Science Applications International (NASDAQ:SAIC) Shares Gap Up Following Strong Earnings

Science Applications International Corporation (NASDAQ:SAIC) shares gapped up before the market opened on Monday following a stronger than expected earnings report. 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 trading hands.

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

Science Applications International Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, October 23rd. Investors of record on Friday, October 9th will be paid a dividend of $0.37 per share. This represents a $1.48 annualized dividend and a yield of 1.1%. The ex-dividend date is Friday, October 9th. Science Applications International’s dividend payout ratio (DPR) is currently 16.67%.

Key Science Applications International News

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

Analyst Upgrades and Downgrades

Several research firms recently commented on SAIC. Wall Street Zen upgraded shares of Science Applications International from a “buy” rating to a “strong-buy” rating in a research report on Sunday. UBS Group lifted their price target on Science Applications International from $113.00 to $119.00 and gave the company a “neutral” rating in a research note on Wednesday, June 3rd. Weiss Ratings upgraded shares of Science Applications International from a “hold (c)” rating to a “hold (c+)” rating in a research report on Monday, August 24th. BNP Paribas Exane initiated coverage on shares of Science Applications International in a research note on Wednesday, May 27th. They set a “neutral” rating and a $95.00 price target on the stock. Finally, TD Cowen reaffirmed a “hold” rating on shares of Science Applications International in a research note on Monday. Two research analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, Science Applications International currently has an average rating of “Hold” and a consensus target price of $116.89.

Hedge Funds Weigh In On Science Applications International

Several large investors have recently added to or reduced their stakes in SAIC. California State Teachers Retirement System lifted its holdings in shares of Science Applications International by 10,238.4% during the 2nd quarter. California State Teachers Retirement System now owns 5,520,610 shares of the company’s stock worth $609,531,000 after acquiring an additional 5,467,211 shares during the period. Vanguard Group Inc. lifted its stake in shares of Science Applications International by 0.3% during the fourth quarter. Vanguard Group Inc. now owns 4,554,957 shares of the company’s stock worth $458,502,000 after purchasing an additional 15,272 shares in the last quarter. Fuller & Thaler Asset Management Inc. boosted its holdings in Science Applications International by 20.2% in the 4th quarter. Fuller & Thaler Asset Management Inc. now owns 2,626,951 shares of the company’s stock worth $264,429,000 after acquiring an additional 441,296 shares during the period. First Trust Advisors LP boosted its stake in shares of Science Applications International by 25.9% in the fourth quarter. First Trust Advisors LP now owns 1,912,390 shares of the company’s stock valued at $192,501,000 after purchasing an additional 393,344 shares during the period. Finally, Dimensional Fund Advisors LP boosted its position in Science Applications International by 13.7% in the 1st quarter. Dimensional Fund Advisors LP now owns 1,535,288 shares of the company’s stock valued at $145,730,000 after buying an additional 185,066 shares during the last quarter. 76.00% of the stock is currently owned by hedge funds and other institutional investors.

Science Applications International Price Performance

The company has a debt-to-equity ratio of 1.73, a current ratio of 1.16 and a quick ratio of 1.16. The stock has a market cap of $5.59 billion, a PE ratio of 14.88 and a beta of 0.28. The business has a fifty day moving average of $118.02 and a 200 day moving average of $104.55.

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.