SAIC Should I Buy
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Science Applications International Corp (SAIC) is not a strong buy for a beginner, long-term investor at this moment. The stock shows bearish technical indicators, declining financial performance, and mixed analyst sentiment. While there are some positive catalysts such as the recent $75.2 million contract, the overall outlook is weighed down by declining revenue and net income, as well as limited upside potential in the near term.
The technical indicators for SAIC are bearish. The MACD histogram is negative and contracting, the RSI is neutral at 46.954, and the moving averages indicate a bearish trend (SMA_200 > SMA_20 > SMA_5). The stock is trading near its pivot level of 94.748, with resistance at 97.254 and support at 92.242.
SAIC recently secured a $75.2 million contract with the Naval Air Systems Command, which strengthens its position in the defense market.
The dismantling of USAID has led to job losses and reduced federal funding, indirectly impacting SAIC's market environment. Additionally, the company's financial performance is declining, with revenue down 4.79% YoY and net income down 13.27% YoY. Analyst sentiment is mixed, with multiple firms lowering price targets.
In Q4 2026, SAIC reported declining financials: revenue dropped 4.79% YoY to $1.75 billion, net income fell 13.27% YoY to $85 million, and EPS decreased 6.47% YoY to 1.88. However, gross margin slightly improved to 12.63%, up 0.08% YoY.
Analyst sentiment is mixed. JPMorgan, Citi, and Stifel maintain Buy or Overweight ratings but have lowered price targets. Jefferies and Truist have Hold ratings with reduced price targets, and Goldman Sachs has a Sell rating with a price target of $82, citing declining revenue and government spending headwinds.
