SAIC Exceeds Q3 Earnings Expectations: Can Robust FY26 Forecast Boost Stock Price?
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 05 2025
0mins
Source: NASDAQ.COM
Third-Quarter Financial Performance: Science Applications International Corporation (SAIC) reported non-GAAP earnings of $2.58 per share for Q3 fiscal 2026, exceeding estimates but down slightly from the previous year. Revenues declined 5.6% year-over-year to $1.87 billion, yet still surpassed expectations.
Stock Performance and Guidance: Following the earnings report, SAIC shares rose 16.3%. The company raised its fiscal 2026 revenue guidance to between $7.275 billion and $7.325 billion, and adjusted EPS expectations to $9.80-$10.00, indicating a positive outlook despite a projected year-over-year revenue decline.
Segment Revenue Breakdown: Defence and Intelligence revenues, making up 77.1% of total revenues, fell 5% year-over-year to $1.44 billion, while Civilian revenues decreased by 7.4% to $427 million. The company reported a book-to-bill ratio of 1.2 and an estimated backlog of $23.8 billion.
Financial Metrics and Shareholder Returns: SAIC's SG&A expenses rose by 21.7%, and adjusted EBITDA decreased by 6.1%. The company repurchased $95 million in shares and paid $17 million in dividends during the quarter, with free cash flow for fiscal 2026 expected to exceed $550 million.
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Analyst Views on SAIC
Wall Street analysts forecast SAIC stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for SAIC is 122.00 USD with a low forecast of 113.00 USD and a high forecast of 128.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
6 Analyst Rating
2 Buy
4 Hold
0 Sell
Moderate Buy
Current: 103.550
Low
113.00
Averages
122.00
High
128.00
Current: 103.550
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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