SAIC Should I Buy
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Science Applications International Corp (SAIC) is not a strong buy at the moment for a beginner, long-term investor with $50,000-$100,000 to invest. The company is facing significant headwinds, including declining revenue, reduced guidance, and bearish technical indicators. While there are some positive catalysts such as insider buying and improved operational efficiency, the overall sentiment and financial performance do not align with a strong long-term investment opportunity at this time.
The technical indicators are bearish. The MACD histogram is negative and expanding, RSI is at 13.694 indicating oversold conditions, and moving averages show a bearish trend (SMA_200 > SMA_20 > SMA_5). The stock is trading below key support levels, with S1 at 84.849 and S2 at 79.855, suggesting further downside risk.
Insider buying has increased significantly by 162.56% over the last month, indicating confidence from company insiders.
The company is focusing on operational efficiency and selective customer opportunities to improve margins.
Declining revenue and reduced FY26 and FY27 guidance.
Persistent government IT headwinds and increased competition.
Bearish analyst sentiment with Goldman Sachs lowering the price target to $82 and maintaining a Sell rating.
Weak technical indicators and bearish trend.
In Q3 2026, revenue dropped by 5.57% YoY to $1.866 billion, net income declined by 26.42% YoY to $78 million, and EPS fell by 20.66% YoY to $1.69. While gross margin improved slightly to 12.17%, the overall financial performance reflects significant challenges.
Analyst sentiment is mixed but leans negative. Goldman Sachs has a Sell rating and lowered its price target to $82 due to declining revenue and government IT headwinds. Other firms like Citi and UBS have more neutral to positive views but emphasize uncertainties in revenue growth and long-term earnings potential.
