Science Applications International Corporation (SAIC) AI Stock Analysis

NASDAQ: SAICAI research summary: business, growth, valuation, analysts, bull and bear case.

SAIC AI stock analysis summary

AI Research

Science Applications International Corporation (SAIC) is a U.S. government IT and engineering services provider with a market capitalization of $5.58B. Over the trailing twelve months, the company generated $7.40B in revenue and an EPS of $8.57. SAIC trades at a forward P/E of 10.6x while managing net debt of $2.58B as of July 31, 2026.

Market cap
$5.58B
Revenue (TTM)
$7.40B
P/E
15.5x
fwd 10.6x
1Y return
39.2%
S&P 500 16.8%
Avg. target
$132.56
-0.4% vs last close

Bull case

  • In FY2026, free cash flow rose to $577.0M from $458.0M in FY2025, enabling $445.0M in share buybacks.
  • The company trades at a forward P/E of 10.6x and EV to EBITDA of 10.9x, well below the US-listed Technology peer medians of 18.8x and 16.6x.
  • Diluted EPS increased to $10.75 in FY2026 from $7.26 in FY2022, aided by a 26.2% reduction in share count over 5 years.

Bear case

  • Revenue growth has been sluggish, with a 5-year CAGR of 0.6% and a 2.9% revenue decline in FY2026.
  • The balance sheet carries significant leverage, with net debt of $2.58B and a debt-to-equity ratio of 1.88 as of July 31, 2026.
  • For the quarter ended July 31, 2026, quarterly earnings fell 12.2% year-over-year.

What Science Applications International does

Science Applications International Corporation (SAIC) provides technical, engineering, and enterprise information technology services primarily within the United States. Its offerings include engineering solutions, technology integration, IT modernization, logistics, training, simulation, and maintenance for ground and maritime systems. SAIC supports the complete lifecycle of IT infrastructure, delivering cloud migration, managed services, and enterprise IT-as-a-service. Headquartered in Reston, Virginia, SAIC primarily serves the U.S. military—including the Army, Air Force, Navy, Marines, and Coast Guard—alongside NASA, the Department of Defense, Homeland Security, and other federal civilian and intelligence agencies.

Growth and profitability

In FY2026, SAIC reported revenue of $7.26B, down 2.9% compared to $7.48B in FY2025 and $7.44B in FY2024. Over the 5-year period from FY2021 to FY2026, revenue CAGR was 0.6%. Despite top-line contraction, gross margin expanded to 12.1% in FY2026 from 11.9% in FY2025 and 11.6% in FY2022. Operating margin reached 7.2% in FY2026, while net income was $358.0M with diluted EPS rising to $10.75, supported by share reductions. Over the trailing twelve months, revenue was $7.40B with an operating margin of 8.1%. For the latest quarter ended July 31, 2026, quarterly revenue grew 6.3% year-over-year, while quarterly earnings declined 12.2%.

SAIC income statement →

Balance sheet and cash flow

As of July 31, 2026, SAIC held $126.0M in cash and short-term investments against $2.71B in total debt, resulting in net debt of $2.58B. The company recorded a current ratio of 1.20 and a debt-to-equity ratio of 1.88 on shareholders' equity of $1.44B. In FY2026, operating cash flow reached $609.0M and free cash flow stood at $577.0M. Capital expenditures totaled $32.0M, while cash returned to shareholders included $445.0M in share buybacks and $70.0M in dividends paid.

SAIC balance sheet →

Valuation and performance

At a share price of $133.07, SAIC trades at a trailing P/E of 15.5x and a forward P/E of 10.6x, compared to medians of 28.1x and 18.8x for US-listed Technology peers. The company has an EV to EBITDA ratio of 10.9x and a price-to-sales ratio of 0.8x, both below the peer medians of 16.6x and 2.8x. Over the past year, SAIC returned 39.2%, outperforming the S&P 500 return of 16.8%. However, its 5-year return of 58.0% trails the S&P 500 5-year return of 83.0%.

SAIC key metrics →

SAIC dividend

SAIC pays an annual forward dividend of $1.48 per share, representing a 1.11% dividend yield. The payout ratio stands at 12.9%, with dividends distributed on a quarterly frequency. SAIC has maintained 14 consecutive years of dividend payments, though its 5-year annualized dividend growth is 0.0%. The last ex-dividend date was October 9, 2026.

SAIC dividend history →

What analysts expect

Wall Street sentiment includes 2 Strong Buy, 7 Hold, and 1 Strong Sell ratings. The mean price target is $132.56, representing a 0.4% discount to the last close of $133.07. For the fiscal year ending January 31, 2027, analysts estimate EPS of $10.81 on revenue of $7.30B. SAIC has beaten EPS estimates in 4 of the last 4 quarters, and its next earnings date is December 3, 2026.

SAIC forecast and price target →

Key risks and what to watch

  • Quarterly earnings contracted 12.2% in the latest quarter ending July 31, 2026, highlighting near-term profit volatility.
  • Total debt of $2.71B significantly exceeds the cash balance of $126.0M, posing financial sensitivity.
  • Top-line expansion remains low, with analysts projecting just 1.4% revenue growth for the fiscal year ending after FY2027.

AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer

About this SAIC AI stock analysis

This page is an AI-written research summary of Science Applications International Corporation (SAIC). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: SAIC income statement, SAIC balance sheet, SAIC key metrics, SAIC analyst forecast, SAIC chart. See the SAIC stock overview for the latest quote and news.

SAIC AI stock analysis FAQ

What does SAIC do?

Science Applications International Corporation provides technical, engineering, and IT modernization services primarily to the U.S. government, including the military, Department of Defense, NASA, and intelligence agencies.

Does SAIC pay a dividend?

Yes, SAIC pays a quarterly dividend with an annual forward payout of $1.48 per share, yielding 1.11% with a 12.9% payout ratio.

What is SAIC's debt level?

As of July 31, 2026, SAIC held $2.71B in total debt and $126.0M in cash and short-term investments, resulting in net debt of $2.58B and a debt-to-equity ratio of 1.88.

When does SAIC report earnings next?

SAIC is scheduled to report earnings on December 3, 2026.

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