Science Applications International (NASDAQ:SAIC) Shares Gap Up After Earnings Beat

Key Points

• SAIC shares jumped 5% after the company reported quarterly EPS of $3.01 and revenue of $1.88 billion, beating estimates of $2.31 EPS and $1.76 billion in revenue. Revenue increased 6.3% year over year, although EPS declined from $3.63 a year earlier.
• Management raised its fiscal 2027 outlook, boosting investor confidence in demand for the company’s government technology, defense and mission-support services.
• SAIC declared a quarterly dividend of $0.37 per share, equivalent to a $1.48 annualized payout and a 1.1% yield. Despite positive analyst sentiment from some firms, the overall consensus rating remains Hold, with a $116.89 price target.

Science Applications International Corporation (NASDAQ:SAIC - Get Free Report) gapped up prior to trading on Monday after the company announced better than expected quarterly earnings. The stock had previously closed at $125.96, but opened at $140.39. Science Applications International shares last traded at $134.1710, with a volume of 392,775 shares.

The company reported $3.01 EPS for the quarter, topping the consensus estimate of $2.31 by $0.70. The firm had revenue of $1.88 billion for the quarter, compared to the consensus estimate of $1.76 billion. Science Applications International had a return on equity of 36.96% and a net margin of 5.55%.The business's revenue for the quarter was up 6.3% compared to the same quarter last year. During the same quarter last year, the company earned $3.63 earnings per share.

Science Applications International Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, October 23rd. Stockholders of record on Friday, October 9th will be issued a $0.37 dividend. This represents a $1.48 annualized dividend and a dividend yield of 1.1%. The ex-dividend date of this dividend is Friday, October 9th. Science Applications International's payout ratio is 16.67%.

Science Applications International News Summary

Here are the key news stories impacting Science Applications International this week:

• Positive Sentiment: Quarterly results exceeded expectations. SAIC reported earnings of $3.01 per share, ahead of analysts’ estimates of approximately $2.25–$2.31, while revenue rose 6.3% year over year to $1.88 billion, surpassing the $1.76 billion consensus estimate. SAIC Announces Second Quarter of Fiscal Year 2027 Results
• Positive Sentiment: Management raised its fiscal 2027 outlook. The improved guidance signals confidence in demand for SAIC’s government technology, defense and mission-support services and was a major catalyst for the stock’s advance. SAIC Q2 Profit Falls Despite Higher Revenue; Raises FY27 Outlook, Shares Jump
• Positive Sentiment: Analyst sentiment also improved. Wall Street Zen upgraded SAIC to “Strong-Buy,” adding another favorable signal following the earnings release. Wall Street Zen Upgrades Science Applications International
• Neutral Sentiment: The earnings beat was partly offset by a year-over-year decline in earnings from $3.63 per share to $3.01, indicating that higher revenue has not yet translated into comparable profit growth.
• Negative Sentiment: The lower year-over-year profit highlights margin and cost pressures that investors will continue to monitor despite the raised outlook. SAIC Tops Q2 Earnings and Revenue Estimates

Analysts Set New Price Targets

A number of analysts recently issued reports on the company. BNP Paribas Exane assumed coverage on Science Applications International in a research report on Wednesday, May 27th. They issued a "neutral" rating and a $95.00 price target for the company. Weiss Ratings upgraded Science Applications International from a "hold (c)" rating to a "hold (c+)" rating in a report on Monday, August 24th. Wall Street Zen upgraded shares of Science Applications International from a "buy" rating to a "strong-buy" rating in a report on Sunday. TD Cowen reaffirmed a "hold" rating on shares of Science Applications International in a research report on Monday. Finally, Jefferies Financial Group lifted their target price on Science Applications International from $115.00 to $130.00 and gave the company a "hold" rating in a research note on Wednesday, August 19th. Two research analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus price target of $116.89.

Institutional Investors Weigh In On Science Applications International

A number of institutional investors and hedge funds have recently modified their holdings of SAIC. Corient Private Wealth LP boosted its position in Science Applications International by 107.7% in the 2nd quarter. Corient Private Wealth LP now owns 8,558 shares of the company's stock worth $945,000 after purchasing an additional 4,437 shares in the last quarter. VIRGINIA RETIREMENT SYSTEMS ET Al purchased a new stake in shares of Science Applications International during the second quarter worth approximately $2,951,000. California State Teachers Retirement System raised its position in shares of Science Applications International by 10,238.4% in the second quarter. California State Teachers Retirement System now owns 5,520,610 shares of the company's stock valued at $609,531,000 after buying an additional 5,467,211 shares during the last quarter. HB Wealth Management LLC raised its holdings in Science Applications International by 1.2% in the 2nd quarter. HB Wealth Management LLC now owns 18,974 shares of the company's stock valued at $2,095,000 after acquiring an additional 219 shares during the last quarter. Finally, Syon Capital LLC acquired a new stake in shares of Science Applications International in the second quarter valued at approximately $250,000. Institutional investors and hedge funds own 76.00% of the company's stock.

Science Applications International Stock Up 5.0%

The company has a debt-to-equity ratio of 1.73, a quick ratio of 1.16 and a current ratio of 1.16. The business has a 50 day simple moving average of $118.02 and a 200-day simple moving average of $104.55. The firm has a market capitalization of $5.59 billion, a price-to-earnings ratio of 14.88 and a beta of 0.28.

Science Applications International Company Profile

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

Founded in 1969 by J.

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