RESTON, Va., Feb. 05, 2026 (GLOBE NEWSWIRE) -- Science Applications International Corp (NASDAQ: SAIC), a premier Fortune 500® company driving our nation's digital transformation across the defense, space, intelligence, and civilian markets, today announced that it will participate in the Cowen and Company 47th Annual Aerospace & Defense Conference. During the conference, SAIC Chief Financial Officer Prabu Natarajan will discuss the company’s strategic and financial outlook during a moderator-led question-an ...

Core Insights - Science Applications International Corporation (SAIC) is identified as one of the most undervalued tech stocks to buy in 2026, with a recent price target increase from Citi from $122 to $133, while UBS maintains a $113 target [1][2]. Financial Performance - In fiscal Q3 2026, SAIC reported an EPS of $2.58, exceeding estimates by $0.43, although revenue decreased by 5.57% year-over-year to $1.87 billion, falling short of expectations by $1.88 million [3]. - The revenue contraction was attributed primarily to the government shutdown, but it was noted that the revenue was slightly above the company's guidance [3]. Backlog and Market Outlook - SAIC's fiscal Q3 2026 backlog showed a 6% growth year-over-year, with a book-to-bill ratio of 1.2X over the last twelve months, indicating positive momentum in the aerospace and defense sector [2]. - Despite the growth in backlog, UBS pointed out that the company's funded backlog has continued to decline year-over-year [2]. Company Overview - SAIC operates as a technology integrator, providing full lifecycle engineering, IT, and professional services primarily to US government clients across defense, intelligence, space, and civilian sectors [4].

Group 1: Macy's - Macy's operates as an omnichannel retail organization with stores, websites, and mobile applications [1] - The company has a Zacks Rank of 1 (Strong Buy) and a 9.6% increase in the Zacks Consensus Estimate for current year earnings over the last 60 days [1] - Macy's has a price-to-earnings ratio (P/E) of 10.39, significantly lower than the industry average of 22.30, and possesses a Value Score of A [2] Group 2: Science Applications International (SAIC) - SAIC is a leading information technology and professional services provider primarily serving the U.S. government [1] - The company also carries a Zacks Rank of 1 and has seen a 2.3% increase in the Zacks Consensus Estimate for current year earnings over the last 60 days [1] - SAIC has a price-to-earnings ratio (P/E) of 10.50, compared to the industry average of 15.30, and holds a Value Score of A [3]

Core Insights - Science Applications International Corporation (SAIC) has appointed Ravi Dankanikote as the Chief Growth Officer, effective immediately, reporting to Interim CEO Jim Reagan [1][2] - Dankanikote has over 30 years of experience in growth leadership within the government contracting space, recognized for his customer-centric business development approach [2][3] - His previous roles include Senior Vice President for Business Development at SAIC and Chief Growth Officer at Peraton, with a long tenure at CACI [3][4] Company Strategy - In his new role, Dankanikote will lead SAIC's enterprise growth strategy and go-to-market approach, focusing on aligning growth investments with long-term enterprise goals [2][4] - The company aims to implement a simplified organizational structure to enhance focus on key opportunities, thereby increasing value for customers and growth for shareholders [4] Market Position - SAIC is positioned as a leader in the defense, space, intelligence, and civilian markets, with a robust portfolio that includes mission IT, enterprise IT, engineering services, and professional services [6][7] - The company has annual revenues of approximately $7.5 billion and employs around 24,000 people [7]

Core Viewpoint - Science Applications International Corporation (SAIC) has demonstrated strong financial performance and strategic management, leading to positive investor sentiment and a robust market position. Financial Performance - SAIC's stock price surged by 16% following its Q3 FY26 earnings release, attributed to impressive margin growth and a return on equity (ROE) of 23.75% [2][6] - The company reported non-GAAP earnings of $2.58 per share, exceeding the Zacks Consensus Estimate of $2.07 by 24.6%, despite a slight decrease from the previous year's earnings of $2.61 per share [3][6] - Revenues for the quarter were $1.87 billion, slightly above the Zacks Consensus Estimate, although this reflects a 5.6% year-over-year decline [3] Strategic Initiatives - SAIC is reallocating $100 million in annual spending towards areas with higher returns on investment, aiming for margins approaching 10% in the near term [4][6] - The management has raised fiscal year 2026 guidance for higher revenue, EBITDA, and EPS expectations, indicating a positive outlook [4][6] Market Position - The company has net bookings of $2.2 billion and a book-to-bill ratio of 1.2, with a backlog of $23.8 billion at the end of the quarter [5] - Despite a recent stock price decrease of 1.16%, SAIC's market capitalization is approximately $4.63 billion, with a trading volume of 1,195,725 shares [5]

Group 1 - Robert F. Abbott has been managing family investments since 1995 and incorporated options trading in 2010, focusing on covered calls and collars with long stocks [1] - Abbott is a freelance writer with a project aimed at providing information for new and intermediate-level mutual fund investors [1] - He holds a Bachelor of Arts and a Master of Business Administration (MBA) degree [1]

Core Insights - Science Applications International (SAIC) reported non-GAAP earnings of $2.58 per share for Q3 fiscal 2026, exceeding the Zacks Consensus Estimate of $2.07 by 24.6%, although this represents a 1.1% decline from $2.61 per share in the same quarter last year [1][10] - The company’s revenues for the third quarter decreased by 5.6% year over year to $1.87 billion, slightly above the Zacks Consensus Estimate of $1.86 billion [2][10] - SAIC's shares rose by 16.3% following the earnings report, despite a year-to-date decline of 8.1%, which is better than the Zacks Computers – IT Services industry's decline of 14.4% [3] Financial Performance - Defence and Intelligence segment revenues, which made up 77.1% of total revenues, were $1.44 billion, down 5% year over year; Civilian revenues, accounting for 22.9%, totaled $427 million, down 7.4% year over year [4] - Net bookings for the quarter were approximately $2.2 billion, resulting in a book-to-bill ratio of 1.2, with an estimated backlog of $23.8 billion, of which $3.8 billion was funded [5][10] - Selling, general and administrative (SG&A) expenses increased by 21.7% to $101 million, with SG&A as a percentage of revenues rising to 5.4% from 4.2% in the previous year [6] - Non-GAAP operating income decreased to $183 million from $195 million year over year, with a non-GAAP operating margin of 9.8%, down 10 basis points [6][7] Cash Flow and Balance Sheet - The company ended the quarter with cash and cash equivalents of $45 million, down from $48 million in the previous quarter; long-term debt increased to $2.48 billion from $1.84 billion [8] - Operating cash flow for the quarter was $129 million, while free cash flow was $135 million; for the first three quarters of fiscal 2026, operating cash flow was $351 million and free cash flow was $241 million [9] Guidance and Future Outlook - SAIC raised its fiscal 2026 revenue guidance to between $7.275 billion and $7.325 billion, up from the previous range of $7.25 billion to $7.325 billion; the Zacks Consensus Estimate for fiscal 2026 revenues is $7.27 billion, indicating a year-over-year decline of 2.7% [11] - Adjusted EBITDA guidance was raised to approximately $695 million, with an expected adjusted EBITDA margin of 9.5%; adjusted EPS guidance was increased to a range of $9.80 to $10.00, up from $9.40 to $9.60 [12] - The company estimates free cash flow for fiscal 2026 to exceed $550 million [13]

Group 1 - The article does not provide any specific content related to a company or industry [1]

Financial Performance - Revenues for the three months ended October 31, 2025, decreased by $110 million (6%) to $1,866 million compared to the same period in the prior year, primarily due to a ramp down in volume on existing contracts and contract completions [139]. - Operating income for the three months ended October 31, 2025, was $128 million, representing a decrease of 20% from the prior year, with operating income as a percentage of revenues falling to 6.9% [139]. - Revenues for the Defense and Intelligence segment decreased by $76 million (5%) to $1,439 million for the three months ended October 31, 2025, compared to $1,515 million in the prior year [147]. - Revenues for the Civilian segment decreased by $34 million (7%) to $427 million for the three months ended October 31, 2025, compared to $461 million in the prior year [149]. - Consolidated adjusted operating income for the three months ended October 31, 2025, was $183 million, a decrease from $195 million in the same period last year [156]. - EBITDA for the three months ended October 31, 2025, was $168 million, down from $197 million in the same period last year, representing 9.0% of revenues [158]. - Adjusted EBITDA for the three months ended October 31, 2025, was $185 million, compared to $197 million in the same period last year, representing 9.9% of revenues [158]. Government Contracts and Revenue Sources - The company generated 98% of its revenues from contracts with the U.S. government during the three and nine months ended October 31, 2025 [125]. - For the three months ended October 31, 2025, 80% of revenues in the Defense and Intelligence segment were derived from cost reimbursement contracts, while 4% came from civilian contracts [167]. - The company is positioned to benefit from increased government spending and has a strong history of serving the U.S. government, which provides a competitive advantage [134]. Acquisitions and Investments - The acquisition of SilverEdge Government Solutions was completed on October 15, 2025, for a preliminary purchase price of $203 million, aimed at enhancing mission-focused, IP-based solutions [124]. - Cash used in investing activities increased by $222 million to $237 million for the nine months ended October 31, 2025, primarily due to the acquisition of SilverEdge [173]. Tax and Regulatory Impact - The effective income tax rate for the three months ended October 31, 2025, was 16.7%, an increase from 15.6% in the same period last year, primarily due to the One Big Beautiful Bill Act [143]. - The company anticipates that the OECD's 15% global minimum tax framework will not have a significant impact on its effective tax rate or financial results [146]. Backlog and Future Revenue Potential - As of October 31, 2025, the total backlog is estimated at $23.788 billion, with a funded backlog of $3.823 billion and a negotiated unfunded backlog of $19.965 billion [165]. - Net bookings for the three months ended October 31, 2025, were approximately $2.2 billion, and for the nine months, they totaled $7.2 billion [165]. Operating Cash Flow and Liquidity - Cash provided by operating activities for the nine months ended October 31, 2025, was $351 million, a decrease of $28 million compared to the prior year [172]. - The company expects to fund ongoing working capital and commitments with cash on hand, future operating cash flows, and borrowings under its $1.0 billion Revolving Credit Facility [168]. - The company believes existing cash, future operating cash flows, and access to financing will meet short-term liquidity and long-term capital needs [170]. Cost Structure and Expenses - Selling, general and administrative expenses increased by 22% to $101 million for the three months ended October 31, 2025, compared to $83 million in the prior year [139]. - The company’s cost of revenues as a percentage of revenues was 87.8% for the three months ended October 31, 2025, compared to 88.0% in the prior year [139]. - The labor-related cost of revenues for the three months ended October 31, 2025, was 57% in the Defense and Intelligence segment, while subcontractor-related costs accounted for 28% [167]. Strategic Focus and Market Position - The company is focused on enhancing its competitive position through strategic sourcing and developing repeatable offerings sold "as a service" to improve pricing competitiveness [135]. - The company operates with approximately 1,700 active contracts and employs around 24,000 individuals [117].

Core Viewpoint - SAIC's stock appears undervalued despite recent challenges, with a significant increase in share price following a strong earnings report, indicating potential for future growth if the company can resume its growth trajectory [1][2]. Financial Performance - SAIC reported fiscal Q3 2026 earnings that exceeded analyst expectations, achieving $2.58 per share in profit against a forecast of $2.15, with sales matching the expected $1.87 billion [1]. - However, sales declined by 6% and operating profit fell by 20%, leading to a 120-basis-point decrease in operating margin [2]. - Net profit, calculated under GAAP, decreased by 21% to $1.69 per diluted share, despite adjusted bottom-line profits only falling by 1% [2]. Cash Flow and Guidance - The company significantly increased its free cash flow, generating $135 million in the quarter, surpassing both reported operating income and net income [3]. - SAIC's book-to-bill ratio stands at 1.2x, indicating potential for sales growth, with management slightly raising sales guidance to approximately $7.3 billion for the year [5]. - Adjusted profit is projected to be between $9.80 and $10 per share, with free cash flow expected to exceed $550 million [5]. Valuation Metrics - SAIC's market capitalization is around $4 billion, with a price-to-free cash flow ratio of 8.9 based on the expected $550 million in free cash flow [6]. - Even when considering debt, the enterprise value to free cash flow ratio is 13.3x, suggesting that the stock is reasonably priced and does not require rapid growth to justify its valuation [6].