SAIC Lands Nearly $1 Billion Contract To Modernize US Air Force
SAIC Secures Major Defense Contract: Science Applications International Corporation (SAIC) shares increased after the company won a $928 million contract for the HOPE 2.0 initiative under the U.S. Air Force, aimed at enhancing military capabilities through rapid prototyping and advanced technology integration.
Project Goals and Collaboration: The HOPE 2.0 project will improve decision-making and operational systems for the Air Force, involving collaboration with various defense firms to support military and intelligence agencies, while aligning with national defense priorities and innovation strategies.
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SAIC Issues Revenue Guidance Revision, Stock Declines
- Earnings Warning: SAIC anticipates fourth-quarter revenue of approximately $1.745 billion and adjusted EPS between $2.30 and $2.50, reflecting procurement delays and unfavorable customer award outcomes, leading to a 12.10% drop in stock price to $86.08.
- Guidance Downgrade: The company has revised its FY26 revenue forecast to about $7.26 billion, down from the previous guidance of $7.275 billion to $7.325 billion, while FY27 is now expected to see an organic revenue decline, indicating challenges in the market environment.
- Margin Improvement: Despite the revenue decline, SAIC expects margins to exceed earlier guidance due to improved efficiency and mix; however, adjusted EBITDA is projected to be lower as reduced revenue offsets margin gains, highlighting a conflict between revenue and profitability.
- Management Outlook: CFO Prabu Natarajan stated that the company will focus more selectively on customer opportunities with potential for technology transformation, expressing confidence in returning to growth with solid double-digit margins over time.
SAIC Releases Preliminary FY26 Financial Results and FY27 Guidance
- Financial Performance Warning: SAIC announced preliminary financial results for Q4 and FY26, with expected revenue around $7.26 billion, below prior guidance of $7.275-$7.325 billion due to procurement delays and unfavorable customer award decisions, indicating significant market pressures.
- Profitability Adjustments: Despite the revenue downgrade, SAIC's adjusted EBITDA is projected at $705 million, up from previous expectations of $695 million, reflecting positive operational efficiency and lower tax rates, potentially laying the groundwork for future profit growth.
- FY27 Outlook: The company updated its FY27 guidance, now expecting revenue to decline by 4%-2%, compared to previous growth expectations of 0%-3%, highlighting ongoing market challenges, although adjusted EBITDA is expected to rise to $705-$715 million, indicating efforts in cost control.
- Strategic Transformation Plan: SAIC aims to enhance investment capacity through a bottoms-up enterprise transformation program, focusing on customer opportunities with technology transformation potential, aiming for long-term sustainable profit growth despite short-term revenue pressures.
Guess, JinkoSolar, and SAIC: Strong Income Stocks to Consider
- Guess, Inc. Earnings Estimate Rise: Over the past 60 days, Guess, Inc. has seen its current year earnings estimate increase by 5.6%, indicating strong growth potential in the lifestyle and apparel sector, which is likely to drive stock price appreciation.
- Guess, Inc. Dividend Yield: The company boasts a dividend yield of 5.4%, significantly higher than the industry average of 0.0%, making it an attractive option for income-seeking investors and enhancing its market appeal.
- JinkoSolar Earnings Estimate Surge: JinkoSolar has experienced a 39.3% increase in its current year earnings estimate over the past 60 days, reflecting robust performance and demand in the solar energy sector, which is expected to propel future growth.
- JinkoSolar Dividend Yield: The company currently offers a dividend yield of 4.4%, also above the industry average of 0.0%, further solidifying its attractiveness as an income investment choice.
Pentagon Accelerates Unmanned Platform Deployment with $8 Billion Budget Approval
- Budget Increase: Congress approved an $8 billion defense budget, allocating $1.5 billion specifically for artificial intelligence and autonomous systems, indicating a strong commitment to unmanned platforms that is expected to drive growth for related companies.
- Market Outlook: The military unmanned systems market is projected to reach $76.05 billion by 2035, with a 10.5% annual growth rate, providing significant market opportunities for defense contractors.
- Technology Integration: VisionWave Holdings signed a letter of intent with Evie Autonomous to explore a £500,000 Proof-of-Concept program aimed at integrating autonomous vehicle technology into its Unmanned Ground Vehicle platforms, anticipated to commence in 2026.
- Acquisition Strategy: VisionWave completed the acquisition of Solar Drone Ltd., involving 1.8 million shares of common stock, which will enhance its competitiveness in both defense and solar operations markets, supporting its multi-domain autonomy strategy.
Insider Buying Update for Wednesday, December 17: ELAN and SAIC
Elanco Animal Health Insider Purchase: Lawrence Erik Kurzius purchased 10,000 shares of Elanco Animal Health (ELAN) at $21.30 each, totaling $213,000, and saw a 6.4% gain during the trading session, despite ELAN being down 1.7% on Wednesday.
Previous Purchase by Kurzius: Prior to this transaction, Kurzius bought shares worth $211,000 at a price of $10.55 each within the last year.
Science Applications International Insider Purchase: EVP and CFO Prabu Natarajan acquired 2,000 shares of Science Applications International for $200,976 at $100.49 each, with the stock up 2.4% on Wednesday.
Previous Purchase by Natarajan: Natarajan had previously purchased shares worth $219,098 at a price of $109.55 each in the past year.
Validea's Leading IT Stocks According to Joel Greenblatt - December 17, 2025
Top Rated IT Stocks: The article highlights the top-rated Information Technology stocks according to Validea's Earnings Yield Investor model, which is based on Joel Greenblatt's investment strategy focusing on high return on capital and earnings yields.
Science Applications International Corp (SAIC): SAIC is rated 90% based on its fundamentals and valuation, indicating strong interest. It provides technology integration services across defense, space, civilian, and intelligence markets.
Dell Technologies Inc (DELL): DELL is rated 80% and operates in the Computer Hardware industry, offering a range of solutions for digital transformation, including AI and data analytics, through its Infrastructure Solutions and Client Solutions segments.
Leidos Holdings Inc (LDOS) and InterDigital Inc (IDCC): Both companies are rated 60%, with LDOS focusing on national security and health services, while IDCC specializes in wireless and video technologies, emphasizing AI research and development.
SAIC Issues Revenue Guidance Revision, Stock Declines
- Earnings Warning: SAIC anticipates fourth-quarter revenue of approximately $1.745 billion and adjusted EPS between $2.30 and $2.50, reflecting procurement delays and unfavorable customer award outcomes, leading to a 12.10% drop in stock price to $86.08.
- Guidance Downgrade: The company has revised its FY26 revenue forecast to about $7.26 billion, down from the previous guidance of $7.275 billion to $7.325 billion, while FY27 is now expected to see an organic revenue decline, indicating challenges in the market environment.
- Margin Improvement: Despite the revenue decline, SAIC expects margins to exceed earlier guidance due to improved efficiency and mix; however, adjusted EBITDA is projected to be lower as reduced revenue offsets margin gains, highlighting a conflict between revenue and profitability.
- Management Outlook: CFO Prabu Natarajan stated that the company will focus more selectively on customer opportunities with potential for technology transformation, expressing confidence in returning to growth with solid double-digit margins over time.
SAIC Releases Preliminary FY26 Financial Results and FY27 Guidance
- Financial Performance Warning: SAIC announced preliminary financial results for Q4 and FY26, with expected revenue around $7.26 billion, below prior guidance of $7.275-$7.325 billion due to procurement delays and unfavorable customer award decisions, indicating significant market pressures.
- Profitability Adjustments: Despite the revenue downgrade, SAIC's adjusted EBITDA is projected at $705 million, up from previous expectations of $695 million, reflecting positive operational efficiency and lower tax rates, potentially laying the groundwork for future profit growth.
- FY27 Outlook: The company updated its FY27 guidance, now expecting revenue to decline by 4%-2%, compared to previous growth expectations of 0%-3%, highlighting ongoing market challenges, although adjusted EBITDA is expected to rise to $705-$715 million, indicating efforts in cost control.
- Strategic Transformation Plan: SAIC aims to enhance investment capacity through a bottoms-up enterprise transformation program, focusing on customer opportunities with technology transformation potential, aiming for long-term sustainable profit growth despite short-term revenue pressures.
Guess, JinkoSolar, and SAIC: Strong Income Stocks to Consider
- Guess, Inc. Earnings Estimate Rise: Over the past 60 days, Guess, Inc. has seen its current year earnings estimate increase by 5.6%, indicating strong growth potential in the lifestyle and apparel sector, which is likely to drive stock price appreciation.
- Guess, Inc. Dividend Yield: The company boasts a dividend yield of 5.4%, significantly higher than the industry average of 0.0%, making it an attractive option for income-seeking investors and enhancing its market appeal.
- JinkoSolar Earnings Estimate Surge: JinkoSolar has experienced a 39.3% increase in its current year earnings estimate over the past 60 days, reflecting robust performance and demand in the solar energy sector, which is expected to propel future growth.
- JinkoSolar Dividend Yield: The company currently offers a dividend yield of 4.4%, also above the industry average of 0.0%, further solidifying its attractiveness as an income investment choice.
Pentagon Accelerates Unmanned Platform Deployment with $8 Billion Budget Approval
- Budget Increase: Congress approved an $8 billion defense budget, allocating $1.5 billion specifically for artificial intelligence and autonomous systems, indicating a strong commitment to unmanned platforms that is expected to drive growth for related companies.
- Market Outlook: The military unmanned systems market is projected to reach $76.05 billion by 2035, with a 10.5% annual growth rate, providing significant market opportunities for defense contractors.
- Technology Integration: VisionWave Holdings signed a letter of intent with Evie Autonomous to explore a £500,000 Proof-of-Concept program aimed at integrating autonomous vehicle technology into its Unmanned Ground Vehicle platforms, anticipated to commence in 2026.
- Acquisition Strategy: VisionWave completed the acquisition of Solar Drone Ltd., involving 1.8 million shares of common stock, which will enhance its competitiveness in both defense and solar operations markets, supporting its multi-domain autonomy strategy.
Insider Buying Update for Wednesday, December 17: ELAN and SAIC
Elanco Animal Health Insider Purchase: Lawrence Erik Kurzius purchased 10,000 shares of Elanco Animal Health (ELAN) at $21.30 each, totaling $213,000, and saw a 6.4% gain during the trading session, despite ELAN being down 1.7% on Wednesday.
Previous Purchase by Kurzius: Prior to this transaction, Kurzius bought shares worth $211,000 at a price of $10.55 each within the last year.
Science Applications International Insider Purchase: EVP and CFO Prabu Natarajan acquired 2,000 shares of Science Applications International for $200,976 at $100.49 each, with the stock up 2.4% on Wednesday.
Previous Purchase by Natarajan: Natarajan had previously purchased shares worth $219,098 at a price of $109.55 each in the past year.
Validea's Leading IT Stocks According to Joel Greenblatt - December 17, 2025
Top Rated IT Stocks: The article highlights the top-rated Information Technology stocks according to Validea's Earnings Yield Investor model, which is based on Joel Greenblatt's investment strategy focusing on high return on capital and earnings yields.
Science Applications International Corp (SAIC): SAIC is rated 90% based on its fundamentals and valuation, indicating strong interest. It provides technology integration services across defense, space, civilian, and intelligence markets.
Dell Technologies Inc (DELL): DELL is rated 80% and operates in the Computer Hardware industry, offering a range of solutions for digital transformation, including AI and data analytics, through its Infrastructure Solutions and Client Solutions segments.
Leidos Holdings Inc (LDOS) and InterDigital Inc (IDCC): Both companies are rated 60%, with LDOS focusing on national security and health services, while IDCC specializes in wireless and video technologies, emphasizing AI research and development.
