Science Applications International Shares Gain After Strong Earnings Beat

Group 1 - The company reported fourth-quarter adjusted earnings per share of $2.62, exceeding analyst expectations of $1.98 by $0.64, while revenue was $1.75 billion, slightly below the estimate of $1.77 billion and down 5% from $1.84 billion in the same quarter last year [1][2] - The revenue decline was attributed to reduced volume on existing contracts, impacts from a government shutdown, and the completion of certain contracts [2] - The adjusted EBITDA margin improved to 10.3% from 9.6% year-over-year, driven by lower selling, general, and administrative expenses [2] Group 2 - For the full fiscal year 2026, the company generated revenue of $7.26 billion, a 3% decrease year-over-year, while adjusted earnings per share increased by 18% to $10.75 from $9.13 in fiscal 2025 [2] - The company provided fiscal 2027 guidance, projecting revenue between $7.0 billion and $7.2 billion and adjusted EPS of $9.50 to $9.70, with the midpoint of $9.60 being lower than the fiscal 2026 result of $10.75 [3] - The company expects an adjusted EBITDA margin between 9.9% and 10.1% and free cash flow exceeding $600 million, with net bookings during the quarter totaling $0.6 billion, resulting in a book-to-bill ratio of 0.3 [3]