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.
The window to lock in three July dividend checks is closing fast. Two of these stocks, Science Applications International and NetApp, go ex-dividend tomorrow, meaning today is the last trading day to buy shares and still qualify for the upcoming payment. A third, Bank OZK, gives investors a slightly longer runway into next week. All three payouts land inside this month.
Quick mechanics: to collect a dividend, you must own the shares before the ex-dividend date. Buy on or after the ex-date and the seller keeps the check. The pay date is simply when the cash hits your account.
Science Applications International (SAIC) Science Applications International (NASDAQ:SAIC | SAIC Price Prediction) just declared its quarterly cash dividend of $0.37 per share, with an ex-dividend date of July 10, 2026 and a payment date of July 24, 2026. That makes today, July 9, the buy-by deadline. The trailing dividend yield sits at roughly 1.3% on an indicated annual payout of $1.48, with shares recently trading around $112.01.
Coverage is the easy part here. The Reston, Virginia defense IT contractor reported Q1 FY27 adjusted diluted EPS of $3.23, beating the $2.28 consensus, and raised full-year guidance to adjusted diluted EPS of $9.90 to $10.10 on revenue of $7.0 billion to $7.2 billion. Free cash flow ran $577 million in FY26 and is guided above $600 million this year. Against a $1.48 annualized dividend, the payout ratio against EPS is in the mid-teens and cash coverage is not a question. The forward P/E is 10x.
NetApp (NTAP) NetApp (NASDAQ:NTAP) shares the same tight deadline. The quarterly dividend of $0.52 per share carries an ex-date of July 10, 2026, with cash paid July 29, 2026. Investors must be shareholders of record before tomorrow’s open, which means buying today. The indicated yield is roughly 1.25%, modest on the surface, but that number is partly a function of the stock’s run. NTAP is up 55.98% year to date and 57.3% over the past year.
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and NetApp didn't make the cut. Grab the names FREE today.
On coverage, the Sunnyvale storage company reported Q4 FY26 non-GAAP EPS of $2.43 on revenue of $1.95 billion, up 12.5% year over year. Full-year FY26 non-GAAP EPS came in at $8.13 and free cash flow reached $1.87 billion, up 40%. Management guided FY27 non-GAAP EPS to $8.70 to $9.00. That puts the $2.08 annualized dividend at less than a quarter of earnings, with billions in FCF headroom and another $950 million already returned through buybacks last fiscal year. All-flash and the NVIDIA (NASDAQ:NVDA) co-engineered AI Data Engine are the growth engines behind the numbers.
Bank OZK (OZK) Bank OZK (NASDAQ:OZK) offers the highest yield of the three and a slightly longer window to act. The Little Rock, Arkansas regional bank declared a quarterly dividend of $0.48 per share on July 1, 2026, with an ex-date of July 13, 2026 and a payment date of July 20, 2026. Buy by Friday, July 10, to be positioned before shares trade ex-dividend Monday. The current yield is about 3.59%, and the annualized forward estimate is $1.92.
For a bank, the right coverage read is earnings and payout ratio. OZK trades at a trailing P/E of 8x on TTM EPS of $6.15, which puts the $1.92 forward dividend at well under a third of earnings. The dividend has risen by a penny per quarter for eight straight quarters, a steady growth cadence for income holders (readers building around that kind of grinding, low-drama payout growth may want to see how we think about it in Never Touch the Principal at 247wallst.com). The caveat: OZK has heavy commercial real estate exposure, and shares fell 6.58% over the past week, which is inflating that headline yield.
Buy-By Deadlines, Payments, and Yields at a Glance Ticker Buy-By Date Ex-Date Pay Date Dividend Yield SAIC July 9, 2026 July 10, 2026 July 24, 2026 $0.37 1.3% NTAP July 9, 2026 July 10, 2026 July 29, 2026 $0.52 1.25% OZK July 10, 2026 July 13, 2026 July 20, 2026 $0.48 3.59% Bottom Line Chasing a single quarterly check is never a strategy by itself. The names above are worth a look because the coverage is real, the dates are confirmed, and the payments are already declared. Miss the ex-date and you miss the payment: it is that simple. If any of these fit an existing income plan, the deadline to act is measured in hours for SAIC and NetApp, and just a couple of trading days for Bank OZK.
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and NetApp didn't make the cut. Grab the names FREE today.
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.
JPL to leverage Loft’s AI-enabled, on-orbit infrastructure to support NASA Earth observation research objectives
SAN FRANCISCO--(BUSINESS WIRE)--Loft Orbital (“Loft”), a global space infrastructure company, today announced an agreement with NASA’s Jet Propulsion Laboratory (JPL) to host and fly demonstrations of JPL artificial intelligence (AI) software on Loft's AI-enabled space infrastructure. The demonstrations, part of the Federated Autonomous MEasurement (FAME) project funded by NASA's Earth Science Technology Office (ESTO), will advance on-orbit AI capabilities for Earth science remote sensing and autonomous ground processing.
The program will leverage Loft’s infrastructure to validate JPL AI software in the space environment, with flight demonstrations beginning in June 2026. Additional deployments on future AI-enabled satellites will take place in 2027 through 2028.
“This collaboration with JPL represents a significant step forward in applying artificial intelligence where it matters most in orbit, processing data in near-real time to support urgent decisions on Earth,” said Paul Lasserre, General Manager, AI for Space at Loft. “Loft was built to give organizations like JPL fast, simple access to space, and we are proud to be part of NASA’s push to harness commercial infrastructure for AI-driven Earth science applications.”
JPL’s AI software is aimed at advancing NASA remote-sensing capabilities, reducing data latency by removing humans from the processing loop and delivering near real-time insights on wildfires, flooding, and other natural disasters. Loft’s on-orbit infrastructure is flying a high-performance processing architecture that enables edge computing and the deployment of lightweight AI applications.
The software will demonstrate autonomous tip-and-queue tasking without ground intervention, which has the potential to dramatically shorten the time between satellite observation and actionable data reaching scientists, emergency management officials, and first responders. The spacecraft involved in FAME will utilize intersatellite links, meaning they can communicate with one another or with Earth rapidly and anytime.
The work contributes to NASA’s broader Earth science objectives while demonstrating a scalable model for hosting government AI payloads on commercial satellites. And, while NASA has deployed AI and autonomy software previously, the collaboration with Loft on FAME will enable the agency to scale up and help pathfind widespread adoption of its software on commercial platforms.
About Loft
Founded in 2017, Loft provides governments, companies, and research institutions with a fast, reliable way to deploy missions in orbit. Loft integrates, launches, and operates spacecraft on behalf of its customers, allowing them to focus on mission outcomes rather than building or operating their own satellites.
By leveraging Loft’s existing space infrastructure, modular technologies, and inventory of satellites on a shelf, customers can deploy new capabilities in months instead of years. Loft has flown more than 25 missions across a wide range of payloads and applications, demonstrating consistent, repeatable performance on-orbit. Loft is a global company with facilities in San Francisco, Golden, Colorado, and Toulouse, France. In 2024, Loft and Marlan Space established Orbitworks, the Middle East’s first private space-infrastructure company, extending Loft’s ability to support customers worldwide.
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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BigBear.ai (BBAI +0.00%), an AI-focused company serving defense and digital identity sectors, closed Tuesday at $4.12, up 10.46%. The stock advanced as investors responded to increased trading activity and anticipated the upcoming fiscal first-quarter earnings report, with attention shifting toward demand trends in defense-related artificial intelligence.
The company’s trading volume reached 64.9 million shares, which is about 54% above compared with its three-month average of 41.9 million shares. BigBear.ai went public in 2021 and has fallen 58% since its IPO.
How the markets moved todayS&P 500 (^GSPC +0.19%) slipped 0.48% to 7,138.8, while the Nasdaq Composite (^IXIC +0.21%) fell 0.90% to 24,663.80 as broader tech names faced pressure. Among information technology services peers, Leidos (LDOS +1.05%) closed at $146.15 (+1.32%) and Science Applications International (SAIC 0.16%) finished at $94.88 (+1.16%), both posting steadier gains than BigBear.ai’s move.
What this means for investorsBigBear.ai shares rose alongside increased trading activity in AI-focused defense and government analytics names, with the move occurring on elevated volume ahead of the company’s upcoming fiscal first-quarter earnings report. The stock’s gains also reflect renewed interest in smaller-cap companies tied to federal AI and data programs, rather than a single company-specific catalyst.
BigBear.ai’s business remains tied to contract-based work in areas such as defense intelligence, logistics, and decision-support systems, where revenue depends on securing government programs and turning its backlog into sales. Future contract announcements, backlog conversion, and updates tied to federal spending cycles will be the key market-moving signals for whether recent gains translate into sustained financial performance.
Eric Trie has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Leidos. The Motley Fool has a disclosure policy.
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
RESTON, Va., May 19, 2026 (GLOBE NEWSWIRE) -- Science Applications International Corp. (NASDAQ: SAIC) is scheduled to issue its first quarter fiscal year 2027 results before market open on Monday, June 1, 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.
The conference call will be webcast simultaneously to the public through a link on the Investor Relations section of the SAIC website. The company will only provide webcast access, “dial-in” access will not be available. A supplemental presentation will be available to the public through links provided on the website.
After the call concludes, an on-demand audio replay of the webcast can be accessed on the SAIC 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, 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.
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.
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].
Science Applications International Corporation remains fundamentally sound despite revenue declines and recent underperformance versus the S&P 500. SAIC is targeting $7.0–$7.2 billion in FY2027 revenue, with margins prioritized over top-line growth and $100 million in cost reductions underway. Shares trade at low single-digit multiples, appearing objectively cheap both absolutely and relative to peers, supporting a continued soft "Buy" rating.
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.
Science Applications International Corp (NASDAQ:SAIC) will report its fiscal first quarterly results before market open on Monday, June 1.
Analysts expect the Reston, Virginia-based company to report EPS of $2.26 to $2.28 on revenue of $1.82 billion, reflecting an 18% increase in profitability year-over-year but a slight decline in top-line revenue.
Science Applications International declared a dividend of $0.37 per share cash payable on July 24, 2026, to shareholders of record on July 10, 2026.
Science Applications International shares rose 0.5% in premarket trading to $105.
Let's have a look at how Benzinga's most-accurate <a href=”https://www.benzinga.com/quote/SAIC/analyst-ratings“><em> analysts have rated the company </em></a> in the recent period.
JP Morgan analyst Seth Seifman maintained a Neutral rating on the stock, while lowering the price target from $125 to $110 on April 13, 2026. This analyst has an accuracy rate of 85%. Citigroup analyst John Godyn maintained a Buy rating on the stock, while reducing the price target from $133 to $120 on April 2, 2025. This analyst has an accuracy rate of 56%. Truist Securities analyst Tobey Sommer maintained a Hold rating on the stock while lowering the price target from $110 to $95 on March 17, 2026. This analyst has an accuracy rate of 67%. Considering buying SAIC stock? Here’s what analysts think:
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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.
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.
SAIC (SAIC - Free Report) came out with quarterly earnings of $3.23 per share, beating the Zacks Consensus Estimate of $2.26 per share. This compares to earnings of $1.92 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +43.05%. A quarter ago, it was expected that this information technology company would post earnings of $2.31 per share when it actually produced earnings of $2.62, delivering a surprise of +13.42%.
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 $1.91 billion for the quarter ended April 2026, surpassing the Zacks Consensus Estimate by 6.93%. This compares to year-ago revenues of $1.88 billion. The company has topped consensus revenue estimates three 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 3.5% since the beginning of the year versus the S&P 500's gain of 10.7%.
What's Next for SAIC?While SAIC has underperformed 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 mixed. 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 #3 (Hold) for the stock. So, the shares are expected to perform in line with 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 $2.28 on $1.73 billion in revenues for the coming quarter and $9.61 on $7.11 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 bottom 32% 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.
One other stock from the same industry, C3.ai, Inc. (AI - Free Report) , is yet to report results for the quarter ended April 2026. The results are expected to be released on June 3.
This company is expected to post quarterly loss of $0.38 per share in its upcoming report, which represents a year-over-year change of -137.5%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
C3.ai, Inc.'s revenues are expected to be $49.75 million, down 54.2% from the year-ago quarter.
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 International Is a Wicked Hot Buy in JuneScience Applications International NASDAQ: SAIC reported a stronger-than-expected start to fiscal 2027, with executives pointing to record margins, steady cash generation and early signs of improvement in federal spending activity while maintaining a cautious stance on the full year.
Chief Executive Officer Jim Reagan said the company’s first-quarter results reflected “operational excellence in action,” citing strong program execution, disciplined cost management and cash flow performance. Reagan, who took the permanent CEO role earlier this year, said SAIC still has work to do to regain investor confidence by showing it can produce sustained organic growth.
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“This quarter’s result is a step in the right direction,” Reagan said. “I know this is a multi-quarter journey.”
Revenue Grows Modestly as Margins Reach Record Levels Chief Financial Officer and EVP of Enterprise Operations Prabu Natarajan said SAIC reported first-quarter revenue of $1.9 billion, representing organic growth of 0.5%. He said the result was better than expected, helped by the timing of materials and an extension of the RITS program.
Adjusted EBITDA was $222 million in the quarter. Natarajan said the margin performance reflected strong program execution, ongoing cost-efficiency efforts and a $12 million gain tied to the IPO of a venture investment. The gain added 60 basis points to adjusted EBITDA margin and about $0.20 to adjusted earnings per share.
Adjusted diluted earnings per share were $3.23, supported by stronger margins and a lower share count. Free cash flow was $118 million, and net leverage declined to 3.1 times, within the company’s target range.
Reagan said the first-quarter margin was a company record, though he cautioned that investments intended to support growth could offset some of the margin strength later in the year.
Guidance Raised for EBITDA and EPS, Sales Outlook Held SAIC maintained its sales guidance, with management saying it remains early in the year and the company is still accounting for recompete headwinds and an uncertain operating environment. However, Natarajan said the company expects to finish at or slightly above the midpoint of its sales guidance because of the RITS extension.
The company increased its EBITDA guidance to reflect the venture investment gain and other first-quarter performance items. SAIC now expects full-year adjusted EBITDA margin of 10.1% to 10.3%.
Adjusted EPS guidance was raised by about 4% to a range of $9.90 to $10.10, helped in part by an improved tax outlook. Free cash flow guidance remained unchanged at more than $600 million. Natarajan said SAIC continues to expect at least $14 of free cash flow per share this year and at least $13 per share in fiscal 2028 as historical tax assets roll off.
During the question-and-answer session, Citigroup analyst John Godyn asked about the company’s organic growth outlook, noting that the first-quarter result made a full-year decline of 2% to 4% harder to reconcile. Natarajan said SAIC was being cautious after volatility in the prior year, but added that he “would not probably quarrel with the math” that a 4% contraction looks like an outlier at this point.
Portfolio Review Targets Higher-Value Work Reagan said SAIC has begun a portfolio review as it seeks to shift toward “integrated mission-critical capabilities” that are more aligned with budget priorities and less exposed to commoditization in parts of the federal technology market. The company expects to provide more information on the review during its December earnings call.
SAIC’s qualified pipeline is about $85 billion, which Reagan described as more focused than in the prior quarter. Enterprise IT now represents a smaller portion of the pipeline, reflecting greater selectivity in that market. Reagan said the company is emphasizing mission and engineering businesses, which have grown as a share of the pipeline due to recent wins and ongoing investments.
Reagan said SAIC is evaluating both potential additions and subtractions to the portfolio, including M&A opportunities that could accelerate growth, improve margins or deepen capabilities in higher-value areas. He said the company is less likely to keep investing heavily in more commoditized enterprise IT opportunities, particularly where customer decisions are driven mainly by price.
Natarajan said the company is not abandoning enterprise IT, noting that SAIC’s civilian business performs much of that work under outcome-based contracts that can deliver value for both customers and the company. He said SAIC will be more selective in commoditized areas, especially where contracts are cost-plus and less differentiated.
Bookings, Pipeline and Federal Spending Show Improvement SAIC reported net bookings of $2.1 billion in the quarter, including a $200 million recompete win in its Department of Homeland Security business. Quarterly book-to-bill was 1.1 times, while trailing 12-month book-to-bill was 1.0 times.
Natarajan said proposal activity has increased since quarter-end, with the company targeting $25 billion to $28 billion in submissions for the year. He said larger award decisions are taking longer as they go through multiple levels of government review, but awards are beginning to move through the system.
Management said appropriations from last year’s legislation are beginning to flow, though unevenly. Natarajan pointed to activity in the Navy business, pockets of the Army, next-generation command and control, loitering munitions, M-SHORAD Increment 4, digital range modernization and radar sustainment programs.
Reagan also highlighted SAIC’s use of artificial intelligence in mission work, including modernizing legacy code, generating operational tasking orders, improving human-machine teaming, strengthening data fusion and hardening cyber defenses. He said the opportunity is less about delivering a standalone AI product and more about integrating and operationalizing AI capabilities in real-world missions.
Civilian Business Leadership Changes as Margins Strengthen SAIC also announced that Srinivas Attili is leaving the company as part of a leadership change in its civilian business group. Reagan said Natarajan will serve as interim head of the civilian business while SAIC searches for a permanent replacement.
Natarajan said the civilian segment is operating from a position of strength. He highlighted the Vanguard recompete at the Department of State, which generates roughly $250 million in annual sales at above-average margins. The successor program, Evolve, is a multi-award vehicle with a $10 billion ceiling over seven years. SAIC has won positions on four of the five Evolve work streams it pursued.
Asked about civilian margins, Natarajan said the segment has shown broad-based improvement and benefits from a portfolio that is almost entirely fixed-price and time-and-materials work. He cited contracts at the Department of State, DHS, the Department of Commerce, Interior and patents-related work as contributors to EBITDA performance.
Executives also discussed capital allocation after SAIC repurchased $188 million of shares in the quarter. Reagan said the buybacks were “timely and prudent” given market conditions, while Natarajan said the company’s full-year buyback plan remains roughly $400 million and that repurchases remain opportunistic. He added that Project Orbit, SAIC’s enterprise transformation effort, is intended to create additional capacity for internal investment in areas such as digital infrastructure and AI-related capabilities.
About Science Applications International NASDAQ: SAICScience 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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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.
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After closing at $96.17 on May 21, shares of Science Applications International (SAIC 0.16%) have closed higher during each subsequent market session. The trend seems poised to extend today, with the tech company specializing in digital solutions reporting strong first-quarter 2027 financial results this morning before the opening bell.
As of 11:49 a.m. ET, shares of SAIC are up 17.5%.
Image source: Getty Images.
A strong start to the fiscal year may just be the beginning Beating analysts' expectations that it would post Q1 2027 revenue of $1.82 billion, SAIC reported sales of $1.9 billion. And it wasn't only at the top of the income statement where the company outperformed analysts' expectations. SAIC reported Q1 2027 adjusted earnings per share (EPS) of $3.23 -- better than the $2.28 that analysts had anticipated.
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Management also espoused increasing optimism about the remainder of fiscal 2027. Whereas it had originally forecast adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $705 million to $715 million, the company now projects $720 million to $730 million. Similarly, SAIC raised its adjusted diluted EPS forecast to $9.90 to $10.10 from $9.50 to $9.70.
The outlook for revenue ($7 billion to $7.2 billion) and free cash flow (at least $600 million) remained unchanged.
Despite the stock's rise, it's still hanging on the discount rack It's not only the company's fiscal 2027 forecast that bodes well for the company's future. SAIC reported $22.9 billion in backlog at the end of Q1 2027 -- an increase over the backlog of $22.3 billion it had at the same time last year. With SAIC shares trading at 13.6 times trailing earnings, a discount to its five-year average P/E of 16.4, today seems like a great time to click the buy button on this tech stock.
Scott Levine has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
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.
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.
SAIC (SAIC) delivered modest 2% revenue growth but achieved a remarkable 69% year-over-year net income increase, driven by improved contract efficiency. Gross margin expansion and lower SG&A expenses contributed to significant bottom-line growth, even after normalizing for a $13M investment gain. SAIC's $22.9B contract backlog and stable balance sheet support expectations for steady, predictable operational performance in coming years.
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.
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.
