Investment analysts at Zacks Research have revised their earnings per share (EPS) estimates for Science Applications International Corp. (NYSE: SAIC), projecting a more optimistic outlook for the fiscal year 2026. In a research note released on December 24, 2023, Zacks increased its EPS estimate from $9.58 to $9.83, reflecting confidence in the information technology services provider’s performance.
The updated forecast indicates a significant improvement over the current consensus estimate of $8.27 per share for the full year. Zacks has also shared detailed projections for quarterly earnings, estimating $1.70 EPS for Q4 2026, which will be followed by $2.17 EPS in Q1 2027, $2.30 EPS in Q2 2027, and $2.46 EPS in Q3 2027. The forecast for Q4 2027 stands at $2.58 EPS, culminating in a fiscal year 2027 projection of $9.51 EPS. Looking further ahead, FY2028 earnings are expected to reach $10.16 EPS.
In its most recent earnings report on December 4, 2023, Science Applications International announced an EPS of $2.58 for the quarter, surpassing the consensus estimate of $2.07 by $0.51. The company reported revenues of $1.87 billion, aligning with analyst expectations but reflecting a 5.6% decline compared to the same quarter the previous year. The net margin was recorded at 4.11%, with a return on equity of 24.18%.
Stock Performance and Dividend Announcement
As of Monday, shares of Science Applications International opened at $103.35. The company’s stock has fluctuated between a twelve-month low of $84.15 and a high of $124.11. It currently has a market capitalization of $4.66 billion, a price-to-earnings (P/E) ratio of 17.43, and a beta of 0.30. The firm has also set its FY2026 guidance for EPS between $9.800 and $10.000.
In a recent development, Science Applications International announced a quarterly dividend of $0.37 per share, which will be distributed on January 28, 2024. Shareholders of record as of January 14, 2024 will be eligible for this dividend, which translates to an annualized dividend of $1.48 and a yield of 1.4%. The ex-dividend date is also set for January 14, 2024, with the company’s dividend payout ratio currently at 18.93%.
Insider Purchases and Institutional Activity
In related news, CEO James Reagan recently acquired 1,000 shares of the company’s stock on December 16, 2023, at an average price of $100.17 per share, totaling $100,170. After this purchase, Reagan’s stake in the company increased by 3.93%, bringing his total holdings to 26,460 shares, valued at approximately $2,650,498.20. This transaction was disclosed in a filing with the U.S. Securities and Exchange Commission (SEC).
Institutional investors have also been active in reshaping their positions in Science Applications International. Notably, Mitsubishi UFJ Asset Management Co. Ltd. boosted its stake by 324.1% in the second quarter, now owning 246 shares valued at $28,000. Other institutions, including Quent Capital LLC and Wexford Capital LP, have established new positions worth approximately $29,000 each. Currently, institutional investors hold 76.00% of the company’s stock.
Science Applications International Corp. has a long-standing history as a technology integrator, providing a variety of engineering, systems integration, and information technology services mainly to U.S. government clients. Founded in 1969 by J. Robert Beyster, the company has established itself in sectors such as defense, intelligence, and health, offering solutions that address mission-critical requirements.
With its core capabilities in systems engineering, cloud computing, and cybersecurity, Science Applications International is well-positioned to continue its role as a key player in the technology services sector.
