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Science Applications International Boosts Outlook as Second-Quarter Results Beat Estimates

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Science Applications International Boosts Outlook as Second-Quarter Results Beat Estimates

Science Applications International (SAIC) raised its fiscal 2027 outlook on Monday as its second-quarter results topped Wall Street's expectations amid organic growth.

The US government services contractor now anticipates adjusted earnings between $10.65 and $10.75 per share for fiscal 2027, up from its previous guidance of $9.90 and $10.10. Analysts in a FactSet-polled survey expect non-GAAP EPS of $10.18.

Science Applications expects revenue in a range of $7.2 billion to $7.3 billion for the ongoing fiscal year, compared with $7 billion to $7.2 billion previously projected. The Street is looking for $7.19 billion.

"We continue to see healthy customer engagement and we believe that we're well-positioned to convert those opportunities into growth as we align with our customers clear demand signals for more capability and capacity," Chief Executive Jim Reagan said during an earnings call, according to a FactSet transcript.

For the three months through July 31, the firm's revenue increased 6% annually to $1.88 billion, exceeding the average analyst estimate of $1.76 billion. The company's adjusted EPS plunged 17% to $3.01, well ahead of the Street's view for $2.31.

"We also believe our base is more secure with a recompete win rate of over 90% this quarter, creating an easier path to on contract growth and building momentum to capture the benefits of new business where our win rates are well within our target range," Reagan told analysts.

Revenue in the defense and intellgence segment rose to $1.45 billion from $1.37 billion in the prior-year period. The civilian business grew to $431 million from $395 million.

Science Applications reported 5.3% organic growth, with an estimated backlog at the end of the second quarter at about $22.1 billion.

Science Applications' shares were up 5.4% in Monday trade. The stock has gained 32% so far this year.

Earlier in August, defense contractor Leidos (LDOS) raised the lower end of its fiscal 2026 revenue and non-GAAP EPS guidance after its second-quarter results topped the Street's views. Professional services company Jacobs Solutions (J) narrowed its full-year outlook.

Price: $130.26, Change: $+4.30, Percent Change: +3.41%

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