SAIC stock rises after strong earnings report.
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 02 2025
0mins
Should l Buy SAIC?
Source: SeekingAlpha
Science Applications International Corp's stock surged by 17.37%, crossing above its 5-day SMA following a positive earnings report.
The company reported Q3 revenues of $1.87 billion, a 6% decline year-over-year, but exceeded adjusted EPS expectations with $2.58 compared to the anticipated $2.15. Despite the revenue drop, SAIC raised its fiscal year 2026 guidance, indicating confidence in future growth.
This positive market reaction reflects investor optimism about SAIC's ability to navigate challenges and capitalize on new contracts, suggesting potential for continued stock performance improvement.
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Analyst Views on SAIC
Wall Street analysts forecast SAIC stock price to rise
6 Analyst Rating
2 Buy
4 Hold
0 Sell
Moderate Buy
Current: 90.520
Low
113.00
Averages
122.00
High
128.00
Current: 90.520
Low
113.00
Averages
122.00
High
128.00
About SAIC
Science Applications International Corporation is a technology integrator providing full life cycle services and solutions in the technical, engineering and enterprise information technology (IT) markets. The Company's portfolio of offerings across the defense, space, civilian and intelligence markets include secure solutions in mission IT, enterprise IT, engineering services and professional services. It integrates emerging technology securely into mission critical operations that modernize and enable critical national imperatives, including IT modernization, digital engineering, artificial intelligence and ground vehicle support. Its segments include Defense and Intelligence, and Civilian. Defense and Intelligence segment provides a diverse portfolio of national security solutions to the Department of Defense and Intelligence Community of the United States Government. Civilian segment provides solutions to the civilian markets, encompassing federal, state, and local governments.
About the author

Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Potential Impact Warning: Microsoft warned that without the order, tech companies would need to immediately alter existing product and contract configurations with the Defense Department, which could hinder U.S. warfighters' capabilities at a critical time, highlighting the close ties between technology and defense.
- Investment Background: Microsoft announced plans to invest up to $5 billion in Anthropic last November, demonstrating its long-term confidence in the company and reflecting its strategic positioning in the AI sector, particularly in defense-related technology applications.
- Negotiation Breakdown: Despite recent negotiations between Anthropic and the Defense Department over contract terms, talks collapsed due to disagreements on model usage, escalating tensions and impacting Anthropic's business outlook.
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- AI Model Expansion: Google announced the introduction of the Agent Designer tool on the Defense Department's GenAI.mil platform, enabling over 3 million military and civilian personnel to create custom AI assistants, which is expected to significantly enhance administrative task efficiency.
- No-Code Tool Application: The new tool will assist users in automating tasks such as drafting meeting notes, creating action items, and breaking down large projects into step-by-step plans, initially operating on unclassified networks with potential future expansion to classified environments, thereby enhancing the Department's operational capabilities.
- Strengthened Partnership: The DOD's technology chief expressed high confidence in Google's collaboration across all networks, indicating an increasing influence of Google in military applications while reflecting a shift in the DOD's partnerships with other AI providers.
- Industry Tensions: Amid rising tensions in the tech industry regarding military AI usage, Google's AI chief and other employees have backed Anthropic's legal action against the Pentagon, highlighting growing internal concerns and dissent regarding military collaborations.
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- Legal Challenge: Anthropic has filed a lawsuit against the Trump administration, claiming the ban is 'unprecedented and unlawful' and asserting that it causes irreparable harm to the company, potentially threatening its future business prospects.
- Technological Dependence: Despite the shocking decision, many officials view Anthropic's AI models as superior for military applications, particularly in their integration with existing contractors like Palantir, highlighting a significant reliance on this technology.
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- Reputation Damage: The lawsuit emphasizes that Anthropic's reputation and core First Amendment freedoms are under attack, and without judicial relief, these harms will only compound in the coming weeks and months, potentially affecting the company's market position.
- Defense Department Restrictions: President Trump directed federal agencies last month to 'immediately cease' all use of Anthropic's technology, requiring defense contractors to certify they do not use the company's models, further limiting its business opportunities.
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- Ongoing Partnership: Amazon announced it will continue offering Anthropic's AI technology to cloud customers despite the Department of Defense labeling it as a 'supply chain risk', indicating Amazon's commitment to supporting its partners amid regulatory challenges.
- Alternative Support: An AWS spokesperson stated that while work related to the Department of Defense is excluded, customers and partners can continue using Claude for other workloads, demonstrating Amazon's flexibility and adaptability in maintaining customer service.
- Major Strategic Investment: Amazon has invested $8 billion in Anthropic since 2023, solidifying its position as a primary financial backer of the startup and indicating a long-term strategic focus in the AI sector.
- Infrastructure Development: Anthropic has committed to using 500,000 of Amazon's custom-built Trainium 2 chips as part of its $11 billion AWS data center project, Rainier, which not only strengthens their commercial relationship but also enhances Amazon's competitiveness in the cloud computing market.
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- Legal Challenge: Anthropic CEO Dario Amodei confirmed that the U.S. government designated his company as a supply chain risk on Thursday, forcing the company to legally contest this designation, highlighting the tense relationship with the Department of Defense that could impact future government contract opportunities.
- Blacklist Impact: As the only American company publicly named a supply chain risk, Anthropic's technology will be excluded from use by defense contractors in collaboration with the Pentagon, a decision that could severely affect its market share and revenue prospects.
- Investor Response: Despite the blacklist, Microsoft plans to invest up to $5 billion in Anthropic, indicating that its products remain available to customers unrelated to the Department of Defense, potentially providing the company with some financial support amidst the turmoil.
- Internal Tensions: Amodei apologized for a leaked internal memo that criticized the Trump administration, revealing the company's fragile position in the political landscape, which may adversely affect its future business development.
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