Science Applications International Corporation
- Open
- 111.00
- Day high
- 112.65
- Day low
- 111.00
- Prev close
- 112.66
- Volume
- 35K
- Mkt cap
- $4.8B
- P/E (TTM)
- 12.4
- EPS (TTM)
- $8.94
- P/B
- 3.4
- P/S
- 0.7
- Yield
- 1.33%
- Per share
- $1.48
Science Applications International Corporation (SAIC) is a Technology company listed on NASDAQ. The stock is up 2% over the past year.
Science Applications International Corporation (SAIC) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 5 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
SAIC earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Jun 1, 2026 | $2.26 | $3.23 | +42.9% | $1.9B | +4.6% |
| Mar 16, 2026 | $2.17 | $2.62 | +20.7% | $1.8B | -5.5% |
| Dec 4, 2025 | $2.07 | $2.58 | +24.6% | $1.9B | -0.1% |
| Sep 4, 2025 | — | $2.71 | — | $1.8B | — |
| Jun 2, 2025 | $2.14 | $1.92 | -10.3% | $1.9B | +0.5% |
| Mar 17, 2025 | $2.00 | $2.57 | +28.5% | $1.8B | -2.3% |
| Dec 5, 2024 | $2.17 | $2.61 | +20.3% | $2.0B | +9.3% |
| Sep 5, 2024 | $1.86 | $2.05 | +10.2% | $1.8B | +1.7% |
| Jun 3, 2024 | $1.92 | $1.92 | +0.0% | $1.8B | +2.2% |
| Mar 18, 2024 | $1.44 | $1.43 | -0.7% | $1.7B | +6.0% |
| Dec 4, 2023 | $1.69 | $2.27 | +34.3% | $1.9B | +15.8% |
| Sep 7, 2023 | $1.60 | $2.05 | +28.1% | $1.8B | +5.4% |
SAIC insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jun 9, 2026 | McCarthy Kathleen T.officer: EVP, CHRO | Tax | 1,233 | $114.35 |
| Jun 4, 2026 | Rogers Michael Scottdirector | Grant | 2,174 | — |
| Jun 4, 2026 | MOREA DONNA Sdirector | Grant | 1,886 | — |
| Jun 4, 2026 | Urban Daviddirector | Grant | 1,886 | — |
| Jun 4, 2026 | Eremenko Pauldirector | Grant | 2,174 | — |
| Jun 4, 2026 | Tien John K Jrdirector | Grant | 1,886 | — |
| Jun 4, 2026 | SHANE STEVEN Rdirector | Grant | 1,886 | — |
| Jun 4, 2026 | MCFARLAND KATHARINA G.director | Grant | 1,886 | — |
| Jun 4, 2026 | REAGAN JAMESdirector, officer: CEO | Tax | 742 | $113.36 |
| Jun 4, 2026 | Handlon Carolyn Bdirector | Grant | 1,886 | — |
| Jun 4, 2026 | McGuirt Milford Wdirector | Grant | 1,886 | — |
| Apr 13, 2026 | Attili Srinivasofficer: EVP, Civilian | Buy | 100 | $94.96 |
| Apr 8, 2026 | Supplee Barbaraofficer: EVP, Navy, Army | Tax | 245 | $99.57 |
| Apr 8, 2026 | Natarajan Prabuofficer: EVP, Chief Financial Officer | Tax | 837 | $99.57 |
| Apr 8, 2026 | DiFronzo Vincent P.officer: EVP,-Air Force & Space, Intel | Tax | 234 | $99.57 |
Source: SAIC SEC Form 4 filings, latest Jun 9, 2026. For informational purposes only — not investment advice.
See the full SAIC insider & 13F page →Science Applications International Corporation company profile
Overview
Science Applications International Corporation (NYSE:SAIC) is a leading government technology services contractor founded in 1969 and headquartered in Reston, Virginia. The company went public in September 2013 following a spin-off from the original SAIC entity. SAIC provides mission-critical technical, engineering, and information technology services primarily to the U.S. federal government, including the Department of Defense, intelligence agencies, and civilian departments. With annual revenues of approximately $7.5 billion, the company has evolved from a traditional defense contractor into a technology-focused solutions provider emphasizing digital transformation, artificial intelligence, and enterprise IT modernization for national security missions.
Business
SAIC operates in the government technology services industry, providing specialized technical and IT solutions exclusively to U.S. federal agencies. The company's core business revolves around helping government organizations modernize their technology infrastructure, integrate complex systems, and maintain mission-critical operations. The company's offerings span several key areas. Enterprise and Mission IT services include cloud migration, cybersecurity, data analytics, and IT infrastructure management - essentially helping government agencies transition from legacy systems to modern, secure digital platforms. Engineering and Integration Services involve designing, building, and maintaining complex technical systems for defense and space applications, including satellite systems, command and control networks, and weapons platforms. Digital Engineering uses advanced modeling and simulation to accelerate product development and reduce costs. Operational AI focuses on embedding artificial intelligence capabilities into government operations to improve decision-making and efficiency. SAIC organizes its business into two primary segments: 1. Defense & Intelligence segment serves the Department of Defense, military branches, and intelligence community agencies, representing approximately 70-75% of total revenue. This segment focuses on warfighting capabilities, space systems, and intelligence operations. 2. Civilian segment serves federal civilian agencies like NASA, Department of Homeland Security, and Department of Justice, accounting for roughly 25-30% of revenue. This segment emphasizes citizen services, border security, and scientific research support. The company has also developed a small but growing Commercial Operating Sector that applies government-developed capabilities to private sector clients, though this represents less than 1% of current revenue.
Revenue model
SAIC operates on a professional services business model, generating revenue primarily through long-term government contracts paid for by taxpayer funds. The company earns money through several contract structures: cost-plus contracts where the government reimburses all allowable costs plus a fee, fixed-price contracts where SAIC delivers specified services for a predetermined price, and time-and-materials contracts where payment is based on hours worked and materials used. The company's customers are exclusively U.S. government agencies that pay for services using congressionally appropriated funds. Revenue timing depends on government budget cycles, contract awards, and program funding levels. SAIC typically works on multi-year contracts ranging from $10 million to over $1 billion, providing predictable revenue streams once contracts are secured. Several factors significantly impact SAIC's profitability margins. Contract mix is crucial - fixed-price contracts generally offer higher margins than cost-plus arrangements, but carry more execution risk. The company has been strategically shifting toward more fixed-price work to improve profitability. Recompete cycles create margin pressure as existing contracts come up for renewal, often at lower prices due to competitive bidding. Government budget constraints can reduce contract values and delay new awards, while continuing resolutions (temporary funding measures) can slow government spending and contract modifications. Program performance and efficiency gains directly affect margins, as the company can retain savings on cost-plus contracts through award fees and improved fixed-price contract execution. Technology differentiation allows SAIC to command premium pricing for specialized capabilities like AI, digital engineering, and cybersecurity. Scale and overhead absorption becomes more favorable as the company grows, spreading fixed costs across a larger revenue base. Finally, talent costs and availability in the competitive government contracting market can significantly impact margins, as skilled technical professionals command high salaries and benefits.
Competitive moat
SAIC possesses a moderate but meaningful competitive moat built primarily on regulatory barriers, specialized expertise, and customer relationships, though this moat faces ongoing challenges from industry dynamics. The company's strongest moat element is security clearance requirements. Many of SAIC's contracts require employees to hold government security clearances, which take months or years to obtain and create significant barriers for new entrants. This cleared workforce represents a valuable, hard-to-replicate asset that competitors cannot quickly duplicate. Additionally, domain expertise in specialized government missions - such as intelligence operations, space systems, and defense technologies - requires deep institutional knowledge that takes years to develop. Customer relationships and contract incumbency provide another layer of protection. Government agencies often prefer working with known, trusted contractors who understand their specific requirements and have proven track records. Long-term contracts and the high switching costs associated with mission-critical systems create some customer stickiness. However, SAIC's moat faces significant limitations. The government contracting industry is highly competitive with numerous capable competitors including Booz Allen Hamilton, General Dynamics IT, Raytheon Technologies, and Lockheed Martin, all vying for the same contracts. Mandatory recompete cycles regularly expose SAIC's business to competitive pressure, as government regulations require most contracts to be rebid every 5-10 years. This creates ongoing vulnerability to price competition and market share loss. The company's services-based model offers limited proprietary technology or intellectual property protection compared to product-based businesses. While SAIC is investing in differentiating capabilities like AI and digital engineering, these technologies can potentially be replicated by well-funded competitors. The government's push for increased competition and small business participation also works against incumbent advantages. Overall, SAIC's moat is sufficient to maintain market position and generate reasonable returns, but it requires constant investment in capabilities, relationships, and competitive positioning to remain effective.
Risks & safety
SAIC demonstrates moderate financial safety with manageable debt levels but tight liquidity metrics that warrant attention. **Cash and Liquidity Concerns:** - Cash position of only $56 million is quite low relative to $7.5 billion in annual revenue - Current ratio of 0.83 indicates current liabilities exceed current assets, suggesting potential liquidity pressure - Free cash flow of $458 million annually provides adequate cash generation, but quarterly volatility exists - Operating cash flow of $494 million demonstrates solid underlying cash generation from operations **Debt and Solvency:** - Debt-to-equity ratio of 1.52 is elevated but manageable for a services business - Total liabilities of $3.7 billion against $5.2 billion in assets shows reasonable leverage - Strong free cash flow generation supports debt service capabilities - No immediate solvency concerns given government contract revenue predictability **Valuation Metrics:** - P/E ratio of 14.0 appears reasonable for a government contractor - EV/EBITDA of 11.2 is moderate for the sector - Price-to-book ratio of 3.4 reflects asset-light business model - Return on equity of 22.9% indicates efficient capital utilization **Other Considerations:** - Government contract revenue provides stability during economic downturns - Recompete risk and budget uncertainties create some earnings volatility - Asset-light model reduces capital requirements but limits tangible asset protection
Recent development
Over the past several years, SAIC has undergone significant strategic transformation focused on technology differentiation and growth acceleration. The company implemented four key strategic pivots: portfolio optimization toward higher-margin technology solutions, centralized go-to-market approach, cultural transformation to an enterprise-first mindset, and brand repositioning to emphasize innovation capabilities. A major portfolio shift involved divesting the logistics and supply chain business for $350 million in 2023 to focus resources on higher-growth, technology-centric services. The company established an Innovation Factory led by Chief Innovation Officer Lauren Knausenberger, investing in six key differentiators: secure multi-cloud, digital engineering, operational AI, secure data analytics, system-of-systems integration, and on-demand solution delivery. SAIC dramatically increased its business development efforts, expanding annual bid submissions from $17 billion to $28 billion and building a pipeline of over $30 billion in potential opportunities through 2027. The company centralized business development functions and implemented more rigorous bid qualification processes to improve win rates and margins. The commercial operating sector represents a new growth initiative, expanding from less than $1 million in revenue in 2022 to $45 million in 2025 as SAIC applies government-developed capabilities to private sector markets. Key contract wins include the $1.8 billion System Software Lifecycle Engineering contract and expansion of cloud-based command and control (CBC2) programs. Management has also shifted the contract mix strategy, moving from predominantly cost-plus arrangements toward more fixed-price contracts to improve margins, while leveraging digital engineering and AI capabilities to reduce execution risk. The company targets achieving a 1.2x book-to-bill ratio by the first half of fiscal 2026 to drive sustainable growth above the historical 2-4% range.
SAIC company profile · for informational purposes only — not investment advice.
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