Science Applications International Corp. (SAIC) shares surged 7% in pre-market trading on Monday after the defense and IT contractor reported second-quarter adjusted earnings that exceeded analyst expectations and raised its fiscal 2027 guidance.
The Reston, Virginia-based company posted adjusted earnings per share (EPS) of $3.01 for the quarter ended August 30, up 30% from the $2.31 consensus estimate among analysts. Revenue totaled $1.88 billion, a 6.3% increase from $1.77 billion in the same period a year earlier and above the $1.76 billion estimate. Adjusted EBITDA margin expanded to 10.3% from 9.6% in the prior-year quarter, while organic growth reached 5%.
SAIC also raised its fiscal 2027 guidance, projecting adjusted EPS in a range of $10.65 to $10.75, compared with the prior guidance of $10.50 to $10.60 and the current consensus of $9.95. Revenue guidance was increased to $7.2 billion to $7.3 billion from $7.0 billion to $7.2 billion, while adjusted EBITDA guidance was raised to $750 million to $755 million from $720 million to $730 million. The company maintained its target of generating more than $14 in free cash flow per share for fiscal 2027.
Long-term targets included an adjusted EBITDA margin of approximately 11% by fiscal 2030, supported by initiatives such as Project ORBIT, a multi-year program expected to contribute $150 million to growth and margin expansion. Management cited margin improvements, the SilverEdge Systems acquisition, one-time materials revenue, and sustained on-contract growth as key drivers, alongside favorable government spending trends.
SAIC’s stock, which closed at $125.96 on August 28, was indicated at $127.50 in after-hours trading, up 1.22%.
