Science Applications International's perfect four-quarter earnings beat streak with an average 38.6% positive surprise and a PEG of 0.12 make a compelling valuation case, but near-complete revenue concentration in U.S. government contracts creates binary risk from budget negotiations and program cancellations.
Thesis pillars
- Government Concentration Binary Risk→Stable
- Attractive Peg Ratio↑Improving
- Consistent Earnings Beats↑Improving
- +1 more pillar — see the Why tab for full reasoning
Science Applications Internatio (SAIC) Stock Analysis
Range Bound setup
Technology · Information Technology Services
Hold if already holding. Not a fresh buy at $126.50, but acceptable to hold if already in. Reasons: Concentration risk — Customer: U.S. government (98.0%); Concentration risk — Customer: Department of War (52.0%).
Science Applications International Corporation provides technical, engineering, and IT services to US government agencies across defense, intelligence, and civilian markets, operating through approximately 1,700 active contracts with roughly 23,000 employees. The company derives... Read more
Hold if already holding. Not a fresh buy at $126.50, but acceptable to hold if already in. Reasons: Concentration risk — Customer: U.S. government (98.0%); Concentration risk — Customer: Department of War (52.0%). Chart setup: RSI 50 mid-range, Bollinger mid-band. Multiple concerning factors. Consider reducing position. | News modifier +1 (SELL_IF_HOLDING → HOLD_IF_HOLDING) Score 5.9/10, high confidence.
Passes 8/11 gates (positive momentum, clean insider activity, news boost earnings 0.80, news boost analyst 0.50, news boost analyst cluster(4), earnings proximity 89d clear, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio. Suitability: moderate.
About Science Applications Internatio
About Science Applications Internatio
Science Applications International Corporation generated revenues with 98% attributable to US government contracts in fiscal 2026, split approximately 52% from the Department of War and 46% from intelligence and other federal agencies. The company served customers through roughly 1,700 active contracts and task orders as of January 30, 2026, employing approximately 23,000 people — more than 25% of whom are active military or veterans. On October 15, 2025, the company acquired SilverEdge Government Solutions to expand mission-focused technology capabilities.
SAIC earns revenue under cost-reimbursable (62% of fiscal 2026 revenues), time-and-materials (22%), and firm-fixed price (16%) contracts — a mix that generally yields lower margins than FFP-heavy peers. The company's two reportable segments are Defense and Intelligence (serving the Department of War and Intelligence Community) and Civilian (serving federal, state, and local governments). Competitors named by the company include General Dynamics, Lockheed Martin, Northrop Grumman, Booz Allen Hamilton, Leidos, and CACI International in the defense IT space, as well as commercial providers Accenture, Deloitte, and IBM. The workforce holds predominantly active security clearances, a structural requirement for classified work that commercial entrants cannot rapidly replicate. Effective January 31, 2026, SAIC consolidated its five business groups into three as part of an internal reorganization designed to simplify operations.
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SAIC's 98% US government revenue concentration means that continuing resolution periods — which prevent new spending initiatives — can delay contract awards and impair near-term cash flow. The 10-K specifically flags potential Department of Homeland Security funding impasse through September 30, 2026 as a scenario that could cause the company to incur labor costs without reimbursement. The DoW's new Acquisition Transformation Strategy, which prioritizes speed and may shift toward longer-term contract structures and R&D-based other transaction authority agreements, could reshape SAIC's competitive position on new awards. In June 2026, the company disclosed via Form 8-K the departure of its EVP for the Civilian Business Group in connection with this reorganization.
See also: Technology · Information Technology Services
From Science Applications Internatio's most recent 10-K filing, extracted June 11, 2026.
Recent developments
updated 2026-09-04Recent Developments — Science Applications Internatio
Latest news
- NEWS Science Applications International: A 'Show Me' Story, But Cheap Enough To Bank On (SAIC) - Seeking Alpha — Seeking Alpha positive
- NEWS Why Science Applications International (SAIC) Is Up 11.8% After Raising Profit Outlook And Reshaping Portfolio - simplyw — simplywall.st positive
- NEWS Science Applications International (NASDAQ:SAIC) Stock Price Expected to Rise, JPMorgan Chase & Co. Analyst Says - Marke — MarketBeat positive
- NEWS Science Applications International Corporation Q1 2027 Result: Why a 42% EPS Beat Points to a New Earnings Floor - TIKR. — TIKR.com positive
- NEWS Science Applications International: I'm Buying The Discount (Upgrade) (NASDAQ:SAIC) - Seeking Alpha — Seeking Alpha positive
Generated 2026-09-04T12:07:09Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- HIGHCustomerU.S. government98%10-K Item 1A: 'We generated 98% of our total revenues during each of the last three fiscal years from contracts with the U.S. government'
- HIGHCustomerDepartment of War52%10-K Item 1: 'approximately 52% of our total revenues were attributable to the ... Department of War'
Material Events(8-K, last 90d)
- 2026-06-01Item 5.02MEDIUMSrinivas Attili, EVP Civilian Business Group, stepped down May 29, 2026 and departs on or about June 12, 2026 in connection with an internal reorganization. Receives severance per Section 5 of executive severance policy; two-year post-employment non-compete applies. No successor named.SEC filing →
- 2026-04-09Item 5.02LOWPaul Eremenko (CEO/Co-Founder of P-1 AI) and Admiral Michael Rogers, USN Retired, appointed to the Board effective April 8, 2026. Board expanded from 11 to 13 members; both join Audit and Technology Committees.SEC filing →
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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Rating Breakdown
10 dimensions · all in-band
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Hold if already holding. Not a fresh buy at $126.50, but acceptable to hold if already in. Reasons: Concentration risk — Customer: U.S. government (98.0%); Concentration risk — Customer: Department of War (52.0%). Chart setup: RSI 50 mid-range, Bollinger mid-band. Multiple concerning factors. Consider reducing position. | News modifier +1 (SELL_IF_HOLDING → HOLD_IF_HOLDING) Target $139.81 (+10.5%), stop $118.92 (−6.4%), A.R:R -1.1:1. Score 5.9/10, high confidence.
Take-profit target: $139.81 (-8.7% upside). Target $139.81 (+10.5%), stop $118.92 (−6.4%), A.R:R -1.1:1. Stop-loss: $118.92.
Concentration risk — Customer: U.S. government (98.0%); Concentration risk — Customer: Department of War (52.0%); Analyst target reached - limited upside remaining.
Science Applications Internatio trades at a P/E of 14.8 (forward 11.2). TrendMatrix value score: 7.8/10. Verdict: Hold.
17 analysts cover SAIC with a consensus score of 3.6/5. Average price target: $133.
What does Science Applications Internatio do?Science Applications International Corporation provides technical, engineering, and IT services to US government...
Science Applications International Corporation provides technical, engineering, and IT services to US government agencies across defense, intelligence, and civilian markets, operating through approximately 1,700 active contracts with roughly 23,000 employees. The company derives 98% of revenues from US government contracts, with 52% attributable to the Department of War and 46% to intelligence and other federal agencies.