SAIC Q2 revenue beats on contract growth, SilverEdge deal; lifts FY outlook

Science Applications International

31/08/2026 12:23

Overview
US defense IT integrator's fiscal Q2 revenue rose 6%, beating analyst expectations
Adjusted EPS and adjusted EBITDA for fiscal Q2 beat analyst expectations
Company raised fiscal 2027 guidance for revenue, adjusted EBITDA, margin, and adjusted EPS

Outlook
SAIC raises FY27 revenue guidance to $7.2 bln-$7.3 bln from $7.0 bln-$7.2 bln
Company now sees FY27 adjusted diluted EPS at $10.65-$10.75, up from $9.90-$10.10
SAIC reiterates FY27 free cash flow guidance of over $600 mln

Result Drivers
CONTRACT VOLUME AND ACQUISITION - Revenue growth was driven by ramp up in volume on existing and new contracts and $20 mln contribution from SilverEdge acquisition, partially offset by contract completions
IMPROVED CONTRACT PROFITABILITY - Operating income margin increased due to improved profitability across contract portfolio and lower costs related to federal tax audits in prior year
HIGHER SG&A EXPENSES - Adjusted EBITDA margin declined due to higher selling, general and administrative expenses, including recovery of costs from patent settlement in prior year

Company press release: ID:nGNXbCqV2M

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$1.88 bln
$1.77 bln (9 Analysts)
Q2 Adjusted EPS
Beat
$3.01
$2.31 (9 Analysts)
Q2 EPS
 
$2.38
 
Q2 Net Income
 
$102 mln
 
Q2 Adjusted EBITDA
Beat
$193 mln
$173.68 mln (8 Analysts)
Q2 Adjusted Operating Income
Beat
$191 mln
$146.63 mln (9 Analysts)
Q2 Operating Income
 
$152 mln
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 8 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the it services & consulting peer group is "buy."
Wall Street's median 12-month price target for Science Applications International Corp is $125.00, about 0.8% below its August 28 closing price of $125.96
The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 10 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)