Science Applications International Corp. (NASDAQ:SAIC) stock rose Monday after the government services contractor reported fiscal second-quarter 2027 results that topped Wall Street estimates and raised its full-year profit outlook.

SAIC Revenue, Earnings Beat Expectations

Revenue rose 6.3% year over year to $1.88 billion, exceeding the analyst consensus estimate of $1.77 billion, primarily due to ramp up in volume on existing and new contracts and from the acquisition of SilverEdge Government Solutions of $20 million, partially offset by contract completions. Adjusting for the impact of acquisitions, revenues grew by approximately 5.3%.

Adjusted earnings per share came in at $3.01, well above estimates of $2.31.

SAIC, which provides technical, engineering and enterprise IT services to defense, intelligence, civilian and space customers, also delivered stronger profitability during the quarter.

Operating income increased 9% to $152 million, while operating margin expanded 20 basis points to 8.1%, due to improved profitability across its contract portfolio and costs related to the settlement of federal tax audits in the prior year, partially offset by higher selling, general and administrative expenses, including recovery of costs from the settlement of a patent infringement matter in the prior year.

Adjusted operating income rose 5% to $191 million. However, the margin slid by 10 basis points to 10.2%.

Adjusted EBITDA climbed 4% to $193 million. However, the margin dipped 20 basis points to 10.3%.

Net bookings totaled approximately $1.2 billion, representing a book-to-bill ratio of 0.6.

Operating cash flow reached $146 million, while free cash flow was $131 million.

During the quarter, SAIC deployed $106 million of capital, consisting of $90 million of plan share repurchases and $16 million in cash dividends.

Subsequent to quarter end, on August 14, 2026, SAIC amended the MARPA to increase the aggregate facility limit from $300 million to $400 million.

SAIC ended the quarter with an estimated backlog of $22.1 billion, including $3.8 billion of funded backlog. Cash and cash equivalents stood at $126 million as of July 31, 2026.

Quarterly Dividend Declared

The Board of Directors declared a quarterly cash dividend of 37 cents per share payable on October 23, 2026, to stockholders of record on October 9, 2026. 

SAIC Outlook Raised

SAIC raised its fiscal 2027 adjusted EPS outlook to a range of $10.65 to $10.75 (up from previous guidance of $9.90 to $10.10). The new guidance exceeds the analyst consensus estimate of $10.18.

The company increased its fiscal 2027 revenue guidance to a range $7.2 billion to $7.3 billion (up from prior forecast of $7 billion to $7.2 billion), compared with analyst expectations of $7.19 billion.

SAIC also expanded its adjusted EBITDA forecast to $750 million to $755 million (up from previous guidance of $720 million-$730 million) and affirmed its expectation for free cash flow of more than $600 million.

SAIC Price Action: Science Applications Intl shares were up 7.45% to $135.34 at the time of publication on Monday. The stock is trading at a new 52-week high, according to Benzinga Pro data.

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