Science Applications International Corporation (SAIC)

Science Applications International Corporation (SAIC) Technology Profile & Competitive Position

Science Applications International Corporation delivers technical, engineering, and IT solutions primarily to the U.S. government. Specializing in IT modernization, cloud migration, and infrastructure management, SAIC supports defense, intelligence, and federal civilian agencies, positioning itself as a key partner in government technology initiatives with a dividend yield of 1.58%.

What Is the Investment Thesis for SAIC?

SAIC presents a stable investment opportunity within the government IT services sector, driven by consistent demand from U.S. federal agencies and the military. The company's focus on IT modernization, cloud migration, and infrastructure management aligns with the government's ongoing efforts to update its technological capabilities. SAIC's profit margin of 4.9% and gross margin of 12.0% reflect its ability to maintain profitability in a competitive market. A beta of 0.30 indicates lower volatility compared to the broader market. Key catalysts include ongoing government contracts and potential expansion into new service areas. Potential risks include dependence on government spending and competition from larger IT service providers. The company's dividend yield of 1.58% offers a modest return for investors.

Based on FMP financials and quantitative analysis

SAIC Key Highlights

• Market capitalization of $4.84B, reflecting a substantial presence in the IT services market.
• P/E ratio of 11.8, suggesting a potentially undervalued stock compared to its earnings.
• Profit margin of 4.9%, indicating consistent profitability in its operations.
• Gross margin of 12.0%, reflecting the efficiency of its service delivery.
• Beta of 0.30, suggesting lower volatility compared to the overall market, making it a potentially stable investment.

Who Are SAIC's Competitors?

SAIC is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are SAIC's Key Strengths?

• Strong relationships with U.S. government agencies
• Expertise in government IT requirements and security
• Diversified service offerings
• Established track record of successful project delivery

What Are SAIC's Weaknesses?

• Dependence on government contracts
• Relatively low gross margin compared to some competitors
• Limited geographic diversification
• Potential for budget cuts affecting government spending

What Could Drive SAIC Stock Higher?

• Continued demand for IT modernization from U.S. government agencies.
• Expansion of cloud computing initiatives within the federal sector.
• Potential new government contracts in cybersecurity and defense.
• Strategic acquisitions to expand service offerings and market reach.

What Are the Key Risks for SAIC?

• Dependence on U.S. government spending and budget fluctuations.
• Competition from larger IT service providers with greater resources.
• Technological obsolescence and the need for continuous innovation.
• Cybersecurity threats and the need for robust security measures.

What Are the Growth Opportunities for SAIC?

• Expansion of Cloud Services: The increasing adoption of cloud computing by government agencies presents a significant growth opportunity for SAIC. As agencies migrate their IT infrastructure to the cloud, SAIC can leverage its expertise in cloud migration, managed services, and infrastructure modernization to secure new contracts and expand its market share. This market is expected to grow as agencies seek to improve efficiency and reduce costs. SAIC can capitalize on this trend by offering tailored cloud solutions that meet the specific needs of government clients.
• IT Modernization Initiatives: The U.S. government's ongoing efforts to modernize its IT infrastructure represent a substantial growth opportunity for SAIC. With its expertise in IT modernization, SAIC can assist government agencies in upgrading their legacy systems, improving cybersecurity, and enhancing operational efficiency. The demand for IT modernization services is expected to remain strong as agencies strive to keep pace with technological advancements and address emerging threats. SAIC's established relationships with government clients position it favorably to capture a significant share of this market.
• Cybersecurity Solutions: The increasing frequency and sophistication of cyberattacks targeting government agencies and critical infrastructure create a growing demand for cybersecurity solutions. SAIC can leverage its expertise in cybersecurity to provide government clients with advanced threat detection, prevention, and response capabilities. The cybersecurity market is expected to experience rapid growth as organizations prioritize the protection of their sensitive data and systems. SAIC's focus on government clients positions it well to capitalize on this trend.
• Training and Simulation Services: SAIC's training and simulation services offer a growth opportunity by providing realistic and cost-effective training solutions for military and government personnel. As defense budgets evolve and training requirements become more complex, the demand for advanced simulation technologies is expected to increase. SAIC can expand its market share by developing innovative training programs that leverage virtual reality, augmented reality, and artificial intelligence to enhance the learning experience and improve operational readiness.
• Geographic Expansion within the U.S. Federal Sector: While SAIC primarily serves the U.S. government, there are opportunities to expand its services to additional federal agencies and departments. By targeting agencies with unmet IT needs and demonstrating its expertise in delivering customized solutions, SAIC can diversify its client base and reduce its reliance on existing contracts. This expansion strategy can involve establishing new partnerships, participating in government procurement programs, and showcasing successful case studies to attract new clients.

What Opportunities Does SAIC Have?

• Expansion of cloud services for government agencies
• Growth in cybersecurity solutions
• Increased demand for IT modernization
• Development of advanced training and simulation technologies

What Threats Does SAIC Face?

• Competition from larger IT service providers
• Changes in government spending priorities
• Technological obsolescence
• Economic downturn affecting government budgets

What Are SAIC's Competitive Advantages?

• Established relationships with U.S. government agencies.
• Specialized expertise in government IT requirements.
• Strong track record of delivering successful IT projects.
• High barriers to entry due to security clearances and regulatory compliance.

What Does SAIC Do?

Science Applications International Corporation (SAIC) was founded in 1969 and is headquartered in Reston, Virginia. Originally known as SAIC Gemini, Inc., the company rebranded to Science Applications International Corporation in September 2013. SAIC provides a range of technical, engineering, and enterprise IT services, primarily serving the U.S. government. Its offerings include engineering, technology integration, IT modernization, maintenance of ground and maritime systems, logistics, training and simulation, and operation and program support services. SAIC delivers end-to-end services, encompassing the design, development, integration, deployment, management, operations, sustainment, and security of its customers' IT infrastructure. These services extend to cloud migration, managed services, infrastructure modernization, and enterprise IT-as-a-service solutions. SAIC's clientele includes the U.S. military (Army, Air Force, Navy, Marines, and Coast Guard), Department of Defense agencies, NASA, the U.S. Department of State, Department of Justice, Department of Homeland Security, and various intelligence community agencies, as well as U.S. federal civilian agencies. With a market capitalization of $4.84B, SAIC has established itself as a significant player in the government IT services sector.

What Products and Services Does SAIC Offer?

• Provides technical, engineering, and enterprise IT services.
• Offers IT modernization and cloud migration services.
• Maintains ground and maritime systems.
• Provides logistics, training, and simulation services.
• Offers operation and program support services.
• Designs, develops, integrates, and deploys IT infrastructure.
• Manages and operates IT systems for clients.
• Ensures the security of IT infrastructure.

How Does SAIC Make Money?

• Provides IT services to U.S. government agencies and military branches.
• Secures contracts for specific projects and long-term service agreements.
• Generates revenue through service fees and project-based payments.
• Focuses on delivering customized IT solutions to meet client needs.

What Industry Does SAIC Operate In?

SAIC operates in the information technology services industry, which is characterized by rapid technological advancements and increasing demand for IT modernization and cloud solutions. The U.S. government is a major client in this sector, driving demand for specialized IT services. The industry is competitive, with players like Vicor Corporation (VICR), Silicon Laboratories Inc. (SLAB), Ingram Micro Holding Corporation (INGM), Avnet, Inc. (AVT), and NIQ Global Intelligence Plc (NIQ) vying for market share. SAIC's focus on government contracts positions it within a niche segment of the IT services market, offering stability and consistent revenue streams.

Who Are SAIC's Key Customers?

• U.S. military (Army, Air Force, Navy, Marines, and Coast Guard)
• Department of Defense agencies
• NASA
• U.S. Department of State
• Department of Justice
• Department of Homeland Security
• Various intelligence community agencies
• U.S. federal civilian agencies

How Science Applications International Corporation Is Valued

Science Applications International Corporation carries a market capitalization of $4.84B, placing it in the mid-cap category. Relative to its peer group, SAIC's quantitative score of 70/100 is roughly in line with the peer average of 65/100.

ROE 27%Key Financial Metrics

Return on equity for Science Applications International Corporation stands at 27.2%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 7.6%, showing how much profit it generates from its asset base. SAIC trades at a trailing price-to-earnings ratio of 11.80, below the Technology sector average of ~38x. Its free cash flow yield is 13.0%, a gauge of the cash the business throws off relative to its market value. A current ratio of 1.16 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 8.5%, the inverse of the P/E and a quick read on earnings relative to price.

F-Score 7/9Financial Health

Science Applications International Corporation's Piotroski F-Score is 7/9, a 9-point checklist of profitability, leverage and efficiency — signaling solid underlying fundamentals. Its Altman Z-Score of 2.85 places it in the grey zone, a middle ground that warrants monitoring.

FY2026 estForward Outlook

Wall Street analysts project Science Applications International Corporation revenue of about $7.28B for fiscal 2026, with EPS near $10.09. The estimate reflects 3 contributing analysts.

Net buyingInsider Activity

Over the past six months, Science Applications International Corporation insiders filed 28 SEC Form 4 transactions — 13 sales and 15 purchases. On net that is roughly 58K shares acquired (about $783K) — insiders putting money in tends to read as conviction.

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Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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