Science Applications International (SAIC) moved into focus after fiscal Q3 2026 earnings exceeded EPS estimates despite lower revenue, with management pointing to the government shutdown and some analysts describing the company as an undervalued tech name for 2026.

The latest fiscal Q3 2026 results come after a solid run in the share price, with a 30 day share price return of 7.14% and a 90 day share price return of 17.06%, while the 1 year total shareholder return of 2.46% points to more modest gains over a longer holding period.

If SAIC’s recent move has you looking across defense and government IT, it could be a useful moment to scan other aerospace and defense stocks for similar trends.

On one hand, SAIC is being talked about as an undervalued tech name with an intrinsic value estimate well above its US$110.14 share price. On the other hand, recent gains raise a fair question: is there still a buying opportunity here, or is the market already pricing in future growth?

Most Popular Narrative: 2.9% Undervalued

The most followed narrative puts Science Applications International’s fair value at $113.38, just above the last close of $110.14. This keeps the valuation debate finely balanced.

The company's strategic focus on differentiated, high growth capabilities in areas such as mission integration, digital transformation, and advanced IT modernization positions SAIC to benefit from the government's ongoing push to update legacy systems, likely accelerating top line growth as procurement normalizes. A robust pipeline and strong book to bill ratios, along with sustained win rates in recompetes and pending award backlogs, provide significant building blocks for revenue recovery and long term expansion once current government funding delays and efficiency initiatives subside.

Curious how a modest revenue outlook can still support that higher fair value? The narrative leans on a specific mix of cash flow strength, margin assumptions, and a future earnings multiple that is lower than many peers. Want to see exactly how those moving parts are wired together and what has to go right for the story to hold?

Result: Fair Value of $113.38 (UNDERVALUED)

However, this hinges on federal IT budgets and contract timing, with tighter spending and slower awards potentially pressuring SAIC’s revenue, margins, and long term relevance.

Build Your Own Science Applications International Narrative

If this version of the story does not entirely match your view of SAIC, you can test the assumptions yourself and create a new perspective in minutes, Do it your way.

A great starting point for your Science Applications International research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

Looking for more investment ideas?

If SAIC has sharpened your interest, do not stop here. Use this momentum to line up a few more candidates that fit the kind of portfolio you want.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.