Science Applications International Corporation (NASDAQ:SAIC) Stock Update and Financial Performance Review
SAICSAIC(US:SAIC) Financial Modeling Prep·2025-12-08 18:00

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]