Shares of Science Applications International Corp (SAIC) tumbled 8.98% in Monday's trading session following the release of its fiscal first-quarter earnings report for 2026. The significant drop came as the government services contractor posted mixed results, with an earnings miss overshadowing a slight revenue beat.

For the quarter ended May 2, SAIC reported adjusted earnings of $1.92 per share, falling short of analyst expectations. While estimates varied, the consensus ranged from $2.12 to $2.22 per share, indicating a substantial miss on the bottom line. This disappointing figure likely contributed significantly to the stock's sharp 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.

Despite the earnings setback, SAIC's management remains optimistic about the company's outlook. They reaffirmed the fiscal year 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 investor concerns in the immediate aftermath of the earnings release, as evidenced by the steep stock price decline.