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Science Applications Lifts Full-Year Earnings Outlook as Fiscal First-Quarter Revenue Unexpectedly Rises

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Science Applications Lifts Full-Year Earnings Outlook as Fiscal First-Quarter Revenue Unexpectedly Rises

Science Applications International (SAIC) raised its full-year earnings outlook on Monday as the US government services contractor's revenue unexpectedly increased year over year in the fiscal first quarter.

The company now anticipates adjusted earnings to come in between $9.90 and $10.10 per share for fiscal 2027, up from its previous guidance of $9.50 to $9.70. The current consensus on FactSet is for non-GAAP EPS of $9.63. The stock rose 12% in the most recent premarket activity.

Science Applications continues to project revenue to be in a range of $7 billion to $7.2 billion for the ongoing fiscal year, while the Street is looking for $7.11 billion.

For the three months through May 1, the firm's revenue improved to $1.91 billion from $1.88 billion the year before, defying the average analyst estimate for a decline to $1.82 billion. The topline was boosted by $19 million in revenue from the acquisition of software firm SilverEdge Government Solutions and volume ramp-up on existing and new contracts, according to the company.

In October, Science Applications agreed to purchase SilverEdge from private equity firm Godspeed Capital for $205 million. Adjusted for the acquisition, Science Applications' revenue nudged up 0.5% in the first quarter.

The company's adjusted EPS jumped 68% to $3.23, well ahead of the Street's view for $2.28.

"These results reflect our focus on execution and our commitment to our financial targets," Chief Executive Jim Reagan said in a statement. "We are also advancing our enterprise transformation and strategy efforts to drive long-term growth and margin expansion, and to support our customers' most critical missions."

The firm's backlog at the end of the quarter was about $22.9 billion, of which around $3.7 billion was funded, it said.

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