Science Applications International Corporation — Cyborg Score 5/10
Mixed
Government IT and Systems Integration
Strategic Profile
SAIC is a Fortune 500 technology integrator driving digital transformation across the defense, space, civilian, and intelligence markets. The company is leveraging artificial intelligence to drive efficiency across operations, expected to be a tailwind for margins and customer savings. However, the company expects fiscal year 2027 revenue to organically decline due to unfavorable recompete award decisions.
Cyborg Score Rationale
Fiscal 2026 net income was $358 million with adjusted diluted EPS of $10.75, and free cash flow rose to $577 million, demonstrating strong profitability and cash generation. However, revenue declined 3% to $7.26 billion and SAIC's revenue is pressured by lost contracts, backlog declines, and weakening revenue momentum with multi-year growth headwinds in a tougher federal funding backdrop.
Top Insights
Backlog reached $22.6 billion with fiscal 2027 revenue guidance of $7.0–$7.2 billion and free cash flow above $600 million
SAIC achieved a book-to-bill ratio comfortably over 1.0 with year-to-date book-to-bill of 1.4, indicating strong future revenue potential despite near-term challenges
Paul Eremenko, CEO of P-1 AI focused on agentic AI for complex systems engineering, joined the Board in April 2026, strengthening AI and technology expertise
Analysts reflect caution around exposure to federal IT spending shifts and specific contract risks, with price targets reduced 10-15% in 2026
Named Competitors
Leidos Holdings — Leading IT and engineering services for defense and intelligence
Booz Allen Hamilton — Management and IT consulting for defense and government
Serco Group — Government services and IT solutions provider
Thales Group — Aerospace, defense, and security technology
Recent Developments
(June 2026) Annual shareholder meeting held; Board dividend of $0.37 declared for early 2026 payment
(April 2026) Appointed Paul Eremenko (P-1 AI CEO) and retired Navy Adm. Michael Rogers to Board, expanding from 11 to 13 members
(February 2026) Announced preliminary results with revenue guidance reduction due to government shutdown, procurement delays, and unfavorable contract award decisions
(December 2025) Appointed Ravi Dankanikote as Chief Growth Officer
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