Core Insights - Science Applications International Corporation (SAIC) reported a revenue increase of 2% in the first quarter of fiscal year 2026, totaling $1.877 billion compared to $1.847 billion in the same period last year [3][4][7] - The company experienced a decline in operating income, net income, and EBITDA, attributed to contract completions and timing and volume mix in its contract portfolio [4][5][34] - SAIC's backlog at the end of the quarter was approximately $22.3 billion, with net bookings of $2.4 billion, reflecting a book-to-bill ratio of 1.3 [10][11] Financial Performance - Revenues for the quarter increased by $30 million or 2% year-over-year, primarily due to ramp-up in volume in existing and new contracts [4] - Operating income decreased by 8% to $121 million, with an operating margin of 6.4%, down from 7.1% in the prior year [3][4][33] - Net income was $68 million, a decrease of 12% from $77 million in the previous year [3][6] - Adjusted EBITDA was $157 million, representing 8.4% of revenues, down from 9.0% in the prior year [3][5] Cash Flow and Capital Deployment - Cash flows from operating activities increased to $100 million, up from $98 million in the prior year [7][52] - Free cash flow was negative at $(44) million, a significant decline from $13 million in the same quarter last year [3][52] - The company deployed $152 million in capital, including $125 million for share repurchases and $19 million in cash dividends [8] Contract Awards and Backlog - SAIC secured notable contracts, including a $1.8 billion contract with the U.S. Army and a $327 million contract with the Pension Benefit Guaranty Corporation [11][12] - The estimated backlog included approximately $3.3 billion in funded contracts, with a total backlog of $22.3 billion [10][38] Fiscal Year 2026 Guidance - Management reaffirmed fiscal year 2026 guidance, projecting revenues between $7.60 billion and $7.75 billion, with adjusted EBITDA between $715 million and $735 million [14][15]

Financial Performance - Revenues for the first quarter of fiscal year 2026 were $1.88 billion, representing a 2% increase compared to $1.85 billion in the same period last year[5]. - Net income decreased to $68 million, down 12% from $77 million in the prior year quarter[6]. - Adjusted EBITDA was $157 million, accounting for 8.4% of revenues, a decrease from 9.0% in the prior year[8]. - Adjusted diluted earnings per share for the quarter was $1.92, unchanged from the prior year[8]. - Net income for the three months ended May 2, 2025, was $68 million, a decrease of 11.7% from $77 million in the same period of 2024[28]. - Operating income decreased to $121 million, down 7.6% from $131 million in the prior year, with an overall operating margin of 6.4% compared to 7.1%[30]. - Income before income taxes for the three months ended May 2, 2025, was $86 million, down from $95 million in the same period in 2024, a decrease of 9.5%[43]. - The company incurred restructuring and impairment costs of $3 million for the three months ended May 2, 2025, compared to $2 million in the same period in 2024[43]. Cash Flow and Dividends - Free cash flow for the quarter was $(44) million, a significant decrease from $13 million in the prior year[6]. - The company expects net cash provided by operating activities for FY26 to be between $545 million and $565 million, with free cash flow projected to be between $510 million and $530 million[46]. - The company declared a cash dividend of $0.37 per share, payable on July 25, 2025[11]. Bookings and Backlog - Net bookings for the quarter were approximately $2.4 billion, resulting in a book-to-bill ratio of 1.3[12]. - The estimated backlog at the end of the quarter was approximately $22.3 billion, with $3.3 billion funded[12]. - Funded backlog as of May 2, 2025, was $3,265 million, a decrease from $3,444 million as of January 31, 2025[34]. - Total backlog increased to $22,343 million, up from $21,857 million in the previous quarter, indicating growth in future revenue potential[34]. Segment Performance - The Defense and Intelligence segment reported revenues of $1,433 million, a slight decrease of 0.2% from $1,436 million year-over-year[30]. - Civilian segment revenues increased by $33 million, or 8%, primarily due to ramp-up in volume on existing and new contracts[31]. Corporate Activities - SAIC was awarded a $1.8 billion contract for the U.S. Army Combat Capabilities Development Command during the quarter[13]. - Principal payments on borrowings increased significantly to $689 million from $310 million, reflecting a strategic shift in financing activities[28]. - Corporate operating loss increased to $17 million, up from $10 million in the prior year, attributed to higher selling, general, and administrative expenses[32]. Expenditures and Provisions - Expenditures for property, plant, and equipment for the three months ended May 2, 2025, were $8 million, up from $6 million in the same period in 2024[46]. - The company reported a provision for income taxes of $18 million for both the three months ended May 2, 2025, and May 3, 2024[43]. - The recovery of acquisition and integration costs and restructuring and impairment costs contributed to the adjusted diluted earnings per share calculation[43]. Guidance - Management reaffirmed fiscal year 2026 guidance, projecting revenues between $7.60 billion and $7.75 billion[18].

Core Insights - Science Applications International Corporation (SAIC) is expected to announce earnings on June 2, 2025, with historical data indicating a favorable one-day return trend post-earnings release [1][2] - Analysts project SAIC will report earnings of $2.12 per share on revenue of $1.87 billion, compared to $1.92 per share and $1.85 billion in the same quarter last year [2] - SAIC has a market capitalization of $5.6 billion and generated $7.5 billion in revenue over the past twelve months, with operating profits of $561 million and net income of $362 million [2] Historical Performance - Over the last five years, SAIC's stock has experienced a positive one-day return 63% of the time following earnings announcements, with a median positive return of 3.7% and a maximum return of 13.4% [1][5] - The percentage of positive one-day returns increases to 64% when considering the last three years [5] - The median of the 12 positive returns is 3.7%, while the median of the 7 negative returns is -4.9% [5] Trading Strategies - Traders can utilize historical trends to inform pre-earnings positioning and post-earnings adjustments based on immediate and medium-term return correlations [4] - A strategy involves analyzing the correlation between one-day and five-day returns to determine trading positions [3][4]

Company Overview - SAIC is expected to report quarterly earnings of $2.14 per share, reflecting a year-over-year increase of +11.5% [3] - Revenues are anticipated to reach $1.86 billion, which is a 0.9% increase from the previous year [3] - The earnings report is scheduled for June 2, 2025, and the stock may react positively if results exceed expectations [2] Earnings Estimates and Trends - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analyst expectations [4] - The Most Accurate Estimate for SAIC is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -5.46%, suggesting a bearish outlook from analysts [10] - SAIC currently holds a Zacks Rank of 3, making it challenging to predict an earnings beat [11] Historical Performance - In the last reported quarter, SAIC had an earnings surprise of +28.50%, posting earnings of $2.57 per share against an expectation of $2.00 [12] - Over the past four quarters, SAIC has beaten consensus EPS estimates three times [13] Comparative Industry Analysis - Nutanix, another player in the IT Services industry, is expected to report earnings of $0.38 per share, indicating a year-over-year change of +35.7% [17] - Nutanix's revenues are projected to be $626.12 million, up 19.4% from the previous year [17] - Nutanix has a positive Earnings ESP of 5.26% and has consistently beaten consensus EPS estimates in the last four quarters [18]

Core Points - Science Applications International Corp. (SAIC) is set to release its first quarter fiscal year 2026 results on June 2, 2025, before market opening [1] - A conference call to discuss the operational and financial results will take place at 10:00 a.m. Eastern time on the same day [1] - The conference call will be available via webcast only, with no dial-in access provided [2] Company Overview - SAIC is a Fortune 500 mission integrator focused on technology and innovation across defense, space, civilian, and intelligence markets [3] - The company offers a robust portfolio including mission IT, enterprise IT, engineering services, and professional services [3] - SAIC employs approximately 24,000 people and has annual revenues of around $7.5 billion [4]

Core Insights - SAIC is positioned to potentially continue its earnings-beat streak in upcoming reports, having a history of surpassing earnings estimates, particularly in the last two quarters with an average surprise of 24.39% [1][4] Earnings Performance - In the last reported quarter, SAIC achieved earnings of $2.57 per share, exceeding the Zacks Consensus Estimate of $2 per share, resulting in a surprise of 28.50% [2] - For the previous quarter, SAIC's earnings were $2.61 per share against an expected $2.17 per share, delivering a surprise of 20.28% [2] Earnings Estimates and Predictions - Estimates for SAIC have been trending higher, influenced by its history of earnings surprises, and the stock currently has a positive Zacks Earnings ESP of +0.23%, indicating bullish sentiment among analysts [4][7] - The combination of a positive Earnings ESP and a Zacks Rank of 2 (Buy) suggests a strong possibility of another earnings beat [7] Statistical Insights - Research indicates that stocks with a positive Earnings ESP and a Zacks Rank of 3 (Hold) or better have a nearly 70% chance of producing a positive surprise [5] - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate reflecting the latest analyst revisions [6]

Core Insights - Science Applications International Corp. (SAIC) has been awarded a $55 million contract for the Proliferated Warfighter Space Architecture (PWSA) Tranche 3 Program Integration (T3PI) from the Space Development Agency (SDA), starting on May 1, 2025 [1][2] - The PWSA aims to enhance Department of Defense capabilities by providing multi-band global communications, persistent encrypted connectivity, and improved missile defense systems [2][3] - SAIC's role includes managing enterprise requirements, schedules, and technical reviews to ensure the integration of various space layers and ground segments [2][3] Company Overview - SAIC is recognized as a leading Mission Integrator, focusing on advanced technology solutions for national defense and space capabilities [3][4] - The company has a robust portfolio that includes secure solutions across defense, space, civilian, and intelligence markets, with annual revenues of approximately $7.5 billion [5][6] - SAIC employs around 24,000 individuals and is headquartered in Reston, Virginia [6]

Core Insights - Science Applications International Corp. (SAIC) has formed a strategic partnership with Bluescape to provide an unlimited virtual workspace for the Department of Defense and other government agencies [1][2] - The collaboration aims to enhance mission coordination, knowledge sharing, and data analysis through a secure platform that complies with government standards [2][3] - Bluescape's platform is designed to support large-scale government organizations and facilitate real-time collaboration among dispersed teams [4] Company Overview - SAIC is a Fortune 500 company focused on delivering advanced technology solutions across defense, space, civilian, and intelligence markets, with annual revenues of approximately $7.5 billion [5][6] - The company employs around 24,000 individuals and is headquartered in Reston, Virginia [6] Technology and Features - Bluescape offers a secure, scalable collaborative operations platform that integrates mission applications and provides a centralized workspace for decision-making [3][4] - The platform is authorized to operate at FedRAMP Moderate+ and by the DoD at IL4/IL5 for Controlled Unclassified Information (CUI) data [2] - Bluescape's workspaces are persistent, allowing for the retention of information and actions taken during meetings, which aids in future project work [4]

Core Viewpoint - SAIC shares have increased by approximately 3.3% since the last earnings report, outperforming the S&P 500, raising questions about the sustainability of this positive trend leading up to the next earnings release [1] Group 1: Earnings and Estimates - Estimates for SAIC have trended upward over the past month, indicating positive sentiment among analysts [2] - The recent earnings report highlighted important catalysts that may influence future performance [1] Group 2: VGM Scores - SAIC has an average Growth Score of C, a Momentum Score of B, and a Value Score of A, placing it in the top quintile for the value investment strategy [3] - The aggregate VGM Score for SAIC is A, suggesting strong overall performance across multiple investment strategies [3] Group 3: Outlook - The upward trend in estimates and the magnitude of revisions are promising, contributing to SAIC's Zacks Rank of 2 (Buy) [4] - An above-average return is expected from SAIC in the upcoming months based on current trends [4]

RESTON, Va., April 09, 2025 (GLOBE NEWSWIRE) -- Science Applications International Corp. (NASDAQ: SAIC), a premier mission integrator driving our nation's digital transformation across the defense, space, civilian and intelligence markets, is pleased to announce the appointment of Kathleen McCarthy as the company’s new Executive Vice President and Chief Human Resources Officer, effective May 12, 2025. In this role, McCarthy will report directly to Chief Executive Officer Toni Townes-Whitley and will spearhe ...