By Connor Hart
Science Applications International cut its fiscal-year revenue outlook, citing slower on-contract growth and continued delays in new business awards and program ramps that are contributing to a more challenging environment.
Chief Executive Toni Townes-Whitley said Thursday the information-technology services provider is responding by aligning its cost structure, while sustaining key investments expected to drive long-term value creation.
The company now expects revenue of $7.25 billion to $7.33 billion in fiscal 2026, down from a prior outlook of $7.6 billion to $7.75 billion. Despite that cut, it raised its adjusted earnings per share outlook to between $9.40 and $9.60, from $9.10 to $9.30.
"Our revised guidance assumes that the operating environment remains stable but does not improve this year," Townes-Whitley said. "We believe that this more cautious outlook is prudent, and we are confident in our ability to execute against it."
Analysts polled by FactSet are expecting adjusted earnings of $9.20 a share on sales of $7.66 billion.
Shares fell 7.4% to $105.64 in premarket trading.
For its fiscal second quarter ended Aug. 1, Science Application posted a profit of $127 million, or $2.71 a share, up from $81 million, or $1.58 a share, a year earlier. Adjusted per share earnings were $3.63, ahead of the $2.23 that analysts had forecast.
Revenue fell 2.7% to $1.77 billion and missed the $1.86 billion that Wall Street modeled. The company attributed the decrease largely to contract completions and a ramp down in volume on existing contracts.
Write to Connor Hart at connor.hart@wsj.com
(END) Dow Jones Newswires
September 04, 2025 08:17 ET (12:17 GMT)
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