SAIC Q4 Earnings: Beating Estimates and Driving Growth- Intellectia AI™

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2025-03-174mins

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Science Applications International Corp Earnings

Science Applications International Corporation (SAIC) delivered a robust performance in the fourth quarter and full fiscal year of 2025, outperforming financial estimates and setting a positive outlook for the upcoming year. As a premier Fortune 500 technology integrator, SAIC plays a crucial role in advancing digital transformation across defense, space, civilian, and intelligence markets. The latest earnings report highlights SAIC's strategic prowess and ability to navigate challenging market dynamics, underscoring its continued focus on revenue growth, profitability improvement, and shareholder returns.

Science Applications International Corp Results

The company reported significant financial metrics that underscore its successful quarter and fiscal year performance. Below is a summary of the key financial results:

Financial Metric	Q4 FY25	Q4 FY24	FY25	FY24
Total Revenue (in billions)	$1.84	N/A	$7.48	N/A
Net Income (in millions)	$98	N/A	$362	N/A
Diluted EPS	$2.00	$0.74	$7.17	$8.88
Adjusted Diluted EPS(1)	$2.57	$1.43	$9.13	$7.88
Operating Income (%)	7.5%	4.5%	N/A	N/A
Adjusted EBITDA(1) Margin	9.6%	7.3%	N/A	N/A

Total Revenue : Q4 FY25 saw an increase of $101 million in revenues compared to the prior year, reflecting a 5.8% organic growth mainly due to enhanced volumes from new and existing contracts.
Net Income : For Q4 FY25, SAIC reported a net income of $98 million, demonstrating a substantial improvement from the previous year.
Earnings Per Share : The diluted EPS for Q4 FY25 stood at $2.00, reflecting a significant rise from $0.74 in the previous year, and FY25's adjusted diluted EPS saw a rise from $7.88 to $9.13.

Revenue Breakdown

SAIC's revenue performance across its major segments is presented below:

Segment	Q4 FY25 Revenue (in millions)	Q4 FY24 Revenue (in millions)	% Increase YoY
Defense and Intelligence	$1,208	$1,200	0.6%
Civilian	$480	$387	24%

Segment Performance Analysis

Defense and Intelligence : Although revenue in this segment increased slightly by $8 million, the growth was constrained by prior year contract completions and the sale of the Supply Chain Business, resulting in an overall growth of 1.7% after adjustment for divestiture impacts.
Civilian : The civilian segment achieved robust growth with a 24% increase in revenue, driven by the expansion of volume on existing contracts.

Key Developments

SAIC continues to demonstrate its strategic strength with major contract awards, enhancing its future revenue prospects and reinforcing its market position. - System Software Lifecycle Engineering Program : Post-quarter close, SAIC secured a $1.8 billion recompete award, its largest in recent years, emphasizing the firm's competitive prowess. - Defense Readiness Reporting System (DRRS) Sustainment : A notable $187 million task order was won, tasking SAIC with modernizing DRRS, thereby significantly contributing to its backlog, which stood at approximately $21.9 billion at FY25 end.

Comments from Company Officers

Toni Townes-Whitley, SAIC's CEO, expressed pride in the company's accomplishments, stating: "I am proud of the results we delivered in the quarter with revenue, adjusted EBITDA, adjusted earnings per share, and free cash flow ahead of guidance. This important win along with a backlog of submitted bids valued at approximately $20 billion reflects the momentum we are building inside the company."

Dividends and Share Repurchases

SAIC remains committed to delivering value to its shareholders with significant capital deployment for dividends and share repurchases. - Dividends : The Board declared a $0.37 per share quarterly dividend, payable on April 25, 2025, showcasing SAIC's commitment to regular shareholder returns. - Share Repurchases : SAIC repurchased shares worth $130 million in Q4, contributing to a total share repurchase of $527 million for FY25.

Science Applications International Corp Stock Forecast

Analyzing SAIC's commendable financial performance, strategic contracts, and robust market position gives rise to an optimistic stock forecast. The stock price is anticipated to move within a range based on SAIC's continuous improvement in revenue and profitability margins, coupled with strong guidance for FY26.

High Projection : The stock could potentially reach higher levels if the company continues securing substantial contracts and maintains its profitability, bolstering investor confidence.
Low Projection : Conversely, any delays in contract execution or market vulnerabilities may temper the stock’s movement, though the firm's strategic initiatives present a buffer against significant downturns.

In conclusion, SAIC's Q4 and FY25 performance strongly positions the company for further success, reflecting resilient operational strategy and robust execution in the technology integration space. With significant contract wins enhancing backlog and strategic initiatives underway, SAIC is poised for continued growth in FY26, offering an optimistic outlook for investors.