIC increased its fiscal 2027 outlook for revenue, adjusted EBITDA and adjusted earnings per share. The company raised revenue guidance by 2% at the midpoint to $7.25 billion, reflecting an expected organic revenue change ranging from a 2% contraction to flat for the full year.

The forecast implies second-half revenue contraction, largely due to the RITS contract rolling off, which management said will create an approximately 350-basis-point headwind during the second half.

The company also increased its adjusted EBITDA outlook by 4% at the midpoint and now expects margins of 10.3% to 10.5%, 20 basis points above its previous outlook. SAIC expects free cash flow of at least $600 million, or $14 per share, for the year.

Chief Financial Officer Prabu Natarajan said the company expects second-half margins in the high-9% range as it makes targeted investments in high-priority areas. Those investments include capital expenditures, with approximately $25 million spent during the first half to support growth opportunities.

On-Contract Growth Offsets Uneven Award Environment SAIC reported on-contract growth of 9% during the quarter, exceeding its plans. Natarajan said management is assuming on-contract growth of roughly 5% for the second half, compared with a prior expectation of 2% to 3%.

Approximately half of the company’s on-contract growth this year is expected to come from several programs won in fiscal 2025 and fiscal 2026 that ramped more slowly last year. Those programs generated about $350 million in revenue last year and are expected to produce approximately $500 million this year. SAIC reported about $240 million from those programs in the first half.

Management said federal customers have been moving money more quickly onto existing contracts, supporting revenue growth. However, the procurement environment remains uneven. SAIC reported a quarterly book-to-bill ratio of 0.6 and a trailing 12-month ratio of 0.8, though management said the quarterly ratio would have been closer to 1.0 without a delayed large recompete award that was booked two days after the quarter ended.

Natarajan said slower requests for proposals and award decisions have led to contract extensions and greater utilization of contract ceilings. The company expects it could finish the year near a 1.0 book-to-bill ratio as its business-development team increases submissions.

Reagan said SAIC’s recompete win rate exceeded 90% during the quarter, a level the company views as its standard for success. Management also expects new-business win rates of at least 30% as it concentrates bidding activity on opportunities where it believes it has a strong chance to win.

Intel Space Wins and Border Security Recompete SAIC booked more than $1.6 billion in intelligence and space awards during the first half of fiscal 2027, ahead of recent trends, Reagan said. The work includes engineering programs supporting the space superiority market.

The company also won a recompete to support hardware, software integration and interoperability for the U.S. Army as it deploys new battlefield technologies. After the quarter ended, SAIC secured a significant recompete for a border-security program, extending its role in providing an integrated software and hardware solution. The win followed a successful Department of Homeland Security recompete in the prior quarter.

Reagan said the awards demonstrate the company’s role in integrating advanced technology and domain expertise across intelligence, defense and civilian markets.

Project ORBIT Targets $150 Million in Run-Rate Savings SAIC is entering the implementation phase of Project ORBIT, or Optimizing Resources for a Better Impact Tomorrow, an initiative focused on operational efficiency, process improvements and capacity expansion. The company expects ORBIT to generate approximately $150 million in annual run-rate savings by the end of its three-year implementation period.

About two-thirds of the projected savings, or $100 million, is expected to be reinvested in the business through new initiatives, expanded capacity on existing contracts and improved competitiveness. The remaining savings are expected to support margin expansion.

Natarajan said the initiative was developed from approximately 3,500 employee-generated ideas, with efforts spanning procurement, recruiting, process simplification, automation and mission delivery. The company expects procurement changes, described as “buy smarter,” to represent the largest and longest-term opportunity.

Management said ORBIT supports a target of mid-10% margins next year and a path toward approximately 11% margins in fiscal 2030. Natarajan said the company would ideally improve margins by 20 to 30 basis points in fiscal 2029 before reaching the longer-term target, though he cautioned that the progression may not be linear.

SAIC also said it is conducting a portfolio and strategy review, including consideration of merger-and-acquisition opportunities. Reagan said the company does not anticipate a sharp change in its identity or business focus, but expects to provide a broader strategy and portfolio update during its December earnings call.

On contracting trends, Natarajan said fixed-price work represents roughly 15% to 18% of current sales, while about one-third of the company’s pipeline is fixed-price. He said the shift toward outcome-oriented and fixed-price work is gradual, with civilian customers further along than defense and intelligence customers. SAIC is training program managers and contract teams to prepare for a broader transition.

Management said it assumes the government will begin its next fiscal year under a continuing resolution and is not incorporating material improvement in the procurement environment into its outlook for the remainder of fiscal 2027.

About Science Applications International (NASDAQ:SAIC)Science Applications International Corp. (SAIC) is a leading provider of technical, engineering, and enterprise IT services to the U.S. government, including the Department of Defense, the intelligence community, and civilian agencies. The company's core offerings encompass systems engineering and integration, mission support, cybersecurity, data analytics, and cloud solutions. SAIC's work spans the full program lifecycle, from research and development to deployment and sustainment, addressing complex defense, space, and national security challenges.

Founded in 1969 by J.

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Should You Invest $1,000 in Science Applications International Right Now?Before you consider Science Applications International, you'll want to hear this.

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SAIC (SAIC - Free Report) came out with quarterly earnings of $3.01 per share, beating the Zacks Consensus Estimate of $2.25 per share. This compares to earnings of $3.63 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +33.78%. A quarter ago, it was expected that this information technology company would post earnings of $2.26 per share when it actually produced earnings of $3.23, delivering a surprise of +42.92%.

Over the last four quarters, the company has surpassed consensus EPS estimates four times.

SAIC, which belongs to the Zacks Computers - IT Services industry, posted revenues of $1.88 billion for the quarter ended July 2026, surpassing the Zacks Consensus Estimate by 7.52%. This compares to year-ago revenues of $1.77 billion. The company has topped consensus revenue estimates four times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

SAIC shares have added about 25.1% since the beginning of the year versus the S&P 500's gain of 12.7%.

What's Next for SAIC?While SAIC has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for SAIC was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $2.41 on $1.81 billion in revenues for the coming quarter and $10.01 on $7.16 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Computers - IT Services is currently in the top 33% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Another stock from the same industry, C3.ai, Inc. (AI - Free Report) , has yet to report results for the quarter ended July 2026. The results are expected to be released on September 2.

This company is expected to post quarterly loss of $0.26 per share in its upcoming report, which represents a year-over-year change of +29.7%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

C3.ai, Inc.'s revenues are expected to be $51.46 million, down 26.8% from the year-ago quarter.

Science Applications International Corporation (NASDAQ:SAIC) will release its second quarter earnings report before the opening bell on Monday, Aug. 31.

Analysts expect the company to report quarterly earnings of $2.31 per share, down from $3.63 per share in the year-ago period. The consensus estimate for SAIC’s quarterly revenue is $1.76 billion. It reported $1.77 billion last year, according to Benzinga Pro.

According to recent news, SAIC, on Aug. 10, named David Benson and David Cush to its board of directors.

With the recent buzz around SAIC, some investors may be eyeing potential gains from the company’s dividends too. As of now, SAIC has an annual dividend yield of 1.15%, which is a quarterly dividend amount of 37 cents per share ($1.48 a year).

So, how can investors leverage its dividend yield to pocket a regular $500 per month?

To earn $500 per month or $6,000 annually from dividends alone, you would need an investment of approximately $522,804 or around 4,054 shares. For a more modest $100 per month or $1,200 per year, you would need $104,587 or around 811 shares.

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To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($1.48 in this case). So, $6,000 / $1.48 = 4,054 ($500 per month), and $1,200 / $1.48 = 811 shares ($100 per month).

Note that dividend yield can change on a rolling basis, as the dividend payment and the stock price both fluctuate over time.

How that works: The dividend yield is computed by dividing the annual dividend payment by the stock’s current price.

For example, if a stock pays an annual dividend of $2 and is currently priced at $50, the dividend yield would be 4% ($2/$50). However, if the stock price increases to $60, the dividend yield drops to 3.33% ($2/$60). Conversely, if the stock price falls to $40, the dividend yield rises to 5% ($2/$40).

Similarly, changes in the dividend payment can impact the yield. If a company increases its dividend, the yield will also increase, provided the stock price stays the same. Conversely, if the dividend payment decreases, so will the yield.

SAIC Price Action: Shares of Science Applications International gained 1.1% to close at $128.96 on Thursday.

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© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

A strong stock as of late has been SAIC (SAIC - Free Report) . Shares have been marching higher, with the stock up 11.4% over the past month. The stock hit a new 52-week high of $130.53 in the previous session. SAIC has gained 28.1% since the start of the year compared to the 17.9% gain for the Zacks Computer and Technology sector and the -11.4% return for the Zacks Computers - IT Services industry.

What's Driving the Outperformance?The stock has an impressive record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on June 1, 2026, SAIC reported EPS of $3.23 versus consensus estimate of $2.26.

For the current fiscal year, SAIC is expected to post earnings of $10.01 per share on $7.16 in revenues. This represents a -6.88% change in EPS on a -1.35% change in revenues. For the next fiscal year, the company is expected to earn $10.79 per share on $7.3 in revenues. This represents a year-over-year change of 7.82% and 1.9%, respectively.

Valuation MetricsWhile SAIC has moved to its 52-week high over the past few weeks, investors need to be asking, what is next for the company? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.

On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.

SAIC has a Value Score of A. The stock's Growth and Momentum Scores are A and D, respectively, giving the company a VGM Score of A.

In terms of its value breakdown, the stock currently trades at 12.9X current fiscal year EPS estimates, which is not in-line with the peer industry average of 13.8X. On a trailing cash flow basis, the stock currently trades at 9X versus its peer group's average of 12.3X. This is good enough to put the company in the top echelon of all stocks we cover from a value perspective, making SAIC an interesting choice for value investors.

Zacks RankWe also need to look at the Zacks Rank for the stock, as this is even more important than the company's VGM Score. Fortunately, SAIC currently has a Zacks Rank of #2 (Buy) thanks to a solid earnings estimate revision trend.

Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if SAIC fits the bill. Thus, it seems as though SAIC shares could have potential in the weeks and months to come.

How Does SAIC Stack Up to the Competition?Shares of SAIC have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Grid Dynamics Holdings, Inc. (GDYN - Free Report) . GDYN has a Zacks Rank of #2 (Buy) and a Value Score of B, a Growth Score of C, and a Momentum Score of B.

Earnings were strong last quarter. Grid Dynamics Holdings, Inc. beat our consensus estimate by 10.00%, and for the current fiscal year, GDYN is expected to post earnings of $0.42 per share on revenue of $437.65 million.

Shares of Grid Dynamics Holdings, Inc. have gained 11.8% over the past month, and currently trade at a forward P/E of 18.9X and a P/CF of 19.34X.

The Computers - IT Services industry is in the top 38% of all the industries we have in our universe, so it looks like there are some nice tailwinds for SAIC and GDYN, even beyond their own solid fundamental situation.

Science Applications stands out over Accenture on valuation, price performance and backlog strength, making it the more attractive IT services pick.

RESTON, Va., Aug. 13, 2026 (GLOBE NEWSWIRE) -- Science Applications International Corp. (NASDAQ: SAIC) is scheduled to issue its second quarter fiscal year 2027 results before market open on Monday, August 31, 2026. SAIC executive management will discuss operational and financial results in a conference call beginning at 10:00 a.m. EDT, following the issuance of the company's earnings press release.

Have you been paying attention to shares of SAIC (SAIC - Free Report) ? Shares have been on the move with the stock up 9% over the past month. The stock hit a new 52-week high of $125.63 in the previous session. SAIC has gained 23.5% since the start of the year compared to the 16.8% gain for the Zacks Computer and Technology sector and the -17.1% return for the Zacks Computers - IT Services industry.

What's Driving the Outperformance?The stock has an impressive record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on June 1, 2026, SAIC reported EPS of $3.23 versus consensus estimate of $2.26.

For the current fiscal year, SAIC is expected to post earnings of $10.01 per share on $7.16 in revenues. This represents a -6.88% change in EPS on a -2.53% change in revenues. For the next fiscal year, the company is expected to earn $10.79 per share on $7.3 in revenues. This represents a year-over-year change of 7.82% and 1.9%, respectively.

Valuation MetricsThough SAIC has recently hit a 52-week high, what is next for SAIC? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.

On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.

SAIC has a Value Score of A. The stock's Growth and Momentum Scores are A and D, respectively, giving the company a VGM Score of A.

In terms of its value breakdown, the stock currently trades at 12.4X current fiscal year EPS estimates, which is not in-line with the peer industry average of 14.2X. On a trailing cash flow basis, the stock currently trades at 8.6X versus its peer group's average of 12.3X. This is good enough to put the company in the top echelon of all stocks we cover from a value perspective, making SAIC an interesting choice for value investors.

Zacks RankWe also need to look at the Zacks Rank for the stock, as this is even more important than the company's VGM Score. Fortunately, SAIC currently has a Zacks Rank of #2 (Buy) thanks to a solid earnings estimate revision trend.

Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if SAIC passes the test. Thus, it seems as though SAIC shares could have a bit more room to run in the near term.

How Does SAIC Stack Up to the Competition?Shares of SAIC have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Grid Dynamics Holdings, Inc. (GDYN - Free Report) . GDYN has a Zacks Rank of #1 (Strong Buy) and a Value Score of B, a Growth Score of C, and a Momentum Score of A.

Earnings were strong last quarter. Grid Dynamics Holdings, Inc. beat our consensus estimate by 10.00%, and for the current fiscal year, GDYN is expected to post earnings of $0.42 per share on revenue of $437.4 million.

Shares of Grid Dynamics Holdings, Inc. have gained 28% over the past month, and currently trade at a forward P/E of 18.16X and a P/CF of 18.58X.

The Computers - IT Services industry may rank in the bottom 63% of all the industries we have in our universe, but there still looks like there are some nice tailwinds for SAIC and GDYN, even beyond their own solid fundamental situation.

Supporting America’s vital Intelligence Community partners, SAIC Intel Space market contract awards surpass $1.6 billion in the first half of FY27 August 05, 2026 08:30 ET  | Source: SAIC, Inc.

RESTON, Va., Aug. 05, 2026 (GLOBE NEWSWIRE) -- Multi-domain intelligence integration leader, Science Applications International Corporation (NASDAQ: SAIC) announced today it has been awarded a $400 million recompete contract supporting a U.S. Intelligence Agency. This increases SAIC’s Intel Space awards to more than $1.6 billion during the first half of fiscal 2027, continuing the sustained momentum in this important market.

Under this contract, SAIC provides advanced systems engineering, technical integration, and mission support services for ground-based Intelligence Community programs that ultimately deliver decisive national advantage. With trusted experience and proven ability to support programs across the Intelligence Community, SAIC was awarded this contract for its expertise in domain systems and delivering intelligence at the speed the mission requires.

“Our intelligence agencies conduct vital work every day that protect the American people,” said Vinnie DiFronzo, Executive Vice President of SAIC’s Air Force, Space and Intelligence Business Group. “We’re proud that this award reflects the sustained confidence our Intel Space partners place in SAIC to rapidly deliver integrated ground solutions in an increasingly complex threat environment. Building on our broader Q1 FY27 performance, this recompete win reinforces the strength of our Intel Space portfolio and the depth of expertise our teams bring to these critical programs.”

Due to the sensitive nature of the work, additional details regarding the customer and specific program activities are not being disclosed.

About SAIC 
SAIC® is a premier mission integrator focused on advancing the power of technology and innovation to serve and protect our world. Our robust portfolio of offerings across the defense, space, intelligence, and civilian markets includes secure high-end solutions in mission IT, enterprise IT, engineering services, and professional services. We integrate emerging technology, rapidly and securely, into mission critical operations that modernize and enable critical national imperatives.

We are approximately 23,000 strong; driven by mission, united by purpose, and inspired by opportunities. Headquartered in Reston, Virginia, SAIC has annual revenues of approximately $7.3 billion. For more information, visit saic.com. For ongoing news, please visit our newsroom.

Media Contact: 
Darryn James
[email protected]

Forward-Looking Statements 
Forward-Looking Statements Certain statements in this release contain or are based on “forward-looking” information within the meaning of the Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by words such as “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “guidance,” and similar words or phrases. Forward-looking statements in this release may include, among others, estimates of future revenues, operating income, earnings, earnings per share, charges, total contract value, backlog, outstanding shares and cash flows, as well as statements about future dividends, share repurchases and other capital deployment plans. Such statements are not guarantees of future performance and involve risk, uncertainties and assumptions, and actual results may differ materially from the guidance and other forward-looking statements made in this release as a result of various factors. Risks, uncertainties and assumptions that could cause or contribute to these material differences include those discussed in the “Risk Factors,” “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Legal Proceedings” sections of our Annual Report on Form 10-K, as updated in any subsequent Quarterly Reports on Form 10-Q and other filings with the SEC, which may be viewed or obtained through the Investor Relations section of our website at saic.com or on the SEC’s website at sec.gov. Due to such risks, uncertainties and assumptions you are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date hereof. SAIC expressly disclaims any duty to update any forward-looking statement provided in this release to reflect subsequent events, actual results or changes in SAIC’s expectations. SAIC also disclaims any duty to comment upon or correct information that may be contained in reports published by investment analysts or others. 

Advances warfighter-ready radar, radio frequency, and microwave systems to be delivered at mission scale across surface, air, and maritime domains July 30, 2026 08:30 ET  | Source: SAIC, Inc.

RESTON, Va., July 30, 2026 (GLOBE NEWSWIRE) -- Science Applications International Corp. (NASDAQ: SAIC) has been awarded a new $70 million task order by the U.S. Navy to provide advanced technical skills, analysis, engineering studies, modeling, and simulation of radar systems to the Radar Technologies Division of the Naval Surface Warfare Center (NSWC) Crane Division.

Under this award, SAIC will deliver full lifecycle development and sustainment for mission-ready radar, radio frequency (RF), and microwave (MW) systems across surface, air, and maritime domains. This entails handling the design, engineering support, configuration management, and overall technical services to provide real-time object detection, tracking, and characterization for warfighters in domestic and international locations. Advanced radar capabilities allow for better update rates, longer range detection, improved electronic protection techniques, and fire control quality tracking, furthering the Navy’s operational advantage in complex environments.
.
“This award underscores SAIC’s long-standing dedication to equipping the U.S. Navy with advanced radar and electronic warfare capabilities that enhance its operational superiority,” said Barbara Supplee, SAIC Executive Vice President of the Army Navy Business Group. “By leveraging our extensive technical expertise and a track record of successful execution, we deliver cutting-edge software techniques and engineering expertise which allows radar systems to excel in real-world conditions, ensuring reliable performance and scalability across a wide range of mission requirements."

SAIC will support a broad portfolio of radar and defense systems for NSWC Crane, including SPS-48E/49 search radars, SPQ-9B multi-function radar, SPS-67 surface search and navigation radar, MK-99 Fire Control System, SPY-1 and SPY-6 AEGIS systems, and G/ATOR. This tasking allows SAIC to enhance system performance, improve lifecycle sustainment, and drive development of next-generation capabilities. The effort includes close collaboration with Navy partners to ensure systems are designed, tested, and refined to meet real mission conditions – reducing risk and accelerating delivery to operational environments.

This award builds on SAIC’s proven experience supporting advanced radar, RF, and MW, and clutter defeat technologies, and reinforces the company’s role as a radar center of excellence – delivering vital solutions that strengthen the Navy’s operational capabilities. The work aligns with the Navy’s focus on accelerating capability delivery, scaling production, and integrating systems across the mission to meet evolving demands. The cost-plus-fixed-fee task order includes a one-year base period with four one-year option periods, for a total potential duration of five years.

About SAIC 
SAIC® is a premier mission integrator focused on advancing the power of technology and innovation to serve and protect our world. Our robust portfolio of offerings across the defense, space, civilian and intelligence markets includes secure high-end solutions in mission IT, enterprise IT, engineering services, and professional services. We integrate emerging technology, rapidly and securely, into mission critical operations that modernize and enable critical national imperatives.

We are approximately 23,000 strong; driven by mission, united by purpose, and inspired by opportunities. Headquartered in Reston, Virginia, SAIC has annual revenues of approximately $7.3 billion. For more information, visit saic.com. For ongoing news, please visit our newsroom.

Media Contact: 
Darryn James
[email protected]

Forward-Looking Statements 
Forward-Looking Statements Certain statements in this release contain or are based on “forward-looking” information within the meaning of the Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by words such as “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “guidance,” and similar words or phrases. Forward-looking statements in this release may include, among others, estimates of future revenues, operating income, earnings, earnings per share, charges, total contract value, backlog, outstanding shares and cash flows, as well as statements about future dividends, share repurchases and other capital deployment plans. Such statements are not guarantees of future performance and involve risk, uncertainties and assumptions, and actual results may differ materially from the guidance and other forward-looking statements made in this release as a result of various factors. Risks, uncertainties and assumptions that could cause or contribute to these material differences include those discussed in the “Risk Factors,” “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Legal Proceedings” sections of our Annual Report on Form 10-K, as updated in any subsequent Quarterly Reports on Form 10-Q and other filings with the SEC, which may be viewed or obtained through the Investor Relations section of our website at saic.com or on the SEC’s website at sec.gov. Due to such risks, uncertainties and assumptions you are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date hereof. SAIC expressly disclaims any duty to update any forward-looking statement provided in this release to reflect subsequent events, actual results or changes in SAIC’s expectations. SAIC also disclaims any duty to comment upon or correct information that may be contained in reports published by investment analysts or others. 

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One company value investors might notice is Science Applications International (SAIC - Free Report) . SAIC is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 11.01 right now. For comparison, its industry sports an average P/E of 16.89. Over the last 12 months, SAIC's Forward P/E has been as high as 17.39 and as low as 10.50, with a median of 12.32.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. SAIC has a P/S ratio of 0.65. This compares to its industry's average P/S of 1.51.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Science Applications International is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, SAIC feels like a great value stock at the moment.

A month has gone by since the last earnings report for SAIC (SAIC - Free Report) . Shares have lost about 2.6% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is SAIC due for a breakout? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent drivers for Science Applications International Corporation before we dive into how investors and analysts have reacted as of late.

Science Applications' Q1 Earnings Beat Expectations, Revenues Rise Y/YScience Applications International reported better-than-expected results for the first quarter of fiscal 2027, wherein both top and bottom lines surpassed the Zacks Consensus Estimate.

SAIC’s non-GAAP earnings of $3.23 per share beat the Zacks Consensus Estimate of $2.26 by 42.9%. The bottom line increased 68.2% from the year-ago quarter’s earnings of $1.92.

Science Applications' fiscal first-quarter revenues increased 1.5% year over year to $1.91 billion and surpassed the Zacks Consensus Estimate of $1.78 billion by 6.9%.

SAIC’s Q1 in DetailSegment-wise, revenues from Defense and Intelligence, which accounted for 76.9% of revenues, totaled $1.47 billion and increased 2.3% year over year. Civilian revenues, which constitute 23.1% of revenues, totaled $440 million and decreased 0.9% year over year.

Net bookings were approximately $2.1 billion in the first quarter, which reflected a book-to-bill ratio of 1.1. The company’s trailing 12-month book-to-bill ratio was 1.0 at the end of the fiscal first quarter. SAIC’s estimated backlog at the end of the quarter was approximately $22.9 billion. Of the total backlog amount, approximately $3.7 billion was funded.

Selling, general and administrative (SG&A) expenses decreased 6.7% to $83 million. SG&A expenses, as a percentage of revenues, declined to 4.4% from 4.7% in the year-ago quarter.

Non-GAAP operating income increased year over year to $221 million from the year-ago quarter’s operating income of $158 million. The non-GAAP operating margin expanded 320 basis points (bps) year over year to 11.6%.

Adjusted EBITDA rose 41% to $222 million. Adjusted EBITDA margin for the quarter was 11.6% compared with 8.4% in the prior-year quarter.

Balance Sheet & Cash Flow Details of SAICScience Applications ended the fiscal first quarter with cash and cash equivalents of $109 million, significantly down from the previous quarter’s $182 million.

As of May 1, 2026, Science Applications’ long-term debt (net of the current portion) was $2.46 billion compared with $2.47 billion as of Jan. 30, 2026.

The company generated operating and free cash flows of $127 million and $118 million, respectively, in the fiscal first quarter.

During the fiscal first quarter, Science Applications repurchased shares worth $175 million and paid $17 million in dividends.

SAIC Provides Fiscal 2027 GuidanceScience Applications expects fiscal 2027 revenues between $7 billion and $7.2 billion.

Adjusted EBITDA is anticipated to be in the range of $720-$730 million, up from the earlier guidance of $705-$715 million. Adjusted EBITDA margin is expected to be in the band of 10.1-10.3%, up from the previous guided range of 9.9-10.1% band.

The company forecasts adjusted EPS in the range of $9.90-$10.10, up from the earlier guidance of $9.50-$9.70.

Science Applications estimates free cash flow for fiscal 2027 to exceed $600 million.

How Have Estimates Been Moving Since Then?It turns out, fresh estimates have trended downward during the past month.

VGM ScoresAt this time, SAIC has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. However, the stock was allocated a score of A on the value side, putting it in the top 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, SAIC has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

By Reuters

April 24, 20263:05 AM UTCUpdated April 24, 2026

Item 1 of 2 An Audi E5 Sportback is displayed during a media day for the Auto Shanghai show in Shanghai, China April 23, 2025. REUTERS/Go Nakamura/File Photo

[1/2]An Audi E5 Sportback is displayed during a media day for the Auto Shanghai show in Shanghai, China April 23, 2025. REUTERS/Go Nakamura/File Photo Purchase Licensing Rights, opens new tab

CompaniesBEIJING, April 24 (Reuters) - China ​and Germany will contribute ⁠their strongest ​capabilities to the ​Audi brand, an SAIC VW executive said on ​Friday, with ​the establishment of a ‌new ⁠SAIC-Audi research centre representing the start of the ​3.0 ​era ⁠of joint venture partnership.

(This story has been refiled to correct reporting credits to say reporting by Zoey Zhang and David Dolan in Beijing)

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Reporting ​by Zoey Zhang ​and ⁠David Dolan in Beijing; Writing ⁠by ​Farah ​Master in Hong Kong; Editing ​by Muralikumar Anantharaman

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National Capitol Classic golf fundraiser at the historic Army Navy Country Club, co-hosted with SAIC and Amazon Web Services, raised funds to support these veterans and their families and expand Building Homes for Heroes' impact nationwide

, /PRNewswire/ -- Building Homes for Heroes, joined by corporate partners Science Applications International Corp. (NASDAQ: SAIC) and Amazon Web Services, announced yesterday it will gift mortgage-free homes to U.S. Air Force Staff Sergeant, Gregory Walker and Army Specialist, Ryan Heard, two injured veterans whose service and sacrifice exemplify the very best of our armed forces. The home gifts will provide long-term stability for both veterans and their families as they continue their road to recovery.

Members of Building Homes for Heroes, SAIC and AWS gather at the second annual National Capitol Classic golf outing at Army Navy Country Club in Washington, D.C., where Building Homes for Heroes announced mortgage-free home gifts for two injured veterans. (PRNewsfoto/Building Homes For Heroes) These gifts are made possible through the steadfast support of Building Homes for Heroes' valued partners, SAIC and AWS, and were the highlight of the second annual National Capitol Classic golf outing hosted by the three organizations at the historic Army Navy Country Club. The event brought together corporate partners, community supporters, and veterans to raise awareness and support for Building Homes for Heroes' mission of building better and brighter lives for our nation's heroes.

The announcement was the culmination of a day of celebration of our nation's heroes, as patriotic corporations, hundreds of supporters, and dozens of veterans gathered for the golf outing in support of Building Homes for Heroes' mission. As the organization marks its 20th anniversary in 2026, it continues to build on its commitment with their 50+500+5,000 campaign: constructing, gifting and modifying a record 50 homes this year, reaching its milestone 500th home before the end of 2026, and supporting more than 5,000 veterans, first responders, and their family members through all its programs since 2006.

The Veterans Receiving Mortgage-Free Homes

Walker enlisted in the Air Force in 2008 and served for more than 12 years, including three deployments to Afghanistan. During his service and in the years following, Walker was diagnosed with Synovial Sarcoma, a rare cancer that ultimately resulted in the amputation of his left leg below the knee. Despite these challenges, he has remained deeply committed to his fellow veterans and the adaptive sports community, competing in the Invictus Games and training to become a Paralympic athlete.

"Presenting Staff Sergeant Walker and Specialist Heard with mortgage-free homes is a powerful reminder of our responsibility to the men and women who have served our country," said Andy Pujol, founder and CEO of Building Homes for Heroes. "Between Staff Sergeant Walker's determination in the face of a life-changing diagnosis, and Specialist Heard's courage under fire in Afghanistan and his ongoing recovery from a traumatic brain injury, these are the stories that drive our mission every day. Homes like these are made possible through our valued partnerships with organizations like SAIC and AWS, whose unwavering support allows us to create life-changing moments for deserving heroes and their families."

Inspired by his father's 23 years of service in the Florida National Guard and driven by the events of September 11, 2001, Heard enlisted in the Army in February 2007 out of Jacksonville, Florida. During his more than six years of service, Heard completed two deployments to Iraq and one to Afghanistan. On July 7, 2013, while conducting a counter-IED mission in Afghanistan's Logar Province, he and three fellow soldiers triggered a pressure-plate IED. The explosion left him with a severe traumatic brain injury, and despite his injuries, he helped treat wounded comrades and coordinate medical evacuation before losing consciousness. Today, Heard lives with a TBI, PTSD, chronic migraines, and numerous other service-connected conditions, and has found healing through nature-based therapy, including fishing, kayaking, and equine therapy programs for veterans. He is a Purple Heart recipient, and together with his partner, is raising two young children, driven by his dreams of providing a stable home for his family in Tampa, Florida.

"Helping warriors like Staff Sergeant Walker and Specialist Heard with mortgage-free homes is a great way to take purposeful action during Military Appreciation Month," said SAIC CEO Jim Reagan. "SAIC is proud to collaborate with Amazon Web Services and the many other corporate partners who attended today's golf fundraiser for Building Homes for Heroes, an extraordinary organization that is making a huge difference for veterans, their families, and Gold Star families."

About Building Homes for Heroes
Building Homes for Heroes builds and gifts mortgage-free homes, and completes home modifications, for veterans, emergency first responders and their families, and provides further services along their road to recovery to help them live a promising and fulfilling life ahead. The organization reached a 96% program rating in 2025, the 13th straight year earning a program rating of at least 93%. It also received a perfect 4-star rating from Charity Navigator for seven straight years, including a 100% in transparency and accountability.

Media Contact
David Weingrad, Building Homes for Heroes, Director of Communications, (516) 643-0325

SOURCE Building Homes For Heroes

On May 22, 2026, Science Applications International Corp SAIC shares rose 4.1% to a current price of $100.01. This movement comes amidst a 52-week trading range of $81.08 to $123.16, indicating notable volatility in its recent price history.

GF Value™ verdict: Current price of $100.01 is 19.1% below the GF Value™ estimate of $123.66, indicating the stock is undervalued.GF Score™: The company holds a score of 77/100, which classifies it as above average in terms of overall quality and performance metrics.Most notable signal: Insider activity shows that there has been no selling with insiders buying $0.0M in the last three months, indicating confidence in the company’s future prospects. Is SAIC Overvalued or Undervalued? The current price of Science Applications International Corp SAIC at $100.01 is significantly below the GF Value™ estimate of $123.66, which suggests that the stock is undervalued by approximately 19.1%. This creates a margin of safety for potential investors, as the difference between the current market price and the intrinsic value indicates room for price appreciation. The GF Valuation label describes SAIC as "Modestly Undervalued," hinting at a potential opportunity for long-term growth if market conditions align favorably.

While being undervalued presents a potential investment opportunity, caveats remain. Market conditions can be unpredictable, influencing stock prices independent of intrinsic value calculations. GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. Therefore, while the current valuation may suggest a favorable entry point, investors should consider broader economic factors and company fundamentals before making any decisions.

How Does SAIC's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 13.0x 17.0x Forward P/E 10.5x N/A Currently, SAIC’s P/E ratio of 13.0x is well below its 5-year median P/E of 17.0x, indicating that the stock is trading at a discount compared to its historical valuation. The forward P/E of 10.5x further supports the notion that the stock is attractively priced relative to its past performance. This P/E analysis aligns with the GF Value™ verdict of being undervalued, reinforcing the idea that the stock may present an appealing opportunity for long-term growth.

What Does SAIC's GF Score™ Tell Us? Metric Rating GF Score™ 77/100 Financial Strength 5/10 Profitability 9/10 Growth 6/10 Valuation 8/10 Momentum 2/10 The GF Score™ of 77/100 suggests that SAIC is positioned above average in terms of its overall quality and performance. The strongest aspect of SAIC's profile is its profitability, scoring 9/10, indicating robust earnings capabilities. However, the momentum rank of 2/10 highlights a potential concern, suggesting that the stock may not be experiencing favorable price trends at this time. Overall, the combination of a high profitability rank and moderate scores in other categories suggests that while SAIC has strong foundational elements, it could benefit from improved momentum in the market.

What Are Insiders Doing with SAIC Stock? Recent insider activity for Science Applications International Corp shows that there have been no significant transactions, with insiders having not sold any shares and reported buying $0.0M in the last three months. This lack of selling activity can indicate that insiders are confident in the company's future performance and outlook, which can be a positive signal for potential investors.

What This Means for Investors Based on the GF Value™ assessment, Science Applications International Corp SAIC appears to be undervalued at its current price of $100.01, compared to the intrinsic value of $123.66. This suggests a potential opportunity for investment, provided that investors consider the broader market context and company fundamentals.

For the complete analysis, visit the Science Applications International Corp SAIC stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.

Frequently Asked Questions What is SAIC's GF Score™?

SAIC has a GF Score™ of 77/100, indicating that it is above average in terms of quality and performance based on multiple key metrics.

Is SAIC overvalued or undervalued?

SAIC is currently undervalued, with a GF Value™ of $123.66, suggesting there is potential for price appreciation from its current level of $100.01.

What is SAIC's P/E ratio?

SAIC's P/E ratio is 13.0x, which is significantly lower than its 5-year median P/E of 17.0x, indicating that the stock is trading at a discount compared to its historical valuation.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

May 29, 2026 08:10 ET  | Source: SAIC, Inc.

RESTON, Va., May 29, 2026 (GLOBE NEWSWIRE) -- Science Applications International Corp. (NASDAQ: SAIC) announced today that the company’s board of directors declared a cash dividend of $0.37 per share of the company’s common stock payable on July 24, 2026 to stockholders of record on July 10, 2026.

SAIC intends to continue paying dividends on a quarterly basis, although the declaration of any future dividends will be determined by the board of directors each quarter and will depend on earnings, financial condition, capital requirements and other factors.

About SAIC
SAIC® is a premier mission integrator focused on advancing the power of technology and innovation to serve and protect our world. Our robust portfolio of offerings across the defense, space, intelligence, and civilian markets includes secure high-end solutions in mission IT, enterprise IT, engineering services, and professional services. We integrate emerging technology, rapidly and securely, into mission critical operations that modernize and enable critical national imperatives.

We are approximately 23,000 strong; driven by mission, united by purpose, and inspired by opportunities. Headquartered in Reston, Virginia, SAIC has annual revenues of approximately $7.3 billion. For more information, visit saic.com. For ongoing news, please visit our newsroom.

Forward-Looking Statements
Certain statements in this release contain or are based on “forward-looking” information within the meaning of the Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by words such as “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “guidance,” and similar words or phrases. Forward-looking statements in this release may include, among others, estimates of future revenues, operating income, earnings, earnings per share, charges, total contract value, backlog, outstanding shares and cash flows, as well as statements about future dividends, share repurchases and other capital deployment plans. Such statements are not guarantees of future performance and involve risk, uncertainties and assumptions, and actual results may differ materially from the guidance and other forward-looking statements made in this release as a result of various factors. Risks, uncertainties and assumptions that could cause or contribute to these material differences include those discussed in the “Risk Factors,” “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Legal Proceedings” sections of our Annual Report on Form 10-K, as updated in any subsequent Quarterly Reports on Form 10-Q and other filings with the SEC, which may be viewed or obtained through the Investor Relations section of our website at saic.com or on the SEC’s website at sec.gov. Due to such risks, uncertainties and assumptions you are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date hereof. SAIC expressly disclaims any duty to update any forward-looking statement provided in this release to reflect subsequent events, actual results or changes in SAIC’s expectations. SAIC also disclaims any duty to comment upon or correct information that may be contained in reports published by investment analysts or others.

Media Contact:
Darryn James
[email protected]

Investor Relations Contact:
Jon Raviv
[email protected]

Revenues of $1.91 billion, approximately 2% growth; 0.5% organic growth(1) adjusted for SilverEdge acquisitionNet bookings of $2.1 billion; quarterly book-to-bill ratio of 1.1; trailing twelve months book-to-bill ratio of 1.0Net income of $115 million; Adjusted EBITDA(1) of $222 million or 11.6% of revenuesDiluted earnings per share of $2.61; Adjusted diluted earnings per share(1) of $3.23Cash flows provided by operating activities of $127 million; Free cash flow(1) of $118 millionCompany increases fiscal year 2027 guidance for adjusted EBITDA(1), adjusted EBITDA margin %(1) and adjusted diluted EPS(1); reiterates revenue and free cash flow(1) guidance RESTON, Va., June 01, 2026 (GLOBE NEWSWIRE) -- Science Applications International Corporation (NASDAQ: SAIC), a premier mission integrator driving our nation's digital transformation across the defense, space, intelligence, and civilian markets, today announced results for the first quarter ended May 1, 2026.

"I am proud of our team’s performance this quarter, delivering record margin and modest organic growth," said Jim Reagan, SAIC Chief Executive Officer. "These results reflect our focus on execution and our commitment to our financial targets. We are raising our guidance to reflect this strong start, while continuing to invest for the future. We are also advancing our enterprise transformation and strategy efforts to drive long-term growth and margin expansion, and to support our customers’ most critical missions."

First Quarter of Fiscal Year 2027: Summary Operating Results

 Three Months Ended May 1,
2026 Percent
change May 2,
2025 (dollars in millions, except per share amounts)Revenues$1,906  2% $1,877 Operating income 179  48%  121 Operating income as a percentage of revenues 9.4% 300bps  6.4%Adjusted operating income(1) 221  40%  158 Adjusted operating income as a percentage of revenues 11.6% 320bps  8.4%Net income 115  69%  68 EBITDA(1) 220  41%  156 EBITDA as a percentage of revenues 11.5% 320bps  8.3%Adjusted EBITDA(1) 222  41%  157 Adjusted EBITDA as a percentage of revenues 11.6% 320bps  8.4%Diluted earnings per share$2.61  84% $1.42 Adjusted diluted earnings per share(1)$3.23  68% $1.92 Net cash provided by operating activities$127  27% $100 Free cash flow(1)$118  368% $(44) (1)Non-GAAP measure, see Schedule 6 for information about this measure.

First Quarter Summary Results

Revenues for the quarter increased $29 million or approximately 2% compared to the same period in the prior year primarily due to revenues from the acquisition of SilverEdge Government Solutions ("SilverEdge") of $19 million and ramp up in volume on existing and new contracts, partially offset by contract completions. Adjusting for the acquisition of SilverEdge, revenues grew by approximately 0.5%.

Operating income as a percentage of revenues for the quarter increased compared to the same period in the prior year primarily due to improved profitability across our contract portfolio and a $12 million gain from the sale of an investment in the current year.

Adjusted EBITDA(1) as a percentage of revenues for the quarter increased to 11.6% from 8.4% for the same period in the prior year due to improved profitability across our contract portfolio, a $12 million gain from the sale of an investment in the current year, and lower selling, general and administrative expenses.

Diluted earnings per share for the quarter was $2.61 compared to $1.42 in the prior year quarter. Adjusted diluted earnings per share(1) for the quarter was $3.23 compared to $1.92 in the prior year quarter. The weighted-average diluted shares outstanding during the quarter decreased to 44.0 million from 47.8 million during the prior year quarter.

(1)Non-GAAP measure, see Schedule 6 for information about this measure.

Cash Generation and Capital Deployment

Cash flows provided by operating activities for the first quarter increased $27 million compared to the prior year quarter primarily due to timing of vendor payments, lower cash incentive-based compensation payments, and other changes in working capital, partially offset by lower cash inflows from the usage of the MARPA Facility and higher interest paid in the current year.

During the quarter, SAIC deployed $192 million of capital, consisting of $175 million of plan share repurchases and $17 million in cash dividends.

Quarterly Dividend Declared

Subsequent to quarter end, on May 28, 2026, the Company's Board of Directors declared a cash dividend of $0.37 per share of the Company's common stock payable on July 24, 2026 to stockholders of record on July 10, 2026. SAIC intends to continue paying dividends on a quarterly basis, although the declaration of any future dividends will be determined by the Board of Directors each quarter and will depend on earnings, financial condition, capital requirements and other factors.

Backlog and Contract Awards

Net bookings for the quarter were approximately $2.1 billion which reflects a book-to-bill ratio of 1.1 and a trailing twelve months book-to-bill ratio of 1.0. SAIC’s estimated backlog at the end of the quarter was approximately $22.9 billion. Of the total backlog amount, approximately $3.7 billion was funded.

Notable New and Recompete Awards:

U.S. Space and Intelligence Community: During the quarter, SAIC was awarded several awards within the U.S. Space and Intelligence Community, including:

A seven-year recompete contract of approximately $330 million with a Space and Intelligence Community customer. Under this contract, SAIC will provide systems engineering and technical assistance to its customer.A seven-year recompete of approximately $540 million with a Space and Intelligence Community customer. Under this contract, SAIC will provide systems engineering and technical assistance in the form of subject matter expertise.A seven-year recompete of approximately $100 million with a Space and Intelligence Community customer. Under this contract, SAIC will provide organizational support, mission analysis and engineering, program support, and additional technical services.
U.S. Department of Homeland Security: During the quarter, SAIC was awarded a five-year (one-year base, plus four, one-year option periods) recompete contract of approximately $200 million with the U.S. Department of Homeland Security, in its Civilian business group. Under this contract, SAIC will provide technology enhancement, modernization, and refresh of customer systems.

U.S. Air Force: During the quarter, SAIC was awarded a five-year (three-year base, plus two, one-year option periods) contract of approximately $192 million with the Air Force Lifecycle Management Center. Under this contract, SAIC will provide digital infrastructure support via design, development, testing and deployment.

U.S. Navy: During the quarter, SAIC was awarded a six-year (one-year base, plus five, one-year option periods) contract of approximately $123 million with the Naval Information Warfare Systems Command. SAIC will provide systems engineering and support services toward the upgrade and refurbishment of the Royal Saudi Naval Forces (RSNF) C4ISR Systems.

Notable Awards Subsequent to Period End (not included in current quarter bookings):

Federal Aviation Administration ("FAA"): Subsequent to the end of the quarter, SAIC was awarded several task orders totaling $100 million. Under these task orders, SAIC will support systems engineering, software development and other services in support of the FAA's air traffic organization, which manages all of U.S. civilian airspace and airports.

Fiscal Year 2027 Guidance

The table below summarizes fiscal year 2027 guidance and represents the Company's views as of June 1, 2026.        

 CURRENTPRIOR Fiscal YearFiscal Year 2027 Guidance2027 GuidanceRevenue$7.0B - $7.2B$7.0B - $7.2BOrganic Growth(1)(4%) - (2%)(4%) - (2%)Adjusted EBITDA(1)$720M - $730M$705M - $715MAdjusted EBITDA Margin %(1)10.1% - 10.3%9.9% - 10.1%Adjusted Diluted EPS(1)$9.90 - $10.10$9.50 - $9.70Free Cash Flow(1)>$600M>$600M (1)Non-GAAP measure, see Schedule 6 for information about this measure.

Webcast Information

SAIC management will discuss operations and financial results in an earnings conference call beginning at 10:00 a.m. Eastern time on June 1, 2026. The conference call will be webcast simultaneously to the public through a link on the Investor Relations section of the SAIC website (https://investors.saic.com/). We will be providing webcast access only – “dial-in” access is no longer available. Additionally, a supplemental presentation will be available to the public through links to the Investor Relations section of the SAIC website. After the call concludes, an on-demand audio replay of the webcast can be accessed on the Investor Relations website.

About SAIC

SAIC® is a premier mission integrator focused on advancing the power of technology and innovation to serve and protect our world. Our robust portfolio of offerings across the defense, space, intelligence, and civilian markets includes secure high-end solutions in mission IT, enterprise IT, engineering services and professional services. We integrate emerging technology, rapidly and securely, into mission critical operations that modernize and enable critical national imperatives.

We are approximately 23,000 strong; driven by mission, united by purpose, and inspired by opportunities. Headquartered in Reston, Virginia, SAIC has annual revenues of approximately $7.3 billion. For more information, visit saic.com. For ongoing news, please visit our newsroom.

Media Contact

Darryn James
Director, Media and Brand Reputation
[email protected]

Investor Relations Contact

Jon Raviv
Vice President, Investor Relations
[email protected]

GAAP to Non-GAAP Guidance Reconciliation

The Company does not provide a reconciliation of forward-looking adjusted diluted EPS to GAAP diluted EPS, adjusted EBITDA margin to GAAP net income or free cash flow to GAAP net cash flows from operating activities due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliation. Because certain deductions for non-GAAP exclusions used to calculate net income and cash flows from operating activities may vary significantly based on actual events, the Company is not able to forecast GAAP diluted EPS, GAAP net income or GAAP net cash flows from operating activities with reasonable certainty. The variability of the above charges may have an unpredictable and potentially significant impact on our future GAAP financial results.

Forward-Looking Statements

Certain statements in this release contain or are based on “forward-looking” information within the meaning of the Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by words such as “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “guidance,” and similar words or phrases. Forward-looking statements in this release may include, among others, estimates of future revenues, operating income, earnings, earnings per share, charges, total contract value, backlog, outstanding shares and cash flows, as well as statements about future dividends, share repurchases and other capital deployment plans. Such statements are not guarantees of future performance and involve risk, uncertainties and assumptions, and actual results may differ materially from the guidance and other forward-looking statements made in this release as a result of various factors. Risks, uncertainties and assumptions that could cause or contribute to these material differences include those discussed in the “Risk Factors,” “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Legal Proceedings” sections of our Annual Report on Form 10-K, as updated in any subsequent Quarterly Reports on Form 10-Q and other filings with the SEC, which may be viewed or obtained through the Investor Relations section of our website at www.saic.com or on the SEC’s website at www.sec.gov. Due to such risks, uncertainties and assumptions you are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date hereof. SAIC expressly disclaims any duty to update any forward-looking statement provided in this release to reflect subsequent events, actual results or changes in SAIC’s expectations. SAIC also disclaims any duty to comment upon or correct information that may be contained in reports published by investment analysts or others.

Schedule 1:

SCIENCE APPLICATIONS INTERNATIONAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)   Three Months Ended May 1,
2026 May 2,
2025 (in millions, except per share amounts)Revenues$1,906  $1,877 Cost of revenues 1,657   1,668 Selling, general and administrative expenses 83   89 Other operating (income) expense (13)  (1)Operating income 179   121 Interest expense, net 33   30 Other (income) expense, net 1   5 Income before income taxes 145   86 Income tax (expense) benefit (30)  (18)Net income$115  $68     Weighted-average number of shares outstanding:   Basic 43.7   47.6 Diluted 44.0   47.8 Earnings per share:   Basic$2.63  $1.43 Diluted$2.61  $1.42 
Schedule 2:

SCIENCE APPLICATIONS INTERNATIONAL CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)     May 1,
2026 January 30,
2026 (in millions)ASSETS   Current assets:   Cash and cash equivalents$109 $182Receivables, net 962  853Prepaid expenses 102  122Other current assets 26  22Total current assets 1,199  1,179Goodwill 2,944  2,944Intangible assets, net 729  761Property, plant, and equipment, net 111  110Operating lease right of use assets 184  193Other assets 171  167Total assets$5,338 $5,354LIABILITIES AND EQUITY   Current liabilities:   Accounts payable$634 $500Accrued payroll and employee benefits 278  316Other accrued liabilities 99  147Debt, current portion 26  19Total current liabilities 1,037  982Debt, net of current portion 2,460  2,468Operating lease liabilities 189  198Deferred income taxes 125  104Other long-term liabilities 104  102Equity:   Total stockholders' equity 1,423  1,500Total liabilities and stockholders' equity$5,338 $5,354
Schedule 3:

SCIENCE APPLICATIONS INTERNATIONAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)   Three Months Ended May 1,
2026 May 2,
2025 (in millions)Cash flows from operating activities:   Net income$115  $68 Adjustments to reconcile net income to net cash provided by operating activities:   Depreciation and amortization 40   36 Stock-based compensation expense 13   15 Deferred income taxes 21   (1)Gain on sales of investments (12)  — Other (2)  1 Increase (decrease) resulting from changes in operating assets and liabilities:   Receivables (109)  (9)Prepaid expenses and other current assets 15   6 Accounts payable and other accrued liabilities 85   33 Accrued payroll and employee benefits (38)  (51)Operating lease assets and liabilities, net (1)  (2)Other assets and other long-term liabilities, net —   4 Net cash provided by operating activities 127   100 Cash flows from investing activities:   Proceeds from sales of investments 15   — Sales of marketable securities 5   3 Purchases of marketable securities (4)  (4)Expenditures for property, plant, and equipment (9)  (8)Contributions to investments (6)  (6)Net cash provided by (used in) investing activities 1   (15)Cash flows from financing activities:   Stock repurchased and retired or withheld for taxes on equity awards (188)  (142)Dividend payments to stockholders (17)  (19)Principal payments on borrowings (1)  (689)Proceeds from borrowings —   750 Issuances of stock 5   6 Net cash used in financing activities (201)  (94)Net decrease in cash, cash equivalents and restricted cash (73)  (9)Cash, cash equivalents and restricted cash at beginning of period 190   64 Cash, cash equivalents and restricted cash at end of period$117  $55 
Schedule 4:

SCIENCE APPLICATIONS INTERNATIONAL CORPORATION
SEGMENT OPERATING RESULTS
(Unaudited)   Three Months Ended May 1,
2026 May 2,
2025 (dollars in millions)Revenues   Defense and Intelligence$1,466  $1,433 Civilian 440   444 Total revenues$1,906  $1,877     Adjusted operating income (loss)   Defense and Intelligence$146  $115 Civilian 68   52 Corporate 7   (9)Total adjusted operating income$221  $158     Adjusted operating margin   Defense and Intelligence 10.0%  8.0%Civilian 15.5%  11.7%Total adjusted operating margin 11.6%  8.4%
First Quarter Defense and Intelligence Results

Revenues for the quarter increased $33 million or 2% compared to the same period in the prior year primarily due to revenues from the acquisition of SilverEdge of $19 million and ramp up in volume on existing and new contracts, partially offset by contract completions.

Adjusted operating income as a percentage of revenues increased compared to the same period in the prior year primarily due to improved profitability and timing and volume mix in our contract portfolio, partially offset by contract completions.

First Quarter Civilian Results

Revenues for the quarter decreased $4 million or 1% compared to the same period in the prior year primarily due to contract completions, partially offset by new contracts.

Adjusted operating income as a percentage of revenues increased from the comparable prior year period primarily due to improved profitability across our contract portfolio.

First Quarter Corporate Results

Adjusted operating income was $7 million for the current quarter compared to an adjusted operating loss of $9 million during the same period in the prior year primarily due to a gain on an investment sale of $12 million in the current year and lower selling, general and administrative expenses.

Schedule 5:

SCIENCE APPLICATIONS INTERNATIONAL CORPORATION
BACKLOG
(Unaudited)

The estimated value of our total backlog as of the dates presented was:

 May 1, 2026 January 30, 2026 Defense and IntelligenceCivilianTotal SAIC Defense and IntelligenceCivilianTotal SAIC (in millions)Funded backlog$2,675$1,061$3,736 $2,511$1,061$3,572Negotiated unfunded backlog 15,946 3,178 19,124  15,869 3,181 19,050Total backlog$18,621$4,239$22,860 $18,380$4,242$22,622 Backlog represents the estimated amount of future revenues to be recognized under negotiated contracts and task orders as work is performed and excludes contract awards which have been protested by competitors until the protest is resolved in our favor. SAIC segregates backlog into two categories, funded backlog and negotiated unfunded backlog. Funded backlog for contracts with government agencies primarily represents contracts for which funding is appropriated less revenues previously recognized on these contracts, and does not include the unfunded portion of contracts where funding is incrementally appropriated or authorized by the U.S. government and other customers even though the contract may call for performance over a number of years. Funded backlog for contracts with non-government agencies represents the estimated value of contracts which may cover multiple future years under which SAIC is obligated to perform, less revenues previously recognized on these contracts. Negotiated unfunded backlog represents the estimated future revenues to be earned from negotiated contracts for which funding has not been appropriated or authorized, and unexercised priced contract options. Negotiated unfunded backlog does not include any estimate of future potential task orders expected to be awarded under indefinite delivery, indefinite quantity (IDIQ), U.S. General Services Administration (GSA) schedules or other master agreement contract vehicles, with the exception of certain IDIQ contracts where task orders are not competitively awarded and separately priced but instead are used as a funding mechanism, and where there is a basis for estimating future revenues and funding on future anticipated task orders.

Schedule 6:

SCIENCE APPLICATIONS INTERNATIONAL CORPORATION
NON-GAAP FINANCIAL MEASURES
(Unaudited)

This schedule describes the consolidated non-GAAP financial measures included in this earnings release. While we believe that these non-GAAP financial measures may be useful in evaluating our financial information, they should be considered as supplemental in nature and not as a substitute for financial information prepared in accordance with GAAP. Reconciliations, definitions, and how we believe these measures are useful to management and investors are provided below. Other companies may define similar measures differently. Organic growth is a performance measure that excludes the impact of acquisitions and divestitures. Organic growth is calculated by taking consolidated revenues and excluding revenues from acquisitions and divestitures during the periods presented, when applicable. See schedules below for the definitions of other non-GAAP measures.

Adjusted Operating Income

 Three Months Ended May 1,
2026 May 2,
2025 (dollars in millions)Revenues$1,906  $1,877 Operating income$179  $121 Operating income as a percentage of revenues 9.4%  6.4%Depreciation of property, plant and equipment 8   7 Amortization of intangible assets 32   29 Acquisition, integration, restructuring and impairment costs 2   3 Recovery of acquisition, integration, restructuring and impairment costs (1)  (2)Costs related to the settlement of federal tax audits 1   — Adjusted operating income(1)$221  $158 Adjusted operating income as a percentage of revenues 11.6%  8.4% Adjusted operating income is a performance measure that primarily excludes the impact of non-recurring transactions and activities that we do not consider to be indicative of our ongoing operating performance. Adjusted operating income is calculated by taking operating income and excluding depreciation and amortization, acquisition, integration, restructuring, and impairment costs, and any other material non-recurring costs. Depreciation of property, plant, and equipment relates to property, plant, and equipment specifically identifiable for each segment. Adjusted operating income excludes amortization of intangible assets because we do not have a history of significant acquisition activity, we do not acquire businesses on a predictable cycle, and the amount of an acquisition's purchase price allocated to intangible assets and the related amortization term are unique to each acquisition. Acquisition, integration, restructuring and impairment costs represent costs incurred related to acquisitions, the reorganization, facilities optimization efforts, and impairments of long-lived assets, along with associated depreciation. Recovery of acquisition, integration, restructuring and impairment costs represents costs recovered through our indirect rates in accordance with Cost Accounting Standards. Costs related to the settlement of federal tax audits represent costs related to the IRS audit settlement for fiscal years 2016 through 2019. We believe that this performance measure provides management and investors with useful information in assessing trends in our ongoing operating performance and may provide greater visibility in understanding our long-term financial performance.

(1)Non-GAAP measure, see above for definition.

Schedule 6 (continued):

SCIENCE APPLICATIONS INTERNATIONAL CORPORATION
NON-GAAP FINANCIAL MEASURES
(Unaudited)  EBITDA and Adjusted EBITDA  Three Months Ended May 1,
2026 May 2,
2025 (dollars in millions)Revenues$1,906  $1,877 Net income$115  $68 Interest expense, net and loss on sale of receivables 35   34 Income tax expense (benefit) 30   18 Depreciation and amortization 40   36 EBITDA(1) 220   156 EBITDA as a percentage of revenues 11.5%  8.3%Acquisition, integration, restructuring and impairment costs 2   3 Recovery of acquisition, integration, restructuring and impairment costs (1)  (2)Costs related to the settlement of federal tax audits 1   — Adjusted EBITDA(1)$222  $157 Adjusted EBITDA as a percentage of revenues 11.6%  8.4% EBITDA is a performance measure that is calculated by taking net income and excluding interest and loss on sale of receivables, provision for income taxes, and depreciation and amortization. Adjusted EBITDA is a performance measure that excludes the impact of non-recurring transactions and activities that we do not consider to be indicative of our ongoing operating performance. Adjusted EBITDA is calculated by taking EBITDA and excluding acquisition, integration, restructuring and impairment costs, and any other material non-recurring costs. Acquisition, integration, restructuring and impairment costs represent costs incurred related to acquisitions, the reorganization, facilities optimization efforts, and impairments of long-lived assets, along with associated depreciation. Recovery of acquisition, integration, restructuring and impairment costs represents costs recovered through our indirect rates in accordance with Cost Accounting Standards. Costs related to the settlement of federal tax audits represent costs related to the IRS audit settlement for fiscal years 2016 through 2019. We believe that these performance measures provide management and investors with useful information in assessing trends in our ongoing operating performance and may provide greater visibility in understanding the long-term financial performance of the Company.

(1)Non-GAAP measure, see above for definition.

Schedule 6 (continued):

SCIENCE APPLICATIONS INTERNATIONAL CORPORATION
NON-GAAP FINANCIAL MEASURES
(Unaudited)  Adjusted Diluted Earnings Per Share
 Three Months Ended May 1, 2026 (in millions, except per share amounts) As Reported Amortization of intangible assets Acquisition, integration, restructuring and impairment costsRecovery of acquisition, integration, restructuring and impairment costs Costs related to the settlement of federal tax audits Non-GAAP results(1)Income before income taxes$145  $32  $2$(1) $1 $179 Income tax (expense) benefit (30)  (7)  — —   —  (37)Net income$115  $25  $2$(1) $1 $142            Diluted EPS$2.61  $0.57  $0.05$(0.02) $0.02 $3.23   Three Months Ended May 2, 2025 (in millions, except per share amounts) As Reported Amortization of intangible assets Acquisition, integration, restructuring and impairment costs Recovery of acquisition, integration, restructuring and impairment costs Non-GAAP results(1)Income before income taxes$86  $29  $3 $(2) $116 Income tax (expense) benefit (18)  (6)  —  —   (24)Net income$68  $23  $3 $(2) $92           Diluted EPS$1.42  $0.48  $0.06 $(0.04) $1.92  Adjusted diluted earnings per share is a performance measure that excludes the impact of non-recurring transactions and activities that we do not consider to be indicative of our ongoing operating performance. Adjusted diluted earnings per share excludes amortization of intangible assets because we do not have a history of significant acquisition activity, we do not acquire businesses on a predictable cycle, and the amount of an acquisition's purchase price allocated to intangible assets and the related amortization term are unique to each acquisition. Acquisition, integration, restructuring and impairment costs represent costs incurred related to acquisitions, the reorganization, facilities optimization efforts, and impairments of long-lived assets, along with associated depreciation. Recovery of acquisition, integration, restructuring and impairment costs represents costs recovered through our indirect rates in accordance with Cost Accounting Standards. Costs related to the settlement of federal tax audits represent costs related to the IRS audit settlement for fiscal years 2016 through 2019. We believe that this performance measure provides management and investors with useful information in assessing trends in our ongoing operating performance and may provide greater visibility in understanding the long-term financial performance of the Company.

(1)Non-GAAP measure, see above for definition.

Schedule 6 (continued):

SCIENCE APPLICATIONS INTERNATIONAL CORPORATION
NON-GAAP FINANCIAL MEASURES
(Unaudited)  Free Cash Flow  Three Months Ended May 1,
2026 May 2,
2025 (in millions)Net cash provided by operating activities$127  $100 Expenditures for property, plant, and equipment (9)  (8)Cash used from (provided by) MARPA Facility —   (136)Free cash flow(1)$118  $(44)  FY27 Guidance (in millions)Net cash provided by operating activities>$635MExpenditures for property, plant, and equipmentApproximately $35MFree cash flow(1)>$600M Free cash flow is calculated by taking cash flows provided by operating activities less expenditures for property, plant, and equipment and less cash flows from our Master Accounts Receivable Purchasing Agreement (MARPA Facility) for the sale of certain designated eligible U.S. government receivables. Under the MARPA Facility, the Company can sell eligible receivables up to a maximum amount of $300 million. We believe that free cash flow provides management and investors with useful information in assessing trends in our cash flows and in comparing them to other peer companies, many of whom present similar non-GAAP liquidity measures. This measure should not be considered as a measure of residual cash flow available for discretionary purposes.

(1)Non-GAAP measure, see above for definition.

Key Takeaways SAIC Q1 earnings and revenues topped estimates, with EPS rising 68.2% year over year.SAIC reported $2.1 billion in net bookings and ended the quarter with a $22.9 billion backlog.SAIC raised fiscal 2027 EBITDA and EPS guidance following stronger profitability and margin expansion. Science Applications International (SAIC - Free Report) reported better-than-expected results for the first quarter of fiscal 2027, wherein both top and bottom lines surpassed the Zacks Consensus Estimate.

SAIC’s non-GAAP earnings of $3.23 per share beat the Zacks Consensus Estimate of $2.26 by 42.9%. The bottom line increased 68.2% from the year-ago quarter’s earnings of $1.92.

Science Applications' fiscal first-quarter revenues increased 1.5% year over year to $1.91 billion and surpassed the Zacks Consensus Estimate of $1.78 billion by 6.9%.

SAIC’s Q1 in DetailSegment-wise, revenues from Defense and Intelligence, which accounted for 76.9% of revenues, totaled $1.47 billion and increased 2.3% year over year. Civilian revenues, which constitute 23.1% of revenues, totaled $440 million and decreased 0.9% year over year.

Net bookings were approximately $2.1 billion in the first quarter, which reflected a book-to-bill ratio of 1.1. The company’s trailing 12-month book-to-bill ratio was 1.0 at the end of the fiscal first quarter. SAIC’s estimated backlog at the end of the quarter was approximately $22.9 billion. Of the total backlog amount, approximately $3.7 billion was funded.

Selling, general and administrative (SG&A) expenses decreased 6.7% to $83 million. SG&A expenses, as a percentage of revenues, declined to 4.4% from 4.7% in the year-ago quarter.

Non-GAAP operating income increased year over year to $221 million from the year-ago quarter’s operating income of $158 million. The non-GAAP operating margin expanded 320 basis points (bps) year over year to 11.6%.

Adjusted EBITDA rose 41% to $222 million. Adjusted EBITDA margin for the quarter was 11.6% compared with 8.4% in the prior-year quarter.

Balance Sheet & Cash Flow Details of SAICScience Applications ended the fiscal first quarter with cash and cash equivalents of $109 million, significantly down from the previous quarter’s $182 million.

As of May 1, 2026, Science Applications’ long-term debt (net of the current portion) was $2.46 billion compared with $2.47 billion as of Jan. 30, 2026.

The company generated operating and free cash flows of $127 million and $118 million, respectively, in the fiscal first quarter.

During the fiscal first quarter, Science Applications repurchased shares worth $175 million and paid $17 million in dividends.

SAIC Provides Fiscal 2027 GuidanceScience Applications expects fiscal 2027 revenues between $7 billion and $7.2 billion. The Zacks Consensus Estimate for fiscal 2026 revenues is pegged at $7.11 billion, indicating a year-over-year decline of 2.1%.

Adjusted EBITDA is anticipated to be in the range of $720-$730 million, up from the earlier guidance of $705-$715 million. Adjusted EBITDA margin is expected to be in the band of 10.1-10.3%, up from the previous guided range of 9.9-10.1% band.

The company forecasts adjusted EPS in the range of $9.90-$10.10, up from the earlier guidance of $9.50-$9.70. The Zacks Consensus Estimate for the bottom line is pegged at $9.61 per share, indicating a year-over-year decline of 10.6%.

Science Applications estimates free cash flow for fiscal 2027 to exceed $600 million.

SAIC’s Zacks Rank & Stocks to ConsiderCurrently, Science Applications carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader Zacks Computer and Technology sector are Applied Materials (AMAT - Free Report) , Celestica (CLS - Free Report) and Amphenol (APH - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Shares of Applied Materials have rallied 75.1% year to date. The Zacks Consensus Estimate for Applied Materials’ fiscal 2026 earnings is pegged at $12.02 per share, up by 8.3% over the past 30 days, indicating a year-over-year surge of 27.6%.

Shares of Celestica have gained 30.4% year to date. The Zacks Consensus Estimate for Celestica’s 2026 earnings is pegged at $10.16 per share, up 15.1% over the past 30 days, implying a year-over-year jump of 67.9%.

Amphenol shares have jumped 10.1% year to date. The Zacks Consensus Estimate for APH’s 2026 earnings is pegged at $4.76 per share, up 11.4% over the past 30 days, indicating a year-over-year increase of 42.5%.

Science Applications SAIC has seen a significant rise in its stock price following the release of its Q1 results for April. The government technology and mission-integration contractor reported a notable earnings per share (EPS) beat, with revenue climbing 1.5% year-over-year to $1.91 billion, surpassing expectations and marking a return to growth after three consecutive quarters of decline. Furthermore, SAIC has increased its fiscal year 2027 adjusted EBITDA and EPS guidance, with the EPS forecast now exceeding expectations, while maintaining its revenue guidance of $7.0 to $7.2 billion.

Revenue growth was partly driven by the recent acquisition of SilverEdge Government Solutions, which contributed $19 million during the quarter. Excluding SilverEdge, revenue increased by 0.5%, supported by higher volumes from existing and new contracts, although this was partially offset by contract completions. The core Defense and Intelligence segment was the main driver of growth, with revenue rising 2.3% year-over-year to $1.46 billion, while Civilian revenue saw a slight decline of 1.0% year-over-year to $440 million. SAIC reported several significant customer wins, particularly in the Space and Intelligence Community, including three recompete awards totaling approximately $970 million. Other key contracts included a $200 million recompete with the Department of Homeland Security, a $192 million Air Force contract, and a $123 million Navy contract. The company recorded net bookings of $2.1 billion for the quarter, resulting in a book-to-bill ratio of 1.1. The backlog grew by 1.0% year-over-year to $22.86 billion, comprising $18.62 billion in Defense and Intelligence and $4.24 billion in Civilian. Adjusted operating margin saw a significant increase, rising 320 basis points year-over-year to 11.6%, reflecting enhanced profitability across its contract portfolio. Adjusted EBITDA surged by 41% year-over-year to $222 million, with the adjusted EBITDA margin expanding to 11.6% from 8.4%. SAIC now anticipates adjusted EBITDA of $720 to $730 million, up from a previous estimate of $705 to $715 million, and expects EPS in the range of $9.90 to $10.10, an increase from $9.50 to $9.70. The reaffirmed revenue guidance of $7.0 to $7.2 billion still indicates an organic contraction of 4% to 2%. This update from SAIC is a positive shift following concerns raised in its Q4 report regarding FY27 organic revenue contraction, recompete losses, procurement delays, and constrained bookings. The company has consistently delivered strong EPS results as margins improve, and the Q1 report indicates some stabilization in revenue. With organic growth of 0.5% and an improved book-to-bill ratio of 1.1, the report does not signal a major revenue turnaround, as SAIC's FY27 revenue guidance suggests an organic contraction. However, the improved contract profitability, execution, and bookings have led to increased adjusted EBITDA and EPS guidance, boosting investor confidence in SAIC's efforts to reposition its portfolio and achieve sustainable organic growth.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

Science Applications International Corporation (SAIC) Q1 2027 Earnings Call Transcript

Modernizes technology and infrastructure of existing and new torpedo defense systems – including “Nixie” – to mitigate threats, enhance vessel survivability, and ensure mission success June 03, 2026 08:30 ET  | Source: SAIC, Inc.

RESTON, Va., June 03, 2026 (GLOBE NEWSWIRE) -- Science Applications International Corp. (NASDAQ: SAIC) has been awarded a follow-on $50.6 million task order from the U.S. Navy’s leader in Torpedo Defense (TD) – Naval Undersea Warfare Center (NUWC) in Newport, RI – to continue the company’s work of providing critical torpedo defense system design, modernization, and sustainment services. This contract builds on SAIC’s two decades long legacy of proven collaboration with the Navy and success in advancing technology capabilities of the most sophisticated torpedo defense systems.

SAIC will leverage its advanced digital engineering capabilities to revolutionize the Navy’s TD systems by streamlining the design conceptualization, prototyping, and fabrication processes of hardware and software. This approach will integrate cutting-edge modeling simulation (SIM) and stimulation (STIM) – enabling more robust system analyses, data-driven insights, and seamless cybersecurity implementation. These advancements will ensure that upgraded TD systems achieve new levels of operational effectiveness to enhance vessel survivability and empower the Navy to maintain superior mission success in evolving maritime threat environments.

The company will support critical NUWC TD systems such as AN/SLQ-25 Torpedo Countermeasures Transmitting Set (commonly known as “Nixie”), Acoustic Device Countermeasures (ADCs), MK 58 Compact Rapid Attack Weapon (CRAW), EX 2 Torpedo Warning System, Submarine Launched Unmanned Aerial System (SLUAS), as well as emergent technologies and intelligence projects for Navy and Foreign Military Sales (FMS) that guide upgrades to the TD systems.

“SAIC’s long-standing partnership with the Navy and NUWC is built on trust, technical excellence, and an unwavering commitment to the mission;” said Barbara Supplee, SAIC Executive Vice President of the Army Navy Business Group. “This award reflects the Navy’s confidence in our team’s continued ability to deliver the modern torpedo defense systems needed to protect our fleet and outpace emerging threats. We are proud to continue supporting NUWC Code 85 with the engineering rigor, innovation, and agility required to ensure our warfighters remain safe, informed, and ready.”

The follow-on task order supports key NUWC Code 85 program offices such as Undersea Warfare Systems Program Office (PEO-UWS PMS415), International Fleet Support Program Office (PMS326), Office of Naval Research (ONR), and Office of Naval Intelligence (ONI), among others.

About SAIC 
SAIC® is a premier mission integrator focused on advancing the power of technology and innovation to serve and protect our world. Our robust portfolio of offerings across the defense, space, intelligence, and civilian markets includes secure high-end solutions in mission IT, enterprise IT, engineering services, and professional services. We integrate emerging technology, rapidly and securely, into mission critical operations that modernize and enable critical national imperatives.

We are approximately 23,000 strong; driven by mission, united by purpose, and inspired by opportunities. Headquartered in Reston, Virginia, SAIC has annual revenues of approximately $7.3 billion. For more information, visit saic.com. For ongoing news, please visit our newsroom.

Media Contact: 
Darryn James
[email protected]

Forward-Looking Statements 
Forward-Looking Statements Certain statements in this release contain or are based on “forward-looking” information within the meaning of the Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by words such as “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “guidance,” and similar words or phrases. Forward-looking statements in this release may include, among others, estimates of future revenues, operating income, earnings, earnings per share, charges, total contract value, backlog, outstanding shares and cash flows, as well as statements about future dividends, share repurchases and other capital deployment plans. Such statements are not guarantees of future performance and involve risk, uncertainties and assumptions, and actual results may differ materially from the guidance and other forward-looking statements made in this release as a result of various factors. Risks, uncertainties and assumptions that could cause or contribute to these material differences include those discussed in the “Risk Factors,” “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Legal Proceedings” sections of our Annual Report on Form 10-K, as updated in any subsequent Quarterly Reports on Form 10-Q and other filings with the SEC, which may be viewed or obtained through the Investor Relations section of our website at saic.com or on the SEC’s website at sec.gov. Due to such risks, uncertainties and assumptions you are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date hereof. SAIC expressly disclaims any duty to update any forward-looking statement provided in this release to reflect subsequent events, actual results or changes in SAIC’s expectations. SAIC also disclaims any duty to comment upon or correct information that may be contained in reports published by investment analysts or others. 

Company will build a modernized digital backbone that arms warfighters with real-time data to help them fight and win June 09, 2026 08:30 ET  | Source: SAIC, Inc.

RESTON, Va., June 09, 2026 (GLOBE NEWSWIRE) -- Digital transformation leader Science Applications International Corp. (NASDAQ: SAIC) has been awarded a leading position on the U.S. Department of the Air Force (DAF) Advanced Battle Management System (ABMS) Digital Infrastructure Network Developer program, a multiple-award contract with an estimated value of $192 million.

This work advances the vital DAF Battle Network program while accelerating the delivery of the Department of War’s Combined Joint All Domain Command and Control (CJADC2) infrastructure.

Digital infrastructure is foundational to modern warfighting as it provides real-time data that accelerates decision-making. Under this new contract, SAIC will lead the design, development, and deployment of significant elements of the DAF Battle Network. It will strengthen seamless C3 at all echelons – tactical, operational, strategic – within warfighting domains across air, land, space, maritime, and cyber, at all levels of security, and through full phases of force employment from competition to combat.

“We’re honored to help the Air Force build a modernized digital backbone that arms warfighters with real-time data to help them fight and win now and into the future,” said Vinnie DiFronzo, SAIC Executive Vice President of Air Force, Space, and Intelligence Business Group. “Delivering the right data to the right warfighter at the right time is vital work that enables integrated full domain and partner nation operations securely and at mission speed. We will integrate data across all classification levels and domains to give warfighters a clear decision advantage when it matters most.”

With proven ability to modernize complex Air Force and military systems with open architecture solutions, SAIC was awarded this contract for its expertise in networking, C3, AI, cloud, and digital engineering. SAIC will deliver connected and mission-aligned capabilities across fixed, mobile, and edge environments. The technical scope includes scalable and resilient optical transport networks (OTN), software-defined wide area networking, cross-domain solutions, data distribution, and cloud-enabled infrastructure integration.

A trusted strategic partner, SAIC will also team with leading network and original equipment manufacturer companies to integrate best-in-breed commercial and emerging technologies, while accelerating AI deployment to the frontline. By rapidly fielding intelligent tools, military forces can compress targeting cycles, enhance operational speed, and provide faster decisions that ultimately increase combat effectiveness and secure a vital edge over adversaries.

About SAIC 
SAIC® is a premier mission integrator focused on advancing the power of technology and innovation to serve and protect our world. Our robust portfolio of offerings across the defense, space, intelligence, and civilian markets includes secure high-end solutions in mission IT, enterprise IT, engineering services, and professional services. We integrate emerging technology, rapidly and securely, into mission critical operations that modernize and enable critical national imperatives.

We are approximately 23,000 strong; driven by mission, united by purpose, and inspired by opportunities. Headquartered in Reston, Virginia, SAIC has annual revenues of approximately $7.3 billion. For more information, visit saic.com. For ongoing news, please visit our newsroom.

Media Contact: 
Darryn James
[email protected]

Forward-Looking Statements 
Forward-Looking Statements Certain statements in this release contain or are based on “forward-looking” information within the meaning of the Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by words such as “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “guidance,” and similar words or phrases. Forward-looking statements in this release may include, among others, estimates of future revenues, operating income, earnings, earnings per share, charges, total contract value, backlog, outstanding shares and cash flows, as well as statements about future dividends, share repurchases and other capital deployment plans. Such statements are not guarantees of future performance and involve risk, uncertainties and assumptions, and actual results may differ materially from the guidance and other forward-looking statements made in this release as a result of various factors. Risks, uncertainties and assumptions that could cause or contribute to these material differences include those discussed in the “Risk Factors,” “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Legal Proceedings” sections of our Annual Report on Form 10-K, as updated in any subsequent Quarterly Reports on Form 10-Q and other filings with the SEC, which may be viewed or obtained through the Investor Relations section of our website at saic.com or on the SEC’s website at sec.gov. Due to such risks, uncertainties and assumptions you are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date hereof. SAIC expressly disclaims any duty to update any forward-looking statement provided in this release to reflect subsequent events, actual results or changes in SAIC’s expectations. SAIC also disclaims any duty to comment upon or correct information that may be contained in reports published by investment analysts or others.