SAIC Shares Soar 17% After Q1 Beats, Raises FY27 EPS Forecast
SAIC•Science Applications International reported Q1 revenue of $1.9B and adjusted EPS of $3.23, surpassing estimates by $100M and $0.95 per share. The company raised its fiscal 2027 adjusted earnings guidance to $9.90–$10.10 per share while maintaining $7.0–$7.2B revenue guidance.
1. Q1 Financial Outperformance
Science Applications International generated Q1 revenue of $1.9 billion, exceeding the $1.8 billion consensus estimate, and delivered adjusted earnings of $3.23 per share versus $2.28 expected. Net bookings reached $2.1 billion and free cash flow totaled $118 million.
2. Fiscal Year 2027 Guidance
Management maintained fiscal 2027 revenue guidance of $7.0 to $7.2 billion while raising adjusted earnings forecasts to $9.90–$10.10 per share from a prior $9.50–$9.70 range. The updated outlook reflects confidence in profitability despite a cautious stance on top-line growth.
3. Headwind and Caution from CFO
The failed Ritz recompete contract is projected to impose a $200 million headwind, now deferred to the third quarter after protest adjudication. CFO commentary highlighted a measured approach to a dynamic environment and expected on-contract growth of just 2–3%, below prior 6–8% rates.
