Shares of Science Applications International Corp (SAIC) plummeted 8.98% in Monday's pre-market trading session following the release of its fiscal first-quarter earnings report. The government services contractor posted mixed results, with an earnings miss overshadowing a slight revenue beat, raising concerns among investors.

For the quarter ended May 2, SAIC reported adjusted earnings of $1.92 per share, falling significantly short of the FactSet consensus estimate of $2.12. This disappointing figure likely contributed heavily to the stock's pre-market decline. On a more positive note, the company's revenue for the quarter came in at $1.88 billion, marginally surpassing analysts' expectations of $1.87 billion.

Adding to investor concerns, SAIC reported a negative free cash flow of $44 million for the quarter, primarily attributed to the timing of receivables on two programs. This resulted in approximately $75 million shifting out of the first quarter. Despite these challenges, the company maintained its full-year fiscal 2026 guidance, projecting adjusted earnings per share in the range of $9.10 to $9.30 and revenue between $7.60 billion and $7.75 billion. CEO Toni Townes-Whitley commented on the results, stating, "Our performance in the first quarter reflects the steady progress we are making against our enterprise growth strategy despite a still dynamic operating environment." However, this reassurance seems to have done little to assuage immediate investor concerns.