Science Applications Intl Corp (SAIC)
NASDAQIndustrialsInformation Technology ServicesSnapshot 2026-09-04
$126.75+0.20%
Close 2026-09-04 · 1-day change
NASDAQIndustrialsInformation Technology ServicesSnapshot 2026-09-04
Intact: The reason to own it still holds.
SAIC beats earnings with a 42% EPS surprise and raised revenue guidance to $7.0-$7.2 billion for fiscal 2027. Free cash flow is targeted above $600 million, supporting capital returns. The dividend is stable at $0.37 per share. The company benefits from strong contract wins and board expertise.
Revenue growth is weak with recent declines and guidance cuts. Management is volatile with executive departures. The sector faces headwinds and the stock trades cheap for a reason. Profit growth may disappoint and free cash flow targets may not be met.
The price is about 26% below our fair value near $155, reflecting justified caution with expected flat revenue growth. Our fair value is well above the Street median, indicating upside if SAIC meets its targets.
Breaks if: Dividend per share falls below $0.37
Continue paying quarterly dividends at $0.37 per share, subject to Board approval based on earnings and financial condition.
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
SAIC represents a durable compounder with a focus on long-term growth and margin expansion. The current thesis state is intact, supported by recent strong financial performance, but it is under pressure from sector headwinds.
The market appears to price SAIC as a cheap option compared to its peers, reflecting a justified valuation. There is a slight expectations gap, indicating that investors may not fully anticipate the potential for future growth.
Management is on track to drive long-term growth and margin expansion, as evidenced by recent revenue increases and improved operating margins. However, the mixed status of free cash flow and dividend maintenance suggests some caution in execution.
The thesis hinges on the performance of sector bellwethers like BR, LDOS, and CACI. If these companies continue to perform well, it could support SAIC's growth; however, any negative shifts could impact SAIC's momentum.
The most important moves since the prior daily snapshot.
Yes, our read has strengthened. The latest earnings beat supports long-term growth and margin expansion. Strong execution has driven a guidance raise, reinforcing the positive outlook.
as of 2026-09-04
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Stated as a priority in 4 of last 4 quarters. Dividend per share has been consistently maintained at $0.37 from 2025-Q4 through 2026-Q3. The Board has declared quarterly dividends at this rate each quarter, reflecting consistent delivery on this capital allocation priority.
“Board declared cash dividend of $0.37 per share payable October 23, 2026.”
“Board declared cash dividend of $0.37 per share payable July 24, 2026.”
“Board declared cash dividend of $0.37 per share payable April 24, 2026.”
“Board declared cash dividend of $0.37 per share payable January 2026.”
Breaks if: Free cash flow falls below $600 million in fiscal 2027
Breaks if: Significant executive departures or leadership instability
Breaks if: Fiscal year 2027 revenue falls below $7.0 billion
In the next 1 to 3 years, SAIC's performance will depend on its ability to navigate sector challenges while maintaining its growth trajectory. Not investment advice.