Science Applications International Corp. shares reached a new 52-week high of $129.84 on Thursday, extending a recent rally that has pushed the defense contractor’s stock up 28% this year.
Stifel lifted its price target on SAIC to $137 from $120 while maintaining a Buy rating, citing the company’s performance in its first fiscal quarter of 2027. The stock has gained 39% over the past six months, outpacing broader market gains in the defense sector.
SAIC reported first-quarter revenue of $1.91 billion, exceeding the $1.82 billion estimate, and earnings per share of $3.23, surpassing the forecasted $2.28. Organic revenue growth stood at 0.5%, with total revenue rising 1.5% year-over-year. The company’s market capitalization remains near $5.5 billion.
Valuation metrics show a trailing price-to-earnings ratio of 14.55 and a price/earnings-to-growth ratio of 0.54, indicating a relatively low earnings multiple compared with peers. SAIC’s defense-focused business has benefited from sustained government spending, though growth in organic revenue has remained modest.
The stock’s recent strength follows broader investor appetite for defense contractors, which have seen increased demand amid geopolitical tensions and elevated defense budgets. SAIC’s performance has also drawn attention from algorithmic trading tools, which have flagged historical gains of over 200% for comparables such as Siemens Energy and Sandisk in past trades, though such data points are not predictive of future results.
The shares were last trading at $129.84, up 0.4% on the day.
