Science Applications International Corporation (NASDAQ:SAIC) shares are trading lower on Wednesday after it released preliminary numbers and revised guidance.
The results and outlook reflect procurement delays and unfavorable customer award outcomes, which are expected to lower FY26 and FY27 revenue versus prior guidance.
• Science Applications Intl stock is among today’s weakest performers. Why is SAIC stock dropping?
Details
The company sees revenue of ~$1.745 billion and adjusted EPS of $2.30-$2.50 in the fourth quarter.
For FY26, the company expects revenue of ~$7.26 billion (versus prior guidance of $7.275 billion-$7.325 billion and adjusted EPS of $10.40-$10.60 (versus earlier guidance of $9.80-$10).
Guidance Revised
The company now forecasts an organic revenue decline in fiscal 2027, versus prior expectations of modest growth.
Meanwhile, margins are expected to exceed earlier guidance on improved efficiency and mix, though adjusted EBITDA is now projected to be lower as reduced revenue more than offsets margin gains.
Overall, the company lowered its outlook for revenue to $7 billion-$7.2 billion (versus $7.35 billion-$7.55 billion prior).
Management Commentary
“The revenue pressures we have seen recently are disproportionately within our portfolio of larger and commoditized Enterprise IT programs. Going forward, we will be more selective by focusing on customer opportunities with the potential for technology transformation and execution upside. We’re confident in our ability to return to growth with solid double-digit margins over time,” said CFO Prabu Natarajan.
The company plans to release full fourth quarter FY26 results on March 16, 2026.
SAIC Price Action: Science Applications International shares are down 12.10% at $86.08 at publication on Wednesday.
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